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. 

Incentives vary depending on your household income level. Low-income households can combine the Home Repair and Home Performance with Energy Star incentives for a maximum possible incentive of $24,500 for weatherization work. Additional incentives will become available to eligible homeowners through the Inflation Reduction Act. The IRA incentive programs are expected to be available by July 2025.

State Incentives

  • Free weatherization is available through the Weatherization Assistance Program. The number of WAP projects is limited and may require adding your name to a waiting list. 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 Repair Program can cover 100% of costs up to $15,000 for homeowners to make home repairs required to complete a weatherization project through the Home Performance with Energy Star program (see below). These repairs can include, but are not limited to:
    • Roof repair
    • Drainage
    • Remediation of asbestos, vermiculite, mold, etc.
    • Foundation repair
  • Efficiency Vermont Home Performance with Energy Star program can cover up to 90% of project costs up to $9,500, depending on income, for weatherization projects done with an Efficiency Excellence Network contractor that result in at least a 10% reduction in air leakage.
    • Low-income households: Up to 90% of project costs or $9,500, whichever is less.
    • Moderate-income households: Up to 75% of project costs or $9,500, whichever is less.
    • All other households: Up to 75% of project costs or $4,000, whichever is less.
  • 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.
  • Inflation Reduction Act (IRA) Home Rebate Programs — Available starting July 2025
    • Home Efficiency Rebates (HOMES) Program — This program will be administered via the state’s WAP program (see above). It will provide rebates of up to $16,000 to low-income households for projects achieving at least 35% modeled energy savings. 
    • Home Electrification and Appliance Rebates (HEAR) program will provide point-of-sale consumer rebates to enable low- and moderate-income households to install heat pumps. 
      • Low-income households are eligible for up to $8,000 in incentives for heat pump installation. This will be administered through Vermont’s WAP program (see above). 
      • Moderate-income households are eligible for up to 50% of project costs or $8,000, whichever is less, to install heat pumps. This will be a new rebate program administered by Efficiency Vermont. 

Updated December 2024