Incentives

eBike Incentives

The State of Vermont has a statewide incentive program that offers pre-paid vouchers for electric bicycle (eBike) purchases. This program will help Vermonters access an alternative mode of transportation for daily trips with fun, efficient, cleaner transportation that greatly reduces greenhouse gas emissions. 

Please see our eBike Incentives page for more information.

Vehicle Incentives

Income-qualifying Vermonters can get several rebates to buy or lease a NEW
plug-in hybrid or all-electric car:

  • Up to $5,000 from the State of VT
  • PLUS up to $3,200 and a free charger from Green Mountain Power
  • PLUS up to $7,500 in Federal Tax Credits!

For more information, please visit Drive Electric VT.

Used Car Milage Smart Program

Income-qualifying Vermonters can get up to $5,000 for a USED car that gets better gas mileage. Save money on your next car purchase by paying less upfront and buying less gas over its lifetime! If you plan to trade-in your current vehicle, the money can be used to pay off debt owed. Special low-interest rates are available for financing your purchase.

For more information, please visit mileagesmartvt.org.

Home Energy Audits

The first step in saving energy is understanding how much you use and which products or systems use the most energy in your home. A professional home energy audit will provide you with details about where your home uses energy and a list of prioritized recommendations to reduce the energy costs in your home. 

Heat Pumps

Incentives are available for four main types of heat pumps (ductless, ducted, air-to-water, and ground source). State incentives range from $750 – $21,500, depending on heat pump size, type, and income level. In addition, the Inflation Reduction Act includes incentives for heat pumps of up to $8,000 depending on income and project cost, as well as a 30% tax credit up to $2,000. There is an additional federal tax credit of 30% up to $600 to upgrade your electrical panel if done in combination with a heat pump installation.

Efficiency Vermont and Green Mountain Power provide a combined incentive of up to $800 for heat pump water heaters, depending on equipment type and income level. Additional federal incentives of up to $3,750 will be available through the Inflation Reduction Act.

Electrical Upgrades

Electrical upgrades, such as service and wiring upgrades, might be necessary for the electrification of appliances, heating equipment, and vehicles, as well as the installation of rooftop solar. The Inflation Reduction Act includes up to a $4,000 upfront discount for electrical panel upgrades for income-qualified households.

Vermont Solar Guide

A Vermonter’s Guide to Residential Solar – a free guidebook produced by the Clean Energy States Alliance and the Vermont Public Service Department. The guide was updated in the fall of 2018 to reflect changes in Vermont’s net metering rules.

Weatherization

Capstone Community Action and South Eastern Vermont Community Action (SEVCA) will provide free weatherization services to homes in eligible VT towns. Weatherization can help lower your fuel bills and make your home more comfortable. Check their websites to see if you qualify.

Efficiency Vermont’s Home Performance with Energy Star (HPwES) program covers 75% of project costs up to $2,000 or $5,000, depending on income, for weatherization projects. Low-income households can receive free weatherization through the Weatherization Assistance Program. Up to an additional $8,000 in federal incentives will become available to eligible homeowners through the Inflation Reduction Act. The IRA incentive programs are not yet available as of April 2023.

Please see our weatherization page for more information.

Wood Heating in Vermont

The State of Vermont has a goal of reaching 35% of our thermal energy needs from wood heat by 2030 through the adoption of automated wood heat, or, put another way – doubling the use of wood heat. For more information, please see the Wood Heat Road Map from the Biomass Energy Resource Center and Renewable Energy Vermont.