Complete Guide to Solar Energy in Vermont
Your complete resource for solar energy in Vermont. Everything you need to know about federal tax credits, net metering, sales tax exemptions, and solar installation across the Green Mountain State.
Why Vermont is Perfect for Solar Energy
High Electricity Rates
Vermont’s electricity rates average 23.21¢/kWh—43% above the national average—making every kilowatt-hour of solar production exceptionally valuable and accelerating payback periods for homeowners.
Full Retail Net Metering
Vermont provides 100% retail rate credits for excess solar generation through net metering, ensuring maximum value for every kilowatt-hour produced and allowing credits to roll over monthly.
Complete Sales Tax Exemption
Vermont exempts solar systems up to 500 kW from all state sales tax (6%), providing immediate upfront savings on equipment and installation without complicated paperwork or applications.
No Property Tax on Solar
Residential solar systems under 50 kW capacity are fully exempt from property taxes in Vermont, ensuring solar investments increase home value without raising tax obligations.
Quick Solar Facts
Explore Solar Topics
Laws & Regulations
Federal ITC, net metering policies, sales tax exemption, property tax exemption, HOA solar rights protection, and expedited registration for systems under 25 kW.
Residential Solar
Complete guide for Vermont homeowners, system sizing for moderate solar conditions, roof and ground-mount options, and maximizing production with 4.13 peak sun hours daily.
Costs & Savings
2025 pricing at $2.95-$3.08 per watt, federal tax credit benefits, long-term savings analysis, and ROI calculations with Vermont’s high electricity rates.
Financing Options
Solar loans, cash purchase advantages, Green Mountain Power programs, home equity options, and third-party financing arrangements.
Installation Guide
Finding licensed installers, net metering registration process, Certificate of Public Good requirements, local permitting, and Green Mountain Power interconnection.
Solar 101
Solar technology fundamentals, equipment selection for Vermont’s climate, battery storage for grid reliability, seasonal production variations, and system maintenance.
Community Solar
Shared solar programs, group net metering opportunities, options for renters and multi-family residents, and subscription benefits.
Solar Calculator
Estimate your solar savings and system requirements.
Quick Solar Savings Calculator
Important 2025 Updates
Expedited Solar Registration Expansion (June 2025)
Vermont Governor Phil Scott signed legislation allowing ground-mounted net-metered solar arrays under 25 kW capacity to qualify for expedited registration. Previously only rooftop systems under 15 kW qualified. This streamlines the approval process and reduces installation timelines for residential solar projects.
Expedited Registration Details →Federal Tax Credit Expiration (December 31, 2025)
The 30% federal Investment Tax Credit for residential solar expires completely on December 31, 2025. Systems must be fully installed and operational by year-end to qualify. No phase-down period—the credit disappears entirely after 2025, making immediate action critical for maximum savings.
Federal ITC Information →Vermont Solar Laws & Regulations
Understanding the legal framework that supports solar energy in Vermont
Sales Tax Exemption
Vermont provides 100% sales tax exemption for renewable energy systems up to 500 kW capacity, including solar panels, inverters, batteries, and installation labor. This 6% savings applies to residential, commercial, and agricultural solar projects, reducing upfront costs automatically at purchase.
Learn More →Net Metering Program
Vermont allows net metering for solar systems up to 500 kW capacity. Homeowners receive full retail rate credits (23.21¢/kWh average) for excess generation sent to the grid. Credits roll over monthly and can be used to offset future electricity bills, effectively using the grid as a battery.
Learn More →Solar Access Rights
Vermont law (Title 27, Chapter 5, Section 544) prohibits HOAs, deed restrictions, and covenants from denying permission to install solar collectors based on renewable resources. While reasonable restrictions on location and orientation may apply, outright prohibitions are not permitted.
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