Vermont Electricity Rates: What to Know

Vermont presents a paradox: the state has some of the highest electricity rates in the country — roughly 22 cents per kilowatt-hour, about 30-35% above the national average — yet the average monthly bill is approximately $126 to $132, actually below the national average of about $152. The explanation is simple: Vermonters use far less electricity than most Americans, averaging about 565 kWh per month compared to a national average of roughly 900 kWh. Many homes heat with oil, propane, or wood rather than electricity, keeping grid consumption low.

But the rate itself is what matters when you flip a switch, plug in an EV, or install a heat pump — and that rate is climbing. The Vermont Public Service Department projects rates will increase approximately 25% by 2030, or about 4.6% per year, outpacing inflation. At the same time, Vermont is home to what may be the most innovative utility in America: Green Mountain Power has deployed nearly 9,000 Tesla Powerwalls, created a 50 MW virtual power plant that saved all customers $3 million in a single summer, earned the world's first B Corp utility certification, and is racing toward 100% renewable electricity by 2030. Understanding both the costs and the innovation is essential for managing your electricity in the Green Mountain State.

How Vermont's Electricity Market Works

Vermont is a fully regulated electricity market — customers cannot choose their electricity provider. The state did not deregulate during the 1990s restructuring wave. Each of Vermont's 17 distribution utilities holds an exclusive service territory under a Certificate of Public Good granted by the Vermont Public Utility Commission (PUC).

However, Vermont has a hybrid model that differs from both fully vertically integrated states and fully deregulated states. Utilities were required to sell off some generation assets, and merchant developers now build and own many power plants. Utilities focus on distribution ("poles and wires") plus power procurement — buying electricity on the wholesale market and through long-term contracts rather than generating it all themselves.

The Vermont Public Utility Commission (PUC) regulates rates, service quality, and financial management for all electric utilities. The Vermont Department of Public Service serves as the public advocate in regulatory proceedings and administers renewable energy and weatherization programs.

Vermont is part of ISO New England (ISO-NE) for wholesale electricity market purposes, though its utilities are not structured like typical ISO-NE participants. Regional transmission costs — the largest driver of rate increases — are shared across all six New England states.

What Vermonters Actually Pay

By Utility

Vermont's 17 utilities create significant rate variation across the state:

Utility	Type	Approx. Rate (2026)	2025-2026 Change
Green Mountain Power	Investor-owned (Energir/Quebec)	~22 cents/kWh	+0.72% base + 5.69% adjustment
Burlington Electric Dept.	Municipal	~19.24 cents/kWh	+4.33%
Vermont Electric Co-op	Cooperative	~22+ cents/kWh	+4.84%
Washington Electric Co-op	Cooperative	~22+ cents/kWh	+2.91%
Ludlow Electric	Municipal	~13.55 cents/kWh	Lowest in state

Burlington Electric Department is notable for two reasons: it offers among the lowest rates in Vermont and was the first US city to source 100% renewable electricity.

Monthly Bills — Below National Average

Despite rates 30-35% above the national average, Vermont's average monthly bill of $126-132 is below the national average of ~$152. This is entirely driven by low consumption. Seasonal variation is significant: winter bills average roughly $274 while summer bills average about $181, reflecting heating-driven demand.

Rate Projections

The Vermont Public Service Department projects statewide rates to increase approximately 25% by 2030 — about 4.6% annually, well ahead of the roughly 3% general inflation rate. The primary drivers are ISO-NE transmission costs, storm recovery, renewable energy investments, and grid modernization.

Major Utilities

Green Mountain Power (GMP)

GMP is Vermont's dominant utility, serving approximately 275,000 customers — about 76% of the state. It is the state's only investor-owned utility, owned by Energir (formerly Gaz Metro), which is controlled by Caisse de depot et placement du Quebec (CDPQ) — the Quebec pension fund manager with C$325 billion under management. GMP purchases approximately 23% of its electricity from Hydro-Quebec, giving it access to abundant Canadian hydropower.

GMP's current rate structure includes a base rate increase of 0.72% plus an energy/storm adjustment surcharge of 5.69%, for a combined effective increase of about 6.4% for the October 2025 through September 2026 period. The current Multi-Year Regulation Plan expires September 2026; the PUC is reviewing GMP's proposal for a new plan covering October 2026 through September 2030.

