Loading NuWatt Energy...
We use your location to provide localized solar offers and incentives.
We serve MA, NH, CT, RI, ME, VT, NJ, PA, and TX
Loading NuWatt Energy...
Efficiency Vermont (EVT) offers rebates of $475 per ductless head and $2,200 per ducted system. Income-eligible GMP customers get a $2,000 bonus per condenser. The federal 25C tax credit expired December 31, 2025. HEAR ($29.2M) is conditionally approved but has not launched. This guide covers every available rebate and how to maximize your savings.
Ductless Mini-Split: $475 per indoor head (EVT)
Ducted Heat Pump: $2,200 per system (EVT)
Heat Pump Water Heater: $600 per unit (EVT)
Heat Pump Dryer: $400 per unit (EVT)
GMP Income Bonus: $2,000/condenser (at or below 80% AMI)
VPPSA Income Bonus: $1,000 ($800 + $200 EVT)
HEAR: Pending — $29.2M approved, NOT launched
Federal 25C: Expired December 31, 2025 — $0 available
The $2,000 federal 25C heat pump tax credit expired December 31, 2025 under the OBBBA. No federal tax credit for residential heat pumps in 2026. EVT rebates and utility income bonuses are now the primary incentives.
Vermont has been conditionally approved for $29.2 million in HEAR funding but the program has NOT launched. The Department of Public Service is developing the State Implementation Blueprint. Do NOT rely on HEAR funding for your project.
EVT rebates remain fully active: $475/head ductless, $2,200 ducted, $600 HPWH, $400 dryer. GMP income bonus ($2,000/condenser) and VPPSA bonus ($1,000) continue for eligible households. The $450M NE Heat Pump Accelerator launches February 2026.
EVT is Vermont's statewide energy efficiency utility. All heat pump rebates flow through EVT regardless of which electric utility serves your home. Equipment must be on the EVT Qualified Products List.
| Equipment Type | Rebate Amount | Unit | Notes |
|---|---|---|---|
| Ductless Mini-Split | $475 | per indoor head | $475 per indoor head for qualifying cold-climate ductless mini-split heat pumps. |
| Ducted Heat Pump | $2,200 | per system | $2,200 per ducted heat pump system. |
| Heat Pump Water Heater | $600 | per unit | $600 per qualifying heat pump water heater (HPWH). |
| Heat Pump Dryer | $400 | per unit | $400 per qualifying heat pump clothes dryer. |
Cold-Climate Requirement: All heat pump equipment must be ENERGY STAR Cold Climate certified for EVT rebate eligibility. Vermont design temperatures of -10F to -15F require cold-climate rated equipment.
In addition to EVT rebates, income-eligible households (at or below 80% AMI) can receive additional bonuses from their electric utility. The amount varies significantly by utility.
~75% of VT customers
~10% of VT customers
~5% of VT customers
$1,200 income-eligible voucher: Available through EVT for qualifying low-income households. Can be combined with utility-specific income bonuses (except BED). $400 HPWH income bonus: Additional bonus for heat pump water heater purchases by income-eligible households.
Vermont has been conditionally approved for $29.2 million in HEAR (Home Electrification and Appliance Rebates) funding through the Inflation Reduction Act. However, the program has NOT launched. The Vermont Department of Public Service is developing its State Implementation Blueprint. Launch date is TBD.
HEAR is NOT active in Vermont. Do not sign agreements contingent on HEAR funding until the program officially launches.
Status
PENDING
Allocation
$29.2 million
Administrator
VT Dept of Public Service
The Section 25C Energy Efficient Home Improvement Credit is no longer available. The OBBBA (signed July 4, 2025) terminated this credit. There is $0 federal tax credit for heat pump purchases in 2026. EVT rebates + utility income bonuses are now your primary incentives.
Launching February 2026, this multi-state collaboration includes Vermont alongside Massachusetts, Connecticut, Rhode Island, Maine, and New Hampshire. The program provides group purchasing power, workforce training, and streamlined installation processes to reduce heat pump costs across the region.
Use our calculator to estimate your total rebates from EVT and utility income bonuses based on your system type, utility, and income eligibility.
EVT rebate: $475 per head
Most of Vermont — Burlington suburbs, Montpelier, Rutland, Brattleboro, Bennington, and surrounding areas.
