Vermont Heat Pump Rebates 2026: Efficiency Vermont

Last updated: September 30, 2026 · Sources verified

In Vermont, heat pump savings come mainly through Efficiency Vermont and your electric utility: an instant discount of $1,200 to $2,200 on ducted heat pumps or $375 to $475 on ductless models, plus an income bonus of up to $2,200. The federal HEAR program’s funding is still in question.

HEAR and HOMES in Vermont

HEAR and HOMES are the federal rebate programs that replaced most of the help from the expired heat pump tax credit. Each state runs its own version. How HEAR and HOMES work nationwide.

Program	Status	Details
HEAR (electrification rebates)	Check current availability	Vermont’s Department of Public Service says its HEAR funding remains in question while the federal government decides on conditionally approved proposals. Check with Vermont Department of Public Service.
HOMES (whole-home efficiency rebates)	Check current availability	Vermont routes its HOMES funding through the low-income Weatherization Assistance Program; eligible households can sign up for weatherization through their Community Action Agency. Check with Vermont Department of Public Service.

Heat pump rebates and incentives in Vermont

Program	Amount	Who qualifies	Key requirements
Efficiency Vermont ducted heat pump discount Open (source)	$1,200 to $2,200 instant discount through a contractor, plus an income bonus	All customers; income bonus for low- and moderate-income households	Work with a contractor; the discount is applied at purchase on qualifying products Combine with others: Yes, with the income bonus
Efficiency Vermont ductless heat pump discount Open (source)	$375 to $475 instant discount on qualifying models at a participating distributor (Burlington Electric customers: $350 to $450)	All customers; income bonus for low- and moderate-income households	Hire a contractor who buys from a participating distributor Combine with others: Yes, with the income bonus
Income bonus for heat pumps Open (source)	$200 to $2,200 depending on utility and income: Green Mountain Power low-income $2,200; VPPSA member utilities’ low- and moderate-income $1,000; all other low- and moderate-income customers $200	At or below Vermont’s low- or moderate-income guidelines (2026 limits effective July 1, 2026)	Rental property owners and Burlington Electric customers aren’t eligible. Heat pumps bought or leased from VGS don’t qualify for the GMP bonus Combine with others: Yes, on top of the heat pump discount

Example: what a typical household could get

Example: a low-income Green Mountain Power customer installs a ducted heat pump through a contractor. The Efficiency Vermont discount starts at $1,200 at purchase, and the income bonus for GMP low-income customers is $2,200, for at least $3,400 off. A moderate-income customer of another utility (outside the VPPSA group and Burlington Electric) would get the same discount plus a $200 bonus.

How to apply, step by step

Check your income against Efficiency Vermont’s low- and moderate-income guidelines (2026 limits took effect July 1, 2026).
Hire a contractor who installs qualifying heat pumps; the discount is applied at purchase through participating distributors.
Apply for the income bonus online or with the form for your utility (GMP, VPPSA members, or others).
Weatherize if you can. Low-income households can sign up for weatherization through their Community Action Agency, which is how Vermont delivers its HOMES funding.

Choosing a heat pump for Vermont’s climate

Vermont’s winters are long and cold, so choose a cold-climate model and check its heating capacity at low temperatures. Efficiency Vermont also pays extra for integrated controls with a ductless heat pump, which help your old system and the heat pump work together.

Weatherizing first lets a smaller, cheaper heat pump do more of the heating.

Vermont heat pump rebate FAQ

How much is the Efficiency Vermont heat pump rebate?

An instant discount of $1,200 to $2,200 for ducted heat pumps, or $375 to $475 for qualifying ductless models, plus an income bonus of $200 to $2,200 for eligible households.

Who gets the $2,200 income bonus?

Green Mountain Power low-income customers. VPPSA member utilities’ low- and moderate-income customers get $1,000, and other eligible customers $200. Rental property owners and Burlington Electric customers aren’t eligible.

Is HEAR available in Vermont?

Not now. Vermont’s Department of Public Service says its HEAR funding remains in question while the federal government decides on conditionally approved proposals.

Rebates in nearby states

Sources

Programs change often. We verify every figure against the official source listed above; if something looks out of date, let us know.