Vermont Solar Consumer Guide: Solar Photovoltaic


What it Costs 
How it Works: Solar Photovoltaic (PV) panels absorb the sun’s energy and transform it into electricity for your home (see REV’s Solar Technology page for more information on how this technology works). Given proper siting and exposure to the sun, you can expect a 5-kW PV system to generate 450 kWh in a month, enough to supply up to 100% of the average, energy-efficient Vermont home’s electrical needs.1

The average 5-kW system costs $22,000 with system design, equipment, and installation2. With financing, the Incentive Rebate, and the Federal Tax Credit, this system can cost even less. Here’s how:

  1. 30% off the total cost with the Federal Tax Credit for solar energy systems: The federal government offers a 30% Income Tax Credit for solar PV and hot water systems to eligible homeowners and businesses with taxable income. This is equal to $6,225, and is in addition to the Incentive Rebate.
  2. Then it’s free: After the system is paid off, your electricity will be 90-100% free!

Will it work at my house?


Homeowners and business owners can consult the Renewable Energy Atlas of Vermont, a dynamic and easy-to-use tool to help assess the potential for solar energy projects throughout the state. This tool will help you quickly gauge a rough estimate of how much sun is available at the county, city, and individual address levels. You can also find other renewable energy projects and installations nearby, and view REV Member installers, manufacturers, and other businesses.

What’s the Bottom Line?

$22,000 gross cost of installed system
 System owner may be eligible for a 30% Federal ITC (individual tax credit, or investment tax credit for business).
= $15,775 Final system cost

Additional Incentives

Net Metering
The PV panels are connected to the electricity grid through your home’s utility meter. Electricity generated by your PV system is used by your home first, and any extra is fed back into the grid. Electricity that you put back into the grid is counted as a credit (approximately 12-13 cents per kWh generated) against cloudy days when the PV system might not satisfy your home’s energy demands.

VT Statewide Solar Adder
This innovative provision in the H.56 Vermont Energy Act of 2011 creates a special statewide solar customer benefit. Recognizing the peak power savings of net metered solar, the new law creates a financial incentive to catalyze more net metered solar by requiring utilities to offer at monetary credit to solar net metering customers for the energy they produce. Modeled after Green Mountain Power’s Solar GMP program, utilities will be required to issue an additional credit on top of the base residential per kWh credit that solar customers already receive.  (to make a total of 20 cents per kWh). This means that for every kWh your system generates, you get credited 20 cents per kWh. Customers are awarded the per kWh customer credit for a 10 year period. Keep in mind that solar adder may vary. Check with your local utilities or installers for more information.


Learn More About Solar at REV’s Solar Technology Page

Assess Your Solar Potential with the Renewable Energy Atlas of Vermont

System performance varies depending on the orientation of roof to true south, the slope angle of the roof, and any shading that your site may have. Typical performance for a 5kWh rooftop system in Vermont is 450kWh per month on average.

2 Includes wiring and conduit less than 50’ with no battery Back-up.Installed price of a system on your house may vary due to type and condition of your roof, the length of wiring and conduit runs, and capacity of your electrical service panel (some load centers may need to be upgraded).

3 See the RERC’s Vermont Small Scale Renewable Energy Incentive Program FAQ page for more details.

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