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Vermont · checked October 20, 2026

Heat pump water heater rebates in Vermont

1 program pays toward a heat pump water heater in Vermont right now, with 2 separate offers between them. The largest stated amount is $1,000, from Efficiency Vermont heat pump water heater discount (Income-eligible). The federal 25C credit for this upgrade ended on December 31, 2025, so the state and utility money below is what is left.

Run the calculator All Vermont rebates

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  1. 1Heat pump water heater $1,000
  2. 2Air-source heat pump $4,000
  3. 3Insulation and air sealing $7,000
  4. 4Home EV charger $1,000
Open programs
1
Largest stated amount
$1,000
Income-qualified offers
1
Federal credit
Ended December 31, 2025
Income-eligible$1,000Standard$600
Vermont heat pump water heaters: the largest amount each open offer states (per-ton and per-zone offers drawn for a 3-ton system or 2 zones). Bars to scale from zero.

What Vermont pays for heat pump water heaters

Efficiency Vermont heat pump water heater discount Open

Run by Efficiency Vermont with participating utilities · for customers of 6 utilities

  • Standard: $600 off from your utility or Efficiency Vermont
  • Income-eligible: Up to $1,000 off ($600 plus up to $400) income-qualified

Conditions on the program page: Funded by Burlington Electric, Green Mountain Power, Stowe Electric, Vermont Electric Co-op, VPPSA and Washington Electric Co-op.

Source: Efficiency Vermont: Heat pump water heaters. Last checked October 20, 2026. Official program page.

Worked example: one Vermont home

Take one heat pump water heater replacing an electric tank. These are example inputs, not typical prices. Each program's own rule gives the amounts below; where one program has several tiers only the largest one counts, separate programs add up, and a percentage offer with no cost entered is shown at its ceiling.

UtilityNot income-qualifiedModerate incomeLow income
Green Mountain Power$600$1,000$1,000
Burlington Electric Department$600$1,000$1,000
Stowe Electric Department$600$1,000$1,000
Vermont Electric Co-op$600$1,000$1,000
VPPSA member utility$600$1,000$1,000
Washington Electric Co-op$600$1,000$1,000

For a household that is not income-qualified, the example comes to $600, made of $600 from Efficiency Vermont water heaters (Standard). A household that meets a program's low-income definition gets $400 more in the same example, because 1 offer is paid at the income-qualified level. All 6 listed utilities come out the same, because the money comes from a shared program.

Who can use these Vermont offers

Every household in Vermont covered by Efficiency Vermont can apply; the offers are not limited to one utility's territory. None of these program pages lists an end date, and each can change or stop while funds last.

Federal credit and state IRA rebates

The Energy Efficient Home Improvement Credit (IRC §25C) paid 30% of cost, up to $2,000 a year (shared with heat pumps). The IRS page says: “can claim the credit for improvements made through December 31, 2025.” Not allowed for property placed in service after December 31, 2025. Source: IRS: Energy Efficient Home Improvement Credit, 26 U.S.C. §25C, as amended by Public Law 119-21 (July 4, 2025). See what the credit covered and when it ended.

Vermont IRA home energy rebates (HOMES and HEAR): Not launched. The department says “It's recommended not to plan on HEAR funds for future projects at this time” (updated May 2025). HOMES is planned through the Weatherization Assistance Program. Source: Vermont DPS: IRA weatherization and electrification (updated May 2025).

How Vermont compares

6 of the other 14 covered states list a larger top amount for heat pump water heaters. Open elsewhere: California $4,000; Connecticut $1,900; North Carolina $1,750; Massachusetts $1,500; Maine $1,200; Oregon $1,200; Texas $1,000; New Hampshire $900; Rhode Island $625; Arizona $500; Pennsylvania $500; Wisconsin $300. No open, sourced offer is listed in 2 other covered states (Florida, Michigan). Compare them on the heat pump water heater rebates by state page.

Other upgrades in Vermont: air-source heat pump, insulation and air sealing, home EV charger, induction range or cooktop. Background: how rebates stack and the federal credit status.

Rebates are set by each program and can change or close without notice; the program's own page and application decide what is paid. This page is information, not tax, legal or financial advice. Amounts last checked October 20, 2026.