Solar Panels in Vermont: Cost, Savings, and Rebates

Key Points

• Vermont produces enough solar energy for over 75,000 homes, with most of the production coming from residential arrays.
• The price of solar panels in Vermont is one of the highest in the country, at $2.85 per watt.
• Vermonters may need less wattage than the national average, resulting in lower installation costs.
• Sunlight and the type of solar panels used can affect the price of solar panels in Vermont.
• Residents of Vermont can save over $16,000 through utility offsets and solar incentives.

As the sixth smallest state, it is amazing to see that Vermont produces enough solar energy for over 75,000 homes. In addition, most of the Green Mountain State’s production comes from residential arrays. This suggests that homeowners have a great opportunity to save on electricity by choosing solar panels in Vermont.

You might wonder about how much it costs to purchase an array. The price of solar panels has dropped 43% in the last 10 years, meaning they’re more affordable than ever. This article guides you through the important numbers you need to create a budget. Let’s dive in.

Average Cost of Solar Panels in Vermont

Vermont is one of the best states for solar, but not for its equipment prices. Homeowners can expect to spend about $2.85 per watt, which is one of the highest rates in the country. Those purchasing a 6kW system should put away around $17,100 before incentives.

Fortunately, Vermonters can save money on a solar array by installing less wattage. Since homeowners use the third least amount of power, they can get away with a smaller system. Coupled with some of the highest electricity rates, residents of the Green Mountain State have plenty of opportunity to offset utility bills.

To get the ball rolling Vermonters can utilize the federal solar tax credit. This program offers a 30% return on all purchases made toward a solar array, including the panels, installation, and even sales tax. With this credit applied to a 6kW system, homeowners could see the price drop from $17,100 to $11,970.

How Much Solar Do Vermonters Need?

As suggested in the previous section, Vermonters may need less wattage than the national average, resulting in lower installation costs. To calculate the right size system for your house, you’ll need to divide your average daily power usage by the typical amount of direct sun you receive.

Here’s what that looks like using Vermont’s averages.

Homeowners in the Green Mountain State use about 18.7kWh a day (or 567kWh a month). When divided by Vermont’s average peak sun of 4.3 hours, we learn that a solar panel system needs to output 4.3kW an hour. Nearly a third of the size of most residential arrays, Vermonters might expect to pay around $12,390.

Use your daily averages to find the right size system for your household. Because direct sun changes depending on your location, check out this Vermont sun chart.

Vermont Solar Cost Factors

We spoke about it briefly, but peak sun can have an effect on the price of solar panels in the Green Mountain State. While Vermont isn’t large in size, those living on the east side may experience better sunlight. For example, homeowners in Hartford could experience as much as 4.9 hours daily, over 30 minutes more per day than average.

To see how sunlight affects solar prices depending on location, compare Vermont’s prices to those of its neighboring states:

• New York
• New Hampshire
• Massachusetts

Additionally, the type of solar panels used in your array can make a difference in your budget. Because Vermont only receives a small amount of sun, most homeowners would benefit from highly efficient monocrystalline panels. However, if you have a large enough roof and you live on the eastern border, you might save money upfront with polycrystalline.

Finally, you don’t want to pick a solar installer without serious consideration. While the cost of labor might seem high, it goes into aspects such as equipment quality and warranty coverage. With over 30 installers in the Green Mountain State, you have some options. So take your time finding the right company for your needs.

Best Solar Installers in Vermont

When recommending installers for solar panels in Vermont, we use EnergySage’s pre-screening qualifications. The company has endorsements from the Department of Energy and SEIA, making it highly credible. When comparing solar installers, we look for these aspects:

• Years of experience in the industry
• Quality of equipment
• Warranty coverages
• Contractor transparencies
• Licenses and certifications

These are the top two companies we recommend for solar in Vermont.

One of the best regional installers in the northeast, PlugPV, can help with your solar array at a reasonable price. The company has 6 years in the industry, enough to know how to provide a quality installation. Their in-house technicians work with only the best equipment, and their work is inspected by an unaffiliated company to show authenticity. While their warranties only last 10 years, you should save money in the long run.

However, if you’re looking for a more local company, you must go with HB Energy Solutions. The Springfield solar installer has nearly 30 years of experience working with Vermonters, so they know the ins and outs of your house specifically. The company’s warranty is lacking, but it covers important aspects including water heating. 

Can Solar Energy Save Vermonters Money?

While equipment costs are high, the low need for power makes solar panels in Vermont worth it. Even with weak sunlight, residents can save thousands by offsetting their utility bills. Here’s how.

First, you’ll have to determine the length of time it takes to pay off the solar array. If we use the average annual electricity bill in Vermont of $1,330.92 to cover installation costs, a 6kW system could be paid for in 12.8 years. While this is longer than usual, it’s important to remember that most arrays in the Green Mountain State won’t be this big, resulting in less time required to pay off.

With the system covered, you’ll start earning money back as a net return. With solar panels in Vermont lasting around 20-25 years, you could save as much as $9,583 to $16,237. This doesn’t consider a smaller system or financial incentives, such as the federal solar tax credit, either.

Solar Panels in Vermont: Rebates, Credits, and Incentives

This article shows the value of solar panels in Vermont. After paying for an installation, homeowners can earn over $16,000 through utility offsets. However, there’s even more to earn when considering the solar incentives available in the Green Mountain State.

Firstly, homeowners should take advantage of the federal solar tax return, which cuts the price of an installation by 30%. Those purchasing a 6kW system could save over 5,000. And with excellent net metering and tax exemptions backed by strong renewable portfolio standards, residents could save even more. To learn about Vermont’s solar incentives, check out our in-depth guide.

Summary Table

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