CNET’s top recommendation for homeowners in Vermont looking to reduce their electricity costs is to invest in solar panels. Despite Vermont’s high electricity rates, which average 21.4 cents per kilowatt-hour (as of August 2024), solar panels can significantly lower both your electric bill and your carbon footprint.
Vermont already produces 16% of its electricity from solar, according to the US Energy Information Administration, and the state boasts a well-established solar industry. With a combination of federal and local incentives, making the switch to clean energy has never been more affordable. The major tax credit included in the Inflation Reduction Act provides a helpful boost to reduce the installation costs.
In addition to federal incentives, Vermont has robust local policies in place, such as net metering, which allows homeowners to draw energy from the grid during times of low sunlight. Vermont also offers three separate state-level tax credits or exemptions to further incentivize solar panel adoption.
If you’re ready to make the switch, here are some of the best solar panel installers to get started:
Best national solar panel companies in Vermont
Solar panels are a big purchase, and like any big purchase, you need to shop around and consider your choices carefully. Here are some national solar companies to consider based on our research and CNET’s list of best solar companies.
Palmetto Solar
Best overall
Solar panels are typically low maintenance equipment, but they’re also unfamiliar. If you want to reap the benefits of solar but will have a bit more peace of mind if someone else is making sure it’s working, Palmetto might be a good fit for you. Just remember to add the cost of Palmetto’s monitoring service in to your payback period calculations.
EnergyPal is more than just a middleman. It’ll handle your solar installation from beginning to end while also allowing you to benefit from its proprietary engine and competitive bidding process. The company offers a range of hardware for panels, batteries and inverters, has plentiful financing options, and offers responsive customer service support.
EnergyPal review.
Freedom Forever
Best for cash customers
Include Freedom Forever in your search if you want the backing of a national company that installs a wide variety of the most popular solar equipment available. Freedom Forever also extends a couple of products that take some of the pain and risk out of going solar, like a production guarantee and an escrow option with cash purchases. Online reviews say customer satisfaction has been low of late, though the company says that’s changing.
Tesla Solar
Most affordable
Tesla’s solar branch seems to be the least loved of Elon Musk’s ventures. Even Tesla’s Solar Roof seems to get more love.
If price is the thing you won’t budge on, consider Tesla. By all accounts, Tesla installs quality panels and makes the closest thing there is to a household name in solar storage: the Powerwall.
Where you might miss out is customer service. Discussion online seems to suggest Tesla’s service is a bit of a gamble.
Local solar panel companies in Vermont
If you want to go with a smaller solar company, there are plenty of local options available. Here are a few to consider.
A local solar installer operating in New Hampshire and Vermont, Catamount Solar helps families, farms and businesses choose solar energy. Catamount Solar says it donates 5% of its yearly profits to Vermont-based organizations to support basic human needs, arts, the environment and climate change efforts. Its team of certified professionals installs solar panels and solar batteries, like the Tesla Powerwall. In partnership with the Vermont State Employees’ Credit Union, the company offers a Vermont-specific loan.
Located in South Burlington, Vermont, Green Mountain Solar provides residential and commercial solar services completed by its in-house teams. The company installs well-known products like REC and Q Cells solar panels, Enphase inverters and the Tesla Powerwall solar battery. In addition to manufacturer warranties, Green Mountain Solar includes a 12-year quality of work warranty. Financing is available with local lenders.
How to determine which solar installer in Vermont is best for you
Finding a trustworthy installer can be a tricky process, but there are a few general things to look for during your search. Here are some quick tips to help you find a reputable installer in your area.
- Understand federal, state and local solar incentives. Make sure your installer can accurately explain how tax credits and incentives work.
- Read online reviews from multiple sources. Google and Yelp are a good place to start.
- Get recommendations from neighbors who have solar installed.
- Check an installer’s licensing and certifications. Look for installers who are certified by the North American Board of Certified Energy Practitioners (NABCEP).
- Compare multiple solar quotes.
- Ask your installer all your questions, even the difficult ones.
- Assess your potential savings cost and your solar payback period. Your installer should be able to explain this to you.
Cost of solar panels in Vermont
Here’s a look at the average cash price for a typical solar panel system in Vermont before factoring in tax credit and other incentives, according to data from FindEnergy.com.
Average cost of solar panels in Vermont
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| Typical system size (kW) | Price per watt | Total installed cost | Cost after 30% federal tax credit | |
| Vermont | 5 | $3.73 | $18,650 | $13,055 |
| National average | 5 | $3.56 | $17,800 | $12,460 |
The following map provides the average total price, cost per watt and system size for solar panels in different states, according to data from FindEnergy.com. The prices shown are not representative of any changes from tax credits or state solar incentives. If FindEnergy doesn’t have solar data for a particular state, it appears grayed out on the map.
Vermont solar panel incentives and rebates
Installing solar panels and equipment is a considerable investment for your home. Luckily, tax credits and other incentives are available in Vermont to reduce the total costs. The federal solar tax credit, known as the residential clean energy credit, gives a 30% credit on your next return for the cost of your solar system.
Local incentives are also available. Here are a few you should know.
