Vermont Solar Panels

Vermont’s net metering program allows grid-connected solar customers to earn bill credits for excess electricity their system sends to the grid. The base blended retail rate used for net metering credit calculations is $0.1839/kWh as of 2026, and all Vermont utilities are required by law to offer net metering for solar systems up to 500 kW. Vermont uses a category-based system (Categories I through IV) with different credit rates depending on system size and site type — Category I (systems 15 kW or less) is the most favorable for residential homeowners, as it includes a positive 1 cent/kWh credit adjuster on top of the standard rate, locked in for 10 years from interconnection.

Credits accumulate during high-production months (typically May–September) and carry forward to offset your bill during lower-production months (November–February). Unused credits expire after 12 months. Green Mountain Power (GMP) customers with systems under 15 kW can also earn an additional $0.03/kWh by agreeing to transfer their Renewable Energy Certificates (RECs) to GMP, for a total credit adjuster of $0.04/kWh. Vermont Electric Cooperative (VEC) customers should note that systems 150 kW and smaller are charged a 4 cent/kWh siting charge on all energy produced for applications dated 8/1/24 or later.

Starting in 2026, under Act 179, group (virtual) net metering is limited to on-site or adjacent-parcel systems only. All solar installations in Vermont require a Certificate of Public Good (CPG) from the Vermont Public Utility Commission (PUC) before interconnection. The Vermont PUC has indicated potential future reforms to the net metering program, so homeowners are encouraged to interconnect sooner to lock in current rates.

Vermont provides a full sales tax exemption on solar photovoltaic (PV) equipment, including solar panels, inverters, batteries, and all associated components, for systems up to 500 kW in capacity. This exemption applies automatically at the point of sale — no application is required — and saves homeowners approximately 6% on equipment costs. For a typical 10 kW system costing around $30,500, this represents roughly $1,830 in savings.

The exemption covers both the equipment and installation labor, making it one of the most straightforward incentives available to Vermont solar buyers. It applies to residential, commercial, and agricultural solar installations, as well as battery storage systems paired with solar.

Important deadline: The Vermont sales tax exemption is currently scheduled to expire on June 30, 2026. Homeowners who are considering going solar should prioritize completing their installation before this date to take full advantage of this savings opportunity. Check with the Vermont Department of Taxes or your solar installer to confirm the current status of this exemption.

Under Vermont law (32 V.S.A. § 3802), residential solar energy systems with a capacity under 50 kW are exempt from property tax assessment. This means that even though adding solar panels can increase your home’s market value by $15,000–$20,000 or more, that added value will not be included in your property’s assessed value and will not raise your annual property tax bill.

The exemption applies to solar systems that are either net-metered or off-grid and only provide power to the property on which they are located. Over a 25-year system lifespan, this exemption can represent thousands of dollars in avoided property taxes — estimated at roughly $400 per year, or $10,000 over the life of the system, depending on your local tax rate.

Additionally, Vermont law allows individual municipalities to vote on offering an optional local property tax exemption for renewable energy systems, which could provide further relief from municipal real and personal property taxes on top of the state-level exemption. Eligibility for the municipal exemption varies by town, so homeowners should check with their local assessor’s office to confirm whether their municipality has adopted this additional exemption.

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; for larger systems, the rebate caps at $3,500 regardless of system size. This is a direct cash payment that reduces your out-of-pocket installation cost.

The rebate is administered through the Renewable Energy Resource Center (RERC). To apply or learn more, contact the RERC at 1 (877) 888-7372, email [email protected], or visit www.rerc-vt.org. Eligibility is limited to residential solar PV installations, and homeowners should apply through the RERC before or shortly after installation.

The CEDF is funded through a portion of Vermont’s electricity rates and is overseen by the Vermont Department of Public Service. Because funding is subject to availability, homeowners are encouraged to apply as early as possible in the process to secure their rebate.

Vermont offers a state-level Investment Tax Credit (ITC) for businesses that invest in solar energy systems. The credit is calculated as 24% of the federal commercial ITC claimed under Section 48/48E. Since the federal commercial ITC is currently at 30%, this translates to an effective Vermont state tax credit of approximately 7.2% of the total system cost. For example, a $100,000 commercial solar installation could yield a $7,200 Vermont state tax credit in addition to the federal credit.

This credit is available to Vermont businesses — not individual residential homeowners — and is applied against Vermont corporate or business income taxes. It is designed to complement the federal commercial ITC and make solar investments more financially attractive for Vermont’s business community, including farms, manufacturers, and commercial property owners.

Businesses should consult with a qualified tax professional to confirm eligibility and ensure proper documentation of the federal ITC claim, as the Vermont credit is calculated as a percentage of the federal credit amount. For more information, contact the Vermont Department of Taxes or the Vermont Department of Public Service.

