There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
Vermont, home of Howard Dean, Jim Jeffords and many a progressive leader *ahem* Bernie *ahem*, is starting to live up to that progressive tradition in solar energy policy and incentives.
Net metering rules here now provide a blended compensation rate which nearly meet retail prices you'd pay for the same electricity you're now sending back into the grid when you aren't using the power your panels are producing.
There are solid discussions here in the statehouse about turning Vermont's renewable energy goals into firm mandates. A new solar performance incentive program from the state’s largest utility is also a strong sign for the future. Read on to learn all you need to know about how much you can save with solar, and the incentives and policy which make it happen.
Learn what solar incentives are available to Vermont homeowners
See what Vermont solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Vermont solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Vermont
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume to make sure you get credit for the surplus.
In 2017, Vermont moved from a pretty simple, straightforward net metering policy to one that's quite a bit more complicated. Now, if you install a solar system on your home, you can expect to earn credit for each kWh of electricity you send to the grid (known as "net excess generation", but how much you get paid varies based on your utility company.
Any customer net excess generation (NEG) is credited at the blended residential rate and carried over to the customer’s next bill. The blended residential rate is the lowest of the following:
All that is a complicated way to say "you get credit for the retail rate for electricity." But Vermont goes a step further, because they add a tiny bit of value to the energy that comes from small solar suppliers, like you and me.
Each kWh sent to the grid from a home solar system smaller than 15-kW (i.e. almost all of them) earns an additional $.01/kWh on top of the retail rate credit. That means your electricity production can actually earn you money, not just save you the cost of the retail payment.
Here's one final complication: if, after 12 months you've sent more energy to the grid that you've used, you lose the credit for that energy. This rolls on a month-to-month basis, so it actually isn't that big of a deal; but it is a reason to make sure you size your system to meet, not exceed, your annual usage estimate.
A unique and cool thing Vermont does is called “group net metering," which is basically what it sounds. A group of home or business owners can join together and benefit from one or more net metered solar systems.
For example, a group can pay for a large solar installation (the maximum size for a group on 500kW) on the land of one person with a lot of open space, and ask the utility company to assign the credits earned by that system to each of the participants based on a percentage they elect. One person is named as the "designated person," who signs all the necessary documents and sets the credit amounts, and the credit allocations can be changed up to 4 times a year.
As another example, a church might install a solar system on their roof that produces more energy than the building uses in a year, and then designates the pastor's house as part of the group, offsetting some of the usage at that address, as well. There are a lot of possibilities in the group design!
It's a little more complicated than that, but that's why we have knowledgeable friends who can help. Simply connect with our solar experts in Vermont today, and tell them you're interested in setting up a solar installation and net metering group!
While Vermont does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
Vermont enacted a blanket 100% property tax exemption for solar photovoltaic systems up to and including 10kW back in 2013. Thanks, Vermont!
Since this exemption may not include municipal property taxes, Vermont gives localities the option of exempting you from some or all of the property taxes associated with the increase in home value you’ll see from the installation of a solar power system.
Those experts we partner with can (and certainly will) fill you in on all the details of your town and whether or not it has an exemption.
You also save on the up-front cost of your solar power system in Vermont via an exemption on 100% of all applicable sales taxes on the purchase of that shiny new money-saving machine.
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Prices based on a 8.7kW system, after 26% federal tax credit
12 solar companies in Vermont provide pricing on SolarReviews. Here are the best rated companies near you.
4.71 119 Reviews
DEPR SP, 2 weeks ago
I am very happy that my solar panels are on the back side of my home not on the ground. It is great not to have to pay an electric bill each month and that I am helping to help the environment in a small way.
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DEPR SP, 2 weeks ago
I am very happy that my solar panels are on the back side of my home not on the ground. It is great not to have to pay an electric bill each month and that I am helping to help the environment in a small way.
Brad Ketover, over 1 month
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4.53 11 Reviews
R. Cawley, over 1 month
Because of the phasing out of the tax credit and my pending retirement, we decided last fall that the time was right to install solar (all of the environmental benefits being a given). We spoke with a number of providers and decided that a tracker made more sense than a stationary system. We chose Solaflect because it is local and its advisors were accessible, well informed and were responsive to our priorities. The installation was seamless despite weather challenges. All who worked on the project were knowledgeable and flexible in their approach, particularly given the challenges of the site we had chosen. Electricity production far exceeds our usage allowing us to use heat pumps for a share of our heating reducing our carbon footprint and the amount of wood that we need to “put up” each summer. I do not hesitate to recommend the Solaflect team for any looking to make the jump to generating their own electricity.
