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NuWatt designs, installs, and manages solar, battery, heat pump, and EV charger systems across 9 states. One company, one warranty, one point of contact.
Get a Free QuoteVermont's solar financing landscape changed dramatically in 2026. The Section 25D residential ITC expired December 31, 2025 — meaning no federal tax credit for cash or loan purchases. But Vermont has unique lenders (EastRise, VFCU), the GMP battery lease at $55/month, and Section 48E PPA options still active until July 4, 2026. Here is how every option compares.
Avg System Cost
$31K
10 kW (pre-incentive)
Federal ITC
$0
25D expired 12/31/25
Sales Tax Savings
$1,830
expires Jun 30, 2026
GMP Battery Lease
$55/mo
or $5,500 upfront
The OBBBA (One Big Beautiful Budget Act), signed July 4, 2025, killed both major residential solar incentives. Understanding what changed is essential before evaluating any financing option.
The 30% residential solar ITC expired December 31, 2025. Cash and loan purchasers receive zero federal tax credit in 2026. A 10 kW system that would have earned a $9,150 credit in 2025 earns $0 today. This is the single biggest change in Vermont solar financing.
The heat pump and energy efficiency credit also expired December 31, 2025. No federal credit for heat pumps, insulation, or other efficiency upgrades. Efficiency Vermont rebates remain active and are the primary incentive for heat pumps.
The commercial ITC remains for third-party owned systems. A solar lease or PPA where a financing company owns the system allows that company to claim the 30% ITC. Construction must begin before July 4, 2026. This deadline creates urgency for any lease or PPA options.
Vermont's 6% sales tax exemption on solar equipment, labor, and batteries saves approximately $1,830 on a 10 kW system. The current exemption expires June 30, 2026. Contract and install before this date to capture the savings.
Vermont has a strong credit union ecosystem that offers competitive solar loan products. Here are your best options in 2026.
Green Loan (solar-specific)
5.20% APR
5–15 years
Max Amount
$75,000
Down Payment
$0 down available
Website
eastrise.org
Vermont-based. Mission-driven lender. Green Loan product specifically for solar + energy improvements. Income-qualified terms available. Strong VT presence.
Vermont-Based — RecommendedHome Equity / Solar Loan
6.5–8.5% APR (varies)
Up to 20 years
Max Amount
$100,000+
Down Payment
Varies by product
Website
vermontfederal.org
Vermont-chartered CU. Longer terms (20 yr) reduce monthly payment significantly. Home equity products at lower rates. Strong member service.
Vermont-Based — RecommendedSolar-Specific Loan
5.99–9.99% APR
10–25 years
Max Amount
$100,000
Down Payment
$0 down
Website
Varies
Nationwide lenders available in VT. Competitive rates for strong credit (720+). Dealer fees may increase effective cost — ask if fee is built into loan.
Home Equity
7.5–9.5% variable
10-yr draw + 20-yr repay
Max Amount
Up to 85% LTV
Down Payment
N/A
Website
Your VT bank or CU
Interest may be tax-deductible (consult your tax advisor). Variable rate is a risk. Requires home equity. Flexible draw structure.
Mortgage
6.5–7.5% (30-yr fixed avg)
15–30 years
Max Amount
Based on equity
Down Payment
N/A
Website
Your VT mortgage lender
Lowest rate option. Resets mortgage clock. VT home values have appreciated significantly — many homeowners have substantial equity to draw on.
An honest comparison of each financing path — including the one option that still accesses a federal tax credit (Section 48E PPA/Lease).
Upfront
$30,500 (10 kW avg)
Monthly
$0
Highest savings over 25 years. If you have capital, this is typically the best financial outcome.
Advantages
Drawbacks
Upfront
$0–$2,000
Monthly
$220–$290/mo (15yr)
VT credit union loan with VT-specific mission. $0 down, purpose-built for solar. Best rate among dedicated solar loans.
