Vermont offers heat pump rebates through Efficiency Vermont, including up to $2,000 for cold-climate heat pump installations. Green Mountain Power customers can receive additional incentives of up to $1,500.
Vermont Heat Pump Rebates & Incentives 2025
Everything you need to know about heat pump rebates, tax credits, and incentives available in Vermont.
Quick Summary
| Program Type | Max Savings | Source |
|---|---|---|
| Efficiency Vermont Heat Pump Rebate | $2,000 | State Program |
| Federal 25C Tax Credit | $2,000 | Federal Credit |
| Green Mountain Power Heat Pump Program | $1,500 | Utility |
* Savings estimates based on typical installations. Actual amounts vary by equipment, income, and location.
Detailed Program Information
Efficiency Vermont Heat Pump Rebate
State$2,000
Up to $2,000 for cold-climate heat pump installation. Higher rebates for replacing fossil fuel systems.
View official program page →Federal 25C Tax Credit
Federal$2,000
30% federal tax credit up to $2,000 for Energy Star heat pumps.
View official program page →Green Mountain Power Heat Pump Program
Utility$1,500
GMP customers receive up to $1,500 for qualifying heat pump systems with smart controls.
View official program page →Eligibility Requirements
- ✓Equipment: Heat pump must be on the qualifying products list (Energy Star certified, cold-climate rated for most state programs).
- ✓Installation: Must be installed by a licensed, insured HVAC contractor. DIY installations typically do not qualify.
- ✓Existing Home: Most programs require installation in an existing home (new construction may have separate incentives).
- ✓Income Limits: Enhanced rebates are available for income-qualified households (typically ≤80% of area median income).
- ✓Home Type: Single-family homes, condos, and multifamily buildings may qualify depending on the program.
Income-Limited Programs
| Program | Income Limit | Max Rebate |
|---|---|---|
Vermont Low-Income Heat Pump Program Comprehensive heat pump installation for income-qualified Vermonters through Efficiency Vermont. | 60% of state median | $12,000 |
How to Apply for Vermont Heat Pump Rebates
Check Eligibility
Review the eligibility requirements above. Most Vermont programs require you to own your home and use a licensed contractor.
Choose Qualifying Equipment
Select a heat pump model from the program's qualifying products list. Cold-climate models are recommended for optimal performance.
Get Multiple Quotes
Contact at least 3 licensed HVAC contractors for installation quotes. Compare pricing and ask about rebate handling.
Confirm Rebate Details
Ask your contractor if they offer instant rebates (applied at purchase) or if you need to submit a post-installation application through Efficiency Vermont Heat Pump Rebate.
Schedule Installation
Work with your chosen contractor to schedule the installation. Ensure they handle all permits and inspections.
Submit Documentation
File any required post-installation paperwork including receipts, equipment specs, and contractor details. Apply for the federal 25C tax credit when filing your taxes.