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.
XPS around windows?
A homeowner installing new triple-pane windows ran into an unusually wide gap — up to 2 inches in places — between the window frames and the rough openings in the wall. That gap matters because it has to be sealed properly to keep the home airtight; gaps like this are where outside air can leak in and out, driving up heating and cooling costs. The homeowner had already stuffed the gaps with mineral wool insulation (a fire-safe alternative to spray foam) and was looking for an affordable way to seal the inside edge. They asked whether rigid foam board (XPS) left over from a basement project, combined with a flexible sealant tape, could work as well as the specialty foam backer rod and tape products usually used for this job, since those products add up in cost on a house with many large windows. This is a hands-on construction question posted to an online builder forum, not a product or policy announcement, so there is no deadline or rebate tied to it. For most homeowners, the takeaway is simply a reminder that gaps around new windows need a continuous air seal, not just insulation stuffed into the opening — insulation alone does not stop air movement the way a taped or sealed barrier does. If you are planning a window replacement, it is worth asking whoever does the installation how they plan to air seal the rough opening, since larger-than-expected gaps are apparently not unusual and can need extra material and labor to handle correctly.
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Vermont: up to $7,000 back right now
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