The short version
Heat pump incentives in Vermont depend on the electric utility, equipment type, capacity, customer income and installation rules. Burlington Electric customers should begin with BED. Many other customers begin with Efficiency Vermont and their utility. BED's current heat pump page lists separate offers for ductless, centrally ducted and air-to-water systems, including enhanced income-qualified amounts and installed-cost caps, and its 2026 terms require eligible equipment, professional purchase channels and permits. Customers on other utilities generally start with Efficiency Vermont's instant discounts for qualifying equipment, layered with utility- and income-dependent bonuses.
Burlington Electric Department customers
Program amounts and rules can change. Confirm the current BED page and written project eligibility before relying on a rebate.
Other Vermont electric customers
Efficiency Vermont currently lists instant discounts for qualifying ductless and ducted heat pumps, plus utility- and income-dependent bonuses. Air-to-water heat pumps have a separate offer. Customer ZIP, utility and equipment list status matter.
The published amounts side by side
Amounts are exactly as the issuing program publishes them; check the program's page before signing, because funding and eligible-equipment lists change.
| Incentive | Amount | Income-eligible bonus | Limits | Program |
|---|---|---|---|---|
| Ductless heat pumps (mini-splits) | $375–$475 instant discount | Additional bonus for income-eligible Vermonters | — | Efficiency Vermont |
| Ducted heat pumps | $1,200–$2,200 instant discount | Additional bonus for income-eligible Vermonters | — | Efficiency Vermont |
| Heat-pump water heaters | $600 discount, up to $1,000 total | Up to an additional $400 for income-eligible Vermonters | — | Efficiency Vermont |
| Heat pump (GMP addresses: income-qualified) | $2,000 per condenser | The rebate itself is the income-qualified benefit | Household gross income at or below 80% AMI; thresholds published by GMP as 2025 figures | Green Mountain Power |
| Mini-split heat pump (Burlington addresses only) | $2,100 or $2,500 | Income-qualified adders of $400–$500 | Limit 2 rebates per household or business; capped at 75% of installed cost | Burlington Electric Department |
| Centrally ducted heat pump (Burlington addresses only) | $1,350–$5,450 (high performance) | $500 income-qualified bonus | Limit 1 rebate per household or business | Burlington Electric Department |
| Air-to-water heat pump (Burlington addresses only) | Up to $12,000 ($2,000 per ton) | $400 income-qualified adder | Limit 1 rebate per household or business | Burlington Electric Department |
| Heat pump: thermal efficiency adder (VEC addresses) | $150 adder, plus the statewide Efficiency Vermont discount | — | The $150 adder requires the building to meet VEC's stated thermal efficiency criteria; apply through VