Efficiency Vermont Heat Pump Rebate
The Efficiency Vermont heat pump rebate takes $375 to $2,200 off a ductless or ducted heat pump, and the program is open now. Whole-house systems pay more. An air-to-water heat pump earns $1,000 per ton for up to 6 tons, or up to $6,500 with the income bonus. A ground source heat pump earns up to $2,100 per ton. If your household income is low or moderate, you may also claim a bonus of $200 to $2,200, and the exact amount depends on who your electric utility is.
Check what your address gets in Vermont
If JavaScript is disabled, use the rebate table.
Who sends your electric bill?
What are you putting in?
- Heat pump rebate (any income)
- Up to $2,200 $1,200 (<=2 ton), $1,700 (>2-<4 ton), $2,200 (>=4 ton) discount
- Heat pump water heater
- $600 $600 instant discount or post-purchase rebate
- Federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Apply and check the current rules on the official page: Efficiency Vermont Heat Pump Rebates (with your electric utility)
How Much Does the Rebate Pay?
What you get depends on three things: the kind of heat pump, how big it is, and what you earn. Size is counted in tons. A ton means 12,000 BTU of heating capacity, which is the heat rating printed on the equipment, so more tons means a larger system.
| What you install | Rebate | Who | Conditions |
|---|---|---|---|
| Ductless heat pump instant discount (<= 2 tons) | $375 discount | Any income | Per system (outdoor unit + indoor units); on the Qualifying Products List; via contractor at participating distributor |
| Ductless heat pump instant discount (> 2 tons) | $475 discount | Any income | Per system; BED customers get $350 to $450 instead |
| Ducted heat pump instant discount | $1,200 (<=2 ton), $1,700 (>2-<4 ton), $2,200 (>=4 ton) discount | Any income | Qualifying outdoor/indoor combination; fossil system generally kept as backup; BED customers get $1,000 to $2,000 |
| Ground source heat pump | Up to $2,100 cash back per ton | Any income | New systems up to 10 tons; ENERGY STAR; Efficiency Excellence Network contractor; not for homes heated primarily with wood; +$500 income bonus |
| Heat pump water heater | $600 instant discount or post-purchase rebate | Any income | New, installed in Vermont, on the Qualifying Products List |
| Heat pump water heater with income bonus | Up to $1,000 off ($600 + additional $400) | Income-qualified | Household at or below low or moderate-income guidelines |
Burlington Electric Department customers have separate amounts. A bigger ductless setup earns them $350 to $450, and a ducted one $1,000 to $2,000; the income bonus isn't available to them (Efficiency Vermont).
About Efficiency Vermont
Efficiency Vermont serves the whole state as its energy efficiency utility, and VEIC runs it. It was the first utility of its kind in the country and has kept count of its savings since 2000 (Efficiency Vermont).
It runs its heat pump rebates alongside Vermont's electric utilities. That's the reason the bonus you can claim depends on which utility sends your bill each month.
How to Choose a Heat Pump
Every heat pump type comes with its own conditions, so it pays to learn them before you request quotes.
- Ductless heat pump: Ductless units warm rooms straight from the wall, with no ducts. The discount applies once per system, which means one outdoor unit plus any number of indoor heads.
- Ducted heat pump: These hook into the ducts already in your house. The outdoor and indoor units have to be a qualifying pair, and your fossil fuel system usually stays on hand in case you need it.
- Air-to-water heat pump: This one heats water that carries the heat through your home. Six tons is the most that counts for the rebate.
- Ground source heat pump: It has to be a new system of 10 tons or fewer with the ENERGY STAR label. It can't take the place of a geothermal system you already have, and homes that heat mainly with wood don't qualify.
The equipment must be new, set up in Vermont, and included on the Qualifying Products List when you buy it. That list is where Efficiency Vermont records the heat pump models that pass its efficiency bar (Efficiency Vermont).
Efficiency Vermont requires a contractor from its Efficiency Excellence Network, its approved list, for any air-to-water or ground source installation.
Pairing a ductless heat pump with integrated controls earns another $600 (Efficiency Vermont).
Who Can Get the Income Bonus?
It's for households at or under Efficiency Vermont's low- or moderate-income limits. Those limits got an update on July 1, 2026 (Efficiency Vermont). To give one example, a four-person household earning up to $99,750 a year counts as low income in Chittenden, Franklin, and Grand Isle Counties.
For ductless and ducted heat pumps, your utility sets the bonus:
- Green Mountain Power customers with low income: $2,200
- Utilities belonging to the Vermont Public Power Supply Authority: $1,000
- Every other qualifying household: $200
Landlords and Burlington Electric Department customers can't take this bonus. Homes, businesses, and rentals can still claim the standard rebates.
Claiming the Rebate
Your contractor handles most of the money, so the steps begin before any purchase.
- Pick a contractor. If you're going air-to-water or ground source, the rebate only pays if an Efficiency Excellence Network member does the install.
- Have your contractor purchase approved ductless or ducted gear through a participating distributor, and the discount comes off right then.
- Save your proof of purchase once the installation is done, because you'll need it for any money paid later.
- Want the income bonus? Apply online or by form and attach the paperwork showing what you paid.
- Air-to-water and ground source projects need the rebate form plus that same proof-of-purchase paperwork. Ground source installs add the start-up sheet too.
Efficiency Vermont Rebates Outside of Heat Pumps
Efficiency Vermont has a few more offers that make home upgrades easier to afford.
- Heat pump water heater: $600, taken off instantly or paid back after purchase, plus another $400 when your household qualifies by income (Efficiency Vermont).
- Weatherization: Covers three-quarters of costs up to $3,000, or as much as $7,000 for households with low or moderate incomes (Efficiency Vermont).
- Home Energy Loan: Up to $25,000 borrowed over terms reaching 15 years. If your income is low or moderate, you pay 0% on terms of five years or shorter, while everyone else pays 4.99% to 6.99%.
Vermont's HEAR Funds, Paused
The state had conditionally approved federal Home Energy Rebates funding. In May 2025 the Department of Public Service said the funding is still uncertain and advised against counting on it (Vermont Department of Public Service). None of the planned programs has launched yet. That includes the moderate-income heat pump rebate, the low-income heat pump installs and the new affordable apartment programs.
Vermont Heat Pump Rebates: Questions and Answers
Does anyone besides Efficiency Vermont offer heat pump rebates in Vermont?
Yes. Green Mountain Power pays its own low-income rebate, $2,000 for each outdoor unit (Green Mountain Power).
Are heat pump tax credits still available in 2026?
No. The federal credit for home energy improvements no longer covers equipment installed after December 31, 2025. Public Law 119-21 ended it early; that law was signed July 4, 2025 (IRS).
Does Efficiency Vermont provide any free services?
Anyone can book a no-cost Virtual Home Energy Visit (Efficiency Vermont). Households with low income can also receive weatherization at no cost via the Weatherization Assistance Program (Efficiency Vermont).
Compare Vermont Heat Pump Quotes With Your Rebate Included
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.
Related pages
Every heat pump rebate in Vermont
The other utility and state programs in Vermont, side by side.
Heat pump cost after rebates
Typical installed prices with the largest rebate taken off.