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R. Cawley, over 1 month
Because of the phasing out of the tax credit and my pending retirement, we decided last fall that the time was right to install solar (all of the environmental benefits being a given). We spoke with a number of providers and decided that a tracker made more sense than a stationary system. We chose Solaflect because it is local and its advisors were accessible, well informed and were responsive to our priorities. The installation was seamless despite weather challenges. All who worked on the project were knowledgeable and flexible in their approach, particularly given the challenges of the site we had chosen. Electricity production far exceeds our usage allowing us to use heat pumps for a share of our heating reducing our carbon footprint and the amount of wood that we need to “put up” each summer. I do not hesitate to recommend the Solaflect team for any looking to make the jump to generating their own electricity.
3.89 6 Reviews
Anonymous, over 1 month
We used Rob Stubbins Solar for a residential solar installation. John Blittersdorf was our solar designer and installer and he did an amazing job. He worked with us to acquire the latest battery technology. Installation was smooth and quick - set up in about a week. After installation, there were a few minor issues for which he came right back to our house and fixed. We are now have an LG home battery that will supply the house for any power failure. The cost of this is less than buying a generator. In addition, we are generating more than enough energy to supply our home needs for the year and to charge a plug-in Prius. We are extremely satisfied and would highly recommend using Stubbins Solar and John Blittersdorf.
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Anonymous, over 1 month
We used Rob Stubbins Solar for a residential solar installation. John Blittersdorf was our solar designer and installer and he did an amazing job. He worked with us to acquire the latest battery technology. Installation was smooth and quick - set up in about a week. After installation, there were a few minor issues for which he came right back to our house and fixed. We are now have an LG home battery that will supply the house for any power failure. The cost of this is less than buying a generator. In addition, we are generating more than enough energy to supply our home needs for the year and to charge a plug-in Prius. We are extremely satisfied and would highly recommend using Stubbins Solar and John Blittersdorf.
3.75 1 Reviews
Anonymous, over 1 month
I talked to a lot of other companies all over New Hampshire, Maine and Vermont before I talked to Dan Brown. He was by far the most knowledgable about off-grid systems like ours. Their team really did exceptional work and I noticed that they went out of their way to avoid cutting corners. We are really happy with the way it came out and even got to listen to some banjo tunes during lunch breaks. :) I highly recommend them.
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Anonymous, over 1 month
I talked to a lot of other companies all over New Hampshire, Maine and Vermont before I talked to Dan Brown. He was by far the most knowledgable about off-grid systems like ours. Their team really did exceptional work and I noticed that they went out of their way to avoid cutting corners. We are really happy with the way it came out and even got to listen to some banjo tunes during lunch breaks. :) I highly recommend them.
3.75 1 Reviews
artebarbara, over 1 month
We purchased our house in September 2016 and moved there full time in June 2017. It’s an old (1796) house and had no insulation to speak of. The “heating” system included an inefficient propane forced hot air furnace which pumped the hot air through duct work in the uninsulated stacked stone basement. Insulation and replacing the heating system were high on the list of things to do. We’d discussed solar for a long time during our search for the perfect house and both of us were committed to using renewable and very efficient energy sources. With all of that as background we began searching out contractors who could deliver what we needed. In all of this I kept hearing my father’s voice who would tell us as children that “A little information was a dangerous thing”. I came for an environmental background and Arte from construction so we had some information and a basic understanding of how some of these systems worked but it was ISA that brought it all together. From the first visit Katrina listened to what we wanted to do and offered suggestions and solutions. The house has a tennis court that we’d targeted as a place for a vegetable garden. Early on in our conversations Katrina pointed out that it was perfectly orientated for solar. Now the panels and the future garden share the space. We knew we’d be managing a number of other contractors so it was a big point for ISA that they offered a full service solution. There are any number of solar providers out there but for a system like the one we envisioned we wanted a contractor who could engineer a solution for us, explain it in terms we understood, and integrate all the moving parts so they worked together the first time. I want to mention the ISA team. They were the nicest bunch of people, professional, hardworking, and easy to work with. Arte took on some of the demo and worked with Jennings, one of the ISA installers. Between Jennings and Arte they were able to fish the lines for the 5 inside units of the cold climate heat pump system through the old house with minimal demo. Communication was another area where ISA excelled. Katrina and I exchanged email all the time, questions were answered, information was provided, all in all a great job. We highly recommend ISA! Now that everything is installed, all of the contractors are gone and we have had an opportunity to review the past six months we can both say we are very pleased with how it all tuned out. It went to -6 last night and the cold climate heat pumps kept us warm.
