As energy costs continue to rise, more Vermonters are turning to solar power to reduce their electricity bills and carbon footprint. With some of the highest electricity rates in the nation, going solar in Vermont can lead to substantial long-term savings. The state also offers generous incentives, including tax exemptions, that make solar adoption even more appealing. In this article, we’ll dive into the costs of going solar in Vermont, the top incentives available, factors that impact solar panel performance, and the best local solar companies to consider in 2024.
Solar System Costs in Vermont
According to 2024 data, the average cost of installing solar panels in Vermont ranges from $10,000 to $15,000 for a typical 5 kW residential system. On a per-watt basis, Vermonters can expect to pay between $2.62 and $3.54. While these figures are higher than the national average, the state’s strong solar incentives and high electricity rates still make going solar a smart financial move for most homeowners.
| System Size | Average Cost (After 30% Federal Tax Credit) |
|---|---|
| 3 kW | $6,593 |
| 5 kW | $12,636 |
| 10 kW | $21,978 |
Over 25+ years, the average Vermont homeowner can expect to save $26,468 by going solar. With a cash purchase, the typical payback period is around 10 years.
Applying the 30% federal tax credit reduces the average cost to $12,636 for a 5 kW system. Typical costs after the tax credit range from $6,593 for a 3 kW system to $21,978 for a 10 kW system. Factors like system size, panel type, and your location within Vermont can all impact the final price.
Homeowners have several financing options to make going solar more affordable:
- Cash purchase: Paying upfront provides the best long-term savings and shortest payback period.
- Solar loans: Many installers partner with lenders to offer $0-down, low-interest financing.
- Solar leases and power purchase agreements (PPAs): These arrangements require no money down but provide lower savings compared to ownership.
Over 25+ years, the average Vermont homeowner can expect to save $26,468 by going solar. With a cash purchase, the typical payback period is around 10 years.
Vermont Solar Incentives
Vermont offers some of the most generous solar incentives in the country, making it easier for residents to afford the upfront cost of installation. Key incentives include:
Federal Solar Tax Credit
Deduct 30% of your solar installation costs from your federal taxes. For the average Vermont system, that’s a savings of $5,166. Available through 2032 before stepping down to 26% in 2033 and 22% in 2034.
Net Metering
Vermont has a statewide net metering program that credits you for excess solar electricity sent to the grid. Green Mountain Power offers one of the top net metering rates, compensating customers at the full retail rate for their surplus generation.
Sales and Property Tax Exemptions
- Vermont waives the 6% state sales tax on solar equipment.
- Property tax exemption excludes the value of your solar installation from your home’s assessed value.
Bring Your Own Device Program
Green Mountain Power customers considering battery storage can get up to $10,500 in upfront incentives for batteries that meet certain capacity and discharge requirements. Learn more about solar battery storage.
Factors Affecting Solar Panel Performance
When evaluating solar for your Vermont home, it’s important to consider the factors that will impact your system’s energy production:
Climate and Weather
Vermont sees an average of 111 sunny days per year, below the U.S. average of 205 days. However, even on cloudy days, solar panels continue to generate electricity, just at a lower rate. Vermont’s cold winters can actually boost solar panel efficiency, as PV performance improves in lower temperatures. Snow can temporarily block sunlight from reaching your panels, but they are designed to shed snow quickly once the sun returns.
Roof Characteristics
The ideal roof for solar has a south-facing orientation and a 30-degree tilt. However, east- and west-facing roofs can still be viable for solar. Shading from nearby trees or buildings can reduce energy production, so it’s important to assess your roof’s solar potential throughout the day. Your installer can help determine if any obstructions will significantly impact your system’s output.
System Design
Proper solar panel sizing and design are critical for maximizing your energy production and savings. A knowledgeable installer will take into account your energy usage, roof space, shading, and local climate to recommend the optimal system size and configuration. Investing in high-efficiency panels and quality inverters can also boost your system’s performance and reliability over the long term.
Top Solar Companies in Vermont
With over 39 solar installers serving the state, Vermonters have many options when choosing a solar provider. Here are some of the top local companies known for their expertise, quality, and customer service:
SunCommon
Vermont’s largest solar installer, SunCommon is a certified B Corp dedicated to making solar accessible and affordable. They offer a range of high-efficiency panel options from brands like SunPower and Panasonic, along with battery storage solutions. Customers praise their knowledgeable staff and streamlined installation process. The company was also hailed as one of the best places for employment in Vermont, which speaks to their strong company culture and employee satisfaction.
