Is Solar Worth It in Vermont?

6 factors to consider before getting solar panels in Vermont

Several factors determine if solar panels are worth it for you, including your installation costs, the orientation and shading of your roof and how long you plan to stay in your home. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. Vermont solar incentives

4. How long you live in your house

5. How you pay

6. The solar company you hire

1. Solar panel installation costs

Average solar panel costs in Vermont are comparable to the national average. A typical residential solar panel installation costs $30,663 in Vermont. That doesn’t include the cost of a solar battery, which can add $7,000 to $18,000 to your total system costs.

Most installers set the price according to the system’s wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Vermont, the average cost per watt is $2.75.

Vermont’s average solar panel costs by system size

2. Your current energy consumption

Once you know your current energy consumption, you can calculate your potential savings and the time it should take for your solar installation to pay for itself. In Vermont, solar panels usually pay for themselves within 5.6 years.

Look at your most recent utility bills to see how much electricity your house needs each month. This tells you what size and capacity your solar system needs to be. A typical Vermont household needs a system with a capacity of 11.15 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

3. Vermont solar incentives

The 30% federal solar tax credit has expired, and Vermont doesn’t have a big statewide solar rebate, but there are still a few ways to save. Qualifying systems can get sales and property tax breaks, and Green Mountain Power customers may qualify for up to $10,500 toward a home battery.

What to know about net metering in Vermont

Vermont net metering gives you bill credits for extra solar power you send to the grid. The value of those credits depends on your utility and system, and unused credits generally expire after 12 months. A battery can help you use more of your own solar power instead of sending it back.

It’s working out well for C. in West Windsor. Their system generates more power than used. “I’m net negative, so grid connected, but exclusively using solar power in the aggregate,” they told us. “My project is in Vermont where it’s not sunny all the time, but if I look at it over the course of the year, it generated more power than I use.”

» MORE: Solar incentives in Vermont

4. How long you plan to stay in your house

Solar panel installations are expensive, and it takes years for electric bill savings to make up for the initial cost. Solar panels typically pay for themselves within 5.6 years in Vermont. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

It’s true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

5. How you pay

It can be financially strategic to pay for the whole thing upfront. You own the system from day one and don’t have to pay interest on a loan.

Of course, paying cash is not always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreementsare similar to leases. Instead of owning the panels, you agree to buy the electricity they produce at a set rate. The solar company owns and maintains the system, usually under a contract lasting 10 to 25 years.

» SOLAR PANELS: Lease vs. buy

6. The solar company you hire

People have had mixed experiences with solar companies. In the best-case scenario, it’s easy to make the switch and you’re happy with the system’s performance. In the worst-case scenario, you end up paying thousands for overpriced equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.

Use NLR’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery. 

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support a solar panel installation. Here’s what to think about before you commit:

• How old are my appliances? The first step is to ensure that your electrical loads are as small as possible. If you have an older refrigerator or air conditioning unit, for instance, it’s smart to upgrade those before investing in solar panels. That way, you can get a smaller system, which will be cheaper overall.

• What is the size and angle of my roof? South-facing roofs generally produce the most solar energy, while north-facing roofs tend to produce less. Roof pitch, orientation and shading all affect how much electricity your system can generate.

• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Vermont averages three to five peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

One resident, John in Mount Holly, said his panels don’t make power when covered in snow: “If I had a steeper pitch, the snow probably would slide off on its own. But because of a low pitch on my roof, the snow tends to stick. So, every winter, I’m used to going up on my roof, shoveling snow off. That’s fine. But it’s when my entire roof is covered in solar panels and I have to be gingerly pulling it off, then it becomes kind of an issue. And it’s more time-consuming,” he told us. 

Pros and cons of solar panels in Vermont

Solar panels don’t always eliminate your monthly power bill. Still, you’ll likely be paying much less than you would for traditional utility bills.

Benefits of solar panels in Vermont

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Solar panels generate electricity from sunlight, a clean and renewable energy source. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
• Higher home resale value: Installing solar panels can significantly increase a home's value. Houses with solar panels sell for 4.1% more on average. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
• Cheaper energy bills: The average homeowner in Vermont uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). Solar panels also protect you from future energy cost increases.

Drawbacks of solar panels in Vermont

• Solar equipment is expensive: Even with rebates and other financial incentives, the price typically starts between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. 
• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
• Energy production varies: Vermont has long, cold winters and receives less sun than states located farther south. Solar panels still can work on cloudy days and actually perform more efficiently in cooler temperatures. However, the overall energy production might be lower than in sunnier climates. Snow cover may also temporarily reduce efficiency until it's removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Vermont

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for the top solar companies in Vermont to learn more.

Vermont solar FAQs

Bottom line: Is going solar in Vermont worth it for you?

Going solar in Vermont might be easier than you think. The main obstacle to going solar is the high upfront cost of purchasing and installing solar panels, inverters and other equipment. For a lot of homeowners, it ends up being worth it as long as their cost savings over time outweigh the initial investment. Others are happy to go solar for the environmental benefits alone.

Solar costs vs. savings: Vermont and nearby states