Updated Jan 10, 2023
We recommend the best products through an independent review process, and advertisers do not influence our picks. We may receive compensation if you visit partners we recommend. Read our advertiser disclosure for more info.
With the cost of energy going up these days, many property owners are looking for alternative ways to power their homes and buildings. Although there are many great renewable energies, solar energy systems might be your best option if you’re looking for a cheap source of electricity that will provide you with decades of savings.
For residents of Vermont, now is an excellent time to buy solar energy systems because there have never been as many tax credits and rebates available to lower the costs associated with your purchase. Keep reading to learn how purchasing and installing solar panels in Vermont can be made more financially accessible.
Solar energy production has recently taken off across the United States. While it used to be somewhat common to see solar panels in sunny states like Arizona and New Mexico, it is now becoming more and more normal to see solar panels lining the roofs of homes up north.
Vermont has become a great state to purchase and install a solar energy system on your property. Thanks to its Renewable Portfolio Standard goals that incentivize the use of industrial, commercial, and residential solar power, Vermont is now a superstar in the world of renewable energy. Solar policies in Vermont are superb, and the Vermont solar market will likely continue to grow for years to come.
Solar panels are a very valuable means of generating electricity where sunlight is abundant. But just because solar panels perform well in sunny climates doesn’t mean they aren’t useful in colder, cloudy areas. Vermont receives nearly 167 sunny days per year, which is certainly below the national average of 205 days. Nonetheless, solar panels have become far more efficient in recent years, meaning they can perform well even in a northern state like Vermont. Plus, installing solar panels will reduce your reliance on fossil fuels, reduce your carbon footprint, and ultimately help mitigate the onset of climate change.
Finally, solar panels can dramatically increase your home’s value. According to Zillow, the average home experiences a 4.1% increase in value after adding a solar power system. In Vermont, the average home value is $341,415, which means the average value increase from solar panels will be close to $13,998.
Are you sold on solar for your home? Get a free quote from local solar installers.
The average cost of a solar panel installation in Vermont ranges from $13,090 to $17,710. On a cost-per-watt basis, solar panel installation in Vermont falls between $2.62 and $3.54. Over the last ten years, the cost of solar energy has dropped 50%, according to the Solar Energy Industries Association. With energy bills increasing amid high oil and gas prices, the relative cost of solar is bound to decline further.
Purchasing solar panels can save you lots of money on your electricity bills in Vermont. When solar panels produce electricity for your home, they can reduce the energy you pull from the grid, thus lowering your bills. People living in Vermont pay an average of $110.79 per month for electricity, meaning they can save as much as $1,329 each year that their solar panels produce electricity.
It is also important to note that solar panels are long-lasting, enabling you to lock in lower electricity rates for 25 years or more. As a result, you’ll avoid future utility price hikes and save yourself from Vermont’s already high energy prices.
There are several public and private incentives in Vermont that help you save on your purchase of solar panels in Vermont:
Federal Solar Tax Credit (ITC)
|Vermont residents can take advantage of the Federal Solar Tax Credit and get a rebate of 30% applied to their tax returns. In Vermont, residents enjoy an average ITC of $5,166.||2032|
Renewable Solar Sales Tax Exemption
|This sales tax exemption provides residential and commercial purchasers of solar panels with a 6% state sales tax exemption.||None|
Vermont Solar Property Tax Exemption
|In Vermont, residents and property owners will not have to pay additional property taxes for the added value to their homes created by installing solar energy systems.||None|
|Net metering allows homeowners that create excess energy to use it as a credit on their next electric bill. All energy providers are required to offer this option to homeowners.||None|
Green Mountain Power’s Bring Your Own Device Program
|The Green Mountain Power’s Bring Your Own Device Program allows Green Mountain Power customers to get as much as $10,500 off the purchase of a new home battery when they enroll in the Bring Your Own Device Program.||None|
USDA REAP GRANT
|REAP assists agricultural producers and rural small businesses to reduce their energy costs and consumption by providing loan financing and grant funding to purchase and install renewable energy systems. Eligible participants in the REAP program are agricultural producers, with at least 50 percent of their gross income coming from agricultural operations and small businesses in eligible rural areas.||None|
Vermont Investment Tax Credit
|The Vermont Investment Tax Credit is offered to encourage investment in rehabilitation and qualifying renewable energy projects. Your project must be eligible for and receive the federal tax credit to receive this state credit. Project leaders can receive up to a 24% tax credit attributable to the Vermont-property portion of the investment.||None|
The Commercial Energy Loan Program (CELP)
|This program provides low-interest loans for businesses to engage in larger renewable energy and energy efficiency projects. The maximum loan amount is $2,000,000, which can fund up to 60% of a solar project.||None|
The Federal Solar Investment Tax Credit (ITC) is a 30% federal tax credit for purchased home solar systems installed by the end of 2032. It had been set to expire but was extended through the end of 2032 as a provision in the Inflation Reduction Act.
