Electrical System Upgrades

Many types of electrification projects will require upgrades to your home’s electrical system. This may entail replacing your home’s electrical panel (AKA “breaker box”), installing 240V outlets, and so on. Always consult a licensed electrician and follow the manufacturer’s specifications when planning an electrification project. (For incentives to install EV charging infrastructure, please see the Electric Vehicles subpage). Low-income households can get up to $10,000 of project costs covered through Efficiency Vermont’s Home Electric System Upgrade program (see below).

State Incentives

  • Efficiency Vermont’s new Home Electric System Upgrade program provides rebates for low- and moderate-income households to install 200-Amp electrical service, which enables the installation of heat pumps, EV chargers, and other electrical equipment.
    • Low-income households: 100% of project costs or $10,000, whichever is less.
    • Moderate-income households: 90% of project costs or $10,000, whichever is less.

Federal Incentives

  • The Inflation Reduction Act’s Home Electrification and Appliance Rebate (HEAR) program program will provide “point-of-sale” (i.e. directly deducted from project cost by contractor) rebates for panel and wiring upgrades needed to install heat pumps in low- and moderate-income households. The State of Vermont is still awaiting federal approval of its HEAR program. It is expected to open in mid-2025. You can get updates on the program here.

Federal Tax Credits

Available for panel upgrades needed to carry out other electrification projects that receive the 25C or 25D tax credit. 

    • 30% up to $600 tax credit for panel upgrades done in conjunction with heat pumps through the 25C Tax Credit.
    • 30% uncapped tax credit available for panel upgrades done in conjunction with rooftop solar through the 25D Tax Credit.
    • See Rewiring America for more information.
    • Note: the two tax credits above cannot be combined. If applicable, the tax credit with the greater value will be applied.

Updated December 2024