Solar Incentives in Vermont (2026)
The 30% federal tax credit for purchased home solar ended Dec 31, 2025. Here's exactly what solar incentives are left in Vermont in 2026 — and how much they're worth.
| State tax credit | None |
|---|---|
| SREC market | No |
| Net metering | Retail net metering (1:1) — see Vermont net metering → |
| Other incentives | No state income-tax credit, but solar is exempt from sales tax and added property-tax value, with generous net metering plus a renewable adder. |
Incentive details reflect programs active in 2026. Programs change and often have caps or waitlists — always confirm current status on DSIRE and with your installer.
Federal credit status (2026): the 30% residential clean-energy credit (Section 25D) was repealed for systems purchased and placed in service after Dec 31, 2025 — cash and financed buyers can no longer claim it. A leased or PPA system can still access the commercial credit (Section 48E), which its owner can claim through 2027 and may pass on as a lower price. That makes Vermont's state and utility incentives, not the federal credit, the main lever on your 2026 payback.
How much can you actually save in Vermont?
A typical 8 kW install in Vermont costs about $22,800 before incentives. Vermont has no state income-tax credit, so your savings come from retail net metering (1:1), and the specifics below: No state income-tax credit, but solar is exempt from sales tax and added property-tax value, with generous net metering plus a renewable adder. With the 30% federal credit gone for purchases, these state and utility programs — plus your avoided electricity cost at ~24¢/kWh — are what now determine payback.
See full solar costs & payback for Vermont
Solar panel cost in Vermont →Vermont solar incentives FAQ
Does Vermont have a solar tax credit?
No. Vermont has no state solar income-tax credit in 2026. No state income-tax credit, but solar is exempt from sales tax and added property-tax value, with generous net metering plus a renewable adder.
Does Vermont have an SREC market?
No. Vermont does not have an active SREC market, so there are no tradable solar certificates to sell here. Your return comes from retail net metering (1:1), any state or utility incentives, and avoided electricity costs.
Can I still get the 30% federal solar tax credit in Vermont?
Not if you buy the system. The federal residential (25D) credit was repealed for purchases placed in service after Dec 31, 2025. A leased or PPA system can still tap the commercial (48E) credit its owner claims through 2027, which may show up as a lower rate — but you won't file for 30% yourself on a cash or financed purchase.
What incentives are left in Vermont in 2026?
retail net metering (1:1), and: No state income-tax credit, but solar is exempt from sales tax and added property-tax value, with generous net metering plus a renewable adder. Always confirm current program status on DSIRE before signing.