Energy efficiency rebates in Vermont.
Every federal, state, and utility incentive for heat pumps, insulation, air sealing, and weatherization in Vermont — cross-referenced and kept current.
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Efficiency Vermont
- Type
- Quasi State
- Website
- www.efficiencyvermont.com
- Phone
- (888) 921-5990
- IRA allocation
- $58M ($29M HEAR + $29M HOMES)
Active rebate programs
5 programs currently accepting applications in Vermont.
| Program | Amount | Eligibility | Status |
|---|---|---|---|
| Ductless Heat Pump | $375–$475 discount | All homeowners (per system: $375 ≤2 tons / $475 >2 tons); income-eligible bonus $200–$2,200 by utility (GMP $2,200). Verified 2026-07-15. | Active |
| Ducted Heat Pump | $1,200–$2,200 discount | All homeowners ($1,200 ≤2 ton / $1,700 >2–<4 ton / $2,200 ≥4 ton); income-eligible bonus $200–$2,200 by utility. Verified 2026-07-15. | Active |
| Home Performance with ENERGY STAR (weatherization) | 75% of cost, up to $3,000 ($7,000 income-eligible) | All homeowners; restructured offer effective 7/1/2026, available while funding lasts. EEN contractor required; ≥10% air-leakage reduction. VGS/BED customers: up to $9,500 via their utility. Verified 2026-07-15. | Active |
| Heat Pump Water Heater | Up to $1,000 | All homeowners ($600 base + $400 income-eligible). Verified 2026-07-15. | Active |
| Air-to-Water Heat Pump | Up to $6,500 | $1,000/ton (max 6 tons) + $500 income bonus; hydronic distribution + EEN contractor required. BED customers: $2,000/ton up to $12,000 via BED. Verified 2026-07-15. | Active |
Run the numbers for Vermont.
Free, no account needed. Every figure is cited, so you have a benchmark before a Vermont contractor quotes you one.
IRA implementation status
How Vermont is implementing the Inflation Reduction Act home energy rebates.
Metro areas in Vermont
Local utility programs and municipal incentives by metro area.
Burlington Electric (municipal) runs its own larger rebates through 12/31/2026: ducted heat pump up to $7,950, ductless up to $3,000, HPWH up to $1,200, all capped at 75% of installed cost
Rebates are step one
Once you know what Vermont pays, here's the rest of the path: what order to do the work in, and what belongs on a fair quote.
What order to do it in
Envelope first, equipment second — how to sequence a retrofit to your budget and your rebates' deadlines.
How to read a quote
What belongs on a heat pump or insulation quote, and the red flags that mean keep shopping.
What attic insulation costs
Per-square-foot prices by material, and why this is the work rebate programs subsidize hardest.
Claim rebates after install
The document kit, the application walkthrough, and the mistakes that get claims rejected.
Rebates cover part of it. Here's the rest.
What Vermont pays is the first rung. These cover the money questions underneath it: the 2026 federal rules, the state and utility loan programs worth checking before a bank, and the borrowing routes that come after.
How to pay for it
The whole money picture in order of cost: rebates first, then low-interest loans, then borrowing.
State energy loans
The state and utility loan programs we have verified at the administrator, with rates and conditions.
The 2026 rebate rules
What DOE Program Notices 26-1 and 26-2 changed about HEAR and HOMES, and which states are live.
Latest Vermont energy news
Recent Vermont rebate, policy, and efficiency coverage from our monitored sources.
Vermont Gas invests in geothermal for the first time
Vermont Gas, which serves about 56,000 customers in the northwestern part of the state, is paying for its first geothermal heating and cooling system. The system uses underground pipes (a "ground loop") connected to ground-source heat pumps to heat and cool buildings without burning fossil fuels. The utility is covering nearly $400,000 of the roughly $2 million project, which will serve 44 units of affordable housing, with Dandelion Energy handling design and drilling. The project got cheaper to build after a Department of Energy grant Vermont Gas was counting on got stuck in limbo under funding freezes from the Trump administration. Rather than cancel, the utility and Dandelion redesigned the system to cost about $1 million less, hoping the new design can be copied at other housing developments around the state. Residents in the new homes will pay a regular utility bill plus a separate fee of $25 to $35 a month for 20 years to access the geothermal system. Combined, that's still expected to cost less than heating with fuel oil or propane, which is what most Vermont homes currently use and which can swing sharply in price. Geothermal also provides air conditioning, a growing draw as Northeast summers get hotter. The utility says the savings math works best in new construction, not in retrofitting existing homes, since Vermont's gas pipelines are relatively young. Vermont Gas is one of roughly two dozen utilities nationwide testing this kind of "gas-to-geo" shift, alongside similar projects from Eversource in Massachusetts and National Grid in New York.
A gas utility is picking up the upfront tab for geothermal
A gas utility in Vermont is covering the biggest upfront cost of switching to geothermal heating and cooling at a new affordable housing development. Vermont Gas (VGS) is partnering with Dandelion Energy to bring geothermal to Riggs Meadow in Hinesburg, Vermont, a project with 44 townhomes and apartments for low- and moderate-income renters and owners. Rather than the housing developers paying for the underground pipes, called ground loops, VGS will pay for and own that infrastructure itself. Dandelion will handle the system design and drilling. Geothermal systems work by circulating fluid through pipes buried underground, where temperatures stay steady year-round. Electric heat pumps use that steady ground temperature to pull heat into buildings in winter and push heat out in summer, which makes the system efficient even through cold winters and hot summers. Four of the development's buildings, with 36 of the homes, are set to get geothermal loops under this plan. Under VGS's broader geothermal program, called Clover Energy, the utility owns and maintains the ground loops while customers own the equipment inside their homes and pay a monthly fee to use the loops. VGS hasn't yet said what that fee will be at Riggs Meadow or what residents can expect to pay for heating and cooling. Drilling is scheduled to start in early 2027, with residents expected to move in by late 2027. For homeowners elsewhere, the model is worth watching: utility-owned ground loops could make geothermal more affordable to install, though availability depends on whether a local utility offers something similar.
Is this house built with SIPs?
A homeowner shopping for a house in Montpelier, Vermont asked a building-science forum for help figuring out how the place was built. The house dates to 1977, has a timber frame, a vaulted ceiling with no attic, and almost no roof overhang. The buyer is worried it might use structural insulated panels (SIPs) — factory-made panels with a foam core sandwiched between two layers of oriented strand board (OSB). Older SIPs from that era often lacked good barriers against water and air, and if moisture got in, the OSB skins could rot from the inside out. The concern is practical: if the walls and roof turn out to be SIPs with rotted OSB, repairs could mean replacing entire structural panels, a costly job. If instead the house was built the more ordinary way — 2x6 studs with fiberglass insulation — any rot would likely be easier and cheaper to fix, since you can remove and replace sections without touching the whole wall's structure. The buyer asked what clues to look for during a walkthrough, or where to dig up records on how a 50-year-old house was actually built. No answers had been posted yet. For anyone eyeing an older home with a vaulted, overhang-less roofline, this is a reminder that construction method matters a lot for long-term repair costs, and it is worth trying to confirm it — through a sale disclosure, old permits, or a hands-on inspection — before buying.
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Vermont: up to $7,000 back right now
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