What is the Vermont insulation rebate?

Efficiency Vermont offers up to 90% cash back on weatherization projects including insulation and air sealing through the end of 2026, or while limited-time funding lasts.

Are Vermont energy rebates income-based?

Some Vermont programs are income-based. The Weatherization Assistance Program (WAP) is for low-income households. Income bonuses are available for households below 80% and 150% AMI. Many Efficiency Vermont rebates are available regardless of income.

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23 Programs Verified · Updated July 2026

Vermont Home Energy Rebates 2026–2027

Q: Do federal energy tax credits still apply in Vermont in 2026?

The federal 25C and 25D tax credits expired December 31, 2025 under the One Big Beautiful Bill Act. Vermont state and utility rebates through Efficiency Vermont remain active in 2026.

Vermont has the most generous state energy rebate program in the U.S. with 23 verified programs through Efficiency Vermont. Up to $2,200 for heat pumps, 90% back on insulation, and $600 on water heaters.

Get My Personalized VT Report →See All 23 Programs ↓

Programs available

$2,200

Max heat pump rebate

90%

Insulation cash back

$9,500

Max weatherization

Vermont Energy Rebates Overview

Vermont has one of the strongest home energy incentive programs in the country, primarily administered by Efficiency Vermont — the nation's first statewide energy efficiency utility. In 2026, Efficiency Vermont is offering increased weatherization incentives of up to 90% cash back on insulation and air sealing, available through the end of 2026 or while funding lasts.

Vermont homeowners can access rebates for heat pumps, insulation, air sealing, water heaters, appliances, and more — without income requirements for most programs. Income-qualified households can stack additional bonuses for significantly higher total savings.

⚠ Important — Federal Tax Credits Expired

The federal 25C Energy Efficient Home Improvement Credit and 25D Residential Clean Energy Credit both expired December 31, 2025 under the One Big Beautiful Bill Act. Vermont state and utility rebates through Efficiency Vermont remain fully active in 2026.

Top Vermont Rebates at a Glance

🌡️

Ducted Heat Pump

Up to $2,200

Point-of-sale discount through participating contractor

All households

💨

Ductless Mini-Split

Up to $475/head

Instant discount at participating distributor

All households

🏠

Insulation & Air Sealing

Up to 90% (max $9,500)

Limited-time funding — ends 2026 or while supply lasts

Low/moderate income

🏠

Insulation & Air Sealing

Up to 75% (max $4,000)

Standard program for all homeowners

All homeowners

💧

Heat Pump Water Heater

$600

Plus up to $400 income bonus for eligible households

All households

🌿

Ground Source Heat Pump

$2,100 per ton

Through participating Efficiency Excellence Network contractor

All households

🪵

Wood & Pellet Stove

$400

Instant rebate at participating retailers

All households

🌡️

Smart Thermostat

Up to $100

ENERGY STAR certified models

All households

Income Tiers & Eligibility

Many Vermont programs offer enhanced rebates for income-eligible households. Here's how the tiers work:

Under 80% AMI

Maximum eligibility

Free weatherization services through WAP. Up to $9,500 on insulation. Maximum income bonuses on heat pumps.

80–150% AMI

Enhanced eligibility

Up to 75–90% off insulation projects. HEAR rebates up to $8,000 for heat pumps. Income bonus rebates available.

Above 150% AMI

Standard eligibility

Standard Efficiency Vermont rebates available to all. $2,200 heat pump, 75% insulation up to $4,000, $600 water heater.

All 23 Vermont Programs (2026–2027)

Data sourced from Rewiring America API · Verified July 2026 · Always confirm current amounts at efficiencyvermont.com

