Solar in Vermont costs about $2.89 per watt, so the typical 5.43 kW system runs about $15,693 before incentives. While most states cut what they pay for rooftop solar in 2026, Vermont raised its credit, and with power at 23.52¢ that small system pays back in under ten years.
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14.4¢ before, about 15.7¢ now: Vermont’s 2026 net-metering raise
Most states spent 2026 cutting what they pay for rooftop solar. Vermont went the other way. On May 29, 2026 the Public Utility Commission issued its order in the biennial update, Case 26-0291-INV, and compensation went up. For the national picture, see solar panel costs across the country.
Previous NM 2.6 terms
An 18.4¢ statewide blended rate with a 4¢ Category I adjustor.
New rooftop systems from August 1, 2026
A 20.71¢ blended rate with a negative 5¢ Category I adjustor, for complete applications filed on or after August 1, 2026. A gain of about 1.3¢.
How Vermont pays youVermont does not use one-to-one net metering. Under Commission Rule 5.100 your generation is credited at a blended residential rate, adjusted by a renewable energy certificate adjustor and a siting adjustor. A rooftop array up to 15 kW is Category I, which gets the most favorable siting treatment.
Confirm your Category I figure firstWhat is verified is the direction and the date: compensation rose on May 29, 2026, under Rule 5.128. Ask your utility for your exact Category I figure before you model anything.
Your Vermont credit terms freeze the day you enroll
Vermont’s adjustors are fixed at enrollment. The terms you sign up under travel with your system instead of floating.
That cuts both ways. Enroll while compensation is high and you keep it. Enroll just before an increase and you keep the lower figure.
The update runs on a two-year cycle, and the latest one moved up. So the timing question is real. Ask your installer which rate your application will land under.
Where Vermont’s politics sitThe May 2026 order followed roughly 900 public comments, nearly all opposing the Department of Public Service’s push to restrain the program. That is a useful signal, not a guarantee about the next biennial update.
Under ten years in Vermont, paid for by the power bill, not the sun
A 5.43 kW Vermont system makes roughly 6,891 kWh a year. At the 23.52¢ statewide average, that displaces about $1,621 of electricity. That puts Vermont among the shortest modeled paybacks in the country.
Read 9.7 years as a ceiling, not a promiseIt values every kWh at the 23.52¢ average. Vermont actually credits net-metered output at a blended rate with adjustors. A quote that conflates the two overstates your return, so get your exact Category I compensation from your utility first.
Small roofs, small bills: what $2.89 a watt buys in Vermont
Vermont households use less power than most of the country, 574 kWh a month. So you need very little hardware to make a real dent in an expensive bill. At $2.89 per watt the typical system is just 5.43 kW, among the smallest and cheapest anywhere.
Each size is priced at the $2.89 per watt benchmark, gross before incentives. Real quotes vary by roof, equipment and installer.
Weak sun against dear power: how the Vermont math nets out
Vermont’s payback is driven by the price of power, not the amount of sun. Here is what pulls each way.
+What works against you
- Weak sunlightAmong the weakest in the country, 1,269 kWh per kW a year.
- A blended creditCompensation is a blended rate with adjustors, not full retail.
- No off-site optionOff-site group net metering closed to new projects on December 31, 2025.
−What works for you
- Expensive powerAbout 31% above the US average, at 23.52¢ per kWh.
- Rising ratesRate escalation of 4.34% a year over five years.
- A small systemThe smallest system needed, so the lowest gross cost to recover.
Four Vermont buyers who should slow down before signing
The numbers above hold for a sunny, unshaded roof and an honest quote. Think twice if one of these fits you:
- You were told you will get full retail credit. Vermont credits a blended rate with adjustors, not the 23.52¢ you pay. A quote that conflates the two overstates your return substantially.
- You plan an off-site or group project. Off-site group net metering closed to new projects on December 31, 2025.
- Your roof is heavily shaded or faces north. With some of the weakest sunlight in the country, Vermont has little margin for a compromised array.
- You are on Vermont Electric Cooperative or Burlington Electric, but your quote uses Green Mountain Power figures. Rates differ by utility, and Burlington’s are materially lower.
See what a small Vermont system returns
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More Vermont solar guides
Frequently asked questions
How much do solar panels cost in Vermont in 2026?
About $2.89 per watt installed, 26th cheapest in the country as of March 1, 2026. Vermont households use less power than most of the country at 574 kWh a month, so the typical system is small at 5.43 kW, roughly $15,693 before incentives.
Did Vermont change its net metering rates in 2026?
Yes, and upward. The Public Utility Commission issued its biennial update order in case 26-0291-INV on May 29, 2026, adjusting compensation under Rule 5.128, and net-metering compensation increased rather than decreased. Confirm your exact Category I figure with your utility, because rates differ between Green Mountain Power, Vermont Electric Cooperative and Burlington Electric.
How does Vermont net metering actually pay you?
Through a blended residential rate adjusted by a renewable energy certificate adjustor and a siting adjustor, under statewide Commission Rule 5.100, rather than at full retail. A rooftop system up to 15 kW is Category I and receives the most favorable siting treatment. Adjustors are locked at enrollment, so your terms travel with the system.
What is the solar payback period in Vermont?
About 9.7 years, modeled at the statewide average and among the shortest in the country. That is driven by the price of power rather than the amount of sun: Vermont has the weakest sunlight in the group at 1,269 kWh per kW but the most expensive electricity at 23.52¢, and rates are rising 4.34% a year.
Can I still join a community solar project in Vermont?
Not a new off-site group net metering project. That route closed to new projects on December 31, 2025. Existing arrangements continue, and rooftop Category I systems remain the standard path for a household that wants its own generation.
How we calculate these costs
Cost figures use Vermont’s entry in the EcoGen Solar Cost Index (v2 method), $2.89 per watt. Payback is modeled with no federal residential credit for owner-purchased systems and the year-one value at the statewide average retail price, as a ceiling; actual compensation follows the blended rate and Category I adjustor. Rate escalation uses the state 5-year average of 4.34%, with 0.5% yearly panel degradation over 25 years. The May 29, 2026 order date, the 20.71¢ blended rate effective August 1, 2026 and the negative 5¢ Category I adjustor come from the Commission’s order in Case 26-0291-INV. Sources were accessed between June 10 and August 17, 2026.
Sources (6)
- Vermont Public Utility Commission, 2026 Biennial Update of the Net Metering Program (order in Case 26-0291-INV, accessed June 11, 2026): puc.vermont.gov
- Vermont Public Utility Commission, Order in Case 24-0248-INV: 2024 Biennial Update (NM 2.6 rate, Rule 5.100, off-site group closure; accessed June 11, 2026): puc.vermont.gov
- U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A (March 2026 edition, accessed June 10, 2026): eia.gov
- U.S. Energy Information Administration, Form EIA-861, 2024 (utility customer counts, accessed June 10, 2026): eia.gov
- U.S. Census Bureau, American Community Survey, 2024 (accessed June 11, 2026): census.gov
- IRS, One, Big, Beautiful Bill Provisions (Public Law 119-21, Section 25D; accessed August 15, 2026): irs.gov