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artebarbara, over 1 month
We purchased our house in September 2016 and moved there full time in June 2017. It’s an old (1796) house and had no insulation to speak of. The “heating” system included an inefficient propane forced hot air furnace which pumped the hot air through duct work in the uninsulated stacked stone basement. Insulation and replacing the heating system were high on the list of things to do. We’d discussed solar for a long time during our search for the perfect house and both of us were committed to using renewable and very efficient energy sources. With all of that as background we began searching out contractors who could deliver what we needed. In all of this I kept hearing my father’s voice who would tell us as children that “A little information was a dangerous thing”. I came for an environmental background and Arte from construction so we had some information and a basic understanding of how some of these systems worked but it was ISA that brought it all together. From the first visit Katrina listened to what we wanted to do and offered suggestions and solutions. The house has a tennis court that we’d targeted as a place for a vegetable garden. Early on in our conversations Katrina pointed out that it was perfectly orientated for solar. Now the panels and the future garden share the space. We knew we’d be managing a number of other contractors so it was a big point for ISA that they offered a full service solution. There are any number of solar providers out there but for a system like the one we envisioned we wanted a contractor who could engineer a solution for us, explain it in terms we understood, and integrate all the moving parts so they worked together the first time. I want to mention the ISA team. They were the nicest bunch of people, professional, hardworking, and easy to work with. Arte took on some of the demo and worked with Jennings, one of the ISA installers. Between Jennings and Arte they were able to fish the lines for the 5 inside units of the cold climate heat pump system through the old house with minimal demo. Communication was another area where ISA excelled. Katrina and I exchanged email all the time, questions were answered, information was provided, all in all a great job. We highly recommend ISA! Now that everything is installed, all of the contractors are gone and we have had an opportunity to review the past six months we can both say we are very pleased with how it all tuned out. It went to -6 last night and the cold climate heat pumps kept us warm.
3.75 1 Reviews
Anonymous, over 1 month
In keeping with Countryside Alarms' commitment to work with Vermont companies & American-made products, Blais hired Borealis Solar of Greensboro, VT to install the 82.5kW system using Trina Solar Energy panels and SolarEdge equipment. The project maximizes the total available roof space of Countryside's Buildings 1, 2, and 3 with 330W 72Cell Trina Solar Modules.
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Anonymous, over 1 month
In keeping with Countryside Alarms' commitment to work with Vermont companies & American-made products, Blais hired Borealis Solar of Greensboro, VT to install the 82.5kW system using Trina Solar Energy panels and SolarEdge equipment. The project maximizes the total available roof space of Countryside's Buildings 1, 2, and 3 with 330W 72Cell Trina Solar Modules.
3.75 1 Reviews
Anonymous, over 1 month
Can't say enough about the job DC Energy did for us. With great guidance from Ben we went for it and have not looked back. Their price was a couple of thousand less than the competion, they met their schedule and we basically haven't paid for electricity since. Ask about a heat pump as well. It was another home run suggested by Ben.
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Anonymous, over 1 month
Can't say enough about the job DC Energy did for us. With great guidance from Ben we went for it and have not looked back. Their price was a couple of thousand less than the competion, they met their schedule and we basically haven't paid for electricity since. Ask about a heat pump as well. It was another home run suggested by Ben.
3.75 1 Reviews
Jeff, over 1 month
Gms was professional, and gave us an honest competitive quote. Work was completed quickly, and system looks and works great! Very pleased!
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Average cost (5kW system)
$16,250 ($3.25 per watt)
Jeff, over 1 month
Gms was professional, and gave us an honest competitive quote. Work was completed quickly, and system looks and works great! Very pleased!
3.50 2 Reviews
Regretting Solar, over 1 month
Things started off really well until they got their final check from the finance company. From there things fell apart. They have no customer service and are hard to get help from. All of my services took two months after the install to get up and running and my solar production is a fraction of what was presented. Also it was presented that snow as going to slide off my panels like a metal roof, but it keeps getting hung up and I get close to no production for days after every small snow storm. I would not do it again.
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Regretting Solar, over 1 month
Things started off really well until they got their final check from the finance company. From there things fell apart. They have no customer service and are hard to get help from. All of my services took two months after the install to get up and running and my solar production is a fraction of what was presented. Also it was presented that snow as going to slide off my panels like a metal roof, but it keeps getting hung up and I get close to no production for days after every small snow storm. I would not do it again.