* 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’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.
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.
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.
(forecast avg Vermont electric rates over the next 25 years)
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.
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.
(After tax credit)
(After tax credit)
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.
Minimum of 25 years but generally 30 or more
Solar panels power your house when they can but your home uses the utility company for power at other times. In 2021 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which 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.
Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.
Read more about types of home solar systems.
No, but cleaning them can improve power generation if they are dirty.
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 2021.
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.
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.
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.
While Duke Energy’s new net metering program will cut customers’ solar savings, it could potentially increase battery installations.