Estimated Savings for a Typical Vermont Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$17,500
State Rebate
-$2,400
Net Cost
$15,100
Current Heating Cost/yr
$5,430
Heat Pump Cost/yr
$2,468
Annual Savings
$2,962
Payback Period
5.1 yrs
15-Year Savings
$41,634
CO₂ Avoided/yr
12,715 lbs
Vermont Heat Pump Rebates
✕
Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $2,400
Vermont State/Utility Rebate
Vermont utilities and Efficiency Vermont offer roughly $2,400 for cold-climate heat pumps.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by Vermont. View full rebate detail →
Heat Pump Costs by City in Vermont
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Burlington | $2,861 | 5.3 | 44,743 | Green Mountain Power |
| South Burlington | $2,808 | 5.4 | 19,814 | Green Mountain Power |
| Rutland | $2,805 | 5.4 | 15,807 | Green Mountain Power |
| Bennington | $2,889 | 5.2 | 15,764 | Green Mountain Power |
| Brattleboro | $3,531 | 4.3 | 11,765 | Green Mountain Power |
| Essex Junction | $3,107 | 4.9 | 10,590 | Green Mountain Power |
| Middlebury | $3,436 | 4.4 | 8,862 | Green Mountain Power |
| Barre | $3,222 | 4.7 | 8,552 | Green Mountain Power |
| Montpelier | $3,260 | 4.6 | 7,855 | Green Mountain Power |
| St. Johnsbury | $3,192 | 4.7 | 7,007 | Green Mountain Power |
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Quick Facts: Vermont
- 🌡️ Climate: Very Cold (7,800 HDD)
- ⚡ Avg electricity: $0.198/kWh
- 🔥 Natural gas: $2.00/therm
- 🏭 Top utility: Green Mountain Power