Vermont Solar Incentives, Net Metering & Cost (2026)
Written by Aditya Patil · Last updated 2026-09-24
Considering solar in the Green Mountain State? Vermont offers excellent upfront benefits like complete sales and property tax exemptions, along with lucrative battery programs like Green Mountain Power's BYOD initiative to help balance the grid.
$125
Avg. monthly bill
24.44¢/kWh
Avg. rate
509.5 kWh
Avg. monthly usage
Incentives & tax exemptions
| Program | Amount | Status |
|---|---|---|
| Uniform Capacity Tax and Exemption | 100% property tax exemption for solar systems under 50 kW. | open |
| Vermont Sales Tax Exemption for Renewable Energy Systems | 100% exemption from the state's 6% sales tax. | open |
Net metering & export rules
Vermont operates a statewide net metering program, but the exact value of your solar exports depends on your local utility company. While the Public Utility Commission (PUC) manages the overarching rules (Rule 5.100), the baseline retail rates and various adjustors applied vary.
Generally, solar owners are compensated for the excess energy they send back to the grid at a blended retail rate minus a "siting adjustor." In 2026, the PUC increased this siting charge for new small solar systems (those permitted between August 1, 2026, and July 31, 2028) from 4¢/kWh up to 5¢/kWh. This effectively decreases the overall credit you receive per kilowatt-hour exported, making battery storage increasingly beneficial. Unused credits from exported energy will carry forward and roll over for up to 12 months.
| Policy | Varies by utility (statewide framework) |
| Export credited at | Blended retail rate minus a statewide siting adjustor |
| Siting adjustor (new small systems) | 5¢/kWh (permitted Aug 1, 2026 to July 31, 2028) |
| Credit rollover | Monthly, up to 12 months |
| Non-bypassable charges | Cannot be offset by net metering credits |
Export credits are based on the utility's retail rate minus a statewide siting adjustor (now 5¢/kWh for small systems applied after Aug 1, 2026) and potentially other adjustors like Renewable Energy Certificates (RECs) modifiers. Unused credits carry forward for up to 12 months.
Top utilities
| Utility | Residential rate | Customers |
|---|---|---|
| Green Mountain Power Corp | 22.09¢/kWh | 226,675 |
| Adjustment 2024 | 20.47¢/kWh | 39,156 |
| Vermont Electric Cooperative, Inc | 23.26¢/kWh | 35,964 |
Batteries & VPP programs
Green Mountain Power (GMP) Bring Your Own Device (BYOD)
An upfront incentive program for home battery storage (up to $10,500) where participants allow GMP to draw power from their battery during peak events (Virtual Power Plant). Eligible brands include Tesla Powerwall, Enphase, SolarEdge, FranklinWH, and others.
Estimate your own numbers
Use the solar calculator with your own electricity usage and any local quotes you've received to see how solar pencils out for your home.
FAQ
Are there state tax exemptions for solar in Vermont?
Yes. Vermont offers a 100% state sales tax exemption on solar equipment and home batteries (up to 500 kW). Furthermore, residential solar systems under 50 kW are entirely exempt from state and local property taxes, meaning the added value to your home won't increase your property tax bill.
Does Vermont still have net metering?
Yes, Vermont runs a statewide net metering program managed by the Public Utility Commission. However, the exact value of your exported solar energy depends on your specific utility and is usually credited at a blended retail rate minus a "siting adjustor." For new small systems permitted after August 1, 2026, this adjustor is 5¢/kWh, which effectively lowers the value of exported power.
What is the Green Mountain Power (GMP) BYOD program?
GMP's Bring Your Own Device (BYOD) program pays you upfront (up to $10,500) if you buy a compatible home battery and agree to let the utility draw power from it during high-demand events. If you're adding a battery to an existing solar setup, you can also earn a $100/kW retrofit bonus.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil