Weatherization is the key to home energy performance. Regardless of how you heat (and cool) your home, you want to keep that temperature inside. There are two main aspects of weatherization: air sealing and insulation. Air sealing ensures that your home doesn’t have leaks. Once leaks are under control, insulation can do its job by keeping indoor temperatures stable at a comfortable level. The combination of insulating and air sealing a building has many benefits, including maintaining a more consistent temperature, controlling moisture, keeping pests and pollutants out, and saving money on energy. 

Efficiency Vermont’s Home Performance with Energy Star (HPwES) program covers 75% of project costs up to $4,000 or $9,500, depending on income, for weatherization projects. Low-income households can receive free weatherization through the Weatherization Assistance Program. An additional $14,000 of federal incentives will become available to eligible homeowners through the Inflation Reduction Act. The IRA incentive programs are not yet available as of April 2024.

State Incentives

  • Free weatherization through the Weatherization Assistance Program. Households must meet one of the following qualifications to be eligible:
    • You meet these income levels.
    • You are an active Seasonal Fuel Assistance household.
    • Someone in your household gets Supplemental Security Income (SSI).
    • An adult in your household received either Reach Up, Reach First, or Post-Secondary Education in the past 12 months.
  • Efficiency Vermont Home Performance with Energy Star program covers 75% of project costs up to $4,000 or $9,500, depending on income, for weatherization projects done with an Efficiency Excellence Network contractor and at least 10% reduction in air leakage.
  • Weatherization Repayment Assistance Program (WRAP). This pilot program, created by the Vermont Housing Finance Agency and administered by Efficiency Vermont, can provide up to $20,000 in low-interest financing to carry out comprehensive weatherization work—and can also fund heat pumps if done in conjunction with weatherization. Payments are added directly to the customer’s monthly utility bill. Both homeowners and renters (with landlord approval) can participate.
  • Efficiency Vermont DIY incentive – $100 rebate when you complete at least 3 of 10 eligible projects.

Federal Incentives

  • Weatherization Tax Credit (25C) — 30% up to $1,200 of purchase (not installation) costs for insulation, air sealing, doors and windows upgrades, and energy audits. May be combined with upfront incentives. Available NOW.
  • IRA HOMES Program — for making renovations that lower energy use throughout your home, like adding insulation and sealing air leaks, replacing exterior doors and windows, and making ventilation improvements. The rebate amount depends on two factors: your household income and how much energy you save with the renovations, which can be determined through modeling or measurements.
    • If using the modeled energy savings route, the rebate amount ranges from $2,000 to $4,000, or 50% of project costs, with incentives doubled for low-income households.
    • If using the measured savings route, where households use their utility bills to show evidence of the reduction in energy use, there is no maximum cap on savings.
  • High-Efficiency Electric Home Rebates (HEEHRA) will provide point-of-sale consumer rebates to enable low- and moderate-income households across America to electrify and weatherize their homes, covering up to $1,600 worth of weatherization work.

Both rebate programs will be available by late 2024 and run through Sept. 30, 2031, or until funding runs out.

Households that qualify for the income-based rebates (which are fairly substantial) should get contractor quotes ahead of time and be ready to proceed as soon as the program is live.

Updated April 2024