Solar Panels Cost 5.2k-15k in Vermont | February, 2025

Solar Panels Cost $5.2k-$15k in Vermont | February, 2025

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How much do solar panels cost in Vermont in 2025?

For going solar in Vermont, the price per watt in February, 2025 is about $3.73/W.

It will cost you $3,730, on average, for every 1000 watts (1 kW) your solar panels can generate. After deducting the 30% federal tax credit, the cost of a 5 kW panel install in Vermont typically comes to around $13,055. However, please keep in mind that a higher capacity system might be essential to fulfill your energy requirements.

To the left, you can choose your county to find the average roof size and the average maximum capacity for solar panel systems on homes in your area. The following overview, below, highlights the costs, payback period, and 20-year average savings for a 5 kW system installed in your county.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
Vermont: $13,055US Average: $12,523
Average Payback Period The number of years until you break even on the solar investment.
Vermont: 9 yearsUS Average: 7 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
Vermont: $11,373US Average: $16,300

Solar Potential in Vermont

Estimated system size and solar electricity production per median viable roof in
Vermont.

Roof size 572sq. ft.
Capacity 8kW DC
Electricity 8.7kkWh AC per yr.

Electricity Costs in Vermont & What that Means for Your Solar Panel Pricing

The standard kWh consumption in Vermont is 569 monthly, with an average monthly bill of $125.1. Small apartments are also factored in the numbers mentioned in the prior sentence. The lower energy use in these types of residences impacts those averages.

The average electricity rate in Vermont in February 2025 is 21.97¢ per kWh.

The average electricity consumer in Vermont will need 6 kW or higher solar setup to account for their full electricity consumption needs. Presently, 6 kW solar panel installation costs $15,666 when including the 30% federal income tax credit.

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Average solar panel costs by system size in Vermont

On the left side, you'll see a detailed cost breakdown of the different sizes of solar panel systems implemented in Vermont. When you opt for a larger solar system, the cost is higher, but it also results in greater electricity savings and a larger income tax credit.

In the solar panel cost calculator found to the right and below, you can examine a cost and benefit breakdown to match an average $125.1 electric bill in Vermont. Adjust the $125.1 to match your average electricity bill payment for more tailored results.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $565 a year
Est. Price
$5,222
Savings from a 2kWthis system
  • Est. yearly production 2,570 kWh
  • Est. monthly savings $47
  • Full payback in 3 years
Environmental Impacts
  • Reduces CO2 emissions by 0.87 tons a year
  • Equivalent to planting 40 trees a year
  • Equivalent to driving 2,161 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $847 a year
Est. Price
$7,833
Savings from a 3kWthis system
  • Est. yearly production 3,855 kWh
  • Est. monthly savings $71
  • Full payback in 5 years
Environmental Impacts
  • Reduces CO2 emissions by 1.31 tons a year
  • Equivalent to planting 60 trees a year
  • Equivalent to driving 3,242 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $1,129 a year
Est. Price
$10,444
Savings from a 4kWthis system
  • Est. yearly production 5,139 kWh
  • Est. monthly savings $94
  • Full payback in 7 years
Environmental Impacts
  • Reduces CO2 emissions by 1.75 tons a year
  • Equivalent to planting 80 trees a year
  • Equivalent to driving 4,323 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,411 a year
Est. Price
$13,055
Savings from a 5kWthis system
  • Est. yearly production 6,424 kWh
  • Est. monthly savings $118
  • Full payback in 9 years
Environmental Impacts
  • Reduces CO2 emissions by 2.18 tons a year
  • Equivalent to planting 100 trees a year
  • Equivalent to driving 5,403 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,694 a year
Est. Price
$15,666
Savings from a 6kWthis system
  • Est. yearly production 7,709 kWh
  • Est. monthly savings $125
  • Full payback in 10 years
Environmental Impacts
  • Reduces CO2 emissions by 2.32 tons a year
  • Equivalent to planting 107 trees a year
  • Equivalent to driving 5,743 mi less a year

Vermont Solar Panel Installation Incentives & Rebates | 2025

Rural small business owners and farmers could receive REAP Grant funding covering between 80% and 100% of their solar energy or wind turbine installation costs. Think you fit this category? Confirm your qualification with our REAP Grant eligibility tool.

For those looking into residential solar, the 30% federal income tax credit is available to nearly everyone, which makes solar a sensible option in many states. In conjunction with federal efforts, state and local programs help to support the use of solar power.