Typical cost range: $8,000 – $14,000 for multi-zone ductless (2–3 heads). Net cost estimate uses midpoint ($11,000).
HEAR rebates ($29.2M allocated) not yet launched in VT. When available, up to $8,000 for low-income households. Do not sign agreements contingent on HEAR funding.
Section 25C expired Dec 31, 2025. No federal heat pump tax credit available. The estimate above reflects only EVT and utility-specific incentives.
Estimates based on Efficiency Vermont 2026 program rates. Actual rebate determined at time of installation. Equipment must be on the EVT Qualified Products List (cold-climate certified).
Vermont allows stacking EVT rebates with utility income bonuses. Here are three real-world scenarios.
Ducted system, $16,000 install cost
Ducted system, $16,000 install cost
Multi-zone, $12,000 install cost
Vermont offers rebates through Efficiency Vermont (EVT): $475 per indoor head for ductless mini-splits, $2,200 per ducted system, $600 for heat pump water heaters, and $400 for heat pump dryers. Income-eligible households can also receive utility-specific bonuses: GMP offers $2,000 per condenser, VPPSA utilities offer $1,000 ($800 VPPSA + $200 EVT). BED customers are excluded from income bonuses.
No. The federal Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025 under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. There is no federal tax credit for residential heat pump purchases in 2026. EVT rebates and utility income bonuses are now the primary incentives available in Vermont.
HEAR (Home Electrification and Appliance Rebates) is a federal program funded by the Inflation Reduction Act. Vermont has been conditionally approved for $29.2 million but the program has NOT launched. Vermont is developing its State Implementation Blueprint with the Department of Public Service. Do NOT sign agreements contingent on HEAR funding until the program officially launches.
Green Mountain Power (GMP) offers a $2,000 income bonus per condenser (outdoor unit) for income-eligible customers at or below 80% of Area Median Income (AMI). This is applied on top of the standard EVT rebate. For example, a GMP customer installing a ducted system would receive $2,200 (EVT) + $2,000 (GMP income bonus) = $4,200 total if income-eligible.
No. Burlington Electric Department (BED) customers are excluded from EVT income bonuses. BED operates independently as a municipal utility and does not participate in the EVT income-qualified bonus program. However, BED customers can still receive the standard EVT rebates ($475/head ductless, $2,200 ducted, etc.).
Equipment must be on the EVT Qualified Products List and carry ENERGY STAR Cold Climate certification. Cold-climate heat pumps are mandatory for Vermont installations due to design temperatures of -10F to -15F. Popular qualifying models include Mitsubishi Hyper-Heat, Fujitsu Halcyon XLTH, Carrier Greenspeed, Daikin FIT, and LG Red Series.
Yes. EVT rebates are stackable with utility-specific income bonuses. A GMP customer could receive $2,200 (EVT ducted rebate) + $2,000 (GMP income bonus) = $4,200. A VEC customer could receive $2,200 (EVT) + $1,000 (VPPSA bonus) = $3,200. Income eligibility is at or below 80% AMI.
The $450 million New England Heat Pump Accelerator is a multi-state collaboration launching in February 2026. Vermont is a participating state alongside Massachusetts, Connecticut, Rhode Island, Maine, and New Hampshire. The program provides group purchasing power, workforce training, and streamlined installation processes to reduce heat pump costs across the region.
Contact an EVT participating contractor to start the process. The contractor will handle the EVT rebate application and ensure your equipment qualifies. For income bonuses, your utility (GMP or VPPSA member) will verify income eligibility. EVT rebates are typically applied as a point-of-sale discount or submitted after installation.
VPPSA (Vermont Public Power Supply Authority) member utilities like Vermont Electric Cooperative (VEC) offer a $1,000 income bonus ($800 from VPPSA + $200 from EVT). This is smaller than GMP's $2,000/condenser bonus. Non-GMP, non-VPPSA utilities offer only the base $200 EVT income bonus. BED is excluded entirely.
Full pricing breakdown after rebates.
Models rated to -15F for VT winters.
Oil at $3.96/gal vs heat pump savings.
Propane at $3.77/gal comparison.
EVT contractor requirements.
Side-by-side utility comparison.
NuWatt Energy helps Vermont homeowners navigate EVT rebates, GMP income bonuses, and heat pump installations. With 55% of homes still burning oil and propane, the savings opportunity is enormous. Get a free assessment today.