Solar panels Vermont:

Prices, incentives and best companies 2020

Avg VT solar panel cost:

$12,088 - $14,774*

Avg 25 year savings:

$38,113 - $46,582

Avg payback period:

6.6 - 8.1 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 26% federal tax credit.

Vermont solar panels guide 2020

Updated August 20, 2020

Vermont’s high utility power costs make solar a great investment for homeowners.

Vermont offers various incentives for going solar, including the renewable energy systems sales tax exemption, a statewide net metering policy, and a feed-in tariff program. These, coupled with the federal solar tax credit, make going solar a viable option for the residents of Vermont.

On this page:

Solar power prices, savings and payback in your part of Vermont

The average cost for an installed residential solar system in Vermont is currently $12,636 after claiming the 26% federal solar tax credit. This is $2.85 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Showing data for:

Prices based on a 6.0kW system, after 26% federal tax credit

Cost range of local prices

$12,088-$14,774

Net profit (savings less system cost)

$38,113-$46,582

Payback period

6.6-8.1 years

Recommended size for the selected utility bill

6.0kW

Solar panel cost calculator

Cash flow graph based on cash purchase of a 6.0kW system

Are solar panels worth it in Vermont

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

7¢ /kWh

If you don't get solar

44¢ /kWh

(forecast avg Vermont electric rates over the next 25 years)

VT solar panel cost calculator

Vermont solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses is the federal solar tax credit. At the end of 2020, the amount of the credit will decrease from 26% to 22% of the cost of the solar installation. Because home and business owners want to get the largest incentive amount possible, solar panel installation companies will likely be flooded with new projects before year’s end. In order to maximize your savings potential, the best time to go solar in Vermont is now.

 

Net metering

Vermont law requires utilities to offer full retail net metering. This means that customers will receive the full retail value for each kWh of energy their solar panel system produces, in the form of a credit to their electricity bill. It is important to note that unused kWh credits expire at the end of the annual billing cycle. 

Another important incentive available in Vermont is the standard offer program, which is a feed-in tariff where solar customers get paid for each kilowatt-hour (kWh) of energy their solar energy systems produce. Vermont also offers sales and property tax exemptions for home solar systems, which reduce the upfront and long-term costs of going solar.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Feed-in Tariff

Showing 1 - 2 of 5

Top models of solar panel installed in Vermont 2020

Average cost of solar panel installation in Vermont by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $12,428 $13,298
5kW $14,905 $15,948
6kW $17,076 $18,271
7kW $19,733 $21,114
8kW $23,040 $24,653
9kW $24,804 $26,540
10kW $27,290 $29,200

Best solar companies in the main cities of Vermont

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in Vermont

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter, where the direct current (DC) is converted into alternating current (AC). The electricity is then either used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the sun; there’s no utility to fall back on. The solar installation needs to power your home not just during the day, when the sun is shining, but after dark as well. This requires many solar panels, paired with a large battery system.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. This reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in Vermont in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in Vermont will fall during 2020.

How much electricity do solar panel systems generate in Vermont?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 34-degree pitch roof Vermont will generate 1,080kWh of peak DC (direct current) capacity per year per 1kW in Vermont.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in Vermont?

The advantage of installing solar panels in Vermont is that there are both state-based incentives and the federal tax credit. Together, they set up a foundation for great savings when Vermont homeowners install solar. The Green Mountain state also has a state-mandated net metering policy, which further helps to increase a homeowner’s savings. Because electricity rates are high in the state, net metering provides significant savings on utility bills.

The disadvantage of installing solar panels for your home in Vermont is that the state receives less sunshine than other areas of the country, like Arizona. This means that a system will not produce as much energy here as it could in sunnier states. 

However, the net metering policy and federal tax credit more than make up for what the state lacks in sunshine.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Vermont solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

Related solar news