A total of 16 solar rebates and incentives are available in Vermont through different utility companies and government departments.

Solar incentives in VT

Small-Scale Renewable Energy Incentive Program

Value:Up to $3,000

The Small-Scale Renewable Energy Incentive Program is a centralized rebate program for Vermont homes, businesses, and nonprofits. Available rebate offers will vary from time to time. Current rebates apply to solar water heaters, wood-burning heat/CHP, and associated equipment used to store fuel. The specific rebate amount will vary depending on the type of property and the rated capacity of the system. To qualify, systems must be installed by a licensed contractor and should not have received additional grant funding. Additional information is available from the Vermont Renewable Energy Resource Center.

Clean Energy Development Fund

Value:Varies

Since 2005, the Vermont Clean Energy Development Fund (CEDF) has supported renewable energy investment and energy efficiency improvements throughout the state. Funding is derived from customer surcharges, nuclear waste fees (from Entergy's Yankee plant), and compliance penalties assessed to utilities failing to meet the renewable portfolio standard. CEDF programs are targeted toward utility-scale energy facilities that generate zero emissions. Biomass-powered CHP solutions may also qualify for financial assistance. Additional information is available from the Public Service Commission website.

Vermont Gas - Residential Energy Efficiency Program

Value:Varies

Homeowners in the Vermont Gas service area may be eligible for rebates on energy-efficient thermal systems, space heaters, and water heaters. Solar water heating is included in the rebate program. Applicants should obtain preapproval from Vermont Gas and hire a state-licensed natural gas contractor to install the new devices. Additional information is available from the Vermont Gas website.

Commercial Energy Loan Program

Value:Varies

Mid-size and large businesses in Vermont may obtain special economic development financing for new renewable energy investments and energy efficiency improvements. CELP loans are offered through Economic Development Authority lending partners. Available principal tops out at $2 million and can fund up to 60% of project costs. Below-market variable and fixed interest rates may be available; repayment can occur over up to 20 years. Standard credit checks, commitment fees, regulatory costs, and other terms/conditions apply. Additional information is available from the Economic Development Authority.

Local Option - Property Assessed Clean Energy

Value:Varies

Cities and counties in Vermont may create or enter property-assessed clean energy (PACE) financing districts. Any property owner, including single-family homeowners, may apply for specialized energy efficiency loans through their local district. Active PACE programs cover forty different cities, including the Burlington metropolitan area. Maximum available PACE loan principal, interest rates, and other terms and conditions will vary from program to program. Repayment takes the form of a property tax lien senior to mortgages; this means should the borrower sell their property, the new owner will be responsible for continuing loan payments. Additional information is available from the Efficiency Vermont website.

Line Extension Alternatives

Value:Varies

Vermont regulations require utilities to provide information about on-site electrical generation to customers requesting line extensions. The rationale for this regulation is centered both on sustainability and cost savings; it is possible for technology not using the grid to carry less operating costs than a connected line.

Uniform Capacity Tax and Exemption for Solar

Value:Varies

Vermont schools may claim property tax exemptions for the value of small solar PV systems up to 50 kW in capacity. In place of the property tax, a $4/kW charge is assessed on the taxpayer's utility bill. Systems should either participate in a net metering contract or be used for non-interconnected self-generation. Structures used to house components or mount solar collectors may still be assessed as normal. Additional information is available from the Tax Department website.

Agricultural Energy Loan Program

Value:Varies

The Vermont Agricultural Credit Corporation is a legislative agency established in 2013. Loans from the agency's AELP program are designed for farmers and foresters making renewable energy investments or energy efficiency improvements. Loans of up to $2,000,000 are available; the principal can fund a negotiable amount of project costs. Interest is at a variable below-market rate with payments based on energy savings. Standard credit checks, commitment fees, regulatory costs, and other terms/conditions apply. Additional information is available from the Economic Development Authority.

Local Option - Property Tax Exemption

Value:Varies

Local governments in Vermont may choose to exempt renewable energy equipment from local property taxes. Qualifying technologies include solar, wind, methane, and some biomass. Systems must be under a net metering contract. Assessing agencies may choose the total value of the exemption, but most participating localities have implemented a total exemption on the value the system adds to a property. System owners are still responsible for state property tax liability. Interested taxpayers should contact their local government to verify participation and obtain additional information.

