Vermont Solar Panels
Solar in Vermont
Vermont electricity rates sit at 22.14 cents per kWh — well above the national average of 16.6 cents — and they’ve only been climbing. For many Vermont homeowners, solar panels are one of the most practical ways to reduce that burden.
Whether you’re just starting to explore or ready to move forward, this guide covers everything you need to know about solar panel installation in Vermont — from how the technology works to what the process looks like from start to finish.
Vermont Solar Panel Cost
Wondering what solar actually costs in Vermont? We built this calculator using real installation data from homes across the state — from Burlington to Montpelier to Rutland. See your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost) or explore a cash purchase — side by side, in plain numbers.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Vermont electricity rates are 34% above the national average — making solar one of the most practical ways to reduce your monthly energy bill.
- Leasing solar through Palmetto’s LightReach program means no upfront cost, a fixed monthly payment as low as $109/mo, and Palmetto handles all maintenance.
- Vermont offers strong solar incentives including a sales tax exemption, property tax exemption, net metering, and Green Mountain Power rebate programs.
Vermont Electricity Prices
Vermont homeowners are paying more for electricity every year. Here’s what the numbers show — and what some are doing about it.
Vermont’s average electricity rate climbed from 19.3 cents per kWh in 2021 to 22.1 cents in 2024 — a 15% increase in just three years, and nearly 34% above the national average.
Solar panels can offset a significant portion of your home’s electricity use, reducing how much you draw from the grid. The more you generate, the less you’re exposed to future rate increases.
With Palmetto’s LightReach program, you can go solar with no upfront cost and a fixed monthly rate — so rising utility prices don’t have to be your problem anymore. Palmetto owns and maintains the system.
Price of Energy: Vermont vs National Average
Vermont Area Utility Providers
Vermont has one major electric utility: Green Mountain Power. In 2023 — the most recent data available — it charged 21.0¢ per kWh, above Vermont’s state average of 20.80¢ and well above the national average of 16.0¢.
Vermont’s elevated rates reflect the real cost of maintaining grid infrastructure across a rural, mountainous state — delivering power to fewer customers over longer distances naturally pushes prices higher than the national norm.
When your rate is this far above the national average, every kilowatt-hour you generate at home is worth more — which is why many Vermont homeowners find solar a practical way to stabilize their energy costs long term.
Vermont Utilities Electricity Rates
Vermont Solar Incentives
Vermont homeowners have access to a strong set of solar incentives in Vermont — at the state, utility, and local level — that can meaningfully reduce the cost of going solar.
These incentives include a sales tax exemption on solar equipment, a property tax exemption that protects your home’s assessed value, statewide net metering credits, a Vermont state investment tax credit, and additional rebate programs offered through Green Mountain Power — including battery storage incentives.
Note that the federal 30% residential solar tax credit was eliminated by the Big Beautiful Bill. State and local incentives still apply. With a LightReach lease, Palmetto handles the commercial tax credit and passes the savings through via lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Vermont Solar Sales Tax Exemption | Sales Tax Exemption | Vermont exempts solar PV systems up to 500 kW from the state’s 6% sales tax, saving homeowners approximately $1,000 on a typical installation. | Learn More |
| Vermont Solar Property Tax Exemption | Property Tax Exemption | Vermont exempts residential solar systems under 50 kW from property tax assessments, preventing any increase in property taxes due to the added value of solar panels. | Learn More |
| Vermont Net Metering | Net Metering | All Vermont utilities are required to offer net metering, crediting solar customers at near-retail electricity rates for excess energy sent to the grid, significantly reducing monthly electric bills. | Learn More |
| Vermont REC / Solar Generation Incentive Credit (GMP) | Rebate | Green Mountain Power pays solar customers an additional $0.01–$0.04 per kWh for 10 years for their solar generation, on top of standard net metering credits, in exchange for transferring Renewable Energy Certificates (RECs). | Learn More |
| Vermont Investment Tax Credit (State) | Tax Credit | Vermont offers a state-level Investment Tax Credit equal to 24% of the federal ITC claimed, available to individual taxpayers and businesses investing in solar PV or solar hot water systems. | Learn More |
| Green Mountain Power BYOD Battery Incentive Program | Rebate | Green Mountain Power offers upfront cash rebates of up to $10,500 for customers who purchase and install a qualifying home battery storage system and share stored energy with the grid during peak demand events. | Learn More |
| Green Mountain Power Tesla Powerwall Lease Program | Rebate | Green Mountain Power offers eligible residential customers the option to lease two Tesla Powerwall 3 units (or Enphase batteries) for 10 years at $55/month or a one-time $5,500 payment, in exchange for allowing GMP to control the batteries during peak grid events. | Learn More |
Vermont offers a full sales tax exemption on solar photovoltaic (PV) equipment, including panels, inverters, batteries, and associated components for systems up to 500 kW in capacity. With Vermont’s state sales tax rate at 6%, this exemption saves the average homeowner approximately $1,000 on a typical residential solar installation.