Vermont solar incentives
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| Program | Description |
|---|---|
| Investment tax credit | This state tax credit allows Vermonters to claim up to 24% of the credit they receive from the federal government against their state income taxes. Any unclaimed portion can be carried over for up to five years. Consult a local tax professional. |
| Net metering | A program where excess energy generated from your solar system is sold to your utility company for credits towards the next billing period. Vermont residents can form groups to share the output from net metering. Contact your utility company for details. |
| Property tax exemption | When you add solar panels to a home, it will increase in value and therefore, property taxes could go up. Vermont has a property tax exemption protecting you from a raise in property taxes for adding a solar system. |
| Renewable energy systems sales tax exemption | Renewable energy systems like solar panels are exempt from sales taxes. |
| Residential clean energy credit | Receive a 30% federal tax credit on your next return for purchasing a solar panel system. Applies to solar equipment installed between the beginning of 2022 and through 2032. It will drop to 26% in 2033, then 22% in 2034 and expire in 2035 unless it is renewed. |
How solar-friendly is your state?
CNET recently ranked states based on their residential solar policies: the laws and regulations affecting consumer-level solar panel installation and adoption. These policies play a major role in determining how accessible and affordable a solar panel system is to the average resident.
Each state was evaluated through a methodology and scored based on eight categories. The final score was converted to a letter grade.
Here’s how your state scored on CNET’s solar policy test.
Vermont
Grade: D
Incentives available:
- State-governed net metering at fraction of retail rate
- Solar panel systems fully exempt from property taxes
- Solar panel systems fully exempt from sales tax
- Community solar programs (local or utility-administered)
Strongest scoring categories:
The biggest incentives in Vermont are the full exemptions for property and sales taxes on solar equipment. Community solar subscriptions are a cheap and accessible way for residents to benefit from solar, but they’re not run statewide and so certain residents won’t have access to them.
Categories to improve:
Vermont is missing a state solar tax credit, which is potentially the most important state solar incentive there is, but there’s also not really any legislation supporting low-income solar access within the state.
How to pay for solar panels in Vermont
Choose a payment option based on your budgeting needs. Each of the following may have benefits or drawbacks, so take time to evaluate the best fit for you.
Cash: A cash purchase provides the largest return on investment, but up-front costs for a solar panel system are usually very high. You’ll have to have a lot of money in the bank — anywhere between $20,000 and $30,000 — to be able to pay for a system in Vermont all at once.
Loan: Loans have lower up-front costs, but interest and fees accumulate over time. As with a cash purchase, you’ll own the solar panels and benefit from the applicable state and federal tax credits. You’ll likely have a choice of loans, with your installer probably offering you a loan option as well. You can also get another loan from a bank or lender, such as a home equity loan, but that comes with more risks if you don’t pay it back. Remember that your home becomes collateral with a home equity loan.
Lease or power purchase agreement: Solar leases and power purchase agreements are options for a monthly payment with little to no maintenance. In a solar lease, you pay a fixed monthly price, but with a power purchase agreement, you pay a monthly bill determined by how much energy you use from the panels. You won’t own the panels, meaning the solar company that does will benefit from the tax credit. Your savings over time also might not be as significant as they would be if you owned the panels outright. With these options, you’re paying less on your energy bill, but you’re still buying the energy generated by the panels on your home.
Installation factors to consider
Keep in mind the following things to consider when deciding if solar energy is right for your home.
Solar considerations
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| Are you a renter? | Homeowners can choose to add solar panels to their homes, while renters may have more restrictions. Renters can subscribe to community solar programs. |
|---|---|
| Where is your home located? | Solar panels operate best in direct sunlight for at least four hours a day. If your home is often shaded, the panels will generate less energy. |
| What is your roof condition? | Installers should inspect your roof during a consultation to recommend any needed maintenance or repairs. |
| Have you checked your homeowner association or neighborhood rules? | HOAs in Vermont can not prohibit solar panels, but there may be some restrictions. Review your HOA or other neighborhood association rules about solar panels and placement before installation. |
| Does your insurance cover solar panels? | Contact your homeowner’s insurance company to ensure your policy includes solar panels. |
How we found the best solar companies
The companies we listed above as “the best” are curated from CNET’s best solar companies list. Companies making the best list are scored on the equipment, warranties and customer service they offer. Then, we make sure these recommendations are available in your state. You can read a full breakdown of how we review solar companies here.
Companies listed under the local installers were chosen in a less rigorous way. We chose them because they offered something unique or notable to customers in the state, they seemed well-regarded by internet reviewers or because they were one of the few installers we could find information on in the state.
Whether we’ve completed a full review on a company or not, it’s always a good idea to get multiple quotes from different installers before choosing a company.
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Vermont solar power FAQs
What is the cost of solar in Vermont?
The average cash price of a 5kW solar system in Vermont is $19,229. The exact cost for your home will depend on solar system size, roof repairs and other factors. If you want a solar panel system that covers your home energy needs, the size and price may be greater than those only covering partial needs.
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Are there Vermont solar incentives?
Yes, there are solar incentives available in Vermont, including a net metering program, sales tax exemption, property tax exemption and a state tax credit. Additionally, Vermont residents may apply for the federal residential clean energy credit for a 30% credit on their next tax return.
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How can I find a solar installer in Vermont?
Take time to explore the options that best fit your needs by reviewing customer testimonials and receiving quotes from multiple companies. Start by checking the local and national companies listed on this page and CNET’s picks for the best solar companies.
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