High electricity rates make Vermont solar attractive despite limited sun hours and higher installation costs in northern New England.
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Vermont's solar economics benefit from high electricity rates: With 20¢/kWh electricity rates offsetting modest 3.8 daily peak sun hours, the Green Mountain State offers reasonable solar returns. Green Mountain Power serves much of the state with net metering and renewable energy programs.
For Burlington and Montpelier residents, solar systems typically pay for themselves in 9-11 years. High electricity costs and Vermont's commitment to renewables make solar compelling despite northern latitude challenges.
| Incentive | Amount | Status |
|---|---|---|
| Federal ITC | 30% of system cost | Active |
| Green Mountain Power Net Metering | Full retail rate | Active |
| Property Tax Exemption | 100% of added value | Active |
| Sales Tax Exemption | Not available | None |
| System size | Gross cost | After ITC | Annual savings | Payback |
|---|---|---|---|---|
| 6 kW | $20,100 | $14,070 | ~$1,370/yr | ~10.3 years |
| 8 kW | $26,800 | $18,760 | ~$1,820/yr | ~10.3 years |