Discover your exact solar savings potential in Vermont. We factor in local utility rates, sun hours, and state-specific incentives to give you an accurate ROI estimate.
DISCLAIMER: All estimates are approximations based on regional averages. Actual savings vary by location, roof orientation, utility provider, and installer. This calculator does not guarantee specific savings.
Electricity rates last updated: August 2026 (source: EIA)
Find out how much you can save based on your location and current energy usage.
Vermont has some of the highest residential electricity rates in the country, which significantly strengthens the case for solar. Rates vary considerably by utility and source: the EIA-reported statewide average is roughly 22–25¢/kWh (approximately 30% above the national average), while Green Mountain Power's (GMP) standard residential rate is closer to 17–21¢/kWh depending on the rate schedule, and Vermont Electric Cooperative customers typically see rates in the 12–14¢/kWh range. Because each kilowatt-hour your solar panels generate displaces electricity you would otherwise buy from the grid, Vermont's high retail rates mean solar offsets more dollars per kWh than in lower-rate states. Confirm your current rate on your utility bill or with your utility directly — the utility-to-utility variance in Vermont is wide enough that your specific rate matters significantly for any savings projection.
All Vermont utilities are required by law to offer net metering for solar systems up to 500 kW. The base blended retail net metering credit rate is approximately $0.1839/kWh as of 2026. Green Mountain Power customers with systems under 15 kW have an additional choice that other state customers do not: they can earn an extra $0.03–0.04/kWh adder on top of the base rate — bringing their effective credit to approximately $0.2239/kWh — by agreeing to transfer their Renewable Energy Certificates (RECs) to GMP. If they keep their RECs, they earn the base $0.1839/kWh rate instead. This is a genuine tradeoff: RECs are the tradable certificates that prove your electricity was generated from a renewable source, and some homeowners value keeping them for personal, marketing, or future trading reasons. For most residential customers, the $0.03–0.04/kWh adder from transferring RECs to GMP is likely the better financial choice — but verify current adder rates with Green Mountain Power before deciding, as these rates are subject to regulatory change. Vermont Electric Cooperative and other smaller utilities offer the mandated base net metering rate without this additional adder option.
Under 32 V.S.A. § 3802, solar energy systems under 50 kW are automatically exempt from property tax assessment in Vermont — no separate application or annual filing is required. This means installing a residential solar system will not increase your property tax bill, regardless of how much value it adds to your home. For systems 50 kW or larger (rare for residential installations), the exemption does not apply; instead, those larger systems pay a uniform capacity tax of $4 per kW. Nearly all residential rooftop solar installations fall well below the 50 kW threshold and receive the full automatic exemption.
Vermont exempts the purchase of solar energy equipment from its 6% state sales tax. This exemption is typically applied automatically by state-licensed solar installers, so it usually shows up as savings already built into an installer's quote rather than a rebate or credit you claim separately. On a typical residential solar installation, this exemption saves several hundred to over a thousand dollars depending on system size and cost. Verify that your installer's quote explicitly reflects the sales tax exemption — ask for a line-item breakdown if it is not clear.
Vermont receives roughly 3.6 to 4.3 peak sun hours per day depending on the source and location within the state — below the national average of approximately 4.5 peak sun hours per day. Vermont's northern latitude and mix of cloud cover and seasonal snowfall mean panels produce less per kilowatt of installed capacity than in sunnier states like Arizona, Florida, or even the mid-Atlantic region. This does not make solar a poor investment in Vermont — Vermont's high electricity rates largely compensate for the lower solar resource — but it does mean production estimates based on national averages will overstate your system's actual output. Make sure any installer proposal uses location-specific solar irradiance data for your Vermont ZIP code and actual roof orientation rather than a national or regional average.
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025 under the One Big Beautiful Bill Act and does NOT apply to solar energy systems installed in 2026 or later. Some installer websites and online calculators still display a 30% federal credit in their 2026 cost estimates — that figure is outdated for new residential purchases. Vermont homeowners purchasing a system outright in 2026 should not include a federal income tax credit in their financial projections. The primary available incentives are the statewide net metering program, the property tax exemption under 32 V.S.A. § 3802, and the sales tax exemption on solar equipment. If you are exploring a solar lease or power purchase agreement, ask the installer in writing whether any federal commercial ITC passthrough is factored into their pricing.
Everything you need to know about solar incentives, costs, and savings in your area.