Vermont Solar: Strong Credits, a Siting Charge and Your REC Choice

Written by Dean Mahmoud, CEO, and checked by Trevor Guilday, founder.September 2026 Cost Index prices. Credits from the PUC’s May 29, 2026 order. Updated October 14, 2026.

A typical Vermont system is 11.29 kW and costs about $32,854 in cash at $2.91 per watt. In our Green Mountain Power example it pays for itself in about 16.2 years if you hand your RECs to the utility, or 22.7 years if you keep them, assuming 40% of the power is used at home and $338.70 a year in upkeep. A 5¢ siting charge on every kWh your panels make costs about $716 a year.

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Why a Vermont system takes 16 to 23 years to pay back: the siting charge and your RECs

Vermont credits extra solar power at a high rate, then charges new systems per kWh on everything the panels make. One choice on your application adds 4¢ more: keeping the RECs.

Give the RECs to your utility 5¢ per kWh

  1. A REC is the proof your power came from solar. You sign it over to the utility.
  2. Every kWh the panels make carries the 5¢ siting charge, even power you use at home.
  3. Extra power earns 20.71¢, so about 15.71¢ is left after the charge.

Keep the RECs 9¢ per kWh

  1. You keep the RECs in your own name.
  2. Every kWh then carries the 5¢ siting charge plus a 4¢ REC charge.
  3. Extra power still earns 20.71¢, so about 11.71¢ is left after both charges.
11.29 kW with Green Mountain Power, $32,854 cash, 14,327 kWh a year
Your REC choiceValue after chargesSimple payback
RECs go to Green Mountain Power: $716 siting charge$2,023 a year16.2 years
You keep the RECs: $716 siting plus $573 REC charge$1,450 a year22.7 years
How we calculated this
  • Output: 11.29 kW × 1,269 kWh per kW a year = 14,327 kWh (PVWatts, Burlington).
  • 40% is used at home as it is made: 5,731 kWh × 22.639¢, Green Mountain Power’s Rate 1 energy price from October 1, 2026 = $1,297. The other 60%, 8,596 kWh, is sent out at 20.71¢ = $1,780. Together: $3,078.
  • Minus $338.70 upkeep a year ($30 per kW, including an inverter reserve) and the $716.35 siting charge (14,327 kWh × 5¢) = $2,023. Keeping the RECs takes another $573.08 (14,327 kWh × 4¢) = $1,450.
  • Payback is $32,854 divided by the yearly value. No financing, rate changes, panel aging or battery payments.
  • The split of 40% used at home and 60% sent out is a planning assumption, not a Vermont measurement. Your own use pattern changes the result.

The REC choice is made when the application is filed, so decide it with your installer before then. A 2025 Vermont law (Act 38) lets you switch once within 120 days after start-up; the PUC net metering rule and Green Mountain Power’s tariff still call the choice irrevocable, so get your utility to confirm a switch in writing. Ask to see your savings both ways.

Run your own numbers in the worth-it guide

Green Mountain Power, a co-op or Burlington Electric: what your Vermont credit is worth

Solar power you use in the same month lowers your bill directly. Power beyond your monthly use earns a dollar credit: your utility’s residential rate or the statewide 20.71¢, whichever is lower.

Green Mountain Power (GMP)

20.71¢ per extra kWh

Serves about 7 in 10 Vermont homes. Rate 1 energy price 22.639¢ per kWh plus $0.660 a day, from October 1, 2026.

Also: the Bring Your Own Device battery payment and a battery lease.

Vermont Electric Co-op or Washington Electric Co-op

20.71¢ per extra kWh

Both credit the statewide rate. Vermont Electric Co-op confirms the 5¢ siting charge on every kWh for applications dated August 1, 2026 or later.

Also: Vermont Electric Co-op pays a monthly credit for a home battery it can use at peak times.

Burlington Electric Department

16.59¢ per extra kWh

Its own blended residential rate, 16.5864¢, is below the statewide rate. After the 5¢ siting charge, about 11.59¢ is left.

Next: ask your installer to model the lower credit; our payback above uses GMP.

