Solar power in Vermont

Solar energy in Vermont is growing in popularity. According to data from the Solar Energy Industries Association (SEIA), the Green Mountain State already has enough solar to power more than 76,000 homes. Approximately 20% of Vermont’s electricity comes from solar power, and the state has already invested $832 million in solar power. There are a growing number of manufacturers, installers, developers, and other solar businesses operating throughout Vermont.

If you are considering investing in solar panels for your home, now is an ideal time. The cost of solar panels in Vermont has fallen more than 50% over the last decade. You’ll still need to spend a substantial amount upfront, but you can recoup your costs and earn a big return on your solar investment in the long run.

SaveOnEnergy is an independent energy marketplace that can help you discover all the ways solar power can lower your energy costs. Read on to learn more about solar panels in Vermont.

Get your free solar savings estimate

You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.

Vermont solar panel cost

In Vermont, the cost of solar panels will depend upon factors like the size of your solar system, the type of solar panels you choose, the system’s features, and installation and permitting costs. Costs can vary significantly by project. 

On average, residential solar systems will cost a Vermont homeowner $3.85 per watt, bringing the average 6-kilowatt (kW) system costs roughly $23,100. However, factoring in the 30% federal tax credit and other state and local Vermont solar incentives can bring you significant savings.

Here’s how Vermont solar panel costs compare to the national average:

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does Vermont solar save you money?

Ultimately, the long-term savings you gain with solar energy in Vermont can far outweigh the upfront costs. Not only can you save on your upfront cost with Vermont solar incentives, but you can significantly reduce your monthly energy expenses.

The typical Vermont homeowner spends $119.07 per month on their electricity bills. With a properly sized and installed solar array, you could potentially eliminate this cost entirely — a savings of over $1,400 per year. At that rate, you’d recoup the average cost of solar panels in Vermont within just over 11 years. Your solar panels will likely last another 15-plus years beyond that time, so you could actually save from $19,000 to $27,000 in the long run.

You can use the following table to estimate the cost of your Vermont solar panels and weigh your potential long-term savings.

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

The best Vermont solar panel incentives or rebates

Purchasing a solar system is often a big upfront investment, despite the cost of solar panels in Vermont dropping by 43% in the last 10 years. To make solar more affordable, many states and the federal government have implemented tax credits and rebates. The recently implemented Inflation Reduction Act includes a 30% tax credit on the purchase of solar panels through 2032. This credit, now called the Residential Clean Energy Credit, can even be applied retroactively to a system purchased in 2022. 

Vermont also offers a variety of state and local solar creditsto incentivize homeowners to invest in solar. Below is a list of some of the Vermont solar incentives that can help lower the cost of solar panels.

Solar incentives in Burlington

Solar incentives in Burlington are the same as the incentives available throughout Vermont. Residents can take advantage of property and sales tax exemptions, along with the state Investment Tax Credit. Customers of Burlington Electric Department can also benefit from net metering to receive credits on their utility bills. To qualify, you must:

• Work with a verified installer and licensed electrician to install a separate meter and connect your solar panels to the grid.
• Fill out and submit a new metering application to the Vermont Public Utilities Commission (PUC). 

Learn more about net metering in Vermont at the PUC website.

Why choose Vermont solar power?

There are several reasons for why consumers might choose to invest in solar power. Some of the most common incentives for consumers include lowering energy expenses, increasing energy independence, and decreasing their home’s environmental footprint. 

Lower energy costs

Lowering energy costs is one of the most enticing reasons to invest in solar panels. A home solar system can generate enough electricity to cover most (if not all) of your home’s energy needs, meaning you won’t need to pay as much for traditional electricity. Solar panels also increase your home’s value by an average of $15,000. The increase in home value alone could offset the initial cost of solar panels.

Increase energy independence

Energy independence is the ability to provide power to your home without relying upon the traditional electrical grid. The benefits of energy independence can be significant. Perhaps most importantly, as a homeowner with solar power, you are not as vulnerable to fluctuating grid energy prices, which usually mean price increases during periods of high demand. Including a storage battery with your system will allow you to reserve enough power to keep the lights on during an outage and further decrease dependence on the grid.

Go green

Investing in solar power can help you do your part in improving the environment. Solar energy is a renewable resource and is environmentally friendly in comparison to traditional electricity because it does not emit carbon dioxide into the atmosphere. Powering your home with solar energy can help reduce your carbon footprint.

Should I buy or lease my solar panels?

If you’re considering solar energy in Vermont, it’s worth noting that purchasing solar panels will lead to the greatest amount of savings in the long run. Buying solar panels allows you to take advantage of the federal tax credit and other state and local incentives available in Vermont. According to the Office of Energy Efficiency & Renewable Energy, purchasing solar panels will also increase your home’s resale value by $15,000.

Although purchasing solar panels may deliver the greatest savings, leasing solar panels can be a good alternative for some consumers. Because solar leases do not require a large upfront investment, leasing can make solar power available to more people. Leasing can also be a better option for those who rent their homes. Keep in mind that if you sign a solar lease or solar power purchase agreement (PPA), you will not be eligible for many incentives.

Community solar projects are another option to consider. With a community solar program, homeowners can share solar power that is generated by the project with other homes nearby. Participants can avoid the high upfront investment required when purchasing solar panels.

Vermont solar panel companies

There are many high-quality Vermont solar companies, and SaveOnEnergy can help you find trusted solar companiesin your area. We partner with trusted, top-tier solar installers to bring you a curated customer experience and customized solar options in Vermont. Want to learn more about how we can help? Fill out this form to receive more information or call the number on your screen to speak with a solar expert.

Solar installer	Year founded	Financing options	Warranty terms
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
	1985	Cash purchase, solar loan, or lease	25-year full system warranty
	2007	Cash purchase, solar loan, or lease	10-year quality warranty; customers who lease their systems receive coverage on maintenance and monitoring

What to look for in a solar contractor

With so many Vermont solar companies, it’s critical to carefully research your options before committing to your solar project. Reputable installers will have industry certifications from organizations like the North American Board of Certified Energy Practitioners (NABCEP) and plenty of service history that you can review and verify. Be sure to explore their equipment and warranty coverage, as well as their financing options, to determine which company might be a good fit for you.

Beware of free solar panels in Vermont scam

Vermont solar incentives and federal tax credits can help dramatically reduce the costs of installing solar panels. However, it’s important to note that you’ll still have to spend around $15,000–$20,000 on average to purchase solar panels for your home. Be wary of any offers for “free solar panels in Vermont,” as these are likely scams designed to steal your personal information.

Important solar installation factors to consider

There are a few things to consider before installing solar panels on your home in Vermont:

• Roof angle and condition: The Department of Energy has determined that solar panels are best placed on south-facing roofs with slopes ranging from 15 to 40 degrees. The newer the roof, the better, as these are normally in the best condition and will not require replacement for some time. If your roof is older or in need of maintenance, you may need to repair or replace it before installing solar panels. 
• Sunlight in your area: Solar panels will generate more electricity when they are located in direct sunlight. Vermont normally receives an average of 167 sunny days each year, but you should evaluate any trees or other sunlight-blocking objects around your home to make sure you have plenty of sun on your roof.
• Restrictions and regulations: If you live in a community with a homeowners association, pay close attention to whether there are any rules or restrictions which could impact your solar panel plans. Vermont prohibits HOAs from restricting solar installations, but you still may need to get approval or meet certain guidelines before starting the