Green Mountain Power’s Bring Your Own Device (BYOD) program provides GMP customers with an upfront cash rebate for installing a qualifying battery storage system. The rebate is structured at $850 per kW of enrolled storage for a 3-hour discharge battery and $950 per kW for a 4-hour discharge battery, with a maximum rebate of $10,500 per system. An additional $100 per kW bonus is available for customers retrofitting an existing solar system in areas of the grid where storage is most beneficial. The minimum battery size to participate is 5 kW.

In exchange for the rebate, customers agree to allow GMP to briefly dispatch a small portion of their stored energy during peak demand events, which occur a few times per month. This helps stabilize the grid while still leaving homeowners with meaningful backup power. 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.

The BYOD program is open to GMP customers (who serve approximately 75% of Vermont residents) adding battery storage to either a new or existing solar array. The current enrollment deadline is September 30, 2026. GMP has lifted previous enrollment caps to allow more customers access to the program. Homeowners interested in participating should contact GMP or their solar installer to begin the enrollment process.

Green Mountain Power’s Energy Storage Solutions (ESS) Program allows eligible GMP customers to lease a battery backup system for a flat rate of $55 per month or a single upfront payment of $5,500 over a 10-year lease term. Participants can choose between two battery options: Tesla Powerwall or Enphase batteries. This program makes battery storage accessible without the high upfront cost of purchasing a system outright.

Under the lease, GMP installs and maintains the battery system at the customer’s home. In exchange, GMP retains the ability to discharge the batteries to help stabilize the grid during periods of high demand. Homeowners still benefit from emergency backup power during outages, making this a practical option for resilience as Vermont experiences increasingly severe weather events.

As of 2026, the GMP Powerwall lease program has a waitlist of over 1,200 customers, and wait times can be several months due to high demand. Homeowners interested in this program should contact GMP as soon as possible to get on the waitlist. Note that this program is separate from the BYOD rebate program — customers should evaluate both options to determine which best fits their needs.

ConnectedSolutions is a demand response program available to Green Mountain Power customers who own a battery storage system. Enrolled battery owners receive approximately $850 per year in payments in exchange for allowing GMP to briefly discharge their battery during peak demand events, which typically occur during summer months. These dispatch events are short in duration and are designed to reduce strain on the regional electric grid.

The program is an excellent way for battery owners to generate ongoing annual income from their storage investment, on top of the savings from backup power and reduced electricity bills. Participation is voluntary, and homeowners retain backup power capability even while enrolled. ConnectedSolutions is part of a broader regional demand response initiative coordinated across New England utilities.

To participate, GMP customers must have a compatible, professionally installed battery storage system. Enrollment can be done through Green Mountain Power directly. This program can be combined with the BYOD upfront rebate, making it possible for GMP customers to receive both an upfront payment for installing a battery and ongoing annual payments for grid participation.

The Affordable Community Renewable Energy (ACRE) Program is a Vermont community solar initiative designed to help income-qualifying households lower their monthly electric bills — with no cost to apply and no cost to participate. Eligible households receive a guaranteed $29.55 credit on their monthly electric bill, adding up to over $350 in annual savings. There is no equipment to install, no fees of any kind, and funding support from the Vermont Public Service Department makes participation completely free.

This program is especially valuable for renters and households who cannot install rooftop solar, as it provides access to the financial benefits of solar energy without requiring property ownership or any physical installation. Participants simply receive a steady monthly credit on their existing electric bill as long as they remain enrolled.

Enrollment for 2026 is open from April 7 through August 31, 2026. Income-qualifying Vermont households are encouraged to apply during this window. For more information on eligibility requirements and how to apply, contact the Vermont Department of Public Service or visit the official Vermont Energy Saver website at energysaver.vermont.gov.

The Vermont Economic Development Authority (VEDA) Commercial Energy Loan Program (CELP) provides financing to Vermont businesses looking to invest in solar energy and other renewable energy generation projects. Loan amounts go up to $6 million at a variable interest rate or up to $500,000 at a fixed rate. The program generally covers up to 60% of total project cost, though in some cases financing can reach up to 90% of project cost, making it accessible even for businesses with limited upfront capital.

Eligible uses of funds include the purchase of land or buildings, construction, installation, design, engineering, and permitting costs associated with qualifying renewable energy projects. This makes CELP a comprehensive financing tool for commercial solar installations of all sizes, from small business rooftop systems to larger ground-mounted arrays.

VEDA also offers a separate Agricultural Energy Loan Program in cooperation with the Vermont Agricultural Credit Corporation, with a maximum loan of up to $5 million, specifically for Vermont farmers investing in renewable energy generation. Businesses and agricultural operators interested in either program should contact VEDA directly at www.veda.org to discuss eligibility and application requirements.