Vermont Energy Rebates 2026
Vermont homeowners in 2026 can access federal HEAR and HOMES rebates administered by Efficiency Vermont (one of the world's first statewide efficiency utilities), plus utility programs from Green Mountain Power. Vermont is a national leader in heat pump adoption with among the highest per-capita heat pump installations in the US. The 25C and 25D federal tax credits expired December 31, 2025. Vermont's aggressive clean energy and electrification goals support robust rebate programs.
HOMES Rebate Program in Vermont
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
HOMES rebates are administered by Efficiency Vermont. Provides up to $4,000 for 20–35% whole-home energy savings and up to $8,000 for 35%+ savings. Income-qualified households (≤80% AMI) receive doubled amounts. Vermont's Energy Efficiency Utility (Efficiency Vermont) has decades of experience coordinating state and federal efficiency programs.
HEAR (HEEHRA) Rebates in Vermont
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Vermont State Incentive Programs
Efficiency Vermont Heat Pump Rebates
Efficiency Vermont, the nation's first statewide energy efficiency utility, offers rebates for qualifying heat pumps regardless of income. Cold-climate ductless mini-splits and ducted heat pumps both qualify. Efficiency Vermont coordinates with HEAR rebates for income-qualifying households and Green Mountain Power incentives for maximum stacking.
Learn moreGreen Mountain Power Bring Your Own Device (BYOD)
Green Mountain Power offers innovative programs including the Heat Pump Water Heater BYOD program, which provides upfront discounts or bill credits for customers installing qualifying heat pump water heaters that GMP can briefly cycle off during grid peak events. Additional EV and battery programs available.
Learn moreVermont Weatherization Assistance Program
Vermont's WAP (administered through local Community Action Agencies) provides free insulation, air sealing, and health/safety improvements for income-qualified households. Vermont's severely cold winters make weatherization extremely high-value and qualifying projects often achieve 35%+ energy savings needed for maximum HOMES rebates.
Learn moreArea Median Income (AMI) in Vermont
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Burlington-South Burlington MSA | $76,640 | $143,700 |
| Non-metro Vermont | $70,640 | $132,450 |
Frequently Asked Questions
What energy rebates are available in Vermont in 2026?
Vermont homeowners in 2026 can stack: (1) Efficiency Vermont heat pump rebates (income-independent); (2) Federal HEAR rebates for heat pumps (up to $8,000), heat pump water heaters ($1,750), insulation ($1,600), and electrical panels ($4,000) for income-qualified households (≤150% AMI); (3) HOMES whole-home performance rebates up to $8,000; (4) Green Mountain Power demand response incentives; (5) Free weatherization for income-qualified households. The 25C and 25D federal tax credits expired December 31, 2025.
Are federal tax credits still available in Vermont?
No. The One Big Beautiful Bill Act (OBBBA, P.L. 119-21, signed July 4, 2025) terminated the Section 25C and 25D federal energy tax credits for installations after December 31, 2025. Vermont's own Efficiency Vermont and Green Mountain Power programs remain active and can be stacked with HEAR and HOMES federal rebates.
What is Efficiency Vermont and how is it different from HEAR?
Efficiency Vermont is the nation's first statewide energy efficiency utility, funded by a small charge on Vermont electric bills. Unlike HEAR (which has income limits), Efficiency Vermont rebates are available to all Vermont residents regardless of income. They can be stacked with HEAR rebates for income-qualifying households. Efficiency Vermont also provides technical assistance and contractor referrals, making it an excellent starting point for any Vermont home energy project.
Is Vermont a good state for replacing oil heat with a heat pump?
Yes — Vermont's oil heating replacement economics are among the best in the country. Vermont has high oil dependency (~30% of homes heat with oil), high electricity rates (~20¢/kWh), but modern cold-climate heat pumps are highly efficient even in Vermont's severe winters. The combination of Efficiency Vermont rebates (income-independent) + HEAR rebates (up to $8,000 for qualifying households) + weatherization improvements creates a compelling total investment case, with many households achieving payback under 7 years.
What cold-climate heat pumps work best in Vermont winters?
Vermont winters regularly see temperatures below -10°F (-23°C). Efficiency Vermont requires heat pumps to meet cold-climate ENERGY STAR specs (rated at -13°F). Top-performing brands in Vermont include Mitsubishi Hyper Heat, Fujitsu Halcyon, Bosch, and Daikin. Efficiency Vermont publishes a list of currently qualifying models. Vermont has one of the most experienced cold-climate heat pump installer networks in the US — the Efficiency Vermont website includes a directory of registered heat pump installers.
How to Claim Your Vermont Rebates
