All of Vermont · Tax exemption

Sales Tax Exemption for Net Metering, Home Energy Systems and Solar Hot Water Systems

Run by Vermont Department of Taxes

Equipment built into a net-metered solar or other renewable system, an off-grid home energy system, or a solar hot water system is exempt from Vermont's 6% sales and use tax. Give the seller Form S-3E.

Open Checked Oct 26, 2026

Amounts

How much you get

You don't pay Vermont's 6% sales or use tax on equipment that will be built into a qualifying system.

Eligibility

Do I qualify?

You need to meet all 2 of these.

  • Your home is in Vermont.

  • The items must be incorporated into a net-metering system; an off-grid home or business energy system of no more than 500 kW that mainly offsets your own electricity use, sits on your premises and uses a renewable source; or a solar hot water system (only the parts needed to capture, convert or store solar energy).

Applying

How to apply

The discount comes off at the register.

  1. Fill in Form S-3E.

    Describe the items and certify they'll be incorporated in a qualifying energy system. Choose single purchase or multiple purchase.

  2. Give the signed certificate to the seller, not the Department of Taxes.

    Ideally before or at the time of sale; the seller has 90 days after the sale to get a completed certificate.

  3. The seller doesn't charge sales tax on the exempt items.

Forms and instructions32 V.S.A. § 9741, Sales not covered · Sales and Use Tax (Vermont Department of Taxes)

Questions about applying(802) 828-2551

Stacking

Use it with

You can get these too.

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does Sales Tax Exemption for Net Metering, Home Energy Systems and Solar Hot Water Systems pay?

You don't pay Vermont's 6% sales or use tax on equipment that will be built into a qualifying system.

Can I combine it with other rebates?

Yes, with Property Tax Exemption for Small Solar and Energy Storage and Town Option Property Tax Exemption for Renewable Energy Sources. See Use it with.

Is it still available?

Yes. It was open when we last checked, on October 26, 2026.

Do I file Form S-3E with the Department of Taxes?

No. You give the completed certificate to the seller, who keeps it for at least three years.

Can one certificate cover several purchases?

Yes. A multiple purchase certificate covers later purchases for the same use, and it must be renewed every three years.

References

Sources

This page is built from these official pages, run by the program itself.

  1. 32 V.S.A. § 9741, Sales not coveredlegislature.vermont.gov · Read Oct 26, 2026 · Re-checked monthly
  2. Form S-3E, Vermont Sales Tax Exemption Certificate for Net Metering, Home or Business Energy Systems or Solar Hot Water Systems (Rev. 08/22)tax.vermont.gov · Read Oct 26, 2026 · Re-checked monthly
  3. Sales and Use Tax (Vermont Department of Taxes)tax.vermont.gov · Read Oct 26, 2026 · Re-checked monthly

When one of these pages changes, we re-check this page against it.

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