Vermont Heat Pump Rebates

The system you pick and the electric utility that serves your home determine how the money comes back to you. Follow the steps here with Efficiency Vermont to avoid missing a discount:

1. Confirm your new equipment appears on the Qualifying Products List before the installer buys it.
2. Have your contractor buy the ducted or ductless system from a participating distributor, and an instant discount of $375 to $2,200 applies.
3. If your project is an air-to-water or a ground source system, hire a contractor from the Efficiency Excellence Network.
4. After installation, send in your rebate form with proof of purchase to claim income bonuses or rebates for air-to-water and ground source units.

Customers of Burlington Electric Department skip the instant discount and send a rebate form after purchase directly to their city utility. You get an extra $600 back for adding integrated controls, which switch automatically between your backup heater and heat pump.

Nearly six in 10 Vermont homes use fuel oil, kerosene, or propane, while one in nine heats mainly with wood. Air sealing and insulation hold that warmth in through the winter.

The Weatherization Assistance Program works with five community action agencies to give low-income families free upgrades worth $10,000 per home on average. Air sealing and insulation are covered at 75% by Home Performance with ENERGY STAR, up to $3,000, or $7,000 when the household income is lower. Put a heat pump into an efficient building, and Vermont Electric Cooperative will add a $150 bill credit per unit.

Efficiency Vermont ground source rebates are not open to homes heated mainly with wood. Under Public Law 119-21, the federal 25C tax credit has also ended for any equipment put in service after December 31, 2025.