Vermont Heat Pump Rebates & Incentives (2026)
Vermont still offers heat pump rebates in 2026 — but they're smaller and more fragmented than before. With federal tax credits gone and the Clean Heat Standard canceled, most homeowners now rely on utility programs through Efficiency Vermont and Burlington Electric. Rebates range from about $2,000 to $7,950 for a ducted system — up to ~$9,150 with a heat pump water heater — depending on your utility and income. Burlington Electric leads the state at up to $7,950 for income-qualified ducted systems. Green Mountain Power customers can stack up to $5,400 at ≤80% AMI. This guide covers all major Vermont heat pump incentives available in 2026, including Efficiency Vermont, Burlington Electric, Green Mountain Power, VEC, and the paused HEAR program. Here's what's actually available.
Updated and sources last checked September 12, 2026
Rates and program availability may change after this date.
Vermont
Open
Vermont heat pump rebates come from Efficiency Vermont ($1,200–$2,200 ducted; ductless $375 per system at 2 tons or under, $475 above 2 tons, not per head) and utility-specific programs. Burlington Electric offers up to $7,950 for income-qualified ducted systems — the highest in the state. GMP income bonus adds $2,200/condenser for ≤80% AMI households. Federal 25C/25D ended Dec 31, 2025. HEAR ($29.2M) is on pause.
Sources:
The Short Version
✓ Efficiency Vermont (Statewide)
Ductless $375 per system at 2 tons or under, $475 above 2 tons — per system, not per head. $1,200–$2,200 ducted, $600 HPWH, $600 integrated controls. Instant discounts through participating HVAC distributors. Burlington Electric customers get a different base: $350–$450.
✓ Burlington Electric — Highest in VT
Up to $7,950 for income-qualified ducted systems. Separate program from EVT. All BED rebates capped at 75% of installed cost.
✓ Total Potential Savings
$1,200–$3,000 (above 150% AMI) to $4,400+ (below 80% AMI) for GMP customers. BED customers can reach ~$9,150. 0% financing available through the Home Energy Loan on terms of five years or less.
✗ Federal Tax Credits Expired
Section 25C ($2,000 for heat pumps) and Section 25D (30% for geothermal) both ended December 31, 2025. No replacement exists in 2026.
⚠ HEAR Rebates On Pause — VT DPS Says Don't Count On It
Vermont's $29.2M HEAR allocation is frozen. The Department of Public Service recommends not planning on HEAR funds for 2026 projects. These are not retroactive — purchases made before the program launches will not qualify. Some third-party rebate calculators show HEAR as "Open" in Vermont — these sites are outdated.
Federal Tax Credits Have Ended
The One Big Beautiful Bill Act (signed July 4, 2025) terminated both Section 25C (up to $2,000 for heat pumps) and Section 25D (30% for geothermal) seven to nine years ahead of schedule. The IRS confirms neither credit applies to equipment installed after December 31, 2025. If you bought a heat pump in late 2025 but it wasn't installed until 2026, you cannot claim the credit — the IRS defines eligibility based on when equipment is "placed in service," not when you paid.
For full details on what changed, see our Federal Heat Pump Tax Credits Ended guide.
HEAR & HOMES — Mostly On Pause
Vermont was allocated $58.5 million in IRA Home Energy Rebate funding: $29.3M for HOMES and $29.2M for HEAR. The Vermont Department of Public Service administers both programs.
⚠ HEAR Is On Pause
The Vermont Department of Public Service recommends not planning on HEAR funds for projects in 2026. The program was caught in the Trump administration's January 2025 executive order freezing IRA funding. No consumer-facing application portal exists. Always check the official VT DPS page.
HOMES for Low-Income via WAP
HOMES is delivered through the Weatherization Assistance Program for low-income households (≤80% AMI), providing up to $16,000 in efficiency upgrades at no cost. No IRA-funded consumer launch has been confirmed, but eligible households can sign up for weatherization services now through their local Community Action Agency.
Under DOE Program Notice 26-2 (effective May 29, 2026), replacing a gas, propane, or oil heating system no longer qualifies for HEAR, and a program that hasn't launched must align with this before it opens. Eligibility now turns on new construction or on the home's existing heating equipment already being electric — replacing electric resistance heat with a heat pump is the clearest qualifying case. Programs differ on whether replacing an existing heat pump counts, so confirm with yours before committing. The notice also requires a home to use rebates for insulation and air sealing before a heating or cooling upgrade, unless it already meets a state-specified level. Fuel-switching projects can still route to HOMES, which sets no fuel condition.
HEAR Rebate Structure (If Launched)
Vermont plans a three-phase HEAR rollout: moderate-income heat pump rebates (80–150% AMI, up to $8,000 at 50% cost match), low-income heat pumps through WAP, and electrification assistance for new affordable multifamily housing.
| Income Level | Coverage | Heat Pump Cap |
|---|---|---|
| Below 80% AMI | 100% of costs (via WAP) | $8,000 — requires existing electric equipment or new construction |
| 80–150% AMI | 50% of costs | $8,000 — requires existing electric equipment or new construction |
| Above 150% AMI | Not eligible | — |
Vermont also requires the heat pump to be the home's primary heating source, covering at least 50% of its thermal energy use — DPS states rebates will not be issued for systems that fall short of this.
⚠ Common Mistake: Trusting Third-Party Rebate Calculators
Some rebate calculator websites show HEAR and HOMES as "Open" in Vermont. These sites often rely on projected program timelines rather than confirmed launches. Budget your project based on currently available EVT and utility rebates only.
Efficiency Vermont — The Statewide Baseline
Efficiency Vermont operates the baseline rebate program covering nearly all Vermont electric customers (except Burlington Electric territory). Rebates are applied as instant point-of-sale discounts through participating HVAC distributors. Equipment must be new, installed in Vermont, and carry ENERGY STAR Cold Climate certification. These 2026 rebate levels apply to projects completed by November 2026.
| Equipment | 2026 Rebate | Notes |
|---|---|---|
| Ductless mini-split — 2 tons or under | $375 per system | Per system: one outdoor unit plus one or more indoor units |
| Ductless mini-split — above 2 tons | $475 per system | Burlington Electric customers: $350–$450 instead |
| Integrated controls | Up to $600 | Ductless only, single-family only, with a new install |
| Ducted whole-home | $1,200–$2,200 per system | Central ducted cold-climate ASHP |
| Heat pump water heater | $600 | Instant discount at purchase |
| Heat pump clothes dryer | $400 | ENERGY STAR certified models |
Equipment must be new, installed in Vermont, and on the Qualifying Products List at the time of purchase — used, rebuilt and refurbished units do not qualify. Residential, business and rental properties are all eligible for the base discount.
Income bonus — three tiers, $200 to $2,200
| Who you buy power from | Income bonus |
|---|---|
| Green Mountain Power — low income | $2,200 |
| VPPSA member utilities — moderate and low income | $1,000 |
| All other moderate- and low-income customers | $200 |
⚠ Three groups are excluded from the income bonus
Rental property owners are not eligible, even though rentals do qualify for the base discount. Burlington Electric customers are not eligible — BED runs its own program instead. And heat pumps purchased or leased from Vermont Gas Systems are not eligible for it. 2026 income limits took effect July 1, 2026; the prior limits were honored for equipment purchased and installed before July 1, through July 31, 2026.
Partner offers — what your utility adds on top
Efficiency Vermont publishes a partner table alongside the base discount. These are the utilities' own programs, administered by them rather than by EVT.
| Utility | Offer | Form |
|---|---|---|
| Burlington Electric Department | Up to $2,900 | Post-purchase rebate |
| Green Mountain Power | Up to $2,000 | Low-income bonus |
| Stowe Electric Department | $250 | Low-income bonus |
| Vermont Electric Co-op | $150 | Thermal bonus, paid as a bill credit |
| VPPSA municipalities | $200 | Weatherization rebate, post-purchase |
Two figures for Green Mountain Power, both from Efficiency Vermont
EVT's income-bonus list shows $2,200 for GMP low-income customers; its partner table shows up to $2,000. We publish $2,200 elsewhere on this page as $2,000 from GMP plus $200 from EVT, which would reconcile the two, but we have not confirmed that split against a GMP source. Treat $2,000–$2,200 as the range and confirm with GMP before budgeting.
Integrated controls — a separate $600
Efficiency Vermont runs integrated controls as its own offer: install integrated controls together with a new ductless heat pump in a single-family home and get up to $600 back. The ductless offer describes it as an additional $600 on top of the base discount. It does not apply to ducted systems or to controls retrofitted to existing equipment.
A $1,200 income-eligible voucher is also available through EVT for qualifying low-income households to replace one eligible appliance (refrigerator, freezer, or clothes washer).
