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Vermont · VT

Solar Panels in Vermont:
Is It Worth It in 2026?

Vermont averages 1167.1 kWh per kWp per year with 4.3 peak sun hours per day. At 23.29¢/kWh, an 8 kW system saves roughly $2,175/year and pays back in about 7 years.

Vermont Solar at a Glance

Peak sun hours / day4.3 hrs
Avg solar yield1167.1 kWh/kWp/yr
Electricity rate23.29¢ / kWh
Avg payback (8 kW)7 years
Annual savings (8 kW)$2,175/yr
Net meteringFull retail net metering ✓

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in Vermont

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

Net metering, Clean Energy Development Fund, sales tax exemption

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Plus sales tax exemption. Property value increase is tax-exempt.

All Available Incentives in Vermont

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Sales Tax Exemption — Solar equipment is sales-tax exempt
Property Tax Exemption — Solar-added home value not taxed
Net Metering — Full retail net metering ✓

How Much Solar Power Do Vermont Cities Get?

Real PVGIS yield data and EIA electricity rates for all 2 cities. Click any city for detailed payback calculations.

Burlington
1182.2 kWh/kWp · 6.9 yr payback
Montpelier
1151.9 kWh/kWp · 7 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for Vermont.

Calculator
All Vermont incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in Vermont: Frequently Asked Questions

Is solar worth it in Vermont?
Generally yes — solar makes financial sense in Vermont for most homeowners. The 7.0-year payback is near the national average. At 23.29¢/kWh, annual savings on an 8 kW system run approximately $1,685. Vermont pioneered net metering and has the Standard Offer program with fixed-price contracts. High electricity rates (~25¢/kWh) make payback under 8 years despite low sun.
What solar incentives are available in Vermont?
Vermont homeowners can stack multiple incentives: the state solar incentives (federal ITC expired Dec 2025) (ITC) — $6,480 on a typical 8 kW system; a property tax exemption (solar-added home value not taxed); sales tax exemption on solar equipment; and net metering through Green Mountain Power. Vermont pioneered net metering and has the Standard Offer program with fixed-price contracts. High electricity rates (~25¢/kWh) make payback under 8 years despite low sun.
How much electricity do solar panels produce in Vermont?
Vermont averages 1167.1 kWh per kWp of solar per year — 22% below the US average. An 8 kW system produces roughly 9,337 kWh/year, with a monthly average of 97.3 kWh/kWp. Output varies by location: southern Vermont produces more than the north.
How much do solar panels cost in Vermont?
The average 8 kW system in Vermont costs approximately $21,600.0 before incentives. After the 30% federal ITC ($6,480), your net cost is around $15,120. Prices range from $2.40–$3.20/watt installed depending on installer, panel brand, and cold winters, snow — steep roof angle recommended.

Going Solar in Vermont: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in Vermont. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in Vermont average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 23.29¢/kWh in Vermont, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    Vermont does not have a statewide solar tax credit, but utility rebates and net metering may still apply. Net metering.

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in Vermont typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for Vermont: Vermont averages 1167.1 kWh/kWp/year with 4.3 peak sun hours/day. Electricity costs 23.29¢/kWh. An 8 kW solar system saves ~$2,175/year and pays back in 7.0 years. Net metering, Clean Energy Development Fund, sales tax exemption.