Summary of Vermont solar incentives 2021
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.
On this page, you can:
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Learn what solar incentives are available to Vermont homeowners
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See what Vermont solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Vermont solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
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.
Net energy metering in Vermont
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:
- For electric companies whose general residential service tariff does not include inclining block rates, the per-kWh charge in the company's general residential service tariff;
- For electric companies whose general residential service tariff does include inclining block rates, a blend of those rates determined by adding together all of the revenues to the company during the most recent calendar year from kWh sold under those block rates and dividing the sum by the total kWh sold by the company at those rates during the same year; or
- The weighted average of the blended residential rates for all Vermont electric companies (weighted by the annual retail sales of the electric companies.)
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.
Vermont's group net metering
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!
Vermont solar rebates
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.
Tax exemptions
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.
Cost of solar panels in your part of Vermont after all applicable solar incentives
Showing data for:
Prices based on a 8.7kW system, after 26% federal tax credit
Solar prices near you
Payback period
6.5-7.9 years
Net profit (savings less system cost)
$55,727-$68,111
Average size system installed in VT in 2021
8.7kW
Solar panel cost calculator
Best 10 solar companies in Vermont
10 solar companies in Vermont provide pricing on SolarReviews. Here are the best rated companies near you.
1.71 249 Reviews
Latest review
SLS, 1 week ago
I live in a high demand home market where first time buyers get bullied out by cash offering investors. We found a place that had a sunrun system we inherited. It has always been pricey we use half the power the old owners due sunrun said before we purchased we would be assessed at a year for usage and may reduce the system to save us money if we always overproduce. A year later that was a lie no such assessment and we absolutely use less energy as we have an excess of 450-750 kWh a month. Last year sdge (utility) called me and asked why our power spiked out of control and asked us to check our pv to see if it was working. One of the inverters had died and the system is at half production. I called sunrun which is BS since they allegedly monitor the systems and they tested it over the phone and saw the system had failed. The person told me I’d receive a credit for under production and someone would be out in a month to fix it. A month later the tech was no show, I call and they reschedule a month later. That same call they tell me no such credit applies because i have a over production average. They average the monthly production over the term served in the agreement which we were in year 4-5. So the average was high from overproduction averaged over time since before we even owned the house. Next month comes tech was no show, called again rescheduled for the next month rep told me there was no appt for that month but doubled back when I gave them the date and they investigated. A month later they called same day of appt after a no show to reschedule a month later. A month later the tech bills sunrun for an hour of work after he called me saying he couldn’t do the repair because they never gave him the inverter. So here we are in the 6th month of half production with no current appointment for repair, paying 404$ a month to sunrun, a payment plan for our utility for 143$ because of the energy we used since our panels failed, plus another charge for the electricity we are still using. So we pay about $7-800 for electricity a month for a 2 bedroom home with mostly HE, or gas appliances. The year and a half before the inverter failed we never paid the utility for power and actually had a overproduction. This should be illegal if you get solar go with someone else, if you want a house with a sunrun system tell the owners good luck and go with a different home. If it’s not soon I will be paying a lawyer to review my agreement and the treatment we received. It would probably cost us less then what we currently pay for power.
Read more
Average cost (5kW system)
$16,750 ($3.35 per watt)
Latest review
SLS, 1 week ago
I live in a high demand home market where first time buyers get bullied out by cash offering investors. We found a place that had a sunrun system we inherited. It has always been pricey we use half the power the old owners due sunrun said before we purchased we would be assessed at a year for usage and may reduce the system to save us money if we always overproduce. A year later that was a lie no such assessment and we absolutely use less energy as we have an excess of 450-750 kWh a month. Last year sdge (utility) called me and asked why our power spiked out of control and asked us to check our pv to see if it was working. One of the inverters had died and the system is at half production. I called sunrun which is BS since they allegedly monitor the systems and they tested it over the phone and saw the system had failed. The person told me I’d receive a credit for under production and someone would be out in a month to fix it. A month later the tech was no show, I call and they reschedule a month later. That same call they tell me no such credit applies because i have a over production average. They average the monthly production over the term served in the agreement which we were in year 4-5. So the average was high from overproduction averaged over time since before we even owned the house. Next month comes tech was no show, called again rescheduled for the next month rep told me there was no appt for that month but doubled back when I gave them the date and they investigated. A month later they called same day of appt after a no show to reschedule a month later. A month later the tech bills sunrun for an hour of work after he called me saying he couldn’t do the repair because they never gave him the inverter. So here we are in the 6th month of half production with no current appointment for repair, paying 404$ a month to sunrun, a payment plan for our utility for 143$ because of the energy we used since our panels failed, plus another charge for the electricity we are still using. So we pay about $7-800 for electricity a month for a 2 bedroom home with mostly HE, or gas appliances. The year and a half before the inverter failed we never paid the utility for power and actually had a overproduction. This should be illegal if you get solar go with someone else, if you want a house with a sunrun system tell the owners good luck and go with a different home. If it’s not soon I will be paying a lawyer to review my agreement and the treatment we received. It would probably cost us less then what we currently pay for power.
Latest review
Brad Ketover, over 1 month
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4.53 11 Reviews
Latest review
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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Latest review
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.
4.47 81 Reviews
Latest review
Solar Dave, 1 week ago
SunCommon is by far the best company to go solar with! We went with them for my solar panels and could not be happier. The service this company gives is above and beyond any other out there! Additional note. I strongly suggest that you pair your solar with the Tesla power wall. Makes a really great addition to saving power for outages!
Read more
Latest review
Solar Dave, 1 week ago
SunCommon is by far the best company to go solar with! We went with them for my solar panels and could not be happier. The service this company gives is above and beyond any other out there! Additional note. I strongly suggest that you pair your solar with the Tesla power wall. Makes a really great addition to saving power for outages!
3.89 6 Reviews
Latest review
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.
Read more
Latest review
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
Latest review
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.
Read more
Latest review
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
Latest review
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.
Read more
Latest review
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
Latest review
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.
Read more
Latest review
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
Latest review
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.
Read more
Latest review
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.
3.08 1 Reviews
Latest review
Anonymous, over 1 month
We had a solar thermal system designed by Friends of the Sun that turned out to be poorly done. Trusting this company turned out to be a bad thing. A lesson in researching the system beforehand was learned. We trusted their expertise and were sadly disappointed. <br /> The installer did his best to make a poor design work, but we had to settle for less than what we paid for.<br />Stay away from this company!
Read more
Latest review
Anonymous, over 1 month
We had a solar thermal system designed by Friends of the Sun that turned out to be poorly done. Trusting this company turned out to be a bad thing. A lesson in researching the system beforehand was learned. We trusted their expertise and were sadly disappointed. <br /> The installer did his best to make a poor design work, but we had to settle for less than what we paid for.<br />Stay away from this company!
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