I’ve analyzed the economics of solar power in Vermont under Green Mountain Power's new "Solar Rate" net-metering program. This program offers people a “market rate” credit from their power bill for solar power generated by homes and sent into the grid, meaning people and businesses can go solar without having to go "off grid.”

Most importantly, the economics of solar power now makes sense, even in Vermont. Even if you don't care about clean power or the environment and you just want to save money. FREE VERMONT! GO SOLAR!

After consulting with experts at Norther Power, Solarbus.org and others I've calculated the realistic "return on investment" Vermonters can expect. Here’s a summary of the solar-economics: With Vermont’s average of 4.5 hrs/day of “Full Sun” (including average # of cloudy days, winter’s shorter days etc), a 2000 watt solar system (that will cost around $15,000 to purchase/install), will generate 270 kilowatt hours per month.

Assuming that the cost of electricity will increase only 6% per year during the next 30 years, the 270 kw hours generated each month and "net-metered" will equate to an average annual savings of over $1,600 over those 30 years. That means over the course of the 30 year expected lifetime of the solar panels, the home will save over $49,000 from that $15,000 investment. That’s a 30-year ROI of 231% which would please just about any investor.

Because the solar panels can connect right a home’s power-meter, there’s no need for dozens of expensive batteries that need to be replaced every 5 years. And homes have the convenience of being able to use more power than they generate with their solar panels, if they need to.

With all the homes carrying mortgage-debts of hundreds of thousands of dollars, a $15,000 investment to save $49,000 seems pretty reasonable to me. Now that this is clear to me, what's my excuse for not going solar? Just ask me again a year from now and I hope to say "come and see my new roof."

See the attached for a detailed savings/credit/bill scenario by month.