The exemption is applied automatically at the point of purchase — you do not need to file any additional paperwork or claim a credit after the fact. Simply work with a licensed Vermont solar installer and the sales tax will not be charged on your qualifying equipment and installation labor.
Important Notice: This sales tax exemption is currently scheduled to expire on June 30, 2026. Homeowners considering solar should act before this deadline to take advantage of the savings. Confirm the latest status with the Vermont Department of Taxes or your installer.
Vermont’s Uniform Capacity Tax (UCT) exemption ensures that homeowners with solar systems under 50 kW do not pay additional property taxes on the value that solar panels add to their home. Since solar can increase a home’s value by roughly 4%, this exemption can save homeowners up to $320 per year in avoided property taxes. The exemption applies to net-metered systems as well as off-grid systems located on the property.
To qualify, your solar system must have a capacity of less than 50 kW and must either be connected to the grid under a net metering arrangement or be entirely off-grid and serving only the property on which it is located. This exemption applies statewide for qualifying systems.
For systems at or above 50 kW, a Uniform Capacity Tax of $4 per kW applies instead. Additionally, Vermont municipalities have the option to offer a separate local property tax exemption for renewable energy systems — check with your town or city government to see if your municipality has adopted this additional local exemption.
Vermont’s net metering policy requires all utilities in the state to offer net metering to solar customers. When your solar panels produce more electricity than your home uses, the excess is sent to the grid and you receive a bill credit at approximately the retail rate of electricity — roughly $0.17–$0.20 per kWh depending on your utility. Green Mountain Power, which serves about 75% of Vermont customers, credits excess generation at approximately $0.1999 per kWh. These credits are applied to future bills when your panels aren’t producing enough to cover your usage, such as at night or during cloudy periods.
Net metering is available for solar systems up to 500 kW in size. A Certificate of Public Good (CPG) from Vermont’s Public Utility Commission is required before installing a net-metered system. Credits must be used within a 12-month rolling period — any credits older than one year will expire, though in practice most homeowners use their credits before they lapse.
Important 2026 Update: Starting in 2026, only on-site systems may qualify for group net metering. Systems that filed a complete application for a Certificate of Public Good on or after January 1, 2026 do not qualify for group (virtual) net metering unless the solar plant is located on the same parcel — or an adjacent parcel — as where the energy is consumed. This change was enacted under Act 179.
Green Mountain Power (GMP) offers an additional monetary incentive to solar customers beyond standard net metering credits. Customers with systems under 15 kW receive an extra $0.01 per kWh for 10 years for all solar energy generated. If the customer agrees to transfer the Renewable Energy Certificates (RECs) associated with their system to GMP, they receive an additional $0.03 per kWh, for a total bonus of $0.04 per kWh on top of their net metering credits.
For larger systems between 15 kW and 150 kW located on designated “preferred sites” — areas where solar generation is most beneficial to the grid — customers may also be eligible for the $0.03/kWh REC adder, bringing the total bonus to $0.04/kWh. This incentive is paid over a 10-year period and can meaningfully improve the financial return on a solar investment.
Note that by transferring your RECs to GMP, you are giving up the ability to independently claim or sell those certificates elsewhere. This program is specific to Green Mountain Power customers. Contact GMP directly to confirm current program terms and eligibility for your system size and location.
