Solar Calculator for Vermont: Costs, Incentives & ROI
Vermont's residential solar market is defined by two characteristics that set it apart from every other state: the Group Net Metering program — a genuinely unique mechanism allowing multiple meters across multiple properties to share credits from a single solar installation — and a consistent top-five national ranking for residential solar capacity per capita. Green Mountain Power, an Avangrid subsidiary serving approximately seventy-eight percent of Vermont residential customers, administers net metering under Vermont Public Utility Commission Rule 5.100. Vermont Electric Cooperative serves eastern Vermont's rural communities, while Burlington Electric Department — a municipal utility operating on one hundred percent renewable energy since 2014 — serves Burlington. Under Group Net Metering, a Vermont homeowner with a farm, workshop, or rental property on a separate utility account can combine all accounts into a single Group Net Metering arrangement, directing credits from one solar installation to multiple meters. This flexibility — unavailable in any other state's standard net metering framework — makes Vermont solar economics compelling for property owners with multiple electricity accounts. Vermont's incentive stack combines the federal Investment Tax Credit of thirty percent, a full property tax exemption under 32 V.S.A. § 3845, and a full sales tax exemption under 32 V.S.A. § 9741(46) eliminating Vermont's six percent sales tax on solar equipment. At approximately twenty-one cents per kilowatt-hour — well above the national average — Vermont's rate environment amplifies the financial return on every kilowatt-hour of solar generation.
Incentive data updated: May 2026(may be outdated)
Average Solar Cost in Vermont
Average installed solar costs in Vermont range from approximately three dollars and ten cents per watt before incentives, consistent with the broader New England market where higher labor costs and cold-weather installation considerations elevate installed costs above Sun Belt states. A standard six-kilowatt system costs between eighteen thousand and nineteen thousand five hundred dollars before the federal Investment Tax Credit. The thirty-percent ITC reduces net cost to approximately twelve thousand six hundred to thirteen thousand six hundred fifty dollars. Vermont's full sales tax exemption under 32 V.S.A. § 9741(46) saves approximately one thousand eighty to one thousand one hundred seventy dollars on a typical installation. The property tax exemption under 32 V.S.A. § 3845 is a full, one-hundred-percent exemption — solar installations are excluded entirely from local property tax assessment, meaning Vermont homeowners pay no additional property tax attributable to a solar system over its twenty-five-year life. Burlington Electric Department customers should note that BED's somewhat lower rate structure may affect the dollar value of exported credits compared to Green Mountain Power customers under the standard VT PUC tariff.
- Avg. installed cost
- $3.10/W
- Typical 6 kW system
- $18,000–$19,500
Top Solar Incentives in Vermont
Live incentive data not currently available for Vermont. See the federal incentive guidance via our Solar Tax Credit Calculator.
Electricity Rates in Vermont
Vermont residential electricity rates average approximately twenty-one cents per kilowatt-hour on a blended basis — meaningfully above the national average. Green Mountain Power customers pay rates in the twenty to twenty-two cent range under a tiered rate structure. Vermont Electric Cooperative customers in eastern Vermont pay nineteen to twenty-one cents under a flat tariff. Burlington Electric Department customers pay seventeen to nineteen cents, reflecting Burlington's direct renewable energy sourcing. Vermont's higher rates are driven by the state's position at the northern end of the ISO New England transmission system, cold winters that drive heating demand, and renewable portfolio standard costs. For solar customers, Vermont's twenty-one-cent rate environment directly compresses payback periods and increases twenty-five-year lifetime system value compared to lower-rate states.
Peak Sun Hours in Vermont
Vermont's solar resource averages approximately four to four and a half peak sun hours per day on a south-facing tilted surface — comparable to southern Maine and the Boston metropolitan area. Burlington and the Lake Champlain valley receive approximately four and two-tenths to four and five-tenths peak sun hours per day. Vermont's cold winters offer a performance advantage: solar panels generate more power per watt in cold temperatures, partially offsetting shorter winter days. A six-kilowatt system in the Burlington area typically produces approximately six thousand three hundred to six thousand seven hundred kilowatt-hours per year. Group Net Metering's twelve-month credit rollover under VT PUC Rule 5.100 allows summer solar surpluses to bank credits that offset winter electricity costs. At Vermont's twenty-one-cent rate, annual savings for a well-sized Burlington system approach fourteen hundred dollars, with a payback period of approximately seven and a half years.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,400
- Payback period
- 7.5 years
- 25-year net savings
- $31,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in Vermont
- Burlington05401
- Essex05452
- Colchester05446
- South Burlington05403
- Rutland05701
Common Questions About Solar in Vermont
What is Vermont's Group Net Metering program and how does it work?
