What is a Solar Plant?
For purposes of the Uniform Capacity Tax (UCT), a group of solar-generating facilities is considered one plant if the group is part of the same project and uses common equipment and infrastructure such as roads, control facilities, and connections to the electric grid. Each plant should have one CPG for the entire plant.
Solar Plants Subject to the Uniform Capacity Tax
You are required to pay the tax and file Form SE-603, Solar Energy Capacity Tax with the Vermont Department of Taxes if all of the following apply to you:
- you own an operating solar plant;
- the plant has a capacity of 50 kW or more; and
- the plant was in operation as of December 31.
The UCT is imposed at a rate of $4.00 per kW of plant capacity. Plant capacity is the aggregate AC nameplate capacity of all inverters used to convert the plant’s output to AC power. The Department uses the rated nameplate capacity stated on the plant’s Certificate of Public Good (CPG) to determine plant capacity unless the taxpayer can demonstrate that another method is more accurate. Owners are required to pay the tax to the Department no later than April 18 of each year. The tax paid on or before the April filing due date is for the prior calendar year.
Implications for Property Tax
Solar plants subject to the UCT are exempt from the statewide education property tax. A municipality may also vote to exempt or stabilize a solar plant for municipal property tax purposes. Municipalities that impose municipal property taxes on solar plants are required to follow a property valuation methodology specified in law. Learn more about how the UCT should be applied.