Solar in Vermont: is it worth it in 2026?
Vermont is a good state for solar: most homes that buy a system get their money back in about a decade. Three things decide that: electricity here is among the most expensive in the country (10th of 51), it gets less sun than most states (47th of 51), and exported power earns full retail credit. Of the 51 states and DC, Vermont has the 12th-fastest payback for a typical home.
The average home here pays about $135 a month for 591 kWh. A 5 kW system sized for that home would knock about $1,309 off the first year's bills, 81% of the total.
Checked November 12, 2026
What makes solar pay off in Vermont
- Size the system to cover your yearly use. With full net metering, power you export is worth as much as power you use, so timing matters less than in most states.
- High electricity prices do the heavy lifting. At 22.8¢ per kWh, even a modest system saves real money, but the price still matters. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 14 years.
- Less sun means more panels. Each kW makes about 1,222 kWh a year, so check that the quote's production estimate isn't borrowed from a sunnier state.
Payback by system size
An average Vermont home uses about 7,092 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 52% | 3 kW | $7,710 | 3,666 kWh | 10 years | $14,781 |
| 78% | 4.5 kW | $11,565 | 5,499 kWh | 10 years | $23,483 |
| 103% | 6 kW | $15,420 | 7,332 kWh | 10 years | $32,035 |
| 129% | 7.5 kW | $19,275 | 9,165 kWh | 11 years | $32,893 |
The 3 kW system pays back fastest, but the 7.5 kW system saves the most over 25 years. Assumes exported power earns about 90% of the retail rate, prices rise 2.5% a year and one inverter replacement.
How Vermont credits power you send to the grid
Full credit (net metering)
Net metering, but export credits have been cut seven years in a row.
We haven't found a single published export rate for Vermont, so the calculators assume about 90% of the retail rate. Ask your utility for its rate and enter it.
Before you sign in Vermont
Check the license. Look the company up with the Vermont Office of Professional Regulation, by its legal name or license number, and ask for the electrician's license number too.
Vermont has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
Vermont compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| Vermont | 22.8¢ | 1,222 | 10 years | Full credit (net metering) |
| New York | 26.4¢ | 1,291 | 8 years | Full credit (net metering) |
| New Hampshire | 24.5¢ | 1,258 | 9 years | Reduced credit (net billing) |
| Massachusetts | 30.4¢ | 1,302 | 7 years | Full credit (net metering) |
Questions about solar in Vermont
How long does solar take to pay for itself in Vermont?
About 10 years for a typical 5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does Vermont have net metering?
Yes. Net metering, but export credits have been cut seven years in a row.
Is there a solar tax credit in Vermont in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 5 kW system in Vermont, that credit was worth about $3,855 and brought payback down to 7 years, instead of 10 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in Vermont?
Not for savings. Vermont credits exported power at close to the retail rate, and storing power in a battery loses about 10% of it, so a battery saves nothing on the bill. It can still be worth it for backup during outages: a 13.5 kWh battery costs about $15,650 installed in 2026.
Is plug-in solar legal in Vermont?
Yes, under S. 202, up to 1,200 watts per meter, homes with smart meters only. Renters give 10 days' notice; HOA covenants can't ban kits.
How do I check a solar company's license in Vermont?
Look the company up with the Vermont Office of Professional Regulation (sos.vermont.gov/opr) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; Solar.com: Plug-in solar, the 2026 guide; EnergySage: median quoted price, first half of 2026.