Vermont's Group Net Metering program — established under VT PUC Rule 5.100 — is the only program of its kind in the United States, allowing solar customers to share credits from a single solar installation across multiple meters and multiple properties. Under standard net metering in most states, a residential system offsets electricity at exactly one address. Vermont removes this restriction: a customer with a farm, seasonal cottage, or rental unit on a separate utility account can combine all accounts into a Group Net Metering arrangement, directing credits from one solar installation to multiple meters simultaneously. Residential systems qualify under Tier I, capped at fifteen kilowatts; Tier II covers systems from fifty to five hundred kilowatts for larger agricultural applications. Export credits are compensated at the retail electricity rate — approximately twenty to twenty-two cents per kilowatt-hour for Green Mountain Power customers — with monthly credits rolling forward for up to twelve months. All participating accounts must be served by the same utility. Vermont homeowners with multiple properties or outbuildings should ask their installer specifically about structuring a Group Net Metering arrangement to maximize the financial value of their solar investment.
Can I share solar credits between my home and my farm in Vermont?
Yes — Vermont's Group Net Metering program under VT PUC Rule 5.100 is specifically designed to enable this scenario. If your residence and farm are on separate utility accounts served by the same utility — typically Green Mountain Power or Vermont Electric Cooperative — both accounts can participate in a single Group Net Metering arrangement. Your solar installation produces power, and the utility allocates credits across all participating meters according to your designated allocation percentages. A common arrangement is to allocate credits based on historical consumption ratios: if your farm uses sixty percent of the combined total and your home uses forty percent, set Group Net Metering allocations to match those ratios. This is fundamentally different from installing separate solar systems at each property — one well-sized solar installation can serve multiple accounts economically, reducing total installed cost. The practical constraint is that all participating accounts must be on the same utility's system. Vermont homeowners with mixed farm-plus-residence electricity needs should specifically request Group Net Metering design from their installer, as not all installers proactively surface this option.
Does Vermont exempt solar from both property tax and sales tax?
Yes — Vermont provides full exemptions from both property tax and sales tax for residential solar installations. The property tax exemption is codified at 32 V.S.A. § 3845, exempting net metering systems and renewable energy systems from local property tax assessment. When a solar installation increases the appraised value of a Vermont home, that value increment is entirely excluded from property tax calculation. The exemption applies statewide without requiring a separate local application. The sales tax exemption is codified at 32 V.S.A. § 9741(46), exempting solar panels, inverters, racking, wiring, and installation labor from Vermont's six percent state sales tax. On a six-kilowatt system costing eighteen thousand to nineteen thousand five hundred dollars, the sales tax exemption saves approximately one thousand eighty to one thousand one hundred seventy dollars. The combination of the property tax exemption — removing the ongoing annual cost of higher property taxes — and the one-time sales tax savings meaningfully reduces total Vermont solar ownership cost relative to states without both benefits.
Green Mountain Power vs. Vermont Electric Cooperative vs. Burlington Electric — what is the difference?
Vermont's three primary utilities offer distinct service environments for solar customers. Green Mountain Power — an Avangrid subsidiary serving approximately seventy-eight percent of Vermont residential customers — operates under a tiered rate structure with rates typically in the twenty to twenty-two cent per kilowatt-hour range and administers Group Net Metering through its standard residential interconnection tariff. Vermont Electric Cooperative serves eastern Vermont rural communities under a flat rate tariff at nineteen to twenty-one cents per kilowatt-hour; as a member-owned cooperative, VEC's interconnection processes differ from GMP's investor-owned model. Burlington Electric Department is a municipal utility that has operated on one hundred percent renewable energy since 2014, with rates typically in the seventeen to nineteen cent range — somewhat lower than GMP. All three utilities administer Group Net Metering under VT PUC Rule 5.100, but BED's lower base rates mean exported solar credits carry somewhat lower dollar-per-kilowatt-hour value for Burlington customers than for GMP or VEC customers.
Why does Vermont consistently rank among the top five states for per-capita solar?
