Is Solar Worth It in Vermont in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Vermont homeowners — without the federal ITC.
Cost Per Watt
$3.30
installed
Electricity Rate
$0.195
per kWh
Payback (No ITC)
15.1 yr
current reality
Payback (With 30% ITC)
10.5 yr
hypothetical
25-Year ROI
66%
return on investment
Incentive Breakdown — Vermont
Available incentives for a typical 7kW residential solar system in Vermont
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneVermont does not offer a state tax credit for solar installations.
SREC Market
Not AvailableVermont does not have a traditional SREC market.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
No statewide sales tax exemption for solar
Low-Income Program
AvailableVermont offers programs to help low-income households access solar energy.
Key Incentives: Property tax exemption for solar; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Vermont
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.30/W
- Gross Cost
- $23,100
- Federal ITC
- $0
- Net Cost
- $23,100
- Annual Savings
- $1,535/yr
- Payback Period
- 15.1 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.30/W
- Gross Cost
- $23,100
- Federal ITC (30%)
- -$6,930
- Net Cost
- $16,170
- Annual Savings
- $1,535/yr
- Payback Period
- 10.5 years
Impact: Without the federal ITC, Vermont homeowners face a 4.6-year longer payback period — paying $6,930 more out of pocket.
Net Metering Policy — Vermont
How Vermont compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Vermont offers group net metering at full retail rate for systems up to 500 kW under PUC rules.
Cost Per Watt Benchmark — Vermont
Vermont Average
$3.30/W
National Average
$3.05/W
Typical 7kW System
$23,100
Vermont's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Vermont breaks even in 15.1 years. With the former 30% ITC, payback would drop to 10.5 years.
Without Federal ITC
15.1
years to break even
With Former 30% ITC
10.5
years to break even
Production Details
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