Vermont Heat Pump Rebates
Stackable incentives available to Vermont homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
In plain terms
A typical Vermont homeowner can get up to $19,000 back from 5 programs that are open right now. Households with lower income can add up to $3,000 on top of that.
Jump to a section
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), the statewide energy efficiency utility that serves electric customers everywhere except Burlington, where Burlington Electric Department runs its own efficiency programs. For 2026, EVT offers a $375-$475 instant discount per indoor unit for ductless cold-climate mini-splits and $1,200-$2,200 for centrally ducted systems, using models on EVT's qualified products list, plus up to $6,500 for air-to-water and up to $2,100 per ton for ground-source systems. Heat pump water heaters get a $600 discount statewide, rising to $1,000 for income-eligible households. Income-qualified households (roughly 80% AMI) add EVT's $200 heat pump bonus and can layer utility bonuses on top: GMP customers add $2,000 per condenser, and customers of the 11 VPPSA municipal utilities add $800 (a $1,000 total income bonus). Burlington Electric runs its own richer rebates in place of EVT's, and Vermont Electric Cooperative members use the EVT rebates plus a possible $150 thermal efficiency adder on ductless systems. The federal Section 25C and 25D credits were repealed for installs after December 31, 2025, so there is no federal residential heat pump tax credit in 2026. Vermont's $29.2 million IRA HEAR (HEEHRA) heat pump rebate program has never launched; the Public Service Department reported it on pause awaiting DOE guidance in January 2026 and advises not to plan on HEAR funds, so income-qualified homeowners should rely on the EVT and utility bonuses instead.
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), the statewide energy efficiency utility for every part of Vermont except Burlington, where Burlington Electric Department runs its own programs. For 2026, EVT offers $475 per indoor head unit for ductless cold-climate mini-splits and $2,200 for centrally ducted systems, using models on Efficiency Vermont's qualified products list. A $600 discount for heat pump water heaters is also available statewide, with income-eligible households getting up to $400 more (up to $1,000 total). Income-qualified households (at or below 80% AMI) can layer additional bonuses on top: GMP customers add $2,000 per condenser, while customers of the 11 VPPSA municipal utilities (Hardwick, Morrisville, Ludlow, Swanton and others) can access a $1,000 total income bonus ($800 VPPSA plus EVT's $200); Vermont Electric Cooperative members get the EVT rebates plus a $150 per unit thermal efficiency credit. Burlington Electric Department customers can claim a $2,500 mini-split rebate (>2 tons) — substantially more than the EVT standard. EVT's $600 Integrated Controls Bonus stacks with the base ductless rebate in homes with oil, propane or gas central heating (not available to BED customers). The federal §25C and §25D credits were repealed for installs after December 31, 2025. Vermont's HEEHRA (HEAR) program has never launched; as of January 2026 the state reported it on pause awaiting DOE guidance.
Vermont rebate programs
Efficiency Vermont Ductless Heat Pump Rebate
$475$375-$475 instant discount per qualifying ductless (mini-split) indoor unit, taken at the distributor or through a participating contractor, depending on the model. Income-eligible households add Efficiency Vermont's $200 bonus, and a separate $600 controls rebate is available for integrated controls.
Efficiency Vermont Ducted (Central) Heat Pump Rebate
$2,200$1,200-$2,200 instant discount on a qualifying centrally ducted cold-climate heat pump, depending on the system, applied at purchase through a participating contractor. Income-eligible households add Efficiency Vermont's $200 bonus (more for GMP and VPPSA-utility customers). $2,200 is the ceiling, not the typical award.
Efficiency Vermont Heat Pump Water Heater Rebate
$1,000$600 point-of-sale discount on a qualifying ENERGY STAR heat pump water heater, available statewide to residential, business and rental properties through Efficiency Vermont or your electric utility. Income-eligible households can get up to an additional $400 back, for a combined maximum of $1,000. No 2026 deadline is posted on the rebate page.
Efficiency Vermont Income-Qualified Heat Pump Bonus
$200An additional $200 bonus on top of the standard EVT ductless or ducted rebate for households at or below 80% of Area Median Income. Stacks with utility income bonuses from Green Mountain Power ($2,000 per condenser) or the VPPSA municipal utilities ($800). Not available to Burlington Electric customers, who use BED's own income-qualified rebates.
Green Mountain Power Income-Qualified Heat Pump Bonus
$2,000GMP residential customers at or below 80% AMI receive a $2,000 bonus per outdoor condenser on a ductless heat pump installation, combined with the Efficiency Vermont rebate in one application through Efficiency Vermont. GMP's page does not say whether centrally ducted systems qualify, so confirm with GMP at (888) 835-4672 before counting on it for a ducted install.
