Vermont · Tax exemption

VT Solar Property Tax Exemption

Removes a tax burden residential solar owners in Vermont would otherwise carry -- see what it covers, eligibility, and payback impact below.

Full property tax ex…
stated benefit
Residential
eligible customers
11.5 yr
Vermont baseline payback
3
other Vermont programs

What it means

In Vermont, a 6 kW system already pays back in about 11.5 years on ~$1,616/year of modeled savings, and the VT Solar Property Tax Exemption stacks on top of that, on top of any federal credit.

Full property …
stated benefit
11.5 yr
baseline payback (pre-incentive)
4
Vermont programs that stack
full
net-metering policy

Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.

Program description

Vermont solar energy systems are exempt from municipal and state property taxes.

Program at a glance

Program type
Tax exemption
Eligible customers
Residential
Stated benefit
Full property tax exemption
State electricity rate
22.5¢/kWh
Vermont solar score
31/100

How Vermont compares to the U.S. average

Why this incentive matters more (or less) here - Vermont's solar fundamentals against the national average.

Irradiance
Vermont: 4.1 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
Vermont: 22.5¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
Vermont: 11.5 yr
U.S. avg: 14.2 yr

Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.

Solar's trajectory in Vermont

The market this incentive operates in: total installed solar capacity in Vermont reported to the EIA.

-50 MW0 MW50 MW100 MW150 MW200 MW 20112013201520172019202120232024 156 MW
Vermont now has about 156 MW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

Vermont's solar incentive stack

How this tax exemption sits among Vermont's 3 tracked programs, by type

programs

What this shows Vermont tracks 3 incentive types; 1 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.

Source DSIRE incentives registry As of 2024

How this incentive fits Vermont's solar picture

The VT Solar Property Tax Exemption removes a tax burden solar owners would otherwise carry, one of Vermont's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of Full property tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.

That baseline is slower than most states, which raises the stakes for every incentive on the table. Vermont averages 4.1 kWh/m²/day of usable sunlight and residential rates of 22.5¢/kWh, producing an estimated 7,183 kWh/year and $1,616 of annual utility offset on a typical 6 kW system costing $18,600. That baseline already implies a 11.5-year simple payback and a 25-year modeled net of roughly $21,800 before this incentive - every dollar this tax exemption delivers compresses that payback further.

A handful of other levers are worth checking alongside this one. Vermont has 4 solar incentive programs indexed in DSIRE, including adjacent options like VT Net Metering, Vermont Standard Offer Program (SPEED). The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.

Your next step

  • See Vermont's full solar profile, score, irradiance, rates, payback, and every program you can claim. Vermont solar data
  • Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
  • Read how state and federal solar credits work together. Tax-credit guide

Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.

Frequently asked questions

What is the VT Solar Property Tax Exemption?
The VT Solar Property Tax Exemption is a tax exemption available to residential solar customers in Vermont. The stated benefit is Full property tax exemption.
How does the VT Solar Property Tax Exemption work?
Vermont solar energy systems are exempt from municipal and state property taxes.
Who is eligible for the VT Solar Property Tax Exemption?
The program is available to residential customers in Vermont. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in Vermont?
Vermont has an estimated 11.5-year payback for a 6 kW system before incentives, with about $1,616/year in modeled savings. A tax exemption like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in Vermont?
Yes - Vermont has 4 solar incentive programs tracked in DSIRE, including VT Net Metering, Vermont Standard Offer Program (SPEED). State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.