Vermont Solar Panels

The Vermont Clean Energy Development Fund (CEDF), established in 2005, provides an upfront cash rebate of $0.10 per watt for residential solar PV installations, with a maximum rebate of $3,500 per project. For a typical 10 kW (10,000-watt) system, this translates to a $1,000 rebate, while larger systems reach the $3,500 cap regardless of size.

This is a direct cash payment that reduces your out-of-pocket installation cost. Eligibility is limited to residential solar PV installations, and this rebate applies only to systems you purchase and own. Homeowners should apply before or shortly after installation.

The rebate is administered through the Renewable Energy Resource Center (RERC). To apply or learn more, contact the RERC at 1 (877) 888-7372 or email [email protected]. Because funding can be intermittent, confirm current availability before finalizing your budget.

Vermont offers a 100% exemption from state sales and use tax on the purchase of solar power systems. The exemption applies to renewable energy systems of up to 500 kW, including panels, inverters, batteries paired with solar, and related equipment, for both grid-tied and off-grid installations.

By eliminating sales tax on eligible solar and storage components, this exemption directly reduces the upfront purchase price compared with taxable home improvements. It applies to residential, commercial, and agricultural installations.

Important: The Vermont solar sales tax exemption is currently scheduled to expire on June 30, 2026. Homeowners considering going solar should aim to complete their installation before this date to take full advantage of the savings.

Vermont exempts qualifying solar energy systems from property taxes, meaning you won’t pay higher property taxes on the value that solar panels add to your home. Solar systems under 50 kW that are net-metered or off-grid and serve only the property where they are located are exempt from state property taxes.

Over a 25-year system lifespan, this exemption can represent thousands of dollars in avoided property taxes — estimated at roughly $400 per year, or about $10,000 over the life of the system, depending on your local tax rate.

Note that the exemption does not apply to systems of 50 kW or greater, which instead pay a uniform capacity tax of $4.00 per kW. Additionally, individual municipalities may vote to offer a further local property tax exemption, so check with your local assessor’s office.

Vermont’s net metering program lets solar customers earn bill credits for excess electricity sent to the grid. When your panels produce more than you use, you bank credits; when you draw from the grid, those credits are applied to your bill. All Vermont utilities are required to offer net metering, and systems up to 500 kW are eligible.

Vermont uses a category-based system (I through IV). The base blended retail rate for credit calculations is $0.1839/kWh as of 2026. Category I (systems 15 kW or smaller, ideal for most homes) is the most favorable — it carries a positive credit adjuster of about 1 cent/kWh, locked in for 10 years from interconnection. Larger and different site-type categories carry negative adjusters (Category II: -$0.04, III: -$0.07, IV: -$0.08/kWh).

Credits generally carry forward monthly and expire after 12 months. All installations require a Certificate of Public Good (CPG) from the Vermont Public Utility Commission. Confirm your specific utility’s rates, as they vary by provider.

Green Mountain Power’s Bring Your Own Device (BYOD) program pays customers upfront rebates for home battery storage in exchange for sharing stored energy during peak demand periods over a 10-year commitment. The incentive is $850 per kW of enrolled storage for three hours of daily discharge, or $950 per kW for four hours of daily discharge, up to a maximum of $10,500 per battery system.

For a typical home battery like a Tesla Powerwall or Enphase IQ Battery, this often works out to a rebate between $9,000 and $10,500. GMP also offers an additional $100 per kW incentive for adding battery storage in areas of the grid where it is most beneficial.

This rebate applies only to batteries you purchase and own. The program is available to GMP customers adding storage to an existing solar array as well as new installations — even homeowners who went solar years ago can qualify by adding a battery now.

Vermont Electric Cooperative (VEC) offers a battery incentive to members willing to let VEC use their home battery a limited number of times per year during anticipated peak demand events. In exchange, participants help reduce the co-op’s peak power costs, which benefits all members.

Participants can choose between two compensation structures: a recurring monthly bill credit, or an upfront payment paired with a lower monthly bill credit. This flexibility lets members select the option that best fits their financial goals.

The program is available to VEC members with qualifying home battery storage. Contact VEC directly to confirm current enrollment details, eligible equipment, and payment amounts.

The Vermont Department of Public Service was selected to receive $62,450,000 through the EPA’s Solar for All grant competition to develop long-lasting programs that enable low-income and disadvantaged communities to deploy and benefit from distributed residential solar.

Program details are still being developed, but eligibility is expected to include recipients of benefits such as LIHEAP, 3SquaresVT, Fuel Assistance, Reach Up, and WIC; residents of EPA-defined disadvantaged communities who are low- or moderate-income; tenants of permanently affordable housing; and electric utility customers with household incomes not exceeding 80% of area median income or 200% of the Federal Poverty Level.

The goal is to lower or eliminate the upfront cost of solar for qualifying households. Homeowners who think they may qualify should monitor the Department of Public Service website for program launch and application details.