Vermont’s Investment Tax Credit (ITC) allows individual taxpayers and businesses to claim a state income tax credit equal to 24% of the federal Investment Tax Credit (ITC) they claim for eligible solar investments. This credit applies to solar photovoltaic (PV) systems and solar hot water systems that qualify for the federal ITC. Because the federal residential ITC (Section 25D) has expired for homeowners as of December 31, 2025, this state credit is now primarily relevant for businesses, commercial solar installations, and third-party owned systems (leases/PPAs) that still qualify for the federal commercial ITC under Sections 48/48E.
For businesses and commercial solar investors who do qualify for the federal ITC, the Vermont state credit provides a meaningful additional financial benefit. For example, if a business claims a 30% federal ITC on a qualifying solar project, Vermont’s credit would add an additional 7.2% (24% of 30%) in state tax credit value on top of the federal benefit.
Individuals and businesses should consult a qualified tax professional to determine their eligibility for both the federal and state credits, as the interaction between the two programs and the impact of the federal credit’s expiration for residential systems can be complex. Contact the Vermont Department of Taxes for the most current guidance.
Green Mountain Power’s Bring Your Own Device (BYOD) program provides upfront cash rebates to GMP customers who purchase and install an eligible home battery storage system and agree to participate in GMP’s virtual power plant (VPP). During peak demand events — which occur a few times per month — GMP can draw on your battery’s stored energy to help stabilize the grid. In exchange, you receive a rebate of $850 per kW of battery capacity if you enroll in a 3-hour daily discharge commitment, or $950 per kW for a 4-hour daily discharge commitment. The maximum rebate is $10,500 per battery system, and the minimum battery size to participate is 5 kW.
An additional $100 per kW bonus is available for customers in high-need grid areas, and this bonus also applies to homeowners who are retrofitting an existing solar array with battery storage. Compatible battery brands include Tesla, Enphase, Duracell, FranklinWH, SolarEdge, Generac, SunPower, Panasonic, Savant, Sonnen, and Electriq — all must be professionally installed and meet GMP’s technical requirements. There is a small monthly communication fee of $3.97 for ongoing program participation.
The current enrollment deadline for the BYOD program is September 30, 2026. This program is available exclusively to Green Mountain Power customers. Contact GMP or visit their website to confirm current program availability, approved installers, and enrollment steps before purchasing a battery system.
Green Mountain Power’s Powerwall Lease Program allows eligible GMP residential customers to have two Tesla Powerwall 3 units (totaling 27 kWh of storage) or two Enphase IQ Battery 10C units (totaling 20 kWh) installed and maintained at their home for a 10-year term. Customers pay either $55 per month or a one-time upfront payment of $5,500. GMP handles installation, maintenance, and warranty service for the duration of the lease. In exchange, GMP retains the ability to control the batteries during peak grid demand events to support grid stability across Vermont.
After the 10-year lease term, customers have the option to keep the batteries for an additional 5 years at no extra cost — a significant added benefit. The Enphase option offers a 15-year warranty (compared to Powerwall’s 10-year), a modular design that allows partial capacity during maintenance, and may have a shorter waitlist. However, the Enphase option provides slightly less total storage capacity (20 kWh vs. 27 kWh).
As of 2026, the GMP Powerwall lease waitlist has over 1,200 people, and wait times can be several months. GMP is actively expanding the program, but demand consistently outpaces installation capacity. This program is available exclusively to Green Mountain Power customers. Visit GMP’s website or call them directly to join the waitlist and confirm current availability.
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Get a Free QuoteVermont Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Vermont’s cold winters and snowy seasons may seem like solar obstacles, but the state’s long summer days and reflective snow actually boost panel efficiency — making solar more viable than you’d think.
What Can the Average Vermont Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average Vermont homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average Vermont homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
See how affordable solar leasing can be for your home
Get a personalized LightReach quote based on your home, energy usage, and roof — no upfront cost required.
Get My Custom EstimateSolar Installations in Vermont
We’ve mapped thousands of real solar installations across Vermont so you can see just how many of your neighbors have already made the switch. Explore the heatmap below to discover the communities and neighborhoods going solar across the Green Mountain State — your street might be closer to solar than you think!
Go Solar with LightReach — No Upfront Cost
For Vermont homeowners, Palmetto offers solar through its LightReach program — a solar lease with no upfront cost. With a lease, you pay a fixed monthly amount (as low as $109/mo for a typical Vermont home) while Palmetto owns, installs, and maintains the system for you. That means no repair bills, no maintenance headaches, and no large cash outlay to get started.
