Federal solar credit ended Dec 31, 2025
Sorted & Saved

Solar costs · Vermont

Solar Panel Cost in Vermont

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

A typical Vermont home uses 574 kWh a month[1] of electricity. Covering that with solar takes a system of about 5.6 kW est.[1,2], which costs roughly $17,000 to $23,000 est.[1,2,3] before incentives at the state's median installed price. With Vermont's average residential price of 23.93¢ per kWh[4], our model puts payback at about 13 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

On this page [ 7 ]

Vermont solar at a glance

Average electricity price23.93¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use574 kWh/mo[1]2024 average
Solar output per kW1,222 kWh/yr[2]PVWatts estimate for Burlington
Median installed price$3.60/W[3]Estimate, before incentives
Typical system5.6 kWSized to cover 100% of use
Typical price$20,200Estimate, before incentives
Year-1 savings$1,300Estimate
Payback13 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Vermont net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). New systems also take a 5.0¢ per kWh adjustment on all production (Green Mountain Power), included in the estimates. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in Vermont by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in Vermont.

SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$14,400$14,4004,890$93013
6 kW$21,600$21,6007,330$1,28014
8 kW$28,800$28,8009,780$1,16018
10 kW$36,000$36,00012,220$1,04023
12 kW$43,200$43,20014,660$920>25

Incentives that lower the price in Vermont

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax exemptionAvailable

Sales and Use Tax Exemption for Net Metering Systems (32 V.S.A. 9741(46))

100% exemption from Vermont sales and use tax on equipment incorporated into a net metering system[7]

Tangible personal property incorporated into a net metering system as defined in 30 V.S.A. 8002 (also off-grid systems and solar water heating); no sunset date appears in the statute text.

Who
Tangible personal property incorporated into a net metering system as defined in 30 V.S.A. 8002 (also off-grid systems and solar water heating); no sunset date appears in the statute text.
Deadline
None set in the source
Checked
November 5, 2026

All Vermont incentives, including utility and local programs →

How Vermont utilities credit your solar

Every Vermont utility must offer net metering. Solar output first offsets your usage kWh for kWh during each billing period. Any monthly excess becomes a dollar credit at the utility's blended residential rate (Green Mountain Power: 20.71 cents/kWh), and credits expire after 12 months. Systems applying for a permit since August 1, 2026 also carry a PUC-set siting adjustor of -5 cents/kWh on all production for systems of 15 kW or less. They lose another 4 cents/kWh if the owner keeps the renewable energy credits.[8]

We have not added every Vermont utility yet, so the estimates on this page use the state-level rule: Vermont net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). New systems also take a 5.0¢ per kWh adjustment on all production (Green Mountain Power), included in the estimates.[5]

Full Vermont net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in Vermont?

At the state median installed price of $3.60 per watt est.[3], a 5.6 kW est.[1,2] system that covers a typical home's use costs about $20,200 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in Vermont?

For a cash purchase at the state's average electricity price of 23.93¢ per kWh[4], our model estimates about 13 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[9] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

sources

[ 9 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
  2. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. Green Mountain Power Tariff v. V.P.U.C. 10 - Self Generation and Net Metering (effective with bills rendered on or after October 1, 2026)static.greenmountainpower.com · checked Nov 5, 2026
  6. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  7. 32 V.S.A. § 9741 - Sales not coveredlegislature.vermont.gov · checked Nov 5, 2026
  8. Vt. Code R. 30-000-5100 (PUC Rule 5.100, as amended 3/1/2024) - Cornell LII copylaw.cornell.edu · checked Nov 5, 2026
  9. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026

State data last re-checked November 5, 2026.

Change log

  1. Monthly output per kW in Burlington updated to [65.4, 84.3, 120.8, 119.5, 136.5, 127.5, 137.1, 131.4, 115.0, 78.9, 55.6, 49.6] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  2. Average solar radiation on the panels in Burlington updated to 4.36 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  3. Solar output per kW in Vermont (PVWatts, Burlington) updated to 1221.5 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  4. What the rule says updated to “If the electricity produced by the net-metering system exceeds the electricity consumed, the excess generation must be monetized at the applicable blended residential rate.” (Vt. Code R. 30-000-5100 (PUC Rule 5.100, as amended 3/1/2024) - Cornell LII copy).