How much do solar panels cost in Vermont?

In general, installing residential solar panels costs $10,000 to $30,000 or more. A lot of solar customers in Vermont finance their systems, so there’s a monthly fee until the loan is paid off.

“It's a big investment,” Bonnie in Burlington (a ConsumerAffairs reviewer) told us. “I look at it like, Okay, I'm paying $147 a month. But I pay more than that for insurance on my house.”

Average cost by system size in Vermont

Are solar panels worth it in Vermont?

“I don't see any downsides at all in going solar. You’re always saving money,” Patricia in Burlington told us. “You’re paying a certain amount. They give you this amount that you’re paying every month, and it doesn’t change. My electric bill has gone down considerably even with these two accounts I’ve got on in Lincoln. The savings was great. I'm buying another property that I'm definitely gonna put the solar panels on.”

Financially, solar panels are worth it if your ongoing costs are lower than your electric bill. On average, solar panels take about nine years to pay for themselves and save homeowners a little more than $26,000 over a lifetime. Going solar makes sense environmentally, too, because it reduces emissions.

» STILL NOT SURE? Solar energy pros and cons

Cost factors of going solar in Vermont

How much you actually pay to go solar depends on a range of factors, including the size of your system and the quality of your panels.

More panels, higher costs

The cost of a solar power system is generally proportional to its size. The more panels you have (and the larger the system's total wattage), the higher the price will be — you're paying for more equipment plus potentially more labor to install the system.

But there can be some economies of scale with larger systems. For instance, a bigger system costs more in absolute terms, but the cost per watt of capacity will likely decrease as the system size increases.

Panel efficiency

Solar panels come in various efficiencies, meaning some panels can produce more electricity than others of the same size. The average solar panel efficiency is about 15% to 20%.

If you have a small roof or limited space for installing solar panels, get panels with higher efficiency ratings to make the most of the space you have. However, if space is not an issue, it may be more cost-effective to install lower-efficiency panels.

Investing in quality panels can save you more money over the long term because they generate more power over the life of the system. In other words, the higher the efficiency, the more power can be produced per square foot. This means you can generate the same amount of energy with fewer panels.

» COMPARE: Most efficient solar panels

Condition of your roof

If your roof is not in good condition, you might have to spend extra money to repair or replace it before installing solar panels. Most panels are designed to last 25 years or more, so you need your roof to last at least as long.

Otherwise, you’ll have to pay to remove the panels, repair your roof and reinstall them, which can cost thousands of dollars. (Asphalt shingles generally last 20 to 30 years, and metal roofs last a little longer.)

Solar panels typically last 25 years

If your roof faces north or is heavily shaded, your system might produce less electricity than anticipated. The pitch (or slope) of your roof is also important, especially during the winter months.

John in Mount Holly told us their panels don't make power when covered in snow: “If I had a steeper pitch, the snow probably would slide off on its own. But because of a low pitch on my roof, the snow tends to stick. So, every winter, I'm used to going up on my roof, shoveling snow off. That's fine. But it's when my entire roof is covered in solar panels and I have to be gingerly pulling it off, then it becomes kind of an issue. And it's more time-consuming.”

So, if your roof isn’t ideal to support panels, you might need a bigger system to generate 100% of your power needs.

» GUIDE: Solar panel installation guide

Solar incentives, tax credits and rebates in Vermont

Taking advantage of the federal solar investment tax credit (ITC) is the best way to save on the upfront cost of going solar in Vermont (and most other states right now). In addition to ITC, residents can take advantage of local financial incentives — Green Mountain Power offers some rebates and a popular utility net metering program in Vermont.

Vermont has a blanket 100% property tax exemption for solar systems up to and including 10 kilowatts. There is also an exemption on 100% of all applicable sales taxes on the purchase of a solar power system.

The average ITC value in Vermont is $5,652.

If your solar panel system is connected to the power grid (as most are), you can take advantage of net metering. This is a system where you can sell excess electricity that your panels generate back to the utility company, potentially offsetting the cost of your loan payments.

» LEARN MORE: Vermont solar incentives

Compare solar installation companies in Vermont

“Vermont has some local companies. But I didn't go with local because they haven't been around as long,” a Sunrun customer in Burlington told us. “I wanted a company that has been through a lot of the stuff and has been doing it for years.”

» COMPARE: Best solar companies

Bottom line

The Green Mountain State is the most environmentally friendly state in 2023 — it has the lowest emissions per capita (0.06 tons of greenhouse gas emissions per person) and generates 99.7% of its energy from renewable resources, by far the most in the U.S.

There's strong community support for renewable energy initiatives in Vermont. The state has one of the highest rates of participation in green energy programs in the nation. Several towns and cities in Vermont have committed to 100% renewable energy targets, reflecting a broader statewide push for sustainability.

This is partially because the state’s economy is so tied to natural resources, “from our seasonal recreation businesses to farming,” according to Jennifer Rushlow, dean of Vermont School for the Environment at Vermont Law and Graduate School, “and there seems to be a prevailing sense that those resources require some protection.”