What the credit cannot do
  • Credits are not cash. Unused credits expire after 12 months.
  • Credits cannot pay some fixed charges. Green Mountain Power lists its customer charge, energy efficiency charge and assistance-program charges.
  • The 5¢ siting charge applies to systems of 15 kW or less (Category I). Larger systems need utility interconnection approval before filing.
  • Your utility’s name is at the top of your electric bill. Vermont has more than a dozen small utilities; ask yours for its credit in writing if it is not named here.

Vermont’s siting charge is fixed by the day your application is complete

The PUC sets the siting charge for each two-year filing window. The window your complete application lands in decides the charge, and a charge stays with the system for its life.

Siting charge on every kWh, home systems of 15 kW or less
Complete application filedSiting charge
February 2 to August 31, 20210¢
September 1, 2021 to August 31, 20221¢
September 1, 2022 to July 31, 20242¢
August 1, 2024 to July 31, 20264¢
August 1, 2026 to July 31, 20285¢
What changes for every system, and what may change next
  • The 20.71¢ base credit is not locked. The PUC updates it every two years for existing and new systems alike. Its May 29, 2026 order raised it by 2.31¢, effective August 1, 2026.
  • A charge, such as the siting or REC charge, keeps applying for as long as the system runs, under Green Mountain Power’s tariff. A positive adjustment, which some older systems got, lasts only 10 years.
  • On September 9, 2026 the PUC opened a rulemaking to redesign net metering credits (Case No. 26-1786-RULE). It says any new framework should give existing systems a transition. Nothing is decided yet.

Buying a home that already has panels? Ask for its Certificate of Public Good, the PUC approval for that system. It shows which charges the system carries.

Vermont solar prices: $2.91 per watt and an 11.29 kW typical system

The September 2026 benchmark is tied 29th lowest of 51. The typical system is 11.29 kW, which puts the typical cash price at $32,854. These are modeled cash prices, not quotes we collected.

Cash price by size, and the siting charge it carries
Size
kWh a year
Cash price
5¢ siting a year
6 kW
7,614
$17,460
$381
9 kW
11,421
$26,190
$571
11.29 kW (typical)
14,327
$32,854
$716
15 kW
19,035
$43,650
$952
Where the sizes and prices come from
  • 11.29 kW is the median size Vermont homeowners installed in 2025 (Berkeley Lab, 1,127 systems). Size yours to your own use.
  • Output uses about 1,269 kWh per kW a year (PVWatts, Burlington). Shade and snow cover lower it.
  • 15 kW is the largest size that counts as Category I, the group the 5¢ siting charge applies to.
  • A system you own gets no federal tax credit after December 31, 2025, and Vermont has no state solar tax credit.

Full Vermont price guide

Green Mountain Power battery money and Vermont’s two tax exemptions

No rebate for the panels and no tax credit. The cash in Vermont goes to battery owners, mostly through Green Mountain Power.

$10,500GMP Bring Your Own Device

$850 per kW of battery power for 3 hours, or $950 for 4 hours, on up to 10 kW, plus $100 per kW in constrained areas. 5 kW gets $4,250 to $4,750.

$55/moGMP battery lease

Two Tesla batteries with whole-home backup for 10 years, or $5,500 paid once. No cost at or below 120% of area median income while state grant money lasts.

$34.56/moVermont Electric Co-op battery credit

The co-op’s example for a 27 kWh battery, or $1,447.20 upfront plus $17.28 a month. The battery must hold at least 10 kWh.

0%Sales and property tax

No 6% sales tax with Form S-3E. No property tax on a net-metered system under 50 kW or a home battery under 600 kWh.

What the GMP battery payment asks of you
  • You buy a compatible battery and let GMP use it during peak hours for 10 years. GMP’s program terms expect an average of 5 to 8 events a month, lasting 3 to 6 hours each on average.
  • A software fee of $3.97 a month applies. If you leave early, you repay part of the payment.
  • GMP renewed both battery tariffs from October 1, 2026 until September 30, 2028, with the same payments. Check GMP’s list of compatible batteries before you buy.
  • Washington Electric Co-op lists a battery program as coming soon, with no payment terms yet.
Ways to pay offered by the Vermont installers below
Way to payWho owns the panelsOffered byCheck before you sign
CashYouAll threeForm S-3E handed over before the sale
LoanYouCatamount and Green Mountain Solar through credit unions; SunCommon names no lenderRate, fees and total financed vs. cash price
LeaseThe leasing companyCatamount (prepaid, Amicus); SunCommon (Participate Energy)Who makes the REC choice; buyout price and when

Swipe the table sideways to see every column.