Vermont's consistent top-five national ranking for residential solar capacity per capita reflects the combination of policy design, rate environment, and utility cooperation. The Group Net Metering program under VT PUC Rule 5.100 is the most significant differentiating factor — no other US state's standard net metering framework permits multi-meter, multi-property credit sharing at the residential tier, giving Vermont homeowners with farms, outbuildings, or multiple properties exceptional flexibility to right-size solar installations relative to total electricity consumption. Vermont's residential electricity rates averaging approximately twenty-one cents per kilowatt-hour are meaningfully above the national average, improving payback economics. The full stacking of property tax exemption under 32 V.S.A. § 3845, sales tax exemption under 32 V.S.A. § 9741(46), and the federal thirty-percent ITC creates an environment where the effective out-of-pocket cost after incentives drops substantially, with ongoing tax savings accumulating over a twenty-five-year system life. The combination of unique program design, above-average rates, and full dual tax exemptions explains why Vermont punches dramatically above its weight in per-capita residential solar penetration.
Best Solar Installers in Vermont
Vermont requires that electrical work associated with solar photovoltaic installations be performed by or under the supervision of a licensed electrician holding a Vermont Electrical License (Type S Solar PV) issued by the Vermont Office of Professional Regulation (OPR). Verify installer licensing status at the OPR public lookup portal before signing a contract. NABCEP certification is a recommended quality indicator beyond the state licensing minimum.
- Get at least 3 quotes from different installers to compare pricing and equipment.
- Check installer ratings with the BBB before signing a contract.
- Verify contractor licensing with Vermont Office of Professional Regulation (OPR) — Electrical License (Type S Solar PV). Ask for proof of a 20–25 year panel warranty.
Top Utility Companies in Vermont
Green Mountain Power (GMP; Avangrid)
Service area: Burlington, Montpelier, Rutland, Barre, St. Johnsbury, most of Vermont (~78% residential)
Tariff: tier-2, TOU
Residential rate: 20.0–22.0¢/kWh (as of 2026-05)
NEM program: VT Group Net Metering — UNIQUE US program permitting multi-meter/multi-property credit sharing (e.g., farm + residence + workshop on different meters share single solar system credits). Residential Tier I cap 15 kW; Tier II 50-500 kW. Export credit at retail-rate-equivalent (~20-22¢/kWh). Monthly credits roll forward 12 months.
Vermont Electric Cooperative (VEC)
Service area: Newport, Derby, Barton, Johnson, eastern Vermont rural communities
Tariff: flat
Residential rate: 19.0–21.0¢/kWh (as of 2026-05)
NEM program: VT Group Net Metering under VT PUC Rule 5.100 — multi-meter credit sharing available. Retail-rate export compensation (~19-21¢/kWh). 12-month credit rollover.
Burlington Electric Department (BED)
Service area: Burlington
Tariff: tier-2
Residential rate: 17.0–19.0¢/kWh (as of 2026-05)
NEM program: VT Group Net Metering under VT PUC Rule 5.100. Burlington Electric operates on 100% renewable energy since 2014. Export credit at retail-rate-equivalent (~17-19¢/kWh). Group Net Metering multi-meter sharing available.
Net Metering Policy in Vermont
- Version
- NEM NEM-2.0
- Effective date
- 2017-01-01
- Buyback rate
- retail
- System size cap
- 500 kW
- Grandfathering
- Net metering policy stable; VT PUC Rule 5.100 reaffirmed Group Net Metering periodically. No transition to avoided-cost planned for residential Tier I.
Vermont Group Net Metering — UNIQUE US program permitting multi-meter/multi-property credit sharing under VT PUC Rule 5.100. Residential Tier I cap 15 kW; Tier II 50-500 kW. Export credit at REC retention value; utility may retain RECs and pay at retail-rate-equivalent (~20-22¢/kWh for GMP customers). Monthly credits roll forward up to 12 months. Group Net Metering allows e.g., farm + residence + workshop on different utility accounts to share credits from a single solar installation — no other US state standard NEM program permits this at the residential tier.
Property Tax Exemption in Vermont
- Status
- full
- Exemption
- 100%
- Applies to
- solar-pvstorage
32 V.S.A. § 3845 — net metering systems and renewable energy systems exempt from local property tax assessment statewide. A solar installation does not increase a Vermont home's taxable assessed value. Sales tax also exempt under 32 V.S.A. § 9741(46) — solar panels, inverters, racking, wiring, and installation materials exempt from VT 6% sales tax. Vermont consistently ranks top-5 US for per-capita residential solar capacity, supported by Group Net Metering multi-property flexibility + full dual tax exemptions + ~21¢/kWh retail rate environment.