Efficiency Vermont Integrated Controls Bonus (Ductless Heat Pump)
$600Up to $600 back when integrated controls are installed with a new ductless heat pump in a year-round single-family home whose central heating is oil, propane or natural gas. The heat pump and the control must be on Efficiency Vermont's qualified products lists, installed by an Efficiency Excellence Network contractor, and the rebate submitted within 365 days of purchase. Stacks with the $375-$475 base ductless discount. Burlington Electric customers are not eligible.
Burlington Electric Department Mini-Split Heat Pump Rebate
$2,500$2,500 for single-zone or multi-zone mini-splits >2 tons (24,000 BTU/hr) for BED residential and small-business customers; $2,100 for ≤2 tons. This is in addition to the $350-$450 BED discount your contractor gets when buying the unit. Income-qualified customers receive an additional $400-$500; total rebate capped at 75% of installed cost. BED also offers up to $7,950 combined for high-performance centrally ducted systems (>4 tons, income-qualified) and up to $12,000 ($2,000 per ton) for air-to-water heat pumps. Burlington customers get these rebates from BED instead of Efficiency Vermont. Offer valid through December 31, 2026.
Efficiency Vermont Air-to-Water Heat Pump Rebate
$6,500Up to $6,500 cash back statewide for an air-to-water heat pump: up to $6,000 base rebate plus a $500 bonus for income-eligible Vermonters. Must be installed by an Efficiency Excellence Network contractor using a model on EVT's qualified products list; this is the largest single heat pump incentive Efficiency Vermont offers.
Efficiency Vermont Ground Source Heat Pump Rebate
$8,400Up to $2,100 cash back per ton on qualifying ground-source (geothermal) heat pump equipment, plus a $500 bonus for income-eligible Vermonters, claimed by mail-in application after installation by a participating contractor. Hyde Park Electric customers may not be eligible for the full amount. The amount shown assumes a typical 4-ton system (4 × $2,100/ton).
VPPSA Member Utility Income-Qualified Heat Pump Bonus
$800Income-eligible customers of the 11 VPPSA municipal utilities (Barton, Enosburg Falls, Hardwick, Jacksonville, Johnson, Ludlow, Lyndon, Morrisville, Northfield, Orleans and Swanton) get an extra $800 on a new heat pump, on top of Efficiency Vermont's standard $200 income bonus and the $375-$475 ductless point-of-sale discount, for a $1,000 total income bonus. Offered first come, first served through 2026 and applied through the Efficiency Vermont rebate process.
10 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. Burlington is served by BED's own efficiency programs rather than Efficiency Vermont, so EVT's per-head ductless discount and $600 Integrated Controls Bonus don't apply. Instead, BED gives his contractor a $350–$450 discount when buying the unit, on top of the $2,500 rebate. His household income is approximately 165% of Chittenden County AMI — above the 80% threshold for income-qualified bonuses. Vermont HEEHRA has not launched (on pause at DOE), so no federal point-of-sale rebate applies. The federal §25C credit is gone. Combined stack: $2,500 BED rebate + up to $450 BED contractor discount = up to $2,950 against $13,200 (well under BED's 75%-of-cost cap). Net out-of-pocket: about $10,250.
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. In Burlington, BED rather than EVT runs the rebates: the contractor gets BED's discount when buying the unit, and the homeowner then claims BED's online rebate. 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 $29.2 million HEEHRA (HEAR) program has never opened. The Public Service Department reported it on pause awaiting DOE guidance in January 2026 and advises Vermonters not to plan on HEAR funds; there is no application queue and no announced launch date. Monitor energysaver.vermont.gov for updates.
- Leaving a 2026 install until late December. EVT's heat pump rebate pages post no fixed 2026 deadline, but Efficiency Vermont announces new rebate levels each year, the VPPSA income bonus is first come, first served through 2026, and Burlington Electric's current offer is valid through December 31, 2026. 2027 amounts have not been announced, so schedule a 2026 install to finish with margin before year-end.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Efficiency Vermont Air-to-Water Heat Pump Rebate−$6,500
- Efficiency Vermont Ducted (Central) Heat Pump Rebate−$2,200
- Efficiency Vermont Heat Pump Water Heater Rebate−$1,000
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- 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.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- 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.
If you can't afford a replacement in Vermont
Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:
- Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
- LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Vermont LIHEAP contacts.
- USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
- Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Vermont currently have funds.
Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.