Renewable Energy Standard

Value:Varies

Vermont first enacted a Renewable Energy Standard in 2015. Current standard objectives require at least 75% of the state's retail electricity to be generated using renewable technology by 2032. Shortly after enactment, an initial "checkpoint" goal was set requiring a 55% renewable power grid. "Carve-out" policies require a fixed proportion of solar energy, "transformation projects" reforming fossil fuel facilities, and distributed generation. Compliance with each goal is measured using a renewable energy credit (REC) system pegging one kWh of electricity to a fluctuating dollar value. Credits are subject to market forces; utilities may generate them using their own renewable installations or purchase them through feed-in tariffs. Should a utility fail to meet its REC quota, it will receive a financial penalty for each kilowatt hour it is deficient.

Interconnection Standards

Value:Varies

The Vermont Public Service Board enforces standards for distributed generation and grid interconnection practices in the state. Vermont does not use tiers to organize operational renewable energy facilities, though no system under net metering may be rated for over 500 kW. Systems rated for under 150 kW may be eligible for expedited permit review, while those above 150 kW will be subject to extensive engineering reviews and impact studies. Systems are required to meet certain IEEE standards and have an external disconnect switch installed. Owners may be required to carry liability insurance by their utility, but utilities cannot charge additional interconnection fees beyond what is necessary.

Investment Tax Credit

Value:Varies

Vermont businesses may be eligible for investment tax credits on renewable energy equipment. Eligible technologies include solar, wind, geothermal, and some biomass/hydrogen fuel cells. Generally, the credit amount will cover up to 24% of the business's combined local and state property tax liability for the assessed system. Incentives will decrease each year until the credit reaches 2.4%, at which time it will continue indefinitely. The state Department of Taxes reserves the right to amend the credit policies. Additional information is available from their website.

Net Metering

Value:Varies

Solar, wind, and other renewable energy systems in Vermont are eligible for net metering. To qualify, the system owner should follow state interconnection standards and acquire a Certificate of Public Good. Upon signing a net metering contract, the customer will have a bidirectional meter installed to track net excess generation (NEG) exported to the grid. Bill credits for NEG will be awarded at an avoided-cost rate per kilowatt hour. Customers may keep ownership of all renewable energy credits their system generates. "Virtual net metering" arrangements are available for group-owned and microgrid solar energy farms. Each subscriber will receive NEG credits in proportion. Additional information is available from the Vermont Public Service Board.

Small Business Energy Loan Program

Value:Varies

The Vermont Small Business Energy Loan initiative (SBELP) assists local businesses in making renewable energy investments or energy efficiency improvements. Loans of up to $500,000 are available at special below-market interest. These loans can fund up to 60% of the cost of an energy project. Loans below $50,000 are also available which can fund up to 75% of project costs. Standard credit checks, commitment fees, regulatory costs, and other conditions apply. Additional information is available from the Economic Development Authority.

Standard Offer Program

Value:Varies

Through a feed-in tariff program, Vermont utilities may enter power purchasing agreements (PPAs) with developers of large solar/wind farms, hydroelectric installations, and biomass/landfill gas/methane plants. To receive tariff funds, owners should obtain a Certificate of Public Good from the state government and negotiate an appropriate kilowatt-hour rate with interested utilities. In exchange for tariff funding, utilities may claim ownership of the renewable energy credits (RECs) the facility generates. Additional information is available from the Vermont Standard Offer website.

Expedited Permitting Process for Solar Photovoltaic Systems

Value:Varies

In Vermont, state standards streamline permit processes for small solar energy devices under 15 kW. Permits are referred to as "Certificates of Public Good" and are awarded by the Public Service Board. Builders will automatically be considered for expedited review of their system if it meets interconnection standards and capacity limits. A Certificate of Public Good will be awarded automatically if utilities do not raise objections within 10 days. The objection period is extended to 30 days if the solar device will be roof-mounted and rated for over 15 kW. Additional information is available from the Public Service Board website.

Are solar panels worth it in Vermont?

If your goal is to keep your home well past the payback period of your solar system, solar panels are an excellent choice in Vermont. A 5 kW solar system in Vermont could potentially save you $16,968.04 over the course of 20 years, with the break even point typically at 9 years.

The cost of not having solar panels in Vermont

The absence of solar panels or an alternative energy backup means that you forgo the savings noted earlier and depend on your electric utility for electricity. The news has recently pointed out that complete dependence on your utility isn't always ideal.

Residents in Vermont have seen an average of 1.38 utility outages per year recently. Usually, outages have an average duration of 204.33 minutes. However, during critical events like landslides, construction accidents, or grid management errors, these times can extend dramatically.