Home Energy Loan — 0% to 6.99% Financing
The Home Energy Loan finances up to 100% of a project, maximum $25,000, with terms up to 15 years. The 0% rate applies only to terms of five years or less for low- and moderate-income households; longer terms carry 1.99% to 3.99% depending on income and term, and higher-income households pay 4.99% to 6.99%. Lending partners are EastRise Credit Union and Cornerstone Housing Partners. Work must be done by an Efficiency Excellence Network contractor. Vermont Gas customers can use the loan only for heat pump water heaters, electric appliances, and ducted, ductless, or ground-source heat pumps.
Utility Programs — Where You Live Changes the Math
Vermont's six major utilities offer strikingly different incentive levels. Your utility determines whether you get about $2,200 or as much as $7,950 for the same installation.
Green Mountain Power (GMP) — 75% of Vermont Customers
GMP coordinates with Efficiency Vermont and channels rebates through EVT's streamlined process. Since January 2024, GMP discontinued its separate $400/condenser midstream rebate for ductless systems.
| Measure | Rebate | Notes |
|---|---|---|
| Ductless | $375 / $475 per system (EVT) | Applied at purchase |
| Ducted | $1,200–$2,200 (EVT) | Central ducted CCHP |
| HPWH | $800 ($200 GMP + $600 EVT) | Combined stack |
| Geothermal | $2,100/ton ($1,800 GMP + $300 EVT) | Up to 10 tons |
| Income bonus (≤80% AMI) | $2,200/condenser ($2,000 GMP + $200 EVT) | Single streamlined form |
Burlington Electric Department (BED) — Highest Rebates in Vermont
BED operates its own program, independent from Efficiency Vermont. Burlington residents are not eligible for EVT income bonuses but benefit from BED's significantly more generous standalone rebates (valid through December 31, 2026). All BED rebates are capped at 75% of installed cost.
BED Centrally Ducted ASHP — High Performance
BED splits centrally ducted systems into two classes. The figures below are for High Performance systems only — Standard Performance systems receive no BED online rebate, so a >4 ton system is $2,000 rather than $7,450.
| Size | Contractor POS | Online Rebate | Base Total | With Income Bonus |
|---|---|---|---|---|
| ≤2 ton | $1,000 | $1,350 | $2,350 | $2,850 |
| >2–≤4 ton | $1,500 | $3,950 | $5,450 | $5,950 |
| >4 ton | $2,000 | $5,450 | $7,450 | $7,950 |
High Performance is not automatic. Your contractor must set the cross-over temperature to 15°F and note it on the quote or final invoice, and both the indoor and outdoor unit must appear together on the NEEP Qualified Product List and be shown on the invoice. BED allows one ducted rebate per household, ducted recipients cannot also claim a ductless rebate, and the form must be submitted within 90 days of installation.
BED Ductless Mini-Splits
≤2 tons: $2,450–$2,550 base (+$400 income bonus). >2 tons: $2,850–$2,950 base (+$500 income bonus). HPWH: up to $800 (+$400 income bonus). Air-to-water: up to $12,000 ($2,000/ton).
Vermont Electric Cooperative (VEC)
EVT base rebates apply. VEC adds a $150/unit thermal efficiency bill credit if installed in a weatherized building. Income bonus (≤80% AMI): $1,000 ($800 VPPSA + $200 EVT).
Vermont Gas Systems (VGS)
VGS serves Chittenden, Franklin, and Addison counties. It does not offer a gas-to-electric conversion rebate. Instead, VGS sells and leases heat pump equipment and incorporates EVT and electric utility rebates into its pricing. VGS positions heat pumps as a hybrid complement to gas systems. VGS financing runs through Green Mountain Credit Union, up to $20,000 on a 5-year term: 0% APR for weatherization projects, or 5.99% APR when the project includes a heat pump. Offers run through December 31, 2026. Heat pumps purchased through VGS are not eligible for GMP income bonuses.
Washington Electric Cooperative & Stowe Electric
Both participate in Efficiency Vermont programs. WEC offers an Energy Coach service to help members navigate rebates and eliminated transformer upgrade costs for members increasing electricity usage. Stowe Electric recently rejoined VPPSA, making the $1,000 income bonus available to income-qualified customers.
Your utility determines your rebate
The same ducted heat pump installation that gets $1,200–$2,200 through Efficiency Vermont in most of the state could qualify for $7,450–$7,950 through Burlington Electric. Before budgeting, confirm which electric utility serves your address — it's the single biggest variable in Vermont's incentive math.
