State solar guide
Vermont solar economics in 2026 depend entirely on your utility rate, available state incentives, and net-metering rules. The federal residential credit expired December 31, 2025. We present the honest picture for your location.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage mid-2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
Vermont requires all utilities to offer net metering for residential solar systems up to 15 kW (via Green Mountain Power). GMP, serving approximately 75% of Vermont households, credits exports at approximately $0.14 to $0.18 per kWh on a blended retail rate basis, significantly below the $0.29 to $0.31 per kWh full retail rates available in Massachusetts, Connecticut, and Rhode Island. This low credit rate is the primary factor suppressing Vermont solar ROI and extending payback to 10 to 14 years. GMP also offers an additional $0.01 per kWh on all production over 10 years for small systems, and a further $0.03 per kWh if homeowners transfer their Renewable Energy Certificates to GMP. Vermont Electric Cooperative serves northeastern Vermont with a separate rate structure. As of 2026-06, verify current net metering credit rates at dsireusa.org or with your utility.
Green Mountain Power (GMP) serves approximately 75% of Vermont households. GMP net metering credits are approximately $0.14 to $0.18 per kWh, significantly below the full retail rates in Massachusetts (approximately $0.30 per kWh), Connecticut ($0.31), or Rhode Island ($0.29). Vermont Electric Cooperative serves a smaller portion of the northeast. Net metering credits at GMP are below the stated retail rate because Vermont's rate structure includes components not credited to exports.
Program: NM1_partial. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific Vermont utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for Vermont homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Vermont Clean Energy Development Fund (CEDF) Rebate Upfront per-watt rebate Funding is limited and availability can vary. Verify current program status with CEDF before signing a solar contract. | $0.10 per watt, maximum $3,500 Upfront residential solar rebate of $0.10 per watt, capped at $3,500. An 8 kW system earns $800; a 10 kW system earns $1,000. The $3,500 cap is reached at 35 kW, so all typical residential systems are in the uncapped range. Administered by the Vermont Clean Energy Development Fund. | Vermont residential solar installations. Verify current funding availability with CEDF or your installer before relying on this rebate. | Active | DSIRE (opens in new tab) |
| Green Mountain Power Battery Storage Rebate Rebate (battery storage) Rebate rate ($850 or $950 per kW) depends on battery duration, longer duration batteries receive higher rate. Verify current rate and eligible battery models with GMP before signing a storage contract. Limited to GMP territory. | $850 to $950 per kW of battery capacity; maximum $10,500 GMP offers a rebate of $850 to $950 per kW of battery capacity for residential battery storage systems paired with solar. Maximum rebate up to $10,500. This is among the most generous residential battery rebates in the country. Available for GMP residential customers only. Battery must be paired with solar and enrolled in GMP's battery programs. | Green Mountain Power residential customers with a qualifying battery storage system paired with solar. Vermont Electric Cooperative customers are not eligible for GMP programs. | Active | DSIRE (opens in new tab) |
| Vermont Property Tax Exemption (32 V.S.A. Section 3845) Property tax exemption Confirm exemption is applied by your local assessor after installation. | Full assessed value increase excluded for solar systems under 50 kW Vermont exempts residential solar energy systems under 50 kW from local property tax assessment increases. Prevents the approximately $20,000 added home value from solar from being taxed, saving approximately $400 per year. | Vermont residential property with a qualifying solar energy system under 50 kW. | Active | DSIRE (opens in new tab) |
| Vermont Sales Tax Exemption on Solar Equipment and Battery Storage Sales tax exemption Confirm exemption is applied by your installer at the time of purchase. | Full exemption from 6% state sales tax (includes battery storage) Vermont exempts solar energy equipment, installation labor, and battery storage from the 6% state sales tax. The explicit inclusion of battery storage in the exemption is beneficial for solar-plus-storage systems. | Residential solar energy equipment and battery storage purchased and installed in Vermont. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in Vermont
Green Mountain Power Battery Rebate: up to $10,500 for qualifying residential battery storage systems ($850 to $950 per kW depending on battery duration). This is among the strongest residential battery incentives in the country and is the primary case for battery storage in Vermont. The GMP battery rebate is available to GMP customers only. No equivalent program for Vermont Electric Cooperative customers as of mid-2026. Vermont's 6% sales tax also explicitly exempts battery storage.
Savings example
This example uses real Vermont market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at 8,400 kWh based on 3.0 peak sun hours in Vermont. GMP net metering credit at approximately $0.16 per kWh blended rate (not full retail). Self-consumed solar valued at full 23.27 cents per kWh. Rate escalation at 3% annually. System price at $2.88 per watt market average. Federal residential credit: $0 (expired). EnergySage cites approximately 12.8-year payback for Vermont. Adding GMP battery rebate (up to $10,500) and battery energy management would improve payback for solar-plus-storage systems. Figures are illustrative.
Vermont homeowner savings example, Green Mountain Power territory (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
Vermont solar permitting is managed at the local municipality level with no statewide permit fee cap. Permit timelines are generally shorter than in larger states: most Vermont towns average 2 to 4 weeks. GMP interconnection adds 3 to 6 weeks after permit issuance. Vermont Electric Cooperative has a separate interconnection process. Act 248 (Certificate of Public Good from the Public Utility Commission) is required for systems over 15 kW but most residential systems qualify for an exemption under the simplified Tier 1 or Tier 2 process. Contract to energization typically runs 8 to 14 weeks in Vermont. Vermont's smaller scale and fewer major utilities simplifies the process compared to multi-utility states.
Most residential Vermont solar installations (under 15 kW) qualify for simplified Tier 1 or Tier 2 PUC registration rather than full Act 248 review. Confirm with your installer which tier applies to your planned system size.
Commercial solar in Vermont
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many Vermont business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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Frequently asked
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