Vermont solar panels: The complete guide in 2025
Data updated Jul 8, 2025
Ready to go solar in Vermont? To offset the average typical electric bill, you’ll need a 11.08 kW system, which costs about $22,440 after the federal tax credit.
Cost for an average system in Vermont
| Out of pocket cost, cash | $32,057 |
| Federal tax credit (30%) | - $9,617 |
| Price post tax credit | $22,440 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $39,799 | 11 Years | 97% |
As long as your federal tax bill is high enough, you can take advantage of the federal investment tax credit (ITC).
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- Overview
- Solar cost
- Incentives
- Companies
Going solar in Vermont
Vermont is better known for its skiing than its sunshine, but it's still a great state for solar energy. With the state's high electricity prices and pretty good incentives, going solar makes sense for many Vermonters.
In Vermont, you'll have access to net metering and solar tax exemptions––and, of course, the 30% federal solar tax credit.
Here's our guide to getting solar panels in the Green Mountain State.
Cost
How much do solar panels cost in Vermont?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Vermont homeowner needs a 11.08 kW solar panel system to cover their electricity needs, which comes out to $32,057 before incentives. Prices range from $27,248 to $36,866, but after the federal tax credit, that drops by 30%.
While this looks expensive, it will pay off in Vermont. That's why over 3,600 Vermont homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 10.53 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to pay for your solar panel system, each with its pros and cons.
Cash purchase: You pay for your system upfront. While it’s the most expensive option initially, it provides the best long-term savings.
Solar loan: You owe little to nothing upfront and make monthly payments on your system. With a solar loan, you get to maintain ownership of your panels. Still, they aren't all created equal: If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. If not, go with a home equity loan or a personal loan. Private solar loans typically come with higher interest rates or upfront fees.
Solar lease or power purchase agreement (PPA): You have little to no upfront costs, but a third-party company owns your system. Depending on your contract, you’ll either lease your solar panels (solar lease) or purchase the electricity they generate (PPA). While more affordable upfront, third-party ownership models generally provide the lowest savings and have the worst reputation for reliability. They can be beneficial, but remember to read the fine print.
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Incentives
What are the best solar rebates and incentives in Vermont?
Incentives help bring solar's price tag down considerably in Vermont. Here are the major ones to know about:
| Incentive | Average savings in Vermont | Description |
|---|---|---|
Residential Clean Energy Tax Credit, formerly the federal investment tax credit (ITC) | $9,617 | Lowers your solar panel system's cost by 30% |
Vermont solar sales tax exemption | 6% of your system costs | You don't need to pay any sales tax on new solar panel systems in Vermont, saving at least 6% of your system costs. |
Vermont solar property tax exemption | 1.56% of your system's value, annually on average | If you use solar energy as a source of power, you won't need to pay tax on the value your solar panels add to your property. |
Is net metering available in Vermont?
In certain states, net metering policies allow you to earn credits for the extra energy your home solar system produces. This incentive is known as net metering—basically a solar buyback program—and it can make it so you owe little to nothing on your electric bills.
All Vermont utilities offer net metering, so make sure to take advantage while it's still available!
Check out all the details on net metering in Vermont or learn about its biggest utility's program below:
Equipment
Equipment quality
Each year, solar panels get more and more efficient—that is, they produce more power per square foot. As of 2025, the most popular solar panels can produce about 450 watts of electricity when they’re in full sunlight. If you want to make the most of your roof’s solar potential, get panels with at least that much power output.
You should also make sure to select a solar inverter setup that makes sense for your roof’s layout.
And if you want or need a solar battery, be sure to pick one that can integrate cleanly with that inverter.
Premium equipment can come with a high price tag, but it will often save you more money in the long run. The best equipment tends to have the best warranty terms, often guaranteed to 25 years (sometimes even 40!), so you’re covered in case you need repairs or replacements. The highest-quality panels also degrade more slowly, so they’ll maintain more of their power output further into the future.
Companies
Who are the best solar installers in Vermont?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Vermont:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Vermont
- Vermont Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Vermont Department of Public Service
Learn about VT solar programs from the state government.
- Vermont Public Utility Commission
Read more about how utility companies work in VT.
- Vermont Electricity Profile (EIA)
Learn about VT energy production and prices.
- VT State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in VT.
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