How Programs Stack
EVT rebates and utility income bonuses stack automatically through a single streamlined form. Burlington Electric operates separately. The key variable is which utility serves your home.
Above 150% AMI — GMP Territory (Ducted + HPWH)
- EVT ducted system: $1,200–$2,200
- GMP + EVT HPWH: $800
- Federal tax credit: $0 (expired)
- HEAR: $0 (on pause)
Realistic maximum: ~$3,000
80–150% AMI — GMP Territory (Ducted + HPWH)
- EVT ducted system: $1,200–$2,200
- GMP + EVT HPWH: $800
- Income bonus not available at this tier for GMP
Realistic maximum: ~$3,000
Below 80% AMI — GMP Territory (Ducted + HPWH)
- EVT ducted system: $1,200–$2,200
- GMP income bonus: $2,200/condenser
- GMP + EVT HPWH: $1,000 (income-qualified)
Realistic maximum: ~$5,400
| Scenario | Ducted System | + HPWH | Total |
|---|---|---|---|
| BED customer, above income threshold | Up to $7,450 | $800 | Up to $8,250 |
| BED customer, income-qualified | Up to $7,950 | $1,200 | Up to $9,150* |
*BED caps all rebates at 75% of installed cost. Actual amount may be lower than the sum of individual incentives.
What You'll Actually Pay
Most Vermont homeowners will see $2,000–$5,000 in incentives, with higher rebates available only through Burlington Electric or income-qualified programs. On a typical $12,000–$18,000 ducted cold-climate heat pump installation, expect $7,000–$16,000 out of pocket depending on utility territory and income. Without federal tax credits, financing and fuel savings now play a much bigger role in whether a heat pump makes financial sense.
Weatherization Assistance
Vermont's Weatherization Assistance Program provides free energy efficiency upgrades for income-qualified households. Administered through local Community Action Agencies, WAP covers insulation, air sealing, and heating system improvements. Contact the VT Department for Children and Families for a county-by-county provider list.
Eligibility has a hard gate: you must not have received free weatherization services in the past 15 years. Beyond that, income is only one of four qualifying paths — an active Seasonal Fuel Assistance household, a household member receiving SSI, or an adult who received Reach Up or the Reach Up Post-Secondary Education grant in the past 12 months also qualifies. The program averages about $10,000 of improvements per home.
Efficiency Vermont is also offering up to 90% cash back on weatherization projects (air sealing and insulation) through limited-time funding available through the end of 2026 or while funding lasts. Weatherizing your home first allows a smaller, less expensive heat pump system.
✓ Best Candidates for Vermont Heat Pump Incentives
Burlington Electric customers — access the highest rebates in the state ($7,450–$7,950 for ducted systems). GMP customers at ≤80% AMI — $2,200 income bonus per condenser stacks with EVT base rebate. Homeowners replacing fuel oil or propane (~60% of VT homes) — the fuel cost savings are substantial even without federal credits. Any household that weatherizes first — EVT's 90% cash back on weatherization means a smaller, cheaper heat pump system.
Climate Context
All Vermont incentive programs require ENERGY STAR Cold Climate certification. This isn't arbitrary — Vermont's ASHRAE winter design temperatures demand it. Equipment must appear on the NEEP Cold Climate Air Source Heat Pump Qualified Product List.
| City | IECC Zone | 99.6% Design Temp | Cold-Climate HP Needed? |
|---|---|---|---|
| Burlington | 6A | -12°F | Essential — required for all rebates |
| Montpelier | 6A | -10°F | Essential |
| Brattleboro | 6A | -5 to -7°F | Essential |
About 60% of Vermont homes still heat with fuel oil or propane — more expensive and volatile than electricity. By the end of the 2025–26 heating season, Vermont residential heating oil had climbed to roughly $4.90/gallon and propane to about $3.80/gallon (EIA), with 2026 fuel-market volatility pushing prices higher still. Electric heating adoption has more than tripled since 2013, with Green Mountain Power alone spurring installation of over 28,000 mini-splits and 2,700 whole-building heat pumps since 2020. For more on battery storage and time-of-use strategies, see our home battery guide.
How to Apply
Find your electric utility
GMP, BED, VEC, WEC, Stowe Electric, or another provider. This determines your rebate levels and application path.
Choose a participating contractor
For most utilities, the contractor must be in the Efficiency Excellence Network (EEN). BED has its own approved contractor list.
Confirm cold-climate certification
Equipment must be ENERGY STAR Cold Climate certified and on the NEEP Qualified Product List.
