Vermont Solar Panels
Solar in Vermont
Residential electricity rates in Vermont are 22.14 cents per kilowatt-hour, compared with 16.6 cents nationwide. For homeowners exploring solar installation in Vermont, roof condition, shading, and energy use can help determine what system may fit.
Learn what to expect from a site assessment, system design, permits, utility requirements, and installation. Start with our guide to home solar panels, then explore the steps involved in going solar in Vermont.
Vermont Solar Panel Cost
Explore the cost of buying solar in Vermont with an estimate built from Palmetto’s firsthand installation data. See how pricing may look for homes in Burlington, Montpelier, Rutland, Brattleboro, and beyond. Your estimate reflects real local project data; your home’s final cost will depend on its energy needs and installation details.
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Cost
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Key Takeaways
- Vermont electricity rates are above the national average, so solar may reduce how much power a household buys from its utility.
- Solar output changes with the seasons: long summer days boost production, while winter clouds, snow, and shorter days can lower it.
- Solar costs and savings depend on your home; Vermont incentives and utility credit rules also vary by system, location, and eligibility.
Vermont Electricity Prices
Vermont electricity rates are climbing and remain above the national average. Here’s what that trend can mean for household energy costs.
From 2021 to 2024, Vermont’s average residential electricity rate rose from 19.3 to 22.1 cents per kilowatt-hour. The U.S. average climbed from 13.7 to 16.5 cents.
A home solar system can generate some of a Vermont household’s electricity, reducing the amount it needs to buy from the utility. How much depends on factors such as roof space, shade, energy use, and utility rules.
Owning a system sets its equipment and installation cost up front and can cover a large share of a household’s electricity use. Future utility rate increases then affect a smaller share of the bill: the electricity still bought from the grid.
Price of Energy: Vermont vs National Average
Vermont Area Utility Providers
2023 is the latest utility data available for this comparison. Green Mountain Power customers paid an average of 21¢ per kilowatt-hour, compared with Vermont’s 20.80¢ average and the 16¢ national average.
Green Mountain Power’s rate was 0.20¢ per kWh above Vermont’s average and 5¢ above the national average. The figures show how the utility’s 2023 rate compared; they do not identify why rates differ.
When homeowners purchase and own solar panels, their generation may reduce electricity bought from Green Mountain Power, and they retain any resulting utility-bill savings. The effect depends on system output, household use, and utility rules.
Vermont Utilities Electricity Rates
Vermont Solar Incentives
Vermont residents may find state and utility incentives that help offset solar and battery costs. Explore the solar incentives in Vermont listed below.
Programs include net-metering credits, sales- and property-tax exemptions, battery incentives, and targeted solar bill credits. Eligibility and value vary by utility, system, household, and program availability.
The federal 30% residential tax credit was eliminated by the Big Beautiful Bill; Vermont state and local incentives may still be worth pursuing, subject to eligibility and availability.
| Incentive | Type | Description | Source |
|---|---|---|---|
| GMP Bring Your Own Device (BYOD) | Battery Storage Rebate / Demand Response Credit | Green Mountain Power customers with an eligible customer-owned battery may receive $850 per enrolled kW for a 3-hour discharge or $950 per enrolled kW for a 4-hour discharge, with limited additional incentives and a program-advertised maximum of $10,500. | Learn More |
| VEC Home Battery Enrollment / Flexible Load Program | Battery Storage Bill Credit / Upfront Incentive | Eligible Vermont Electric Cooperative members can choose a monthly credit of $6.40 per enrolled kW or an upfront payment of $268 per enrolled kW plus a $3.20 per kW monthly credit in exchange for limited battery dispatch. | Learn More |
| Vermont Net Metering | Net Metering / Utility Bill Credits | Vermont net metering credits eligible customers for electricity generated by their systems and sent to the grid; for applications on or after August 1, 2026, the statewide blended residential base rate is $0.2071 per kWh before applicable adjustments. | Learn More |
| Vermont Sales and Use Tax Exemption for Qualifying Solar Equipment | Sales Tax Exemption | Qualifying equipment incorporated into a Vermont net-metering system, eligible off-grid energy system, or qualifying solar hot-water system is exempt from the state’s 6% sales and use tax. | Learn More |
| Vermont Property-Tax Exemption for Small Solar and Storage Systems | Property Tax Exemption | Qualifying solar plants under 50 kW and energy-storage property under 600 kWh are exempt from property tax on the system equipment, while the underlying land remains taxable. | Learn More |
| Vermont Energy Storage Access Program (ESAP) | Income-Qualified Battery Storage Assistance | ESAP supports battery systems for eligible low- and moderate-income households through participating utilities, with assistance potentially covering battery equipment and installation subject to program availability and remaining funding. | Learn More |
| GMP Solar Electric Assistance Program Rider | Targeted Solar Bill Credit | Eligible tenants at specified Housing Foundation, Inc. properties served by Green Mountain Power may receive solar-related bill credits for up to 300 kWh per month. | Learn More |
Green Mountain Power (GMP) customers with a compatible home battery can receive $850 per kW of enrolled discharge capacity for a 3-hour discharge or $950 per kW for a 4-hour discharge. GMP advertises rebates up to $10,500; certain solar retrofits in targeted areas may qualify for an additional $100 per enrolled kW. The payment is based on the kW enrolled, not simply the battery’s kWh capacity.
