Other Heat Pumps

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

• The High Efficiency Electric Home Rebate Act (HEEHRA) covers 100% of project costs up to $8,000 for low-income households (less than 80% AMI) and 50% of project costs for moderate-income households (80-150% of AMI).
• Whole Home Energy Reduction Rebates (HOMES) – rebates for the lesser of $8,000 or 80% of project cost if the project reduces energy usage by at least 35%. UNCLEAR WHETHER HEAT PUMPS ARE ELIGIBLE PROJECT COSTS.

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

• The High Efficiency Electric Home Rebate Act (HEEHRA) covers 100% of project costs up to $8,000 for low-income households (less than 80% AMI) and 50% of project costs for moderate-income households (80-150% of AMI).
• Whole Home Energy Reduction Rebates (HOMES) – rebates for the lesser of $8,000 or 80% of project cost if the project reduces energy usage by at least 35%. UNCLEAR WHETHER HEAT PUMPS ARE ELIGIBLE PROJECT COST.

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

• The High Efficiency Electric Home Rebate Act (HEEHRA) covers 100% of project costs up to $8,000 for low-income households (less than 80% AMI) and 50% of project costs for moderate-income households (80-150% of AMI).
• Whole Home Energy Reduction Rebates (HOMES) – rebates for the lesser of $8,000 or 80% of project cost if the project reduces energy usage by at least 35%. UNCLEAR WHETHER HEAT PUMPS ARE ELIGIBLE PROJECT COST.