Unlike paying cash — where you’re responsible for system upkeep and no longer qualify for the federal tax credit — LightReach centralizes everything into one simple monthly payment managed by Palmetto. Every plan includes detailed solar mapping and design, premium all-black panels, a high-efficiency inverter, permitting, installation, and comprehensive project management. If your system doesn’t meet Palmetto’s 90% Production Guarantee, you’ll receive a credit for the difference.
LightReach is a straightforward way to go solar without the risk. Since Palmetto Finance owns the system, they hold full responsibility for its performance. Want to understand how leasing compares to buying outright? Learn more about the differences here.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong sense for Vermont homeowners. Electricity rates in Vermont average 22.1¢ per kWh — about 34% above the national average — and have been rising steadily. Vermont also offers solid incentives including a sales tax exemption, property tax exemption, net metering, and Green Mountain Power rebates.
The biggest barrier to going solar is typically upfront cost. Palmetto’s LightReach lease removes that barrier entirely — no upfront investment, a fixed monthly payment as low as $109/mo, and Palmetto owns and maintains the system with a 90% Production Guarantee included.
Yes, Vermont has net metering. All utilities in the state — including Green Mountain Power, which serves about 75% of Vermont customers — are required to offer it. When your solar panels produce more electricity than your home uses, the excess is sent to the grid and you receive a bill credit at approximately the retail rate (~$0.17–$0.20/kWh). Credits roll over monthly and expire after 12 months.
Net metering is available for systems up to 500 kW, and a Certificate of Public Good (CPG) from Vermont’s Public Utility Commission is required before installation. Note that starting in 2026, under Act 179, group (virtual) net metering is limited to on-site or adjacent-parcel systems only.
Yes, solar panels can increase your home’s value in Vermont. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. On a $400,000 Vermont home, that’s roughly $16,400 in added value.
Vermont also makes this even more attractive with a property tax exemption for residential solar systems under 50 kW — meaning your assessed value won’t increase due to solar, so you won’t pay higher property taxes on that added home value.
For most Vermont homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with no upfront cost and a fixed monthly payment as low as $109/mo for a typical 8.51 kW system. Palmetto owns and maintains the system, includes a 90% Production Guarantee, and handles everything from installation to upkeep.
If you prefer to purchase outright, a comparable system runs approximately $25,475 before any incentives. Note that following the 2025 Big Beautiful Bill, the federal 30% residential solar tax credit is no longer available for cash purchases. Vermont state and local incentives still apply. Use the calculator above for a personalized estimate.
For most Vermont homeowners, leasing solar through Palmetto’s LightReach program is the most financially accessible path. With no upfront investment and a fixed monthly payment as low as $109/mo, you start saving from day one. Palmetto owns and maintains the system and guarantees 90% production — so your savings are protected.
A cash purchase remains an option (estimated at ~$25,475 for a typical Vermont system), though the federal 30% residential tax credit has been eliminated for cash buyers. Vermont’s above-average electricity rates — 22.1¢/kWh — and strong state incentives make solar financially worthwhile under either path.
Palmetto Solar is a top choice for Vermont homeowners. We’re a national company with a strong local install network, serving customers across the state — from Burlington to Rutland. With Vermont electricity rates averaging 22.1¢/kWh, we help homeowners reduce that burden through our LightReach lease program — no upfront cost, a fixed monthly payment as low as $109/mo, and we own and maintain the system with a 90% Production Guarantee included.
We also offer some of the best financing options in the industry. Unlike cash purchases — which no longer qualify for the federal 30% tax credit following the 2025 Big Beautiful Bill — our LightReach lease passes commercial tax credit savings directly to you through lower monthly payments. Vermont’s strong state incentives, including net metering and Green Mountain Power rebates, apply on top.
Palmetto’s LightReach is an all-inclusive solar lease — one fixed monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 8.51 kW system in Vermont, the estimated monthly lease payment is approximately $109/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage over cash purchases, where the residential ITC was eliminated by the Big Beautiful Bill. Most Vermont homeowners start saving from day one, since the lease payment is typically less than their current electricity bill.