Vermont incentives guideWhat a $0-down Vermont deal means

Three Vermont installers, all based in the state, A to Z

Each holds an active Vermont residential contractor registration, checked October 13, 2026. Listed A to Z, not ranked. Facts from their own sites.

Catamount Solar

Office
Randolph, VT
Registration
Residential contractor 174.0001181, active to March 31, 2027
Warranty
15-year workmanship for homes; equipment and roof leak terms not published
More facts
Since
2011, a worker-owned cooperative (company says)
Ways to pay
Cash, credit union loan, or a prepaid lease through Amicus
Catamount Solar profile

Green Mountain Solar

Office
South Burlington and East Dorset, VT
Registration
Residential contractor 174.0000050, active to March 31, 2027
Warranty
12-year workmanship guarantee; panel makers’ 25-year product terms
More facts
Founded
2017 (company says)
Ways to pay
Cash, or a loan through EastRise Credit Union
Green Mountain Solar profile

SunCommon

Office
Waterbury, VT (also Kingston, NY)
Registration
Residential contractor 174.0001035 (SunCommon II, LLC), active to March 31, 2027
Warranty
No warranty terms published
More facts
Founded
2012 in Waterbury (company says)
Ways to pay
Cash, loan, or a lease through Participate Energy with a buyout from year 6
SunCommon profile

Vermont licenses electricians as individuals, so the numbers above are company registrations; ask who holds the electrical license for your job. None of these three companies buys homeowner leads from EcoGen America. How we make money.

Compare Vermont solar companies in detail

Five lines to find before you sign a Vermont solar contract

  • The siting charge in dollars5¢ per kWh for applications from August 1, 2026, on all output, shown as a yearly cost next to the savings.
  • Your REC choiceTransfer or keep, in writing before the application is filed, and the 4¢ cost of keeping them.
  • Your utility’s credit20.71¢, or 16.59¢ with Burlington Electric, and a note that unused credits expire after 12 months.
  • Taxes done rightForm S-3E for the sales tax, no property tax filing, and no federal or state tax credit in the savings.
  • A registration you can checkThe company’s residential contractor registration on the state license lookup, and the name of the licensed electrician.

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Vermont Solar FAQs

Does Vermont have a solar tax credit?

No. The Vermont Department of Taxes’ 2025 Schedule IN-119 lists no credit for installing home solar. The federal credit ended for systems finished after December 31, 2025. Vermont’s help is the bill credit, two tax exemptions and the battery programs.

Did the Vermont sales tax exemption for solar expire?

No. The exemption in 32 V.S.A. § 9741(46) is in force and has no end date. The June 30, 2026 date some guides show is not in the law. A separate exemption, for advanced wood boilers in § 9741(52), is repealed from July 1, 2027. Flashing and roof or ground preparation materials stay taxable.

Can I plug solar panels into an outlet in Vermont?

Yes, since July 1, 2026 under Act 149: certified plug-in devices up to 1,200 watts per meter, with no PUC permit and no utility approval. Renters must give the landlord 10 days’ notice. Power they send to the grid earns no credit, and you cannot combine them with net metering.

Will Vermont change net metering again?

Probably. The PUC updates the base credit every two years for all systems, and on September 9, 2026 it opened a rulemaking to redesign credits. It says existing systems should get a transition. Under today’s rules, the siting and REC charges set for a system do not change with a new window.

Is there help for lower-income Vermont homes?

Little for panels. Vermont Solar for All has been paused since August 7, 2025. Green Mountain Power’s battery lease has a no-cost version at or below 120% of area median income while grant money lasts.

