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Vermont · checked October 20, 2026
Air-source heat pump rebates in Vermont
2 programs pay toward an air-source heat pump in Vermont right now, with 3 separate offers between them. The largest stated amount is $4,000, from Green Mountain Power income-eligible heat pump rebate. These offers are tied to GMP, BED, Stowe Electric, VEC, a VPPSA utility and WEC and GMP customers; the other Vermont utilities' own programs have not been read yet. The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.
What Vermont pays for heat pumps
Efficiency Vermont heat pump discounts Open
Run by Efficiency Vermont with participating utilities · for customers of 6 utilities
- Ducted heat pump: $1,200–$2,200 instant discount through a contractor at a participating distributor
- Ductless heat pump: $375–$475 instant discount on qualifying models
Conditions on the program page: Bought by a contractor from a participating distributor; Qualifying models on Efficiency Vermont's list; A bonus for income-eligible Vermonters (amount not stated on the page).
Source: Efficiency Vermont: Ducted heat pumps; Efficiency Vermont: Ductless heat pumps. Last checked October 20, 2026. Official program page.
Green Mountain Power income-eligible heat pump rebate Open
Run by Green Mountain Power · for customers of 1 utility
- $2,000 per condenser for households at or below 80% of area median income low income
Conditions on the program page: Gross household income at or below 80% AMI (four people: $99,750 in Chittenden, Franklin and Grand Isle counties; $89,200 elsewhere); Paid together with the Efficiency Vermont rebate in one application.
Source: Green Mountain Power: Heat pump rebate (page updated September 21, 2026). Last checked October 20, 2026. Official program page.
Worked example: one Vermont home
Take a 3-ton air-source system (2 outdoor units) replacing oil heat. These are example inputs, not typical prices. Each program's own rule gives the amounts below; where one program has several tiers only the largest one counts, separate programs add up, and a percentage offer with no cost entered is shown at its ceiling.
| Utility | Not income-qualified | Moderate income | Low income | Replacing baseboard |
|---|---|---|---|---|
| Green Mountain Power | $2,200 max | $2,200 max | $6,200 max | $2,200 max |
| Burlington Electric Department | $2,200 max | $2,200 max | $2,200 max | $2,200 max |
| Stowe Electric Department | $2,200 max | $2,200 max | $2,200 max | $2,200 max |
| Vermont Electric Co-op | $2,200 max | $2,200 max | $2,200 max | $2,200 max |
| VPPSA member utility | $2,200 max | $2,200 max | $2,200 max | $2,200 max |
| Washington Electric Co-op | $2,200 max | $2,200 max | $2,200 max | $2,200 max |
For a household that is not income-qualified, the example comes to $2,200 at most, made of $2,200 from Efficiency Vermont heat pumps (Ducted heat pump). A household that meets a program's low-income definition gets $4,000 more in the same example, because 2 offers are paid at the income-qualified level. All 6 listed utilities come out the same, because the money comes from a shared program.
Who can use these Vermont offers
Eligibility follows your electric or gas utility. Efficiency Vermont heat pumps is open to GMP, BED, Stowe Electric, VEC, a VPPSA utility and WEC customers; GMP heat pump bonus is open to GMP customers. None of these program pages lists an end date, and each can change or stop while funds last.
Federal credit and state IRA rebates
The Energy Efficient Home Improvement Credit (IRC §25C) paid 30% of cost, up to $2,000 a year (heat pumps, heat pump water heaters, biomass stoves and boilers combined). The IRS page says: “can claim the credit for improvements made through December 31, 2025.” Not allowed for property placed in service after December 31, 2025. Source: IRS: Energy Efficient Home Improvement Credit, 26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025). See what the credit covered and when it ended.
Vermont IRA home energy rebates (HOMES and HEAR): Not launched. The department says “It's recommended not to plan on HEAR funds for future projects at this time” (updated May 2025). HOMES is planned through the Weatherization Assistance Program. Source: Vermont DPS: IRA weatherization and electrification (updated May 2025).
How Vermont compares
6 of the other 14 covered states list a larger top amount for heat pumps. Open elsewhere: Massachusetts $16,000; Rhode Island $11,500; Connecticut $10,000; New Hampshire $10,000; Maine $9,000; North Carolina $8,000; California $3,000; Oregon $3,000; Arizona $1,125; Texas $950; Wisconsin $900; Michigan $350; Florida $200. No open, sourced offer is listed in 1 other covered state (Pennsylvania). Compare them on the air-source heat pump rebates by state page.
Other upgrades in Vermont: heat pump water heater, insulation and air sealing, home EV charger, induction range or cooktop. Background: how rebates stack and the federal credit status.
Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 20, 2026.