Solar panels in Vermont: cost, payback and the rules that matter
Vermont homes pay 24.0¢ per kWh for electricity, the 12th highest of 51, up 6.6% in a year. A typical home needs 15 panels. With no federal tax credit they pay for themselves in about 10.8 yrs.
Four facts that decide solar in Vermont
1. The sun. One kilowatt of panels makes about 1,164 kWh a year in Burlington. Other towns differ a little; the planner works it out for any address.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 24.0¢ in Vermont today.
3. What your utility pays for exports. Most Vermont utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in Vermont.
Vermont's homes
273,416 households; 73.2% own their home. 177,360 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1976; 9.2% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific Vermont home
Solar in Burlington, Vermont’s largest city
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Burlington | 4.1 | 1,164 | 37° | 6.3 | 10.8 yrs | 18.0 yrs | 13.4 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the Vermont average home. $3.00/W, cash, 25 years.
Rule changes that affect Vermont
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in Vermont
How much do solar panels cost in Vermont?
A 6.3 kW system, the size the average Vermont home needs, costs about $15,750 to $23,625 before incentives in 2026.
Is solar worth it in Vermont?
In the median Vermont city, solar pays for itself in about 10.8 yrs if exported power earns the retail rate, or 18.0 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in Vermont?
We know of no statewide income-tax credit for home solar in Vermont; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a Vermont home need?
About 15 panels of 420 watts for the state-average 574 kWh a month. In Burlington, 1 kW of panels makes about 1,164 kWh a year.