What makes GMP nationally remarkable is not its rates but its programs:

• Tesla Powerwall Lease: Two Powerwalls for $55 per month or a one-time payment of $5,500. Nearly 9,000 utility-owned Powerwalls deployed, creating one of the largest distributed storage fleets in the country.
• Battery-Only Lease: Does not require solar — unique nationally. Enphase batteries now also available alongside Tesla (as of 2026).
• Virtual Power Plant (VPP): Approximately 50 MW of networked distributed storage that saved all customers $3 million in summer 2025 through peak shaving.
• Bring Your Own Device (BYOD): Customers with their own batteries can enroll and receive bill credits for allowing GMP to dispatch during peak events.
• EV Managed Charging: Discount EV charging rates with utility-managed charging during peak periods. Bidirectional EV charger integration expected in 2026.

GMP was the first utility in the world to earn B Corp certification and was named to TIME's 100 Most Influential Companies (2022).

Vermont Electric Cooperative (VEC)

VEC is a member-owned cooperative serving approximately 35,000 members across rural northern and central Vermont. The cooperative requested a 4.84% rate increase for 2025, with a 10-year average annual increase of 2.66%. Key cost drivers include ISO-NE transmission costs, property taxes, and storm recovery — VEC spent nearly $2 million on storm recovery from July 2023 through June 2024.

Burlington Electric Department (BED)

BED is a municipal utility serving about 21,000 customers in Burlington — Vermont's largest city. Its average bundled rate of 19.24 cents per kWh is among the lowest in Vermont and well below the New England average. BED's FY2026 rate increase was 4.33%. BED became the first US city to source 100% renewable electricity — a milestone that preceded Vermont's statewide clean energy mandates.

Washington Electric Cooperative (WEC)

WEC serves rural central Vermont and implemented a 2.91% rate increase effective January 1, 2025. The primary driver was rising property tax assessments on utility infrastructure.

Small Municipal Utilities

Vermont has 14 municipal electric departments in addition to the two cooperatives and GMP. Ludlow Electric offers the lowest rates in the state at 13.55 cents per kWh. Other municipals include Hardwick Electric, Morrisville Water & Light, Northfield Electric, Stowe Electric, and Swanton Village Electric. The state began reviewing the finances of small municipal electric companies in late 2025 as some face growing financial pressures.

Why Vermont's Rates Are Rising

1. ISO-NE Transmission Costs — The Biggest Driver

ISO New England has the highest transmission costs of any system operator in the country — more than double the average of other regional transmission organizations. These costs rose by up to 800% between 2004 and 2023. Vermont's utilities pay into these regional costs even though the state generates comparatively little power in-state. Transmission investments driven by ISO-NE's reliability planning criteria — which are more stringent than other regions — flow through to every ratepayer.

2. Storm Recovery and Climate Resilience

More frequent and intense storms are driving up restoration costs. VEC alone spent nearly $2 million on storm recovery in a single year (July 2023 through June 2024). GMP applies a storm adjustment surcharge (currently 5.69%) covering both past storm costs and future reserves. Vermont's devastating July 2023 flooding caused significant infrastructure damage.

3. Renewable Energy Investments

Vermont's updated Renewable Energy Standard (H.289, passed June 2024) requires GMP to reach 100% renewable by 2030 and smaller utilities by 2035. Twenty percent must come from small, recently constructed in-state renewable projects by 2035. These investments provide long-term savings but create near-term rate pressure through capital spending on new generation, storage, and grid upgrades.

4. Grid Modernization

Electrification goals — heat pumps, EVs — require grid upgrades to handle increased load. Smart grid technology, advanced metering, distribution automation, and battery storage programs all require utility investment.

5. Property Taxes

Utility infrastructure (power lines, substations) is subject to property taxes. Both VEC and WEC cited rising property tax assessments as significant cost drivers in their 2025 rate requests.

Understanding Your Vermont Electricity Bill

GMP Bill Components

1. Customer Charge: $0.830/day (~$25/month) — covers meter, billing, and account costs
2. Energy Charge: Per-kWh charge for electricity consumed
3. Energy Assistance Program (EAP) charge: $1.50/meter/month — funds assistance for low-income customers
4. Efficiency Vermont charge: Per-kWh surcharge funding statewide energy efficiency programs
5. Storm charge: Covers extreme weather costs and future storm reserves
6. Energy/storm adjustment surcharge: Currently 5.69% — adjusts quarterly based on power supply costs

Time-of-Use Rates

GMP offers several voluntary TOU rate options — more than most New England utilities:

Rate 11 — Residential TOU:

• Peak (1-9 PM weekdays): 34.07 cents/kWh
• Off-peak (all other hours): 14.52 cents/kWh

Rate 22 — Seasonal TOU: Adjusts peak windows by season — summer peaks from 1-9 PM, winter splits to morning (7:30-11:30 AM) and evening (4:30-8:30 PM) weekdays.

Rate 74 — TOU EV Residential: Designed for EV owners, incentivizing overnight charging with low off-peak rates. GMP may manage your EV charger during peak events (5-10 times per month, 2-6 hours each).

If you can shift most usage to off-peak hours, the spread between 14.52 cents (off-peak) and 34.07 cents (peak) is substantial — a potential savings of over 50% per kWh on shifted consumption.

Net Metering

Vermont has historically had one of the strongest net metering programs in the US. Solar customers receive retail-rate credits for excess electricity sent to the grid. Fixed charges (customer charge, EAP, Efficiency Vermont, storm charge) cannot be offset by net metering — only the energy charge is netted.

H.289 (2024) significantly reformed the program: systems with Certificates of Public Good filed on or after January 1, 2025 can only be group net metered if located on the same or adjacent parcel. This effectively ended off-site community solar for new projects — a major policy reversal for a state that was a national leader in community solar.

Solar and Renewable Energy in Vermont

100% Renewable Mandate

Vermont's updated Renewable Energy Standard (H.289) requires:

• GMP: 100% renewable by 2030
• Smaller utilities: 100% renewable by 2035
• 20% from small, in-state projects by 2035

Vermont is only the third state to mandate 100% renewable electricity.

Solar Incentives (Post-Federal Credit)

The 30% federal Residential Clean Energy Credit expired December 31, 2025. Vermont's remaining incentives:

• Net metering at retail rate (residential rooftop solar)
• Sales tax exemption on renewable energy systems up to 500 kW
• Property tax exemption for residential systems under 50 kW
• No state solar tax credit or rebate

Third-party owned systems (leases/PPAs) may still qualify for the commercial ITC (Section 48/48E) at 30% for projects beginning construction before July 4, 2026.

At 22+ cents per kWh, Vermont's high rates make solar financially attractive despite the loss of the federal credit. Typical installed costs of $2.75-3.15 per watt for a 10 kW system ($27,500-31,500 before incentives) can pay back in under 10-12 years at current rates.

Community Solar — Effectively Ended for New Projects

Vermont was a national leader in community solar through its group net metering program, with 350+ operational group net-metered solar arrays totaling over 200 MW of installed capacity. H.289 (2024) effectively ended off-site community solar for new projects starting January 2025. Existing projects continue under prior rules.

Standard Offer Program

Vermont's feed-in tariff program (established 2009) provides long-term fixed-price contracts for eligible renewable generators up to 2.2 MW. The program's capacity is now full — no new projects can enroll without new legislation.

Vermont's Clean Energy Firsts

• Burlington: First US city with 100% renewable electricity
• GMP: First utility worldwide with B Corp certification
• Vermont: Third state to mandate 100% renewable electricity
• GMP: Pioneer in utility-deployed residential battery storage at scale

Strategies to Lower Your Vermont Electricity Bill

1. Switch to GMP's Time-of-Use Rate

If you are a GMP customer, Rate 11 offers off-peak pricing of just 14.52 cents per kWh (versus 34.07 cents on-peak). If you can shift your heaviest electricity use — laundry, dishwasher, EV charging, water heating — to before 1 PM or after 9 PM on weekdays, the savings are substantial. Weekend and holiday usage is all off-peak.

2. Lease a GMP Powerwall

GMP's Tesla Powerwall lease ($55/month or $5,500 one-time) gives you backup power during outages and lets you participate in the virtual power plant — earning bill credits while helping reduce peak demand for all customers. Enphase batteries are now also available through the program.

3. Weatherize Through Efficiency Vermont

Efficiency Vermont offers up to 90% cash back on air sealing and insulation projects (through end of 2026 or while funding lasts). This is one of the most generous weatherization incentives in the country. Low-income households can access free weatherization through Community Action Agencies. Homes heating with fuel oil save an average of $320 per year from weatherization.

4. Install Solar

At 22+ cents per kWh with retail-rate net metering, sales tax exemption, and property tax exemption, solar remains a strong long-term investment in Vermont even without the federal credit. Size your system to match your annual consumption. If you are considering solar, act before any future net metering policy changes — the current framework is among the strongest in the country.

5. Install a Heat Pump

Efficiency Vermont offers heat pump rebates: up to $2,200 for ducted systems and up to $475 for ductless mini-splits. Low-income households can access higher rebates. If you heat with oil — still common in Vermont — a heat pump can dramatically reduce total energy costs. Our guide on best heat pumps for home 2026 covers the options.

6. Take Advantage of Efficiency Vermont Rebates

Beyond weatherization and heat pumps, Efficiency Vermont offers rebates on efficient appliances, LED lighting, and water-saving devices. Low-income households can receive a voucher for up to $1,200 for replacing eligible appliances. Home Energy Loans provide up to $25,000 at low interest (0% for income-qualified borrowers).

7. Enroll in GMP's EV Program

If you drive an EV, GMP's managed charging program offers discounted rates in exchange for allowing the utility to manage charging during peak periods. Rate 74 (TOU EV Residential) incentivizes overnight charging with low off-peak rates.

Low-Income Assistance Programs

LIHEAP

• FY2026 funding: $20,774,680
• Heating assistance: $21 minimum to $2,089 maximum
• Winter crisis assistance: Up to $2,479.64
• Income eligibility: 60% of State Median Income or 185% of federal poverty level
• Covered fuels: Kerosene, propane, natural gas, electricity, coal
• Approximately 23% of Vermont households reported being unable to pay energy bills in full (2024)

Federal LIHEAP funding has faced threats — Vermont's congressional delegation formally objected to proposed elimination. Allocated funds continued to be disbursed through summer 2025.

Vermont Electric Assistance Program (EAP)

Funded by a $1.50 per meter per month charge on all GMP customer bills. Provides bill discounts for income-eligible customers. Burlington Electric Department expanded its EAP in December 2025. Each utility administers its own EAP with slightly different eligibility criteria.

Efficiency Vermont Programs

• Weatherization: Up to 90% cash back on insulation and air sealing
• Heat pump rebates: Up to $475 (ductless) or $2,200 (ducted)
• Low-income: Free weatherization, appliance vouchers up to $1,200, free LED bulbs and water-saving devices
• Home Energy Loans: Up to $25,000 at low interest; 0% for income-qualified

Getting Started

Contact your local Community Action Agency or call 2-1-1 for referrals.

Frequently Asked Questions

What is the average electricity rate in Vermont?

Vermont's average residential rate is approximately 22.1 to 22.3 cents per kWh as of early 2026, about 30-35% above the national average. However, Vermont is one of the more affordable states within New England, where the average is 27.40 cents per kWh. Rates range from 13.55 cents (Ludlow Electric) to nearly 30 cents at some utilities.

Why is my Vermont bill lower than the national average despite high rates?

Vermont households consume significantly less electricity than average — about 565 kWh per month compared to roughly 900 kWh nationally. Many Vermont homes heat with oil, propane, or wood rather than electricity. The combination of lower usage and higher rates produces average monthly bills of $126-132, which is actually below the national average of about $152.

Can I choose my electricity provider?

No. Vermont is a regulated market with no retail choice. You receive electricity from the utility assigned to your service territory — most likely Green Mountain Power (76% of the state). You cannot switch to a competitive supplier.

Is solar worth it without the federal tax credit?

Solar can still make financial sense in Vermont. While the 30% federal credit expired December 31, 2025, Vermont's high rates (22+ cents/kWh), retail-rate net metering, solar sales tax exemption, and property tax exemption provide meaningful value. Third-party systems (leases/PPAs) may still qualify for commercial tax credits through mid-2026. Payback periods are longer but typically remain under 10-12 years.

What is GMP's Powerwall program?

GMP leases two Tesla Powerwalls for $55/month or $5,500 one-time. Nearly 9,000 Powerwalls have been deployed, creating a virtual power plant of about 50 MW that saved all customers $3 million in summer 2025 by reducing peak demand. Enphase batteries are now also available. Customers get backup power during outages, and GMP can dispatch stored energy to reduce grid peaks.

Why are rates going up?

The main drivers are: ISO-NE transmission costs (highest in the US, up 800% since 2004); storm recovery from increasingly severe weather; renewable energy investments for the 100% mandate; grid modernization for heat pump and EV adoption; and rising property taxes on utility infrastructure. Rates are projected to increase about 25% by 2030.

What assistance is available if I cannot pay my bill?

LIHEAP provides heating assistance of $21-$2,089 per household. The Electric Assistance Program (EAP) provides bill discounts funded by a $1.50/month charge on all customer bills. Efficiency Vermont offers up to 90% cash back on weatherization, free improvements for low-income households, and appliance vouchers up to $1,200. Home Energy Loans are available at 0% interest for income-qualified borrowers. Contact your local Community Action Agency or call 2-1-1.

Your Vermont Electricity Action Plan

This week:

1. Check your bill for the energy charge, storm surcharge, and EAP charge. Our guide on how to read your electric bill and spot overcharges explains each component.
2. If you are a GMP customer, evaluate whether Rate 11 (TOU) would save you money. At 14.52 cents off-peak versus 34.07 cents on-peak, the savings potential is significant if you can shift usage.
3. Check your 12-month usage history for seasonal patterns.

This month:

4. Visit efficiencyvermont.com and apply for the 90% cash back weatherization offer while funding lasts.
5. If income-eligible, apply for the Electric Assistance Program through your utility.
6. Apply for LIHEAP through your local Community Action Agency if your income qualifies.
7. If you are a GMP customer, look into the Powerwall lease ($55/month) or BYOD program if you already have a battery.

This year:

8. Get solar quotes. At 22+ cents per kWh with retail-rate net metering, sales and property tax exemptions, Vermont's solar economics remain competitive despite the loss of the federal credit.
9. Install a heat pump with Efficiency Vermont rebates (up to $2,200 for ducted systems). If you heat with oil, the combined savings on oil and the heat pump's efficiency gains typically make the economics work even at Vermont's electricity rates.
10. Take the $500 whole-home bonus if you combine weatherization with a heat pump installation.

If you are struggling right now:

11. Contact your local Community Action Agency or call 2-1-1.
12. Apply for the EAP discount on your electric bill.
13. Apply for LIHEAP heating assistance ($21-$2,089).
14. Ask Efficiency Vermont about free weatherization and the $1,200 appliance voucher for income-eligible households.

For the long term:

15. Watch GMP's next Multi-Year Regulation Plan (Oct 2026-Sep 2030). This will set the rate trajectory for the next four years.
16. Follow the 100% renewable mandate timeline. GMP must reach 100% by 2030, smaller utilities by 2035. The investments required will continue to put upward pressure on rates, but should reduce long-term exposure to fossil fuel price volatility.
17. Monitor Efficiency Vermont's weatherization funding. The 90% cash back offer is available through 2026 or while funding lasts — one of the most generous efficiency incentives in the country.
18. Consider GMP's battery programs. The VPP saved all customers $3 million in summer 2025. As more customers enroll, the peak-shaving benefit grows — and participants get backup power plus bill credits.

Vermont's electricity story is defined by a paradox: high rates but low bills, ambitious mandates but rising costs, and a utility that is simultaneously one of the most innovative and most expensive in the country. GMP's Powerwall program, virtual power plant, and B Corp certification represent the grid of the future — distributed storage, managed demand, and clean generation working together. But that future costs money, and Vermont's rates are projected to climb 25% by 2030. The practical path for Vermonters is to take advantage of the tools the state provides — TOU rates, efficiency rebates, solar with strong net metering, and battery programs — to reduce the share of your budget that goes to electricity even as the per-kWh price continues to rise.