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...
20% of Vermont homes heat with propane at $3.77/gal, spending $3,400+ per year. A heat pump costs about $1,009/year to operate — saving $2,500 annually. Propane is especially common in rural VT where natural gas is unavailable. Tank ownership vs lease adds complexity to the switch.
Propane Heating Cost
$3,400/yr
~900 gal at $3.77/gal
Heat Pump Cost
$1,009/yr
~4,700 kWh at GMP rate
Annual Savings
$2,391
+ free AC in summer
| Cost Category | Propane | Heat Pump | Savings |
|---|---|---|---|
| Annual Heating Cost | $3,400/yr | $1,009/yr | $2,391/yr |
| Fuel/Energy Rate | $3.77/gal | $0.2146/kWh (GMP) | - |
| Annual Maintenance | $150-350 | $75-150 | $75-200 |
| Air Conditioning | Separate system needed | Included | $500-2,000 |
| CO2 Emissions | 5.5 tons/yr | ~0.1 tons/yr | 5.4 tons eliminated |
| 10-Year Total Cost | $39,000+ | $11,600 | $27,400+ |
Before switching from propane to a heat pump, determine whether you own or lease your propane tank. This affects the transition process and potential costs.
Tip: Review your propane contract before committing to a heat pump installation. Some contracts have minimum annual purchase requirements or early termination penalties of $200-$500.
Propane heating is concentrated in rural Vermont where natural gas is not available. These areas have unique considerations for heat pump transitions.
5.5 tons
CO2 eliminated per home per year
98%
Reduction in heating carbon emissions
110 tons
Lifetime CO2 savings (20 year lifespan)
Federal 25C Tax Credit: Expired December 31, 2025. $0 available for heat pumps in 2026. EVT rebates ($2,200 ducted, $475/head ductless) + utility income bonuses (GMP $2,000, VPPSA $1,000) are your primary incentives.
A typical VT home using ~900 gallons of propane per year at $3.77/gal spends about $3,400 annually on heating. A heat pump costs approximately $1,009/year to operate at GMP's $0.2146/kWh rate, saving roughly $2,391 per year. Over 10 years with fuel price escalation, total savings exceed $27,000.
Vermont has very limited natural gas infrastructure — only a few towns along the Burlington-area pipeline have gas service. Rural VT homes that cannot access natural gas typically use propane or oil for heating. Propane accounts for about 20% of VT homes, primarily in rural and off-grid areas.
This varies. Many VT propane companies lease the tank to the homeowner — you buy propane from that company and they own the tank. If you own the tank, you can shop around for the best propane price. When switching to a heat pump, leased tanks are returned to the propane company. Owned tanks can be sold or decommissioned.
If you lease the tank, the propane company will arrange pickup. Check your contract for any early termination fees. If you own the tank, you can keep it for cooking/water heating use or sell/decommission it. Many VT homeowners keep propane for cooking and hot water while using the heat pump for all space heating.
Yes. Cold-climate heat pumps rated to -13F to -15F handle VT's extreme conditions. However, rural VT homes may face additional considerations: longer power outage risks (keep propane backup for first winter), remote locations mean fewer installer options, and older housing stock may need insulation upgrades first.
No. The federal Section 25C tax credit expired December 31, 2025. There is $0 federal tax credit available in 2026. EVT rebates ($2,200 ducted, $475/head ductless) and utility income bonuses (GMP $2,000, VPPSA $1,000) are your primary incentives.
You can keep a small propane setup for cooking if you prefer. Many VT homeowners who switch to heat pumps maintain a small propane tank (100-250 gallon) for cooking. However, induction cooktops are an increasingly popular all-electric alternative that eliminates propane entirely.
A typical VT home burning 900 gallons of propane per year produces approximately 5.5 tons of CO2 annually. A heat pump powered by Vermont electricity produces roughly 0.1 tons. That is a 98% reduction in heating carbon emissions — eliminating 5.4 tons per home per year.
Save $2,500+ per year by switching from propane to a cold-climate heat pump. NuWatt Energy serves rural and urban Vermont with EVT-participating installers.