Advantages
Drawbacks
Upfront
Varies
Monthly
$180–$240/mo (20yr)
Lowest monthly payment among loan options. Good for budget-conscious homeowners.
Advantages
Drawbacks
Upfront
$0
Monthly
Variable (draw period)
Homeowners with substantial equity and disciplined repayment. Flexible and potentially tax-advantaged.
Advantages
Drawbacks
Upfront
$0
Monthly
PPA: $0.08–$0.13/kWh. Lease: $40–$120/mo
Homeowners who cannot or will not invest cash/credit. Financing company claims 30% ITC — reducing your effective cost.
Advantages
Drawbacks
For Vermont homeowners who want some access to federal incentives in 2026, Section 48/48E through a lease or PPA is the only legal mechanism. Here is exactly how it works.
A solar financing company (Sunrun, Tesla Energy, local VT lessor) owns your solar system, not you.
Because they own it as a business asset, they can claim the Section 48E commercial ITC — 30% of the system cost.
This 30% credit ($9,150 on a $30,500 system) reduces the financing company's cost basis.
They pass some of that savings to you in the form of lower PPA rates ($/kWh) or lower lease payments.
You benefit indirectly — but you do NOT own the system and cannot claim the ITC yourself.
Section 48E requires the project to begin construction before July 4, 2026. Signing a contract may not be enough — physical installation must start. If you are considering a lease or PPA, act now. Many VT solar installers have 6–10 week lead times.
A lease or PPA means you do not own the system. Net metering credits may be split with the financing company depending on the contract structure. Selling your home is more complex (the lease transfers or you buy out the system). For most VT homeowners who plan to stay 10+ years, a loan purchase with ownership is a better long-term financial position.
Lease or PPA is a strong choice if: (1) you cannot access capital or credit for a loan, (2) you want $0 down and guaranteed payments, (3) you value maintenance included, or (4) the Section 48E deadline creates time pressure that makes acting now advantageous.
Green Mountain Power's battery lease is unique nationally — a utility-run program that provides 2 Powerwalls or 2 Enphase IQ 10C units for a fixed monthly fee. Here is everything you need to know.
Best for: Low upfront cost, hands-off. 1,200+ person waitlist.
Best for: Upfront capital, lower total cost vs monthly ($6,600 vs $5,500).
Battery shifts self-consumption from ~70% to ~85-90%, saving an extra $120–$165/yr vs exporting at the lower NM rate ($0.1439/kWh vs retail $0.2146/kWh).
1,200+ people are ahead of you. Sign up immediately — GMP processes on a first-come basis and wait times vary from months to over a year.
GMP also pays $850–$950/kW (max $10,500) for batteries you own — enrolled in their virtual power plant. BYOD deadline: September 30, 2026.
Work through these questions to identify the best financing approach for your situation.
Q1: Do you have $30,000+ to invest?
YES
Consider Cash Purchase
NO
Continue to financing options
Q2: Do you have 720+ credit score?
YES
EastRise Green Loan (5.20%) or national solar lender
NO
HELOC, VFCU secured loan, or Lease/PPA
Q3: Do you have significant home equity?
YES
HELOC or Cash-Out Refi — potentially lowest rate
NO
Unsecured solar loan (EastRise, national lender)
Q4: Do you want the system to handle itself?
YES
GMP Battery Lease + Solar PPA (Section 48E)
NO
Purchase option — own and manage the system
Q5: Is maximizing 25-year savings your priority?
YES
Cash purchase — no interest, all NM credits
NO
Loan or lease — lower upfront commitment
The most common questions about solar financing in Vermont after the ITC expired.
No. The Section 25D residential solar ITC expired December 31, 2025. There is no federal tax credit for Vermont homeowners who purchase solar with cash or a loan. However, if you go with a solar lease or PPA where a financing company owns the system, that financing company can claim the Section 48/48E commercial ITC (30%) — which is still active for systems beginning construction before July 4, 2026. This is the only way to access a federal solar incentive in 2026.
