Cost of Solar Panels in Vermont: Local Solar Installation Prices (2022)

Here’s a quick look at the estimated cost of solar in Vermont:

  • Average Cost Per Watt: $2.87
  • Cost of Average System: $12,743*
  • Cost of Energy Without Solar: $43,688
  • Payback Period: 9 Years**
  • Lifetime Savings of Going Solar: $26,468

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/22/2022

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Find Cost Savings on Solar in Vermont

As a homeowner in Vermont, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

Jump to Section:

  1. Cost of Solar Panels in Vermont
  2. What Determines the Cost of Solar Panels in Vermont?
  3. Vermont Solar Incentives
  4. FAQ: Solar Panel Cost Vermont

 

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SunPower

  • Pros icon Most efficient panels on the market
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SunCommon

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Green Mountain Solar

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Cost of Solar Panels in Vermont

Most solar panel systems in Vermont cost around $2.87 per watt, which is more expensive than the national per-watt average of $2.66. That means that the typical 6-kW system required to offset electricity costs in the area would cost approximately $17,220 before claiming the federal tax credit, and $12,743 after. This total is well below the national average given the smaller system size needed in Vermont versus in most other states.

Vermont residents don’t use much energy when compared to other areas, but the electricity rates throughout the state are quite high — 19.54 cents per kilowatt-hour versus the national average of 13.15 per kWh. As such, solar equipment has a higher value in Vermont than in many other states.

Solar Panel System Installation Cost in Vermont

When you’re estimating the price of going solar for your home in Vermont, the most critical factor to consider is the size of the system you’ll need. You’d need a 6-kW system to offset the average $110.79 monthly energy bill, but every additional kW you need will add nearly $3,000 to your total. The table below provides some typical system sizes in VT, along with pricing before and after the federal tax credit.

Size of Solar Panel System Vermont Solar Panel Cost Cost After Federal Tax Credit
3 kW $8,610 $6,371
4 kW $11,480 $8,495
5 kW $14,350 $10,619
6 kW $17,220 $12,743
7 kW $20,090 $14,867
8 kW $22,960 $16,990
9 kW $25,830 $19,114

Want to see our review of the best solar companies in Vermont that offer high-quality systems at affordable prices? Just click below.

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What Determines the Cost of Solar Panels in Vermont?

System size, which is determined primarily by your monthly energy consumption, is the single most significant cost factor when it comes to pricing your solar panel system. However, there are some other things to consider in Vermont, which we’ll discuss below.

Solar Equipment

The solar equipment you choose will have some bearing on your cost of going solar in Vermont. There are many solar manufacturers to choose from, each offering different equipment durability, energy efficiency and pricing.

If you’re looking for the most efficient solar panels, you’ll very likely pay more upfront for your solar equipment. However, in an area like Vermont, where electricity costs are high, opting for a high-efficiency brand like Maxeon panels from SunPower can often save you more in the long run. As such, a higher upfront cost might be worth it to maximize savings on utility bills. Those looking to minimize upfront costs can do so by choosing a cheaper solar panel brand.

In addition to the brand, the type of equipment you want to add to your solar project can affect your total costs quite a bit. Panels and inverters are a given, but you’ll also be able to add on extras like electric vehicle chargers or solar batteries to maintain electrical power through outages and at night. These additional pieces of equipment can increase your cost, but investing in something like a solar battery will help reduce electric costs over time.

Solar Financing

Most homeowners in Vermont don’t pay the average cost of $17,220 to go solar via a cash purchase. Instead, they opt for a solar loan, which significantly reduces or eliminates your upfront payment at the expense of paying interest over the loan term.

Solar financing is a popular option because it makes renewable energy sources more accessible, but it’s best to work the expected interest and any associated fees into your all-in payment when switching to clean energy. 

For homeowners looking to reduce total costs, a larger down payment will always reduce the amount of interest you pay over time, and it might drop your interest rate or APR as well.

Solar Installation Company

Finally, the solar installer you hire to complete your solar conversion will have some impact on the final cost of going solar. There are many solar panel installation companies to choose from in Vermont, and each has varying prices based on availability, labor costs, warranties included and the equipment provided.

