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Energy Rebates in Vermont
Vermont residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in Vermont, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.
Federal Programs Available in Vermont
- 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
- 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
- HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
- 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.
Vermont Energy Rebate Overview
Vermont households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. Vermont has launched both the HOMES (Home Owner Managing Energy Savings) and HEAR (High-Efficiency Electric Home Rebate) programs under the Inflation Reduction Act, making additional point-of-sale rebates available to qualifying residents. The Vermont Department of Public Service coordinates state-level energy programs and can provide the latest information on available incentives.
HOMES & HEAR Program Status in Vermont
Vermont has launched its HOMES and HEAR rebate programs under the Inflation Reduction Act. Efficiency Vermont, the state's energy efficiency utility, is a key partner in administering these programs alongside the Vermont Department of Public Service, providing rebates for whole-home efficiency and high-efficiency electric equipment.
Income Eligibility for Vermont Rebates
For Vermont, 80% of Area Median Income varies by county. In Chittenden County (Burlington), 80% AMI for a family of four is approximately $73,200. In Rutland County, it is approximately $60,400.
For Vermont, 150% of Area Median Income varies by county. In Chittenden County (Burlington), 150% AMI for a family of four is approximately $137,250. In Rutland County, it is approximately $113,250.
Vermont State Tax Credits
Vermont Sales Tax Exemption for Renewable Energy
Amount: 100% exemption from Vermont's 6% sales and use tax on renewable energy equipment
Eligible items: Solar photovoltaic panels, solar hot water systems, wind turbines, and other renewable energy generation equipment
Vermont exempts sales of renewable energy equipment from the state sales and use tax, reducing the upfront cost of installation.
Vermont State Rebate Programs
Efficiency Vermont Residential Programs
Administered by: Efficiency Vermont (operated by Vermont Energy Investment Corporation - VEIC)
Amount: Up to $3,000 for heat pumps, up to $4,000 for weatherization, $300-$800 for heat pump water heaters, $50-$200 for appliances
Eligible items: Cold-climate heat pumps (ductless and ducted), insulation, air sealing, heat pump water heaters, smart thermostats, ENERGY STAR appliances, windows
Efficiency Vermont is the nation's first statewide energy efficiency utility. It provides rebates, technical assistance, and financing options for residential energy efficiency improvements. Enhanced rebates are available for income-qualifying households.
Weatherization Assistance Program
Administered by: Vermont Office of Economic Opportunity
Amount: Average expenditure of approximately $8,500 per home
Eligible items: Insulation, air sealing, heating system repair or replacement, windows, doors, health and safety improvements
Federally funded program for income-qualifying households at or below 200% of federal poverty level. Administered through community action agencies.
Solar Net Metering in Vermont
Vermont has a robust net metering program for systems up to 500 kW. Residential customers receive credit for excess generation at a rate that includes an adjustor based on siting and technology. Credits can be carried forward indefinitely. Vermont's net metering rules are among the most favorable in the country.
Utility Rebate Programs in Vermont
Vermont residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:
Green Mountain Power (GMP)
GMP Bring Your Own Device Program
Amount: Up to $1,000 rebate for battery storage, discounted Tesla Powerwall at $5,500
Eligible items: Home battery storage systems (Tesla Powerwall, Enphase, etc.) that participate in grid peak management
GMP Heat Pump Programs
Amount: Additional utility incentives stacked with Efficiency Vermont rebates
Eligible items: Cold-climate heat pumps for space heating and cooling
GMP EV Charging Rebate
Amount: Up to $400 for Level 2 home EV charger
Eligible items: Level 2 (240V) home electric vehicle charging stations
Vermont Electric Cooperative
Residential Efficiency Programs
Amount: Varies; coordinates with Efficiency Vermont rebates
Eligible items: Heat pumps, insulation, ENERGY STAR appliances, heat pump water heaters
Burlington Electric Department
BED Residential Rebates
Amount: Additional incentives beyond Efficiency Vermont, varies by measure
Eligible items: Heat pumps, heat pump water heaters, insulation, weatherization, EV chargers
Get Personalized Vermont Rebate Guidance
Enter your ZIP code below to chat with our AI about rebates specific to your area in Vermont. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.
Frequently Asked Questions About Vermont Rebates
What energy rebates are available in Vermont?
Vermont residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include Efficiency Vermont Residential Programs, Weatherization Assistance Program. Vermont has also launched the federal HOMES and HEAR rebate programs for income-qualifying households.
Has Vermont launched the HOMES and HEAR rebate programs?
Vermont has launched its HOMES and HEAR rebate programs under the Inflation Reduction Act. Efficiency Vermont, the state's energy efficiency utility, is a key partner in administering these programs alongside the Vermont Department of Public Service, providing rebates for whole-home efficiency and high-efficiency electric equipment.
What are the income limits for energy rebates in Vermont?
For Vermont, 80% of Area Median Income varies by county. In Chittenden County (Burlington), 80% AMI for a family of four is approximately $73,200. In Rutland County, it is approximately $60,400. For Vermont, 150% of Area Median Income varies by county. In Chittenden County (Burlington), 150% AMI for a family of four is approximately $137,250. In Rutland County, it is approximately $113,250.
Does Vermont have net metering for solar panels?
Vermont has a robust net metering program for systems up to 500 kW. Residential customers receive credit for excess generation at a rate that includes an adjustor based on siting and technology. Credits can be carried forward indefinitely. Vermont's net metering rules are among the most favorable in the country.
How do I apply for energy rebates in Vermont?
Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the Vermont Department of Public Service. For utility rebates, check with your local utility provider directly.
Explore Nearby States
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