Participants allow GMP to dispatch some stored energy during peak-demand events, subject to program terms. GMP says it takes steps to preserve backup power when outages are forecast. This program applies only to systems you purchase and own; check GMP’s current equipment list and enrollment terms before buying or enrolling.
Vermont Electric Cooperative (VEC) members with an eligible home battery can choose a monthly bill credit of $6.40 per kW of available discharge capacity, or an upfront payment of $268 per kW plus a $3.20 per kW monthly credit. VEC calculates available kW from the battery’s usable energy and required four-hour event capability; a reserve setting can reduce the capacity used in the calculation.
The program generally requires at least 10 kWh of battery capacity, an inverter of at least 2 kW, and four hours of event capability. Participants allow VEC to use the battery a limited number of times when peak demand is expected. This program applies only to systems you purchase and own; verify eligibility and the current enrollment terms with VEC.
Net metering is Vermont’s primary statewide solar compensation policy. For applications dated on or after August 1, 2026, the statewide blended residential base rate is $0.2071 per kWh, but that is not necessarily the final value of each exported kWh. Utility tariffs, application date, system category, siting adjustments, and whether you retain or transfer renewable energy certificates (RECs) can change the credit. For example, VEC lists additional siting and REC-related adjustments for applicable systems.
Eligible systems are generally limited to 500 kW and are intended primarily to offset the customer’s electricity use. Parcel-use and group net-metering rules have changed, so check the current Public Utility Commission rules and your utility’s tariff before estimating savings or applying. Ask your utility for the project-specific rate and terms.
Vermont exempts qualifying tangible property incorporated into a net-metering system, a qualifying off-grid home or business energy system, or a qualifying solar hot-water system from the state’s 6% sales and use tax. For a homeowner, this can reduce the upfront cost of eligible solar equipment.
This is an equipment tax exemption, not a cash rebate. The exemption is not a blanket exemption for every battery purchase; a standalone battery’s eligibility depends on the system and how the equipment is incorporated. Confirm eligibility with the seller or the Vermont Department of Taxes before purchase.
Vermont generally exempts qualifying solar and storage equipment from property taxation when it meets the statutory size and use requirements. Solar plants under 50 kW qualify if they are net-metered or are off-grid systems serving only the property where they are located; energy-storage property rated under 600 kWh is also covered. These thresholds include most residential systems.
The exemption applies to the qualifying system property, not automatically to the land on which it sits. Larger systems may be subject to different tax treatment, so homeowners planning an unusually large installation should confirm the rules with the municipality and the Vermont Department of Taxes.
Vermont’s Energy Storage Access Program supports home battery storage for eligible low- and moderate-income households through participating utilities and related storage-management programs. Under some household offerings, qualifying participants may receive battery equipment and installation at no cost or with a subsidy; eligibility and the benefit depend on the utility and program pathway.
Funding and enrollment are limited, and program deployment was expected to conclude during 2026. Some household offerings have used an income threshold of 80% of state median income, but requirements vary. Contact your utility to confirm that applications are still being accepted, whether funds remain, and the current income and equipment requirements.
Green Mountain Power’s Solar Electric Assistance Program Rider provides targeted bill credits to eligible tenants at specified Housing Foundation, Inc. properties, including Hilltop Townhouses in Berlin and other qualifying properties. GMP’s rate information identifies credits for up to 300 kWh per month.
This is a limited, property-specific bill-credit program, not a general solar installation rebate. Eligibility depends on residence at a participating property and the rider’s current terms. Contact GMP or the property manager to confirm whether a particular household and property are covered.
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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 cloudy winters, snow, and shorter daylight hours can reduce seasonal output, while long summer days boost it. With suitable design, solar can still perform well despite weather anecdotes.
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 can be for your home
Get a personalized solar quote based on your home, energy usage, and roof.
Get My Custom EstimateSolar Installations in Vermont
We’ve organized solar installation data from across the United States into this interactive map, so you can explore how many installations are in communities across Vermont. Select a hexagon to see the local count and discover neighbors who have made the switch to solar.
How to Choose a Solar Installer in Vermont
Verify the license
Vermont does not require a blanket state solar-installer license for a typical one- or two-unit home. However, registration with the Secretary of State’s Office of Professional Regulation (OPR) is generally required before directly contracting with a homeowner for residential construction worth more than $10,000, including solar installation, unless an exemption applies. Vermont also lists a G7s / Type-S journeyman electrician solar-panel-installer specialty credential, but it is not a general credential required for every home installation. Ask the company which requirements apply to your project and who will perform the electrical work. You can look up a professional through OPR.
