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.
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).
Equipment
What equipment counts
Applying
How to apply
The discount comes off at the register.
- 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.
- 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.
- 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.
All of Vermont
Property Tax Exemption for Small Solar and Energy Storage
Amount varies
In Vermont, a net-metered or off-grid solar system under 50 kW, and a home battery under 600 kWh, are exempt from property tax (the land under them is not). No town vote is needed.
Checked Oct 26, 2026
All of Vermont
Town Option Property Tax Exemption for Renewable Energy Sources
Amount varies
Vermont towns can vote to exempt home renewable energy systems (solar collectors, wind turbines, net-metered systems, methane digesters) from property tax. It applies only where your town has voted for it.
Checked Oct 26, 2026
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
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.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
- 32 V.S.A. § 9741, Sales not covered
- Form S-3E, Vermont Sales Tax Exemption Certificate for Net Metering, Home or Business Energy Systems or Solar Hot Water Systems (Rev. 08/22)
- Sales and Use Tax (Vermont Department of Taxes)
When one of these pages changes, we re-check this page against it.
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