Solar power in Vermont provides almost 11% of the state's electricity as of 2018. A 2009 study indicated that distributed solar on rooftops can provide 18% of all electricity used in Vermont. A 2012 estimate suggests that a typical 5 kW system costing $25,000 before credits and utility savings will pay for itself in 10 years, and generate a profit of $34,956 over the rest of its 25-year life.
Net metering is available for up to at least 500 kW generation, but is capped at 15% of utilities peak demand. Excess generation is rolled over each month but is lost once each year. Group net metering is also allowed. Vermont is given an A for net metering and a C for interconnection. A feed-in tariff was created in 2009, but is limited to 50 MW and is fully subscribed. The cap increases by 5 to 10 MW/year starting in 2013 until it reaches 127.5 MW in 2022. It is available for solar, wind, methane, and biomass. Seven solar projects are receiving payments, of $0.30/kWh, for 25 years.
Vermont has five solar arrays of at least 1 MW, the 2.2 MW SunGen Sharon 1 in Sharon completed in July 2012, the 2.1 MW concentrating photovoltaics array installed in July 2011 in South Burlington, the 1.5 MW photovoltaic array also in South Burlington installed in October 2011, the 1 MW photovoltaic array in Ferrisburgh, and the 2 MW Williamstown Solar Project.
A proposed 20 MW solar farm in Ludlow is opposed by Green Mountain Power and the governor. The power company claims that there is no need for any utility-scale solar in the state.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.