Look for certified installers
Ask whether the people designing or installing your system hold current NABCEP certification, and what their roles and credentials cover. Ask for the name of any manufacturer certifications as well, including which equipment they apply to and whether the crew assigned to your project holds them. These are useful qualifications to compare, but they are not a substitute for understanding the company’s Vermont registration status, responsibilities, and contract. Check the credential details rather than relying on a logo in a proposal.
Compare quotes the same way
Request written proposals with the same assumptions and compare the full scope, not just the headline price. For context, Palmetto’s data show a median installed system of 9.1 kW and about 83 days from signing to installation; those figures are not a prediction for your home or a promised timeline.
- System and price: System size in kW and price per watt, with the calculation and included costs clear.
- Equipment: Panel and inverter brands and models.
- Expected output: Estimated production in kWh per year, plus the assumptions behind the estimate.
- Coverage: Separate warranty terms for panel product and performance, inverter, workmanship, and roof penetrations.
- Responsibilities and payment: Who handles permits and utility interconnection; total cost or monthly payment, and any escalator.
Permits, interconnection and your HOA
Building and zoning requirements are local; Vermont has no statewide residential building code, and municipal bylaws may require permits. Ask which permits apply in your town and who will secure them. The state Electrical Work Notice process is through the Division of Fire Safety; an EWN is required before electrical work in a complex structure, but it is not established as universal for every ordinary home solar project. Confirm applicability with your town and DFS. You or your installer will also work with your serving electric utility on interconnection. Vermont utilities include Green Mountain Power Corp, Vermont Electric Cooperative, Inc, City of Burlington Electric, and Washington Electric Coop. Ask your installer to explain the interconnection and, if applicable, net-metering steps.
Vermont law bars covered deed restrictions, covenants, similar agreements, and approval authorities from prohibiting solar collectors on covered buildings. An association may specify a south-facing location or one within 45 degrees east or west of due south only if that choice does not impair effective operation. Read your documents and ask the installer to help identify any approval process.
Red flags
- Pressure to sign the same day or before you can review the proposal.
- A crew that will not explain applicable Vermont registration or credentials, or identify who is responsible for the work. Because there is no blanket state solar-installer license for typical one- or two-unit homes, ask what requirements apply; an out-of-state crew alone does not establish a problem.
- Vague production estimates, or no written explanation of system size and expected annual output.
- A large upfront deposit without a clear payment schedule and written scope.
- Promises of federal homeowner tax credits for purchases in 2026; homeowner credits ended December 31, 2025.
Frequently Asked Questions
Yes. Vermont has statewide net metering, which credits eligible solar customers for electricity their systems send to the grid. Eligible systems are generally limited to 500 kW and are intended mainly to offset the customer’s electricity use.
For applications dated on or after August 1, 2026, the blended residential base rate is $0.2071 per kWh, but the final credit can vary by utility tariff, system category, siting, application date, and renewable energy certificate terms. Check your utility’s current tariff for project-specific rates and rules.
Yes, owning solar panels can increase a Vermont home’s resale value. A Zillow study found that homes with solar panels sold for approximately 4.1% more on average, though the effect on an individual home can vary.
This added value applies when you own the system outright. As a Vermont homeowner, you own the panels and the asset, so any resale-value benefit belongs to you. Buyers may also value the potential to reduce electricity purchases, depending on the home’s system and utility rules.
Buying a typical Vermont home solar system outright costs about $27,141 installed for a 9.12 kW system, or approximately $2.98 per watt. Your actual solar installation price depends on your home’s energy use, roof, and project details.
The federal 30% residential tax credit was eliminated by the 2025 federal law change. Some Vermont or local incentives may still apply. See the solar cost calculator above for an estimate tailored to your home.
Yes. Solar panels work in Vermont’s climate. The state averages about 4.3 peak sun hours per day, and panels can generate electricity in cloudy weather, though they produce more in direct sunlight.
Output varies by season: long summer days increase production, while Vermont’s shorter, cloudier winter days and snow can reduce it. For example, the article estimates a 10 kW system produces about 44.6 kWh per day in July and 15.9 kWh per day in December. Roof direction, shade, and snow coverage also affect results.
A typical 9.12 kW home solar system in Vermont can produce about 11,200 kWh of electricity per year. As a reference, the article estimates that a 10 kW system generates about 12,271 kWh annually.
Actual output depends on roof direction and pitch, shade, and local weather. Production is usually higher during Vermont’s long summer days and lower in winter, when days are shorter and clouds or snow can reduce output.
Solar can make sense in Vermont: the state averages about 4.3 peak sun hours daily, and residential electricity rates are around 22.1¢ per kWh—above the national average. Long summer days support higher production, while shorter, cloudier winter days and snow can reduce it.
A typical purchased 9.12 kW system is modeled to offset about 100% of an average Vermont home’s electricity use, with estimated bill savings of roughly $185 per month. Actual savings depend on roof shade, household use, seasonal output, and utility credits; fixed charges may remain.