EastRise (formerly Vermont State Employees Credit Union) offers a solar-specific Green Loan product at 5.20% APR for 5–15 year terms, with up to $75,000 and $0 down available. EastRise is Vermont-based and has a specific mission around clean energy lending. As of March 2026, 5.20% is among the most competitive rates available from a Vermont institution for an unsecured solar loan. Contact EastRise at eastrise.org or (802) 371-5162.
Vermont's 6% sales tax exemption for solar equipment, installation labor, and battery storage is currently set to expire June 30, 2026. If you are planning a solar installation, having the system contracted and installed before this date ensures you capture approximately $1,830 in savings on a typical 10 kW system ($30,500 gross × 6%). After June 30, 2026, the exemption may be renewed by the legislature, but as of now the sunset date stands.
Section 48/48E is the commercial Investment Tax Credit for solar. Unlike Section 25D (expired), Section 48E is still active for systems beginning construction before July 4, 2026. In a solar lease or PPA, the financing company (not the homeowner) owns the system and can claim the 30% ITC. This effectively reduces the financing company's cost, allowing them to offer lower lease/PPA rates. Vermont homeowners using lease or PPA financing benefit indirectly — the ITC is what makes these zero-down options financially viable. The July 4, 2026 construction start deadline is critical.
Green Mountain Power's battery lease program provides 2 Tesla Powerwall 3 units (27 kWh) or 2 Enphase IQ Battery 10C units (20 kWh) installed and maintained by GMP for $55/month or $5,500 upfront over a 10-year term. The lease is a compelling complement to solar — it increases your solar self-consumption from ~70% to ~85-90%, adding $120–$165/year in value. However, the waitlist exceeds 1,200 people and the BYOD deadline is September 30, 2026.
A HELOC (Home Equity Line of Credit) uses your home's equity as collateral, typically offering lower rates (7.5–9.5%) than unsecured solar loans but requiring substantial equity. HELOC interest is potentially tax-deductible if used for home improvements (consult your tax advisor). Vermont home values have appreciated significantly, giving many VT homeowners more equity than they realize. The risk is variable rate — if rates rise, your monthly payment increases. A fixed-rate solar loan (like EastRise at 5.20%) offers payment certainty.
With no federal ITC and declining net metering rates, cash purchase remains the highest 25-year value for VT homeowners who have capital. A quality solar loan (EastRise 5.20% or VFCU 20-yr) is the next best option — you own the system, capture all NM credits, and avoid the ownership complications of a lease. Leases/PPAs are worth considering only if you cannot or will not invest capital, or if the Section 48E deadline creates urgency (construction must begin by July 4, 2026). Never choose a lease simply to "get the ITC" — you do not get it. The financing company does.
No. GMP's battery lease program does not require solar panels. The battery charges from the grid during off-peak hours and provides backup during outages. However, pairing with solar dramatically improves the economics — solar charges the battery for free during the day, shifting more production to self-consumption (which saves at the full retail rate of $0.2146/kWh) rather than exporting at the lower NM rate ($0.1439/kWh).
EastRise Credit Union (5.20% APR Green Loan, formerly VSECU) is the standout VT-specific option. Vermont Federal Credit Union offers longer terms (up to 20 years) and home equity products. NEFCU (New England Federal Credit Union) and Members Advantage Community Credit Union are other options. Shopping multiple institutions is important — rates vary based on your credit score, loan term, and whether the loan is secured (home equity) or unsecured. Membership in a VT credit union often requires living or working in Vermont.
Detailed comparison for VT homeowners
Read moreHow VT solar works with no ITC
Read moreLease, BYOD, and virtual power plant
Read moreBYOD bill credits for VEC members
Read moreNM rates, categories, declining credits
Read moreSolar + financing options for your home
Read moreNuWatt works with EastRise, VFCU, and national solar lenders to find the best financing for your specific credit, equity, and savings goals.
Sales tax exemption expires June 30, 2026. Section 48E construction deadline: July 4, 2026.