Air-to-water Heat Pumps

Efficiency Vermont offers up to $6,500 in incentives, depending on the size of the condenser(s) and income level. Additional federal incentives of up to $10,000 will be available through the inflation Reduction Act.

State Incentives

  • Efficiency Vermont offers $1,000/ton, maximum of 6 tons. There is an additional $500 income bonus rebate.

Federal Incentives

Available January 2023

  • 30% up to $2,000 tax credit per year for heat pumps.
  • Additional 30% up to $600 tax credit available for electrical panel upgrade if combined with another heat pump installation

Coming soon! Available by August 2024

Ground Source Heat Pumps (Geothermal)

Efficiency Vermont offers up to $21,500 in incentives, depending on equipment size and income level. Potential for additional federal incentives of up to $10,000 through the inflation Reduction Act, depending on eligibility of ground source heat pumps.

State Incentives

  • Efficiency Vermont offers $2,100/ton, up to 10 tons, for eligible ground source heat pump installations. An additional $500 is available through Efficiency Vermont for income-eligible customers.

Federal Incentives

As of November 2022, it is not clear whether ground source heat pumps are eligible for the following incentives.

Available January 2023

  • 30% up to $2,000 tax credit per year for heat pumps
  • Additional 30% up to $600 tax credit available for electrical panel upgrade if combined with another heat pump installation.

Coming soon! Available by August 2024

Heat Pumps (Water Heating)

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.

State Incentives

  • Efficiency Vermont and Green Mountain Power offer $300-$600 for heat pump water heaters (depending on equipment eligibility), plus an additional $200 for income-qualified customers.
  • The Department of Public Service will design and implement a “Switch and Save” program for low-income Vermonters to install heat pump water heaters at little to no cost. The program will likely be available in the winter of 2023.

Federal Incentives

Available January 2023

  • 30% up to $2,000 tax credit per year for heat pumps.
  • Additional 30% up to $600 tax credit available for electrical panel upgrade if combined with another heat pump installation.

Coming soon! Available by August 2024