In Vermont, residents enjoy an average ITC of $5,166, a significant chunk of money taken off personal income taxes. Generally speaking, the ITC has done wonders for the solar industry by helping to create hundreds of thousands of jobs and bringing billions of dollars into the economy since its enactment in 2006.
The Renewable Energy System Sales Tax Exemption is a sales tax exemption that provides purchasers of solar panels with a 6% state sales tax exemption. The sales tax in Vermont is only 6%, to begin with, so this exemption eliminates the sales tax on solar panels.
The Uniform Capacity Tax and Exemption for Solar is a property tax exemption that excludes the added value of a solar installation in Vermont from your home’s value for tax purposes.
Vermont mandates net metering for all electricity companies. This policy means that your solar panels will be connected to the public-utility power grid, and surplus power created by your panels will be transferred to the grid. You can offset the cost of power drawn from the electricity grid due to net metering. The minimum compensation you’ll receive is the avoided-cost rate, which is below the retail rate. While the policy specifics of net metering programs will vary among providers, it remains hugely beneficial for owners of solar energy systems.
The Green Mountain Power’s Bring Your Own Device Program allows Green Mountain Power customers to get as much as $10,500 off the purchase of a new home battery when they enroll in the Bring Your Own Device Program.
The Vermont Investment Tax Credit is offered to encourage investment in rehabilitation and qualifying renewable energy projects. Your project must be eligible for and receive the federal tax credit to receive this state credit. Project leaders can receive up to a 24% tax credit for the Vermont-property portion of the investment.
The Federal ITC also provides a 30% tax credit for non-tax-exempt businesses that elect to install solar. Like the residential tax credit, this has been extended through the end of 2032.
The United States Department of Agriculture (USDA) has launched a program designed to increase investments in clean energy called the Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses lower their energy costs and consumption by financing loans and grant funding to purchase and install renewable energy systems. You are eligible to participate in the REAP program if you are an agricultural producer with at least 50 percent of their gross income coming from agricultural operations or a small business in eligible rural areas.
Businesses can claim a 6% sales tax exemption on any equipment purchased to construct and install net-metered renewable energy systems, such as solar panels. Specific municipalities may offer additional tax credits and incentives.
This program provides low-interest loans for businesses to engage in larger renewable energy and energy efficiency projects. The maximum loan amount is $2,000,000, which can fund up to 60% of a solar project.
Vermont is a great state to invest in residential, commercial, or industrial solar energy systems. Unlike some other state governments that provide less support for people who undertake renewable energy projects, the Vermont state government is fully behind and willing to out anyone seeking to join the rush of homeowners installing renewable energy systems.
Indeed, with financial assistance from the federal government, the state government, and additional local incentives, Vermont residents have a wealth of support to draw from when purchasing solar panels. As energy prices soar, the time is right to get into the solar game. If you are interested in purchasing, many great companies will help set you get started.
Yes, you should consider buying a solar energy system in Vermont. Solar can save you tons of money on your utility bills and help reduce your production of emissions and your carbon footprint. Plus, various federal, state, and local financial incentives are available to purchase solar panels accessible to anyone.
If you live in Vermont, you pay an average of $110.79 monthly for electricity. With the purchase of a solar energy system for your home, you could save $1,329 each year if your solar panels produce enough electricity to take you off the power grid. Plus, with solar panels lasting more than 25 years, you’ll be able to lock in lower electricity rates for decades to come.
The average cost of a solar panel installation in Vermont ranges from $13,090 to $17,710. On a cost-per-watt basis, solar panel installation in Vermont falls between $2.62 and $3.54. Over the last ten years, the cost of solar energy has dropped 50%.
Although it is unlikely that you can get solar panels for free in Vermont, you are lucky to have the support of numerous federal, state, and local financial incentives that will significantly minimize the costs of purchasing a new solar energy system.
There are many federal, state, and local financial incentives for purchasers of solar energy systems in Vermont. These include the Federal Solar Investment Tax Credit (ITC), the Vermont Sales Tax Exemption, the Vermont Property Tax Exemption, and the Vermont Investment Tax Credit.
There is enough solar installed in Vermont to power 70,405 homes, and solar accounts for 16.16% of the state’s electricity production.
No, the Uniform Capacity Tax and Exemption for Solar is a property tax exemption that excludes the added value of a solar installation in Vermont from your home’s value for tax purposes.
Vermont taxpayers can write off many costs associated with purchasing new solar energy systems. Check out the Vermont state government’s website for more information about incentive programs.
At House Method, transparency and trust are our most important values for the reader. That’s why we took the time to create an objective rating system and score each solar energy company/service according to our methodology.
Our research team dug deep into the fine print of contracts, combed through more than one hundred customer reviews, and thoroughly investigated each solar energy company’s services, costs, and products. We’ve done the homework for you by researching nearly all the solar energy companies on the market so you can have the information you need to make the best choice for your home.
We developed a formula to objectively determine the best solar energy companies and give each a score out of 10 based on the following criteria:
Other Solar Resources