View the graphic below to see the number of current electricity customers without power in Vermont.

With or without a backup battery, a solar panel system could mitigate the effects of future power interruptions you might experience.

Power Outages

Currently, 0 customers are being tracked in Vermont.

Learn more

Customers Out:

0

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What impacts the cost of solar panels in Vermont?

Your Energy Needs -Larger solar panel systems have a larger upfront cost, but the cost per watt decreases as the system size expands. Installing a solar panel system that can replace the electric bill is useful to homeowners because of the money saved.

Make & Model - Solar panels and mounting equipment, like many other products, are available in a variety of makes and models. The brand preferences of your selected installer can make it essential to choose a highly rated company. Buyers often find that employing better quality makes and models leads to a more satisfactory long-term experience.

Solar Panel Type - It's no surprise that monocrystalline panels are now the standard in the industry. They come with a higher price, but they provide more energy. Many solar panel installers prefer this type of material.

Your Property - Elements like sloped land, trees, or additional hurdles might complicate the installation process. Solar installers currently have the ability to use satellite images to evaluate your home and incorporate these factors in the preliminary cost estimate.

Labor Rates - The different employee wages paid by companies lead to costs that consumers ultimately bearing . Companies that invest in higher wages often see higher reviews for their services and customer service.

Permitting & Interconnection - Local permitting and utility interconnection fees, which change by area, will impact your installation cost. Reliable installers will factor these costs into your first quotes to prevent unexpected expenses.

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Who are the best solar installers in Vermont?

Rob Stubbins Solar

Rutland, VT(802) 775-1484

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

glb, Consulting Company

Bennington CDP, VT(518) 587-7745

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.

SunCommon

Waterbury, VT(802) 882-8181

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.

Plug PV

Troy, NY(518) 948-5316

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.

Norwich Technologies

White River Junction CDP, VT(802) 281-3213

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Integrated Solar Applications

Brattleboro CDP, VT(802) 257-7493

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Silver Sun Solar

Deltona, FL(407) 832-42452

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sun Catcher

Montpelier, VT(802) 272-0004

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Same Sun of Vermont

Rutland, VT(802) 775-7900

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Peck Electric Company

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Sunnyside Solar

(802) 280-7319

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Norwich Solar Technologies

White River Junction CDP, VT(802) 281-3213

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Catamount Solar

Randolph CDP, VT(802) 728-3600

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

PlugPV

Troy, NY(518) 948-5316

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Consulting on all things solar related.

7th Gen Solar

(603) 731-4777

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.

EMPWR Solar

Charleston, SC(854) 999-4837

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Green Mountain Solar

South Burlington, VT(802) 369-9149

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

High Peaks Solar

Wynantskill CDP, NY(518) 238-3931

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.

Pope Energy

Boston, MA(855) 767-3363

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Solaflect Energy

Norwich CDP, VT(802) 649-3700

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Solar Strategies

(802) 289-4492

Services

  • Installation of solar arrays.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.

SolarTech

Sutton CDP, VT(802) 467-3500

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Solgrid

(508) 669-7979

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.

Southern Vermont Solar

Putney CDP, VT(802) 387-0088

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

SunFlower

(603) 393-7996

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

SustainableVT

Hyde Park, VT(802) 825-8672

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

Synergy Smart Homes

Middletown, CT(860) 809-5634

Services

  • Installation of solar arrays.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Vermont Solar Engineering

South Burlington, VT(833) 949-2141

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Vermont Solar Panel Cost FAQs

  • The typical cost per watt for solar panels in Vermont as of February, 2025 is $3.73/W. After federal tax credits, the installation of a 5 kW solar panel system in Vermont is estimated to cost $13,055.
  • There are 16 rebates and incentives available in Vermont from a range of utility providers and government organizations. Furthermore, the majority of people qualify for the 30% federal tax credit.
  • Paying cash offers the most savings, yet there are several financing options available today for solar panels that are also advantageous. Financing options are frequently available through installers and will be specified in your initial quotes.
  • Yes, the average 5 kW solar panel payback time in Vermont is 9 years, with expected savings of $16,968.04 on electricity over 20 years.
  • No program exists in Vermont to pay residents for installing solar panels, but the 30% federal tax credit for solar installations is accessible to everyone in the U.S.
  • In Vermont, free solar panel programs are not available, but the 30% federal income tax credit, which is available to most US citizens, provides a significant reduction in installation costs.
Matt Hope
Last Reviewed By: Matt Hope
Published: 2025-02-03