VT · Solar

Solar quotes in Colchester, VT.

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7 kW
Average system size
$3.10/W
Average cost (USD)
11 yrs
Average payback
40+
Local installers

Why solar in Colchester

Vermont compensation is calculated rather than simply quoted, which is genuinely helpful once you know the formula. It begins with a blended residential rate, then applies a REC adjustor and a siting adjustor. Because each component is separate and each is set through a public process, a Colchester homeowner can check every part of a quote rather than accepting a single number.

The three components

The base is the blended residential rate, calculated by each utility and reviewed biennially. In the 2026 update the Department recommended a statewide blended residential rate of $0.2071 per kWh, an increase of $0.0231 per kWh.

The REC adjustor modifies that based on what happens to your Renewable Energy Credits. Keeping them is minus 3 cents per kWh as of 2026.

The siting adjustor modifies it based on where and how the system is sited, with the Commission favouring preferred sites.

Add those together and you have your compensation rate. Because it is arithmetic rather than a quoted figure, you can verify it.

Checking each part of the sum

Ask which blended residential rate the projection used, from which utility and which tariff filing. The 2026 tariffs were directed to take effect August 1, 2026, so a figure from an earlier filing may be out of date.

Ask which REC treatment was assumed and confirm it is the one you want, since the difference is three cents per kilowatt hour.

Ask which siting category the installation falls into and what adjustor value that carries, stated as its own number.

Then add them yourself and check the total against the compensation rate the projection used. That takes a minute and it validates the largest input in the model.

And what it means against what you pay

A blended residential rate around 20.7 cents per kWh is well above the national average electricity price, which is what makes Vermont solar work despite a northern climate and an installed cost around $3.10 per watt.

Because compensation is built from that rate rather than from an avoided cost figure, Vermont remains comparatively favourable by 2026 standards, when many states have moved to wholesale-style export rates.

That also means sizing here is less punishing than in Georgia, Indiana or Louisiana. The design can reasonably follow annual consumption rather than chasing daytime load.

Ask what percentage of your annual usage the proposed system covers, and ask what happens to compensation on generation beyond that under your utility tariff.

What belongs in a Vermont projection

The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025, so a cash or loan purchase in Colchester receives no federal tax credit.

Section 48E survives at 30 percent for third-party owners under leases and power purchase agreements, so ask what a provider claims and what reaches you in the rate.

What exists is compensation built from three published components, each of which you can check independently.

Ask for all three shown separately with the tariff date stated, then verify the total yourself before comparing quotes.

Incentives & rebates

Net metering: Rule 5.100: blended residential rate plus REC and siting adjustors

Vermont net metering under Public Utility Commission Rule 5.100 is more explicitly constructed than most, which is useful because it means every component can be questioned separately. Compensation begins from a blended residential rate, calculated by each utility and reviewed through a biennial process. In the 2026 biennial update the Department provided worksheets recommending a statewide blended residential rate of $0.2071 per kWh, an increase of $0.0231 per kWh, and the Commission directed electric distribution utilities to file tariffs no later than June 15, 2026 to take effect on August 1, 2026. Two adjustors then modify that base. The siting adjustor reflects where and how the system is sited. The REC adjustor reflects what happens to the Renewable Energy Credits your system generates: if you keep them, the adjustor is minus 3 cents per kWh as of 2026, and if you transfer them to the utility you avoid that reduction. That is a genuine decision with a price on it, and it is one most states never put to a homeowner at all. Keeping your RECs means you can accurately say your household runs on renewable energy you generated; transferring them means three cents more per kilowatt hour. The Commission has steadily reduced the adjustor values over successive biennial reviews, so the terms a system receives depend on when it enrols, and a long projection should state what it assumes about that. Vermont is served by Green Mountain Power alongside municipal utilities and cooperatives, each filing its own tariff, so confirm the figures that apply at your address.

How payback works in Vermont

System cost
$21,700
Estimated net cost
$21,700
Estimated payback
~13.4 years
25-year net savings
~$18,800

These figures are illustrative; your actual quote reflects your roof, sun exposure, and local utility rates.

Frequently asked questions

How is Vermont net metering compensation calculated?
From three components: a blended residential rate, a REC adjustor and a siting adjustor. The 2026 biennial update recommended a statewide blended residential rate of $0.2071 per kWh, with tariffs due to take effect August 1, 2026.
Can I check the figure in my quote?
Yes, and you should. Ask which blended residential rate was used from which tariff filing, which REC treatment was assumed, and which siting category and adjustor apply. Then add them yourself and check the total.
Is Vermont compensation good by 2026 standards?
Comparatively, yes. Because compensation is built from a blended residential rate rather than an avoided cost figure, Vermont remains more favourable than the many states that have moved to wholesale-style export rates.
Does that change how I should size the system?
It makes sizing less punishing than in avoided-cost states, so the design can reasonably follow annual consumption. Still ask what percentage of your annual usage it covers and how generation beyond that is treated.

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