Key Takeaways
- GMP’s BYOD battery rebate can knock up to $10,500 off your battery installation
- Vermont exempts solar systems from both sales tax (6%) and property tax – saving you thousands upfront and annually
- Net metering lets you bank excess solar energy as bill credits you can use year-round
- GMP’s lease program puts two batteries in your home for $55/month with no large purchase required
- These Vermont incentives stack on top of the 30% federal solar tax credit
If you’ve been considering upgrading your home’s energy efficiency with a solar or battery system, but cost has been holding you back, there’s good news. There are several incentives, rebates, and tax exemptions available in Vermont that can make going solar more affordable.
Here’s a closer look at the programs that are making solar and battery storage more accessible across the Green Mountain State.
Green Mountain Power BYOD Battery Rebate
Green Mountain Power customers who install a battery system alongside their solar array can receive an upfront rebate of up to $10,500. The exact amount depends on your battery’s size, with incentives ranging from $850 to $950 per kilowatt (kW) of storage.
In exchange, you agree to let GMP access a small portion of your stored energy during times of peak demand. This helps reduce strain on the grid while still leaving you with backup power when you need it.
You save money upfront and contribute to a more stable, efficient energy system.
You can learn more about the GMP Bring Your Own Device program here.
Green Mountain Power Energy Storage System (ESS) Program
For homeowners who want the benefits of battery backup without the upfront purchase, GMP also offers an Energy Storage System (ESS) program.
This program allows customers to lease two batteries over a 10-year term, with flexible payment options:
- $55 per month
- A one-time payment of $5,500
Participants can choose between two trusted battery providers, Enphase Energy and Tesla.
The ESS program is a solid choice for homeowners looking for energy security without a large initial investment.
We’ve answered common questions about GMP’s ESS program if you want to dig into the details.
Net Metering in Vermont
Net metering is one of the foundational benefits of going solar in Vermont.
Through this program, utilities credit you for extra electricity your system produces. That means on sunny days when your panels generate more energy than you use, the excess goes back to the grid, and you earn credits on your electric bill.
These credits can then be used when your system isn’t producing as much, such as at night or during the winter months.
In Vermont, solar systems up to 500 kW are eligible for net metering, making this program accessible for most residential and many commercial projects.
For a deeper breakdown, read our post on how net metering works in Vermont, or check the DSIRE database for the latest policy details.
Vermont Solar Sales Tax Exemption
Another immediate way Vermont reduces the cost of going solar is through its sales tax exemption.
Solar energy systems are exempt from the state’s sales tax, which can save homeowners up to 6% on installation costs. On a typical system, that can translate to thousands of dollars in savings right from the start.
Vermont Solar Property Tax Exemption
Home improvements that increase property value often come with higher property taxes, but solar is an exception in Vermont.
The state offers a property tax exemption on the added value of a solar energy system. That means your home can increase in value without increasing your taxes.
In fact, solar increases the value of homes – and research from the Lawrence Berkeley National Laboratory backs that up.
How These Incentives Stack Together
These programs aren’t mutually exclusive. A Vermont homeowner going solar in 2026 can layer all of the following:
- 30% federal solar Investment Tax Credit (ITC)
- GMP’s BYOD battery rebate (up to $10,500)
- Sales tax exemption (6% off equipment cost)
- Property tax exemption (ongoing annual savings)
- Net metering credits (ongoing bill reduction)
On a mid-size residential system with battery storage, the total effective cost can drop by 40-60% once everything is applied. The exact number depends on your roof, your energy usage, and your utility territory – but the direction is consistent.
We put together a breakdown of how much Vermont homeowners could save with solar if you want to see real numbers.
Start Your Solar Project
If you’ve been considering solar or battery storage, now is a good time to take advantage of these programs. Reach out to us today at Green Mountain Solar to get started on your project and lock in your savings!
Request a free quote from Green Mountain Solar and we’ll walk you through which incentives apply to your home.
FAQ
How much does a typical residential solar installation cost in Vermont before incentives?
Most residential systems fall between $20,000 and $35,000 before incentives, depending on system size, roof complexity, and whether you’re adding battery storage. After stacking federal and state programs, the out-of-pocket cost drops significantly.Request a free quote specific to your home and energy usage.
Can I get the GMP battery rebate if I already have solar panels?
Yes – the BYOD program is available to GMP customers adding battery storage to an existing solar array, not just new installations. If you went solar a few years ago and want to add a battery now, you can still qualify. Reach out to us and we’ll confirm current program requirements for your setup.
How long does it take for solar to pay for itself in Vermont?
With current incentives, most Vermont homeowners see payback periods between 7 and 12 years. After that, the electricity your system produces is essentially free for the remaining 15-20+ years of panel life. Your specific payback depends on your electric rate, system size, and which incentives you qualify for.
Do these incentives apply to new construction?
Yes, and installing solar during new construction is often cheaper than retrofitting because your electrician and roofer are already on-site. All of the incentives listed above apply to new builds. Learn about our solar installation process to see what to expect.
What happens to net metering credits if I sell my home?
Net metering credits are tied to your utility account, not the property itself. When you sell, the new owner sets up their own net metering agreement. Unused credits don’t typically transfer, so it’s worth checking with your utility before listing. The solar panels themselves transfer with the home and are a selling point. Check out our tips for selling a solar-powered home.