Your total will naturally be higher if you choose a solar installer that only works with high-quality brands, like SunPower panels or Tesla Powerwall batteries. The added cost could be worth it over time if the high-efficiency equipment helps you reduce energy costs throughout the year.

You can start your assessment of a solar installer by looking at the size of the company. Some larger national companies will have lower pricing because they buy panels and inverters in bulk. However, smaller local companies have less overhead and often provide deals to compete with national installers, and they usually provide better customer service and customization options for your system. Don’t forget to assess the company you’re considering based on the value of the equipment and not just the cost!

Vermont Solar Incentives

Vermont is considered a solar-friendly state, and residents have access to many incentives and rebates that ultimately reduce the costs of going solar and make it a more worthwhile investment. Below are the incentives available to homeowners in Vermont.

Federal Solar Tax Credit For Vermont Homeowners

The federal solar investment tax credit — commonly abbreviated as the “ITC” — is one of the most significant rebates available in Vermont. The rebate is for 26% of the total system cost, which in Vermont averages out to $4,477. This amount is credited toward the federal income taxes you owe.

The federal tax credit is available to all homeowners in Vermont, but it’s scheduled to drop to 22% of the total system costs in 2023. Unless Congress renews the bill, this tax incentive will no longer be available for residential systems in 2024 and beyond.

Net Metering Policies in Vermont

Net metering is a policy that allows you to reduce your total electricity costs using any excess energy your system produces. In most cases, when you go solar, your home will still be connected to the local power grid so you can pull energy to use at night or any other time your panels fail to produce enough power for your home. When the reverse is true, and your panels produce more power than you use, you can send excess energy to the grid in exchange for credits from your utility company.

Vermont has an excellent net metering policy, which mandates that all excess energy be purchased back by the power company at the retail rate. That means that you’ll get compensated for energy at the same price per kilowatt that you pay when you need electricity. So, if your bill is $30 but your system has overproduced $20 worth of electricity, you’ll only pay $10 to your utility company that month.

All utility companies offer the same net metering option in Vermont, with the exception of Green Mountain Power. GMP provides above-average rebates and incentives for solar, making it the best electric company in Vermont for net metering.

Local Solar Rebates in Vermont

As a solar-friendly locale, Vermont provides additional rebates and solar incentive programs to residents at the state level.

One of the most significant local incentives is the Uniform Capacity Tax and Exemption for Solar, which is essentially a property tax exemption. All home improvements that increase your property value — including the installation of a solar electric system — usually also bump up your property taxes. However, the property tax exemption means your property taxes won’t increase from installing solar. That could mean thousands of dollars saved for many homeowners in Vermont.

Vermont also offers a sales tax exemption, so you won’t pay sales tax on photovoltaic equipment. With a typical system cost of $17,220 and an average state sales tax rate of 6%, that’s an average savings of around $1,033.

Finally, Vermont has solar rights laws in place, which guarantee access to solar energy for all homeowners. These laws mean your neighbor or other buildings in the area will never cause shading of your panels during peak production times, and you’ll be able to install solar equipment even if you live in a community with an HOA that doesn’t allow exterior renovations.

You might be entitled to additional benefits and rebates based on your municipality within Vermont or your electric company. You can check the DSIRE database for other incentives.

Vermont Installed Solar System Costs in 2022 By Panels

The EcoWatch team has assessed numerous solar equipment brands to determine the best solar panels available to Vermont homeowners. The table below provides a list of the top brands, as well as relative pricing information to help you determine which brand is most likely to fit into your budget.

Solar Panel Brand Average Cost Per Watt ($-$$$$$)
LG Solar $$$
Canadian Solar $$$
JA Solar $$
Mission Solar $$
Panasonic $$
Q Cells $$
REC $$$
Silfab $$$
SunPower $$$$$
Tesla $$
Trina Solar $$$

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People Also Ask 

EcoWatch FAQ: Solar Panel Cost Vermont

At EcoWatch, we get lots of questions from Vermont homeowners about the costs and process of going solar. Below are some of the questions we see most often, along with our responses.

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.

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