Program	Applies To	Benefit	Income
Efficiency Vermont Ducted Heat Pump Rebate Point-of-sale rebate View Official Program →	Ducted heat pump	Up to $2,200	All households
Efficiency Vermont Ductless Heat Pump Rebate Point-of-sale rebate View Official Program →	Ductless mini-split	Up to $475	All households
Home Performance with ENERGY STAR Rebate View Official Program →	Insulation, Air Sealing	Up to 90% (max $9,500)	Low/moderate income
Home Performance with ENERGY STAR (Standard) Rebate View Official Program →	Insulation, Air Sealing	Up to 75% (max $4,000)	All homeowners
Efficiency Vermont Heat Pump Water Heater Rebate View Official Program →	Heat pump water heater	$600	All households
Heat Pump Water Heater Income Bonus (BED) Rebate View Official Program →	Heat pump water heater	+$400	Income-eligible (BED customers)
EV Ducted Heat Pump Income Bonus Rebate View Official Program →	Ducted heat pump	+$2,200	Low/moderate income
EV Ductless Heat Pump Income Bonus Rebate View Official Program →	Ductless heat pump	+$2,200	Low/moderate income
EV Ground Source Heat Pump Rebate Rebate View Official Program →	Geothermal heat pump	$2,100/ton	All households
EV Air-to-Water Heat Pump Rebate Rebate View Official Program →	Air-to-water heat pump	Up to $6,000	All households
EV Wood & Pellet Stove Rebate Point-of-sale rebate View Official Program →	Wood/pellet stove	$400	All households
EV Central Wood Pellet Boiler Rebate Rebate	Wood pellet boiler	$6,000	All households
EV Smart Thermostats Rebate	Smart thermostat	Up to $100	All households
EV DIY Weatherization Rebate Rebate	Insulation, Air Sealing (DIY)	$100	All households
EV Dehumidifier Rebate Point-of-sale rebate	Dehumidifier	Up to $90	All households
EV High-Performance Circulator Pump Point-of-sale rebate	Circulator pump	Up to $1,500	All households
EV Integrated Controls Rebate Rebate	Heat pump controls	Up to $600	All households
EV Clothes Dryer Rebate Rebate	Heat pump dryer	Up to $400	All households
EV Washer & Dryer Combo Rebate Rebate	Heat pump dryer	Up to $400	All households
State Weatherization Assistance Program Assistance program View Official Program →	Insulation, Air Sealing, Energy Audit	Free services	Low income (under 80% AMI)
VT HEAR — Heat Pump Rebate (Moderate Income) Rebate View Official Program →	Heat pump	Up to $8,000	80–150% AMI
EV Window AC Rebate Rebate	Window AC	Up to $150	All households
EV LEDs for Indoor Growing Rebate	LED fixtures	Up to $100	All households

How to Apply for Vermont Energy Rebates

Find a participating contractor

Most Efficiency Vermont rebates require installation by a contractor in the Efficiency Excellence Network. Visit efficiencyvermont.com to find one near you.

Get a home energy assessment (optional)

For insulation and weatherization projects, an energy audit helps identify the best upgrades and confirms eligibility. Efficiency Vermont offers free Virtual Home Energy Visits.

Choose qualifying equipment

For heat pumps, look for ENERGY STAR Cold Climate certification. Your contractor will confirm which models qualify for each rebate program.

Apply for the rebate

For most Efficiency Vermont programs, the rebate is applied as an instant point-of-sale discount — you pay less upfront. Your contractor handles the paperwork.

Check for income bonuses

If your household income is below 80% or 150% AMI, ask your contractor about additional income bonuses that can significantly increase your total savings.

Vermont Energy Rebate FAQs

How much is the Vermont heat pump rebate in 2026?

Efficiency Vermont offers up to $2,200 for ducted heat pumps and up to $475 per head for ductless mini-splits. Burlington Electric customers may qualify for up to $7,950 for income-qualified ducted systems. Additional income bonuses of up to $2,200 are available for households below 80% and 150% AMI.

Is the 90% insulation rebate still available?

Yes — as of July 2026, Efficiency Vermont is offering up to 90% cash back on weatherization (insulation and air sealing) through limited-time funding from the Vermont Department of Public Service. This is available through the end of 2026 or while funding lasts. Act quickly as this is a limited-time offer.

Can I combine multiple Vermont rebates?

Yes. Vermont rebate programs are designed to stack. For example, you can receive the standard heat pump rebate plus an income bonus, plus a water heater rebate, plus insulation rebate — all on the same project. Your contractor will help identify all available rebates.

Do Vermont rebates apply to renters?

Some programs, like the Weatherization Assistance Program, are available to renters. Most Efficiency Vermont equipment rebates (heat pumps, water heaters) are available to both homeowners and renters, though landlord approval may be required.

What happened to the federal energy tax credits?

The federal 25C (Energy Efficient Home Improvement) and 25D (Residential Clean Energy) credits both expired December 31, 2025. Vermont state and utility rebates through Efficiency Vermont are not affected and remain fully available in 2026.

Vermont · 23 Programs Verified

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This guide is for educational purposes only. Program details, amounts, and eligibility requirements change frequently. Always verify current information directly with Efficiency Vermont (efficiencyvermont.com) or your utility provider before starting a project. Data sourced from Rewiring America API and official program documentation, verified July 2026.