Vermont Heat Pump Rebates

What's available in Vermont

Vermont has one of the strongest state-level heat pump incentive landscapes in the country, anchored by Efficiency Vermont (EVT), a statewide energy efficiency utility that serves all electric customers regardless of their local distribution utility. For 2026, EVT offers $475 per indoor head unit for ductless cold-climate mini-splits and $2,200 for centrally ducted systems, with projects required to use ENERGY STAR Cold Climate certified equipment and be completed by November 2026. A $600 rebate for heat pump water heaters is also available statewide. Income-qualified households (at or below 80% AMI) can layer additional bonuses on top: GMP customers add $2,000 per condenser, while Vermont Electric Cooperative members can access up to $1,000 through a VPPSA-funded bonus program. The federal Section 25C Energy Efficient Home Improvement Credit expired at the end of 2025, leaving no federal residential heat pump tax credit in 2026. The IRA HEEHRA program is relevant for very low and low-income Vermont households but the state application queue was reported closed as of early 2026; income-qualified homeowners should monitor energysaver.vermont.gov for updates.

HEEHRA in Vermont

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Vermont is finalizing program rules.

How heat pump rebates work in Vermont

Vermont has one of the strongest state-level heat pump incentive landscapes in the country, anchored by Efficiency Vermont (EVT), a statewide energy efficiency utility that serves all electric customers regardless of their local distribution utility. For 2026, EVT offers $475 per indoor head unit for ductless cold-climate mini-splits and $2,200 for centrally ducted systems, with projects required to use ENERGY STAR Cold Climate certified equipment and be completed by November 2026. A $600 rebate for heat pump water heaters is also available statewide. Income-qualified households (at or below 80% AMI) can layer additional bonuses on top: GMP customers add $2,000 per condenser, while Vermont Electric Cooperative members can access up to $1,000 through a VPPSA-funded bonus program. Burlington Electric Department customers can claim a $2,500 mini-split rebate (>2 tons) — substantially more than the EVT standard. A new February 2026 EVT $600 Integrated Controls Bonus stacks with the base ductless rebate. The federal §25C credit expired at the end of 2025. Vermont HEEHRA had its application queue closed as of early 2026.

Vermont rebate programs

5 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: ductless retrofit in Burlington

Henry owns a 1,500 sq ft home in Burlington served by Burlington Electric Department (BED) — not Green Mountain Power. His 28-year-old oil furnace is end-of-life. He gets quotes for a 2.5-ton multi-zone ductless mini-split system (three heads — living room, master bedroom, second floor) plus retention of the oil furnace as backup. Installed cost: $13,200. Because BED has its own rebate program separate from EVT, and his system is >2 tons (24,000 BTU/hr), he qualifies for the BED Mini-Split rebate at $2,500. EVT's ductless rebate is administered statewide alongside utility programs — BED customers can typically claim both. EVT's three-head ductless rebate at $475/head × 3 = $1,425 stacks with BED's $2,500. EVT's $600 Integrated Controls Bonus adds another $600 if integrated whole-home smart controls are installed. His household income is approximately 165% of Chittenden County AMI — above the 80% threshold for income-qualified bonuses. Vermont HEEHRA application queue is closed. The federal §25C credit is gone. Combined stack: $2,500 BED + $1,425 EVT + $600 controls = $4,525 against $13,200. Net out-of-pocket: $8,675.

Choosing a contractor in Vermont

Vermont doesn't license HVAC contractors at the state level for residential work — verify at the municipal level (Burlington, South Burlington, Rutland, Brattleboro, etc.). EVT rebates require an EVT participating contractor; the participating contractor lookup is at efficiencyvermont.com. BED's mini-split rebate requires the contractor to handle BED's separate application alongside EVT's. GMP's income-qualified bonus is processed through a streamlined joint application with EVT — confirm GMP enrollment at the quote stage if you're a GMP customer below 80% AMI.

Common pitfalls for Vermont homeowners

• Counting on Vermont HEEHRA for 2026. Vermont's HEEHRA program application queue was reported closed as of early 2026 — income-qualified Vermonters cannot currently apply for the federal $8,000 point-of-sale rebate. The state may relaunch later in 2026. Monitor energysaver.vermont.gov for updates.
• Skipping the November 2026 project completion deadline. EVT's 2026 ductless and ducted rebate amounts require projects to be completed by November 2026. Installs completed after November 2026 will need to wait for the 2027 program cycle (if rebate amounts continue). Schedule the install to complete with margin before the deadline.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

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