Location: 442 US-2, Waterbury Village Historic District, VT, 05676
Phone: 802-882-8181
Green Mountain Solar
Another local favorite, Green Mountain Solar is known for their personalized service and competitive pricing. Located in Williston, they have taken on some huge projects, handling everything from planning and trenching to panel installation, often completing the job in just a couple of days. They partner with VSECU credit union to offer affordable financing options, including no-money-down loans. With an industry-leading 12-year workmanship warranty, they stand behind the quality of their installations.
Location: 96 Commerce St, Williston, VT, 05495
Phone: 802-369-9149
Catamount Solar
Catamount Solar is an employee-owned company with a strong track record of successful projects across the state. They specialize in custom solar designs that maximize energy production and aesthetics. Customers appreciate their transparent pricing and commitment to using premium, long-lasting components. Demonstrating their dedication to a greener future, Catamount Solar donates about 5% of their annual profits to various non-profit organizations.
Location: 4 Randolph Ave, Randolph, VT, 05060
Phone: 802-728-3600
Solaflect Energy
Solaflect Energy is unique in offering their own ground-mounted solar trackers that follow the sun throughout the day for optimal energy production. Their patented Solar Tracker system costs between $16,000 to $20,000 and is designed to perform well in Vermont’s snowy conditions. It comes with a comprehensive 25-year warranty and free lifetime support. Customers praise the company’s fair pricing, flexible installation process, and proactive maintenance, with technicians providing on-site or remote adjustments as needed.
Location: 326 Main St Suite 4, Norwich, VT, 05055
Phone: 802-649-3700
Sunrun Solar
Sunrun Solar stands out for their excellent customer service and transparent pricing. They offer affordable rates and are upfront about the expected costs of going solar. Customers appreciate their courtesy and educational approach, leaving them more knowledgeable about solar systems even if they don’t end up using Sunrun’s services. The company provides quality installation and ongoing support.
Location: 1354 Marshall Ave, Williston, VT, 05495
Phone: 802-778-3264
Southern Vermont Solar
Partnering with Southern Vermont Solar means gaining a lifetime support team, not just a solar installer. They work closely with customers to explore their options and maximize available tax exemptions. With a stellar reputation for service and support, Southern Vermont Solar ensures their clients are well-informed and satisfied at every step.
Location: 654 Sweetwood Hill, Putney, VT, 05346
Phone: 802-387-0088
AllEarth Renewables
AllEarth Renewables receives glowing reviews for their high-performing solar trackers and responsive customer service. Customers report significant savings, with some eliminating their power bills entirely thanks to the company’s optimized designs. The AllEarth team provides timely support whenever issues arise to keep systems running smoothly.
Location: 94 Harvest Ln Suite 101, Williston, VT, 05495
Phone: 802-872-9600
Solar Installation Process & Tips
Going solar in Vermont typically involves the following steps:
- Get multiple quotes from reputable installers to compare pricing, equipment, and warranties.
- Schedule a site assessment to evaluate your roof and energy needs.
- Review and sign a contract with your chosen installer, including financing terms. Consider comparing loans, leases, and PPAs to find the best option for you.
- Obtain necessary permits and utility approvals (usually handled by your installer).
- Complete the installation, which can take anywhere from one to three days. Follow this step-by-step guide to mounting solar panels on your roof.
- Pass final inspections and receive permission to operate from your utility.
- Monitor your system’s performance and enjoy the savings on your electricity bills. Learn how much you can really save with solar panels.
To ensure a smooth installation and maximum long-term benefits, consider these tips:
- Research and vet potential installers based on their experience, certifications, and customer reviews. Here are the top 10 questions to ask your solar installer before signing a contract.
- Understand the details of your contract, including the scope of work, payment schedule, and any guarantees.
- Choose high-quality components from established brands to ensure reliable performance over the 25+ year lifespan of your system. Find out which solar panels are the best.
- Take advantage of available incentives and financing options to minimize your upfront costs and maximize your savings.
- Maintain your panels regularly by cleaning them and trimming any trees that may cause shading.
Conclusion
With its combination of high electricity rates, generous state incentives, and a growing roster of experienced installers, Vermont is an excellent place to go solar in 2024. By doing your research, getting multiple quotes, and choosing a reputable installer, you can enjoy significant long-term savings and energy independence by powering your home with clean, renewable energy from the sun.
As Vermont continues to prioritize renewable energy and work towards its goal of 90% renewable electricity by 2050, now is an ideal time for homeowners to invest in solar and join the state’s transition to a cleaner, more sustainable future. With the 30% federal tax credit available through 2032 and a variety of local incentives to lower upfront costs, there’s never been a better opportunity to start harnessing the power of the sun in the Green Mountain State.
Ready to take the next step? Use our solar calculator to estimate your potential savings and find the best solar installers in your area. Don’t forget to explore our other resources on how solar panels work, solar panel efficiency, and innovative applications of solar energy to become a well-informed solar adopter.