The PUC orders, utility tariffs and tax rules behind this Vermont guide

Sources (23 documents, each with the date we read it)
  1. EcoGen Solar Cost Index, September 2026: Vermont$2.91 per watt, tied 29th lowest of 51, 11.29 kW median size (Berkeley Lab 2025, 1,127 systems), 1,269 kWh per kW. Read October 14, 2026.
  2. Vermont PUC: order in the 2026 biennial update of net metering, Case No. 26-0291-INV, May 29, 202620.71¢ base credit (up 2.31¢), 5¢ siting and 4¢ REC charges from August 1, 2026. Read October 14, 2026.
  3. Vermont PUC: order opening the net metering rulemaking, Case No. 26-1786-RULESeptember 9, 2026 rulemaking and the transition for existing systems. Read September 30, 2026.
  4. Vermont PUC: Net-Metering and Rule 5.100Category I at 15 kW, 12-month credit expiry, filing windows. Read September 29, 2026.
  5. Green Mountain Power: Self-Generation and Net Metering tariff20.71¢ credit, siting charges by filing window since 2017, charges that last as long as the system runs. Read October 14, 2026.
  6. Green Mountain Power: Rate 1 Residential Service22.639¢ per kWh plus $0.660 a day, bills from October 1, 2026. Read October 14, 2026.
  7. Vermont Electric Cooperative: Net Metering20.71¢ credit and the 5¢ siting charge. Read September 30, 2026.
  8. Washington Electric Cooperative: Net Metering Tariff, 2026 Biennial Update20.71¢ blended residential rate. Read October 14, 2026.
  9. Burlington Electric Department: Net-Metering Tariff16.5864¢ blended residential rate. Read October 14, 2026.
  10. U.S. EIA: Form EIA-861, 2024 dataGreen Mountain Power had 226,675 of about 319,656 Vermont residential customers. Read September 30, 2026.
  11. Vermont Department of Taxes: Form S-3ESales tax exemption certificate, 32 V.S.A. § 9741(46). Read September 29, 2026.
  12. Vermont Department of Taxes: Sales and use tax6% state rate. Read September 30, 2026.
  13. Vermont Department of Taxes: Solar plant taxationNo property tax under 50 kW, or on storage under 600 kWh. Read October 1, 2026.
  14. Vermont Department of Taxes: 2025 Schedule IN-119No credit for installing home solar. Read October 1, 2026.
  15. Green Mountain Power: Bring Your Own Device tariff$850 and $950 per kW, $100 constrained-area adder, $3.97 fee, open to September 30, 2028. Read October 14, 2026.
  16. Green Mountain Power: Bring Your Own Device program page$10,500 maximum; peaks happen a few times a month. Read October 30, 2026.
  17. Green Mountain Power: Bring Your Own Device program termsPeak events an average of 5 to 8 times a month, 3 to 6 hours at a time. Read October 30, 2026.
  18. Green Mountain Power: Energy Storage System Service tariffTwo Tesla batteries for $55 a month over 120 months, or $5,500. Read October 14, 2026.
  19. Green Mountain Power: Energy Storage Access Program RiderNo-cost lease at or below 120% of area median income. Read October 1, 2026.
  20. Vermont Electric Cooperative: Flexible Load ProgramBattery credit example and 10 kWh minimum. Read September 30, 2026.
  21. Vermont Legislature: Act 149 of 2026Plug-in solar up to 1,200 watts from July 1, 2026. Read September 29, 2026.
  22. Vermont Department of Public Service: Solar for All VermontPaused since August 7, 2025. Read September 29, 2026.
  23. IRS: Residential Clean Energy CreditNo credit for property placed in service after December 31, 2025. Read September 29, 2026.
  24. 2025 Annual Technology Baseline: residential PVOwner costs of $29.83 per kW a year, rounded to $30. Checked October 7, 2026.

Installer registrations: Vermont Office of Professional Regulation license lookup, checked October 13, 2026.

Dean Mahmoud
Written by

Dean Mahmoud

CEO of EcoGen America. Since 2021 he has connected homeowners with residential solar installers in all 50 states.

About Dean
Trevor Guilday
Checked by

Trevor Guilday

Founder of EcoGen America. He has worked in residential solar since 2016 and maintains the EcoGen Solar Cost Index.

About Trevor

Editorial standardsCost Index methodologyVerified Installer methodology