VT incentive guide
Vermont solar incentives in 2026
Last updated · every VT program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in Vermont right now is Net metering siting and REC adjustors. Overall, the state's incentive stack rates as limited compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in Vermont this year, there is no federal credit. That is a roughly $8,640 swing on an $28,800 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What Vermont offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | Green Mountain Power battery programs, such as discounted Powerwalls in exchange for grid access |
| SREC market | No | — |
| Sales tax exemption | Yes | Qualifying solar equipment is exempt from state sales tax. |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
Vermont solar tax credit
There is no Vermont solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What Vermont does offer on the tax side is sales and property tax exemptions, covered below.
Vermont solar rebates and grants
Green Mountain Power battery programs, such as discounted Powerwalls in exchange for grid access. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it.
Vermont relies mainly on its net metering adjustors; Green Mountain Power has offered battery programs (e.g., discounted Powerwalls in exchange for grid access).
Net metering and export rates in Vermont
Vermont has a statewide net metering program with credits near retail, modified by siting and REC adjustors that can add or subtract a few cents per kWh.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a Vermont home at an assumed $0.21/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in Vermont costs roughly $22,400–$28,800 installed before incentives, producing about 9,200 kWh a year and saving around $1,592 in year one — a simple payback near 14–18 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are Vermont solar tax credits worth in 2026?
Vermont offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is sales and property tax exemptions, which lower cost indirectly rather than paying you back.
Does Vermont have solar rebates?
Yes. Green Mountain Power battery programs, such as discounted Powerwalls in exchange for grid access. Rebate programs in VT are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a Vermont solar property tax exemption?
Yes. Vermont excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill. Vermont also exempts qualifying solar equipment from state sales tax, which comes straight off the installed price.
What solar incentives are available in Vermont in 2026?
Vermont relies mainly on its net metering adjustors; Green Mountain Power has offered battery programs (e.g., discounted Powerwalls in exchange for grid access). Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in Vermont?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does Vermont have net metering?
Vermont has a statewide net metering program with credits near retail, modified by siting and REC adjustors that can add or subtract a few cents per kWh. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in Vermont?
Before incentives, a typical 8 kW system in Vermont runs roughly $22,400–$28,800. Green Mountain Power battery programs, such as discounted Powerwalls in exchange for grid access — the value depends on current funding. See our full Vermont cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: