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Home solar in Vermont

New home systems up to 15 kW that filed on or after Aug. 1, 2026 earn about 15.7 cents per kWh for extra power, but the PUC opened a rewrite of the net-metering rule in September 2026, so terms for future systems may change.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

23.8¢average home price per kWh (EIA, August 2026)
Solar can workNet metering is open with a credit near 15.7 cents per kWh for new small systems, solar is free of sales tax, and small systems skip property tax. But the PUC says new solar adds little value at Vermont's evening peak and is redesigning compensation.

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Net metering Net metering changing

Power you use as it is made simply lowers your bill. Extra power is credited at the statewide blended residential rate ($0.2071/kWh from Aug. 1, 2026) plus two adjustors: a REC adjustor ($0 if you give your renewable credits to the utility, minus $0.04 if you keep them) and a siting adjustor (minus $0.05 for new systems up to 150 kW on good sites). For a typical new rooftop system that gives its RECs to the utility, that is about $0.1571/kWh. Existing systems keep their adjustors and get the higher base rate. A rulemaking opened Sept. 9, 2026 will redesign the rule, with a transition for existing systems promised. Source

  • 2026-05-29: PUC biennial order raises base rate to $0.2071 and cuts small-system siting adjustor to -$0.05
  • 2026-08-01: new rates and adjustors apply to complete applications filed on or after this date
  • 2026-09-09: PUC opens rulemaking to rewrite net-metering Rule 5.100
  • 2026-10-02: first public workshop in the rulemaking
  • 2028: next biennial update expected

Solar credits (SRECs) No market

There is no SREC market for home systems. You can keep your renewable energy credits, but then your net-metering pay drops by $0.04 per kWh; most owners give the RECs to their utility to keep the full credit. Source

Rebates and incentives

Net-metering bill credit (new systems up to 15 kW)

About $0.1571 per kWh of extra power (with RECs given to the utility, at the statewide blended rate)

New systems with complete applications filed Aug. 1, 2026 to July 31, 2028

open performance payment Source

Taxes

Property tax: Exempt: solar plants under 50 kW that are net-metered (or off-grid serving only that property) pay no municipal property tax and are not valued for education tax; the land is still taxed.
Sales tax: Exempt: equipment built into a net-metering system is exempt from Vermont's 6% sales tax (32 V.S.A. §9741(46)). Source

Solar laws

  • 27 V.S.A. §544, renewable energy devices (2026). Deed restrictions, covenants and HOAs may not ban solar collectors; they may only pick the roof spot if it does not hurt output. Amended by Act 149 (effective July 1, 2026) to also cover plug-in solar devices, including on condo and apartment patio railings. Source
  • PUC Rule 5.100 rulemaking, Case 26-1786-RULE (2026). Opened Sept. 9, 2026 to redesign net-metering pay around value, timing and grid location, with a transition for existing systems. Source
  • 32 V.S.A. §9741(46), sales tax exemption (2026). No sales tax on equipment that becomes part of a net-metering system, an off-grid renewable system, or a solar hot water system. Source

Community solar

Yes: group net metering lets several homes share credits from one system, under the same compensation rules.

Timeline

  1. Vermont law bars covenants and HOAs from banning solar collectors
  2. Current net-metering rule (Rule 5.100) takes effect
  3. PUC biennial order: base rate $0.2071/kWh, small-system siting adjustor -$0.05
  4. Act 149 adds plug-in solar to the solar rights law
  5. Last day to file a complete application for the old (2024) adjustors
  6. New net-metering rates and adjustors take effect
  7. PUC opens rulemaking to rewrite net metering
  8. First rulemaking workshop

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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