Uniform Capacity Tax
Solar photovoltaic (PV) systems 50 kW or greater have a uniform capacity tax rate of $4.00/kW capacity, while systems less than 50 kW are exempt. Energy storage facilities with a plant energy rating of 600 kWh or greater have a tax rate of $0.50/kWh of plant energy rate, while energy storage facilities with a plant energy rating less than 600 kWh are exempt.
Statewide Education Property Tax
Vermont fully exempts solar PV systems 50 kW or greater from the statewide education property tax. For systems less than 50 kW, the state grants a full exemption only if net-metered OR not connected to the grid. This applies to the equipment, not to the land. Energy storage facilities with an energy rating of 600 kWh or greater are exempt from the statewide education property tax, in addition to facilities with a rating of less than 600 kWh.
Municipal Property Tax
A system with a capacity greater than or equal to 50 kW is taxed unless locally exempt. A system up to 50 kW that is net-metered OR is not connected to the grid is exempt. Energy storage facilities with a plant energy rating of 600 kWh or greater are given an appraisal value of $0.25/kWh unless exempted locally; while facilities with a rating of less than 600 kWh are exempt.
For a discussion of Vermont's property tax system and the recommendations to the legislature prior to this law's enactment, see the January 17, 2012 report by the Vermont Division of Property Valuation and Review and the Vermont Commissioner of Public Service: "Valuation of Renewable Energy Property, Report on the (Sec. 12 of Act 45 of 2011)"