Table of ContentsSolar power in Vermont Vermont solar panel cost Vermont solar panel incentives or rebates Why choose Vermont solar power right now? Should I buy or lease my solar panels? Vermont solar panel companies The history of solar power in Vermont Important solar installation factors to consider Solar power FAQs Solar energy by state
Solar power in Vermont
Solar energy in Vermont is growing in popularity, with enough solar to power more than 70,000 homes. Approximately 16% of Vermont’s electricity comes from solar power. An estimated $774 million has been invested in solar power and there are an increasing number of manufacturers, installers, developers and other solar businesses operating throughout the state.
If you are considering investing in solar panels for your home, now is an ideal time as solar panel prices in Vermont have fallen 50% in the last decade. SaveOnEnergy.com® is an independent energy marketplace that can help you discover all the ways solar power can lower your energy costs.
Vermont solar panel cost
In Vermont, the cost of solar panels will depend upon the size of your solar system, the system’s features, and installation and permitting costs. Residential solar systems will on average cost a Vermont homeowner $3 to $5 per watt for solar panels. The average 6-kilowatt (kW) system normally costs between $11,160 to $46,500. However, this is before factoring in the significant savings available with the 26% federal tax credit and other state and local solar incentives. These savings often result in a homeowner breaking even after six to nine years with a solar panel system.
There are a variety of financing options available for solar panels. Some consumers choose to purchase their system outright, while others finance it over time. Other consumers opt for a solar lease or sign a solar power purchase agreement (PPA).
The SaveOnEnergy marketplace helps you search, compare, sign up and save on the right energy fit for your home – all for free. If you’re interested in solar, answer a few questions to get an exact price quote from our solar advisors.
Vermont solar panel incentives or rebates
Purchasing a solar system is a big upfront investment, despite the cost of solar panels in Vermont dropping by 50% in the last 10 years. To make solar more affordable, many states and the federal government have implemented tax credits and rebates to offset the upfront cost. The federal solar tax credit (also called the ITC) offers a 26% credit to homeowners who install solar power in 2022. There is no cap on the amount you can claim from this credit, so you can fully benefit no matter the size of your solar system. The IRS provides detailed instructions on how to claim the federal tax credit.
Vermont also offers a variety of state and local solar incentives to incentivize homeowners to invest in solar. Below is a list of some of the solar incentives in Vermont that can help lower the cost of solar panels.
|Vermont Standard Offer Program||This financial incentive offers a rebate for every kWh generated by a solar system.|
|Vermont Solar Rights Law||This law prevents ordinances, bylaws, or HOA regulations from prohibiting solar panels for homes.|
|Investment Tax Credit||This statewide tax credit offers 6.24% of a solar system’s cost back if the system is installed before the end of 2022.|
|Property Tax Exemption||Vermont residents who install solar panels on their homes are exempt from any property tax increases that could result from having a solar system on their property.|
|Renewable Energy Sales Tax Exemption||Homeowners who install solar panels are exempt from paying sales tax on their system.|
|Federal Solar Tax Credit||The federal tax credit offers 26% of the system price back for systems installed in 2022. There is no cap on this tax credit.|
Why choose Vermont solar power right now?
There are several reasons for why consumers might choose to invest in solar power. Some of the most common incentives for consumers include lowering energy expenses, increasing energy independence, and decreasing their home’s environmental footprint.
Lower energy costs
Lowering energy costs is one of the most enticing reasons to invest in solar panels. A home solar system can generate enough electricity to cover most (if not all) of your home’s energy needs, so you won’t need to pay as much for traditional electricity. Solar panels also increase your home’s value by an average of $15,000. The increase in home value alone could offset the initial cost of solar panels. Now is the time to invest in solar if you want to maximize your energy savings. There are several Vermont solar rebates and incentives currently available that could expire in coming years. The federal tax credit, for example, is currently set at 26% but will lower to 22% in 2023.
Increase energy independence
Energy independence is the ability to provide power to your home without relying upon the traditional electrical grid already in place in your community. The benefits of energy independence can be significant. Perhaps most importantly, as a homeowner with solar power, you are not as vulnerable to the fluctuations in grid energy prices, usually meaning price increases during periods of high demand.
It is nice to know that an investment in solar power will improve the environment. Solar energy is both a renewable resource and is environmentally-friendly in comparison with traditional electricity because it does not emit carbon dioxide into the atmosphere. Powering your home with solar energy can help reduce your carbon footprint.
Should I buy or lease my solar panels?
Purchasing solar panels will lead to the greatest amount of savings in the long run. Buying solar panels allows you to make use of the federal tax credit and other state and local incentives available in Vermont. And according to the Office of Energy Efficiency & Renewable Energy, purchasing solar panels will also increase your home’s resale value by $15,000.
Although purchasing solar panels may deliver the greatest savings, leasing solar panels can be the right choice for some consumers. Because solar leases do not require a large upfront investment, leasing can serve to make solar power available to a larger group of people. And of course, leasing will usually be a better option for those who rent their homes. Keep in mind that if you sign a solar lease or solar power purchase agreement (PPA), you will not be eligible for many incentives, including the federal tax credit. And if you move, you might need to find a buyer who is willing to take over your solar lease.
Community solar projects are another option to be considered. With a community solar program, homeowners can share solar power that is generated by the project with other homes nearby. Participants can avoid the high upfront investment required when purchasing solar panels and do not have the burden of installing solar panels on their homes. SaveOnEnergy can help you find community solar projects in your area.
Vermont solar panel companies
There are many high quality solar panel companies in Vermont. SaveOnEnergy is an energy marketplace that can help you find a solar company operating in your area. We partner with the trusted, top-tier solar companies to bring you a curated customer experience and customized solar options in Vermont. Want to learn more about how we can help? Fill out this form to receive more information or call 866-420-6556 to speak with a solar expert.
The history of solar power in Vermont
Vermont ranks 35th in the nation for solar power generation, but it is growing quickly in popularity as solar panel prices dropped in recent years. Vermont has always been a state concerned with proper energy use and sustainability. Not surprisingly therefore, the solar industry is alive and well in Vermont.
There are a number of solar farms in Vermont. Solar farms, also referred to as solar parks and solar power stations, operate just like power plants, generating electricity for consumers but in a more cost effective and environmentally friendly manner.
Solar is a growing energy option in Vermont. At the end of 2021, there were almost 10,000 solar installations across the state. The solar industry is also responsible for creating more than 1,000 jobs in Vermont and solar generation is projected to grow by 119 MW in the next five years.
Important solar installation factors to consider
There are a few things to consider before installing solar panels on your home in Vermont:
- The Department of Energy has determined that solar panels are best placed on south-facing roofs which have slopes ranging from 15 to 40 degrees. The newer the roof, the better, as these are normally in the best condition and will not require replacement for some time. If your roof is older or in need of maintenance, you may need to repair or replace it before installing solar panels.
- Diligent attention to the weather patterns in your area which will have an impact on the effectiveness and efficiency of the panels. Solar panels will generate more electricity when they are located in direct sunlight. Vermont normally receives an average of 167 sunny days each year.
- If you live in a community with a homeowners association, pay close attention to whether there are any rules or restrictions which could impact your solar panel plans. For example, for aesthetic reasons, HOA’s sometimes limit the size of the solar system that can be installed. It is likely in any case that you will need the approval of the HOA before installation.
Solar power FAQs
How much would solar cost in Vermont?
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The average cost of a 6-kW solar panel system typically is between $11,160 and $46,500, depending on the size. Your specific cost will depend upon local conditions, the size of your system, and costs of installation and permitting.
Is solar power a good investment in Vermont?
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Solar panels can be an excellent investment for any homeowner, and often lead to dramatic savings on energy. Various factors will have a bearing on savings including your location, weather patterns in your area, and the ways you use energy. Review the section above for more information on the factors to consider before investing in solar.
How much could I save by investing in solar?
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The amount you are able to save on energy with solar panels will depend on the sunlight available for your solar panels and the amount of energy you use. The average traditional power bill in Vermont is around $112 each month. Consumers who switch to solar could easily cut that cost in half every month by powering their home with solar energy.
How does solar power help the environment?
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Where can I find a good solar panel installer in Vermont?
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There are a number of excellent solar installers in Vermont if you are considering an installation on your home. SaveOnEnergy can help you find the right solar company in Vermont. Fill out the form above or call the number on your screen to learn more.
Solar energy by state
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- Washington D.C.