Your Vermont Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most Vermont solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. Big solar companies that worked in Vermont have gone bankrupt. Sunrun is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
Vermont winters are long, cold, and dark. From November through March, your solar panels are producing a fraction of what they do in summer - if they're producing at all under a foot of snow.
But your contract payments don't take the winter off. You pay the same amount in January as you do in July. And if your salesperson built a savings projection using annual averages instead of showing you the month-to-month reality, those numbers hid the truth: for nearly half the year, you're paying for electricity your panels aren't making.
If you're a homeowner in Burlington, Montpelier, or anywhere in Vermont and your solar panels aren't saving you what you were told they would, there's a reason for that. The problem isn't your roof. It's your contract.
Your payments are going up. Your savings aren't coming through. And the company that sold you the system? More than 100 solar companies filed for bankruptcy in 2024 alone, according to SolarInsure. Sunnova - one of the largest residential solar companies in the country - filed Chapter 11 in June 2025. SunPower filed Chapter 11 in August 2024 and was acquired by Complete Solaria.
The Bigger Picture for Vermont Solar Homeowners
Vermont has not seen a named AG lawsuit against a solar installer yet. That doesn't mean Vermont homeowners are safe. Big solar companies have worked here too. The list includes Sunrun, Freedom Forever, and LGCY Power. Some of these companies went bankrupt. Some were sued in other states. Some were both. The same contracts, the same sales tactics, the same escalator clauses — they're in Vermont homeowners' filing cabinets right now. Your state's consumer protection law covers solar sales just like any other deal.
What's actually in your Vermont solar contract
Here's what most Vermont homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they show you what your panels produce in December versus June? Vermont's solar production drops dramatically during winter months. If your savings projection used annual averages without showing the seasonal reality, the month-to-month math doesn't hold. You're paying full price for a system running at a fraction of its capacity for five months of the year.
Did your salesperson mention Freedom Forever? Freedom Forever was one of the biggest solar installers in the country. They put in about 2 gigawatts of solar across 35 states. On April 15, 2026, they filed Chapter 11 bankruptcy in Delaware. They owe $500 million to $1 billion. Between 50,000 and 100,000 people are owed money. Freedom Forever was still installing in Vermont when they filed. If Freedom Forever installed your system, your contract is still active. But the company behind your warranty is now in bankruptcy limbo.
Freedom Forever isn't alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. A company called Complete Solaria bought them. Sunnova Energy filed Chapter 11 in June 2025. Titan Solar Power filed Chapter 7 in June 2024. Pink Energy, Lumio Holdings, and Vision Solar are on the same list. When your installer goes bankrupt, your payments don't stop. Your contract doesn't cancel. But your warranty usually disappears.
Your rights under Vermont law
Vermont gives you real legal protections. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. If a solar salesperson came to your home and you signed the contract there, federal law (the FTC Cooling-Off Rule) gives you 3 business days to cancel with no penalty. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement. Pull out your contract. If there's no cancellation notice on the front page, that's your answer.
Vermont Consumer Protection Act. 9 V.S.A. §2453 prohibits unfair and deceptive acts and practices. If your solar company misled you about savings, system output, or contract terms, this statute applies. The Vermont AG's Consumer Assistance Program actively investigates complaints - and solar complaints are growing.
Winter performance and your savings projection. Vermont's winters are long and snowy. Solar production drops dramatically from November through March. If your savings projection used annual averages without showing the seasonal picture, the month-to-month math doesn't hold. This is one of the most common gaps between what Vermont homeowners were told and what they're experiencing. Did your salesperson show you a month-by-month production estimate, or just an annual number?
Net metering policy changes. Vermont has adjusted its net metering rules, which affects how much credit you receive for excess solar energy. If your contract's savings projections were based on earlier, more favorable net metering rates, your actual returns are lower than what was promised.
Green Mountain Power rate structure. Most Vermont homeowners are Green Mountain Power customers. Your savings projections were built around GMP rates. If those rates haven't climbed as your salesperson projected, the savings gap is narrower than promised. Did your salesperson show you what happens to your savings if GMP rates stay flat? If not, you were only shown the best-case scenario.
Hidden dealer fees are a red flag in solar loans. Solar finance companies add dealer fees of 15 to 30 percent. They roll these fees into your loan balance. They don't list them as a separate charge. The federal Truth in Lending Act says every fee must be shown in writing. A hidden or mislabeled fee can be a legal violation. You've been paying interest on a fee nobody explained to you.
What you can do right now
You don't have to figure this out alone. Here are the first steps for Vermont homeowners.
File a complaint with the Vermont Attorney General. Go to https://ago.vermont.gov/consumer-assistance-program-complaint-form. Or call 1-800-649-2424. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in Vermont. Find Out What It's Actually Costing You.
Vermont homeowners have rights under both federal and state consumer protection law - and with long winters reducing your panel output for nearly half the year, your savings math deserves a hard second look. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=vermont)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. Freedom Forever filed Chapter 11 in April 2026. If you signed a solar contract in Vermont, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in Vermont?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under 9 V.S.A. §2451a et seq. and the federal FTC Cooling-Off Rule. Vermont also has Vermont Consumer Protection Act (9 V.S.A. §2451 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the Vermont Attorney General. Go to https://ago.vermont.gov/consumer-assistance-program-complaint-form or call 1-800-649-2424. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Which solar companies in Vermont have faced legal trouble?
Several big ones. Companies that worked in Vermont include Sunrun, Freedom Forever, LGCY Power. Some of these went bankrupt. Some were sued in other states. Some were both. If your system came from one of these companies, your contract may still be valid. But the warranty and service behind your system is usually gone.
How does the escalator clause affect my Vermont solar contract?
Most Vermont solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. Vermont's average electricity rate is about 23.29 cents per kilowatt-hour in early 2026. That's well above the national average of 17.45 cents. Vermont's utility rates are climbing fast. That makes your solar math a close call. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my Vermont solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my Vermont solar contract?
Did the salesperson come to your home? Then Vermont law gives you 3 business days to cancel. That's under 9 V.S.A. §2451a et seq. and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a Vermont solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in Vermont?
Go to the Vermont Attorney General's website at https://ago.vermont.gov/consumer-assistance-program-complaint-form. Or call 1-800-649-2424. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.