Rebate applied at purchase
Most EVT and utility rebates are instant point-of-sale discounts — your contractor applies them automatically. Income-qualified households file the single streamlined income bonus form (GMP) or verify eligibility with BED/VEC directly.
What to Watch
IRA Funding Runway
Vermont's $58.5 million in HEAR/HOMES funding is authorized through September 2031 but could be affected by future federal budget actions. If the freeze lifts, HEAR could add up to $8,000/household for heat pumps.
New England Heat Pump Accelerator
A $450 million regional group-purchasing program launched in early 2026 across five neighboring states — Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island. Vermont is not a participating state, so Accelerator incentives are not available to Vermont homeowners, though the regional effort may influence equipment pricing over time.
Clean Heat Standard Is Dead
The PUC officially closed the case in February 2026. Vermont's legally binding emissions targets remain but no replacement policy has been proposed.
EVT Weatherization Funding
The 90% cash back on weatherization is limited-time funding through end of 2026 or while funding lasts. If you're planning a heat pump project, weatherize first while this enhanced incentive is available.
Frequently Asked Questions
What heat pump rebates are available in Vermont in 2026?
Vermont heat pump rebates come primarily from Efficiency Vermont (ducted up to $2,200; ductless $375 per system at 2 tons or under and $475 above 2 tons — per system, meaning one outdoor unit plus one or more indoor units, not per head) and your electric utility. Burlington Electric Department offers the richest incentives — up to $7,950 for income-qualified high-performance ducted systems. Green Mountain Power customers can get up to $2,200 in income-qualified bonuses per condenser. Federal tax credits (25C/25D) ended December 31, 2025.
Does Vermont have HEAR rebates for heat pumps?
Vermont’s HEAR (Home Electrification and Appliance Rebates) program is currently on pause. The Vermont Department of Public Service recommends not planning on HEAR funds for projects in 2026. The $29.2 million allocation has not been released for consumer applications.
Can I get 0% financing for a heat pump in Vermont?
Yes. The Home Energy Loan finances up to 100% of a project, maximum $25,000, with terms up to 15 years. The 0% rate applies only to terms of five years or less for low- and moderate-income households; longer terms carry 1.99% to 3.99% depending on income and term, and higher-income households pay 4.99% to 6.99%. Lending partners are EastRise Credit Union and Cornerstone Housing Partners. Work must be done by an Efficiency Excellence Network contractor.
What’s the difference between Burlington Electric and Efficiency Vermont rebates?
Burlington Electric Department (BED) operates its own rebate program, separate from Efficiency Vermont. BED rebates are significantly higher — up to $7,450 for a high-performance ducted system over 4 tons, compared to $1,200–$2,200 from Efficiency Vermont. Burlington residents are not eligible for EVT income bonuses but BED’s standalone program more than compensates. All other Vermont electric customers access rebates through Efficiency Vermont.
Do I need a cold-climate heat pump in Vermont?
Yes. All Vermont rebate programs require ENERGY STAR Cold Climate certification. With ASHRAE design temperatures of -12°F in Burlington and -10°F in Montpelier, standard heat pumps cannot provide adequate heating. Equipment must appear on the NEEP Cold Climate Air Source Heat Pump Qualified Product List.
Can I stack Vermont heat pump rebates?
Efficiency Vermont rebates and utility income bonuses are designed to stack and are applied through a single streamlined process. For Green Mountain Power customers earning under 80% AMI, the total stack for a ducted system plus heat pump water heater can reach $5,400. Burlington Electric caps all rebates at 75% of installed cost. BED and EVT rebates do not combine — you access one system based on your utility territory.
Sources
- Efficiency Vermont — Heat Pump Rebates
- Efficiency Vermont — Ducted Heat Pumps
- Green Mountain Power — Heat Pump Programs
- Burlington Electric Department — Heat Pumps
- Vermont Electric Cooperative — Energy Transformation
- Vermont Gas Systems — Residential Rebates
- VT Dept of Public Service — IRA Home Energy Rebates
- VT DCF — Weatherization Assistance Program
- Efficiency Vermont — Home Energy Loan
- IRS — OBBBA FAQ (25C/25D Expiration)
Disclaimer: This page covers the main statewide, utility, and IRA heat pump incentives available to Vermont homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Vermont's HEAR program is on pause and HOMES has not officially launched — rebate amounts shown for those programs are based on the federal framework and VT DPS guidance. Burlington Electric rebates are capped at 75% of installed cost. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with Efficiency Vermont, your utility, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)