Is solar worth it in Vermont?
For a typical Vermont home in 2026, solar is worth it: about a 11.5-year payback and $31,891 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 11.5 yrs6.4 kW, paying cash
- Electricity price
- 23.8¢per kWh, U.S. 18.0¢
- Solar production
- 1,222kWh per kW per year
- Exports credited at
- ~85%Full retail net metering
The numbers for a typical Vermont home
| Electricity use | 588 kWh a month (Vermont average) |
|---|---|
| Best-value system | 6.4 kW, producing 7,818 kWh a year (111% of use) |
| Price | $20,780 at about $3.20/W |
| First-year savings | $1,799 |
| Payback | 11.5 years |
| 25-year net | $31,891 (8.0% a year return) |
| Rate increase assumed | 2.9% a year, from Vermont's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 23.8¢ per kWh over the last 12 months, 32% above the U.S. average (18.0¢).
- Exported solar is typically credited at about 85% of retail, so systems pay best when sized for what you use yourself.
- A typical system here produces about 1,222 kWh per kW per year (ranked #47 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Vermont
Full retail net metering. Vermont net metering credits your solar at a statewide 'blended residential rate' (around 18-21 c/kWh), adjusted up or down by siting and REC adjustors that apply for the first 10 years. Credits roll over but expire after 12 months.
Compensation = statewide blended residential rate (updated every two years) plus/minus siting adjustor and REC adjustor (adjustors expire after 10 years). New Category I/II (small rooftop) systems got a further 1 c/kWh siting-adjustor cut in the May 2026 biennial order.
- Netting: monthly
- Unused credits: Excess bill credits carry forward and expire 12 months after they accrue.
- System size limit: 500 kW
- Fixed charges: Customer charge cannot be offset by credits (applies per utility).
- Last major change: PUC biennial update order May 2026 (Case 26-0291-INV): rejected freezing blended rate and retroactive cuts; cut siting adjustor 1 c/kWh for Category I/II; rates effective ~summer 2026-2028. Prior update 2024-05-30 (effective 2024-08-01).
- Pending: DPS sought a wholesale net-metering rulemaking (e.g., excess at avoided cost ~6-7 c); legislative bills H.716/S.170 in 2026. Watch for rulemaking.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Green Mountain Power | 17¢/kWh | Blended rate +/- adjustors; exact 2026-28 values not verified. |
| Vermont Electric Cooperative | Full retail net metering | Statewide net metering rule. |
| Burlington Electric Department | Full retail net metering | Statewide net metering rule. |
| Washington Electric Cooperative | Full retail net metering | 2026 biennial update tariff filed June 2026. |
Solar incentives in Vermont
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Green Mountain Power battery programs | battery incentive | BYOD upfront payment (~$850-950/kW enrolled, cap ~$10,500) or leased Powerwall (~$55/month or $5,500 upfront, 10 years); requires VPP participation. Verify current terms. Eligibility: GMP customers. | active |
| Sales tax exemption | sales tax exemption | Net-metered solar systems exempt from VT sales tax (32 V.S.A. 9741). Eligibility: Net-metered systems. | active |
| Property tax exemption (small systems) | property tax exemption | Small solar systems (<=50 kW) exempt from the statewide uniform capacity tax and generally from municipal property tax (verify local). Eligibility: Systems <=50 kW. | active |
What solar costs in Vermont
A fair cash price is around $3.20 per watt before incentives. For the 6.4 kW system that fits a typical home, expect roughly $17,400 to $24,600; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 9,399
- Share of homes
- 3.0%
- Residential solar capacity
- 158 MW
- Growth over the past year
- +38.5%
- New systems with a battery
- 0%
- New systems leased or PPA
- 3%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Vermont
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Green Mountain Power | 227,727 | 24.3¢ | 601 kWh/mo | Worth it |
| Vermont Electric Cooperative | 36,019 | 25.4¢ | 567 kWh/mo | Worth it |
| City of Burlington Electric | 17,974 | 20.7¢ | 428 kWh/mo | Close call |
Solar by city in Vermont
Protect yourself when buying
- Check the license. Electrical license via Vermont Division of Fire Safety; residential contractor registration with Office of Professional Regulation for jobs > $10,000 (verify threshold). Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Yes - 27 V.S.A. 544 voids deed restrictions/covenants that prohibit solar (reasonable restrictions allowed).
- Community solar. Yes - group net metering.
Installers active in Vermont
Ranked by installations in public records, not by payment. Volume isn't quality: always check licenses and reviews.
- Suncommon 4,808 installs
- Sunrun 3,313 installs
- Green Mountain Solar 1,328 installs
- Catamount Solar 684 installs
- Tesla Energy 554 installs
- Solaflect Energy 451 installs
- Same Sun Of Vermont 433 installs
- Building Energy 393 installs
- Southern Vermont Solar 216 installs
- Integrity Energy 214 installs
- Allearth Renewable 208 installs
- Freedom Forever 189 installs · bankrupt
- Green Earth Energy 181 installs
- Integrated Solar 181 installs
- Solartech Energy Systems 170 installs
Questions about solar in Vermont
Is solar worth it in Vermont in 2026?
For a typical Vermont home, solar is worth it. A 6.4 kW system costing about $20,780 after state incentives saves about $1,799 in the first year and pays back in about 11.5 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Vermont?
A reasonable cash price is around $3.20 per watt before incentives, or roughly $17,400 to $24,600 for a 6.4 kW system.
Does Vermont have net metering?
Vermont net metering credits your solar at a statewide 'blended residential rate' (around 18-21 c/kWh), adjusted up or down by siting and REC adjustors that apply for the first 10 years. Credits roll over but expire after 12 months.
Is there a solar tax credit in Vermont?
The 30% federal credit for homeowners ended for systems installed after 2025. Vermont does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Vermont?
Electrical license via Vermont Division of Fire Safety; residential contractor registration with Office of Professional Regulation for jobs > $10,000 (verify threshold).. Look up any installer with the state's license search at https://sos.vermont.gov/opr/.
Policy research current as of October 2026; sources include vecan.net, vermontbiz.com, puc.vermont.gov. Electricity data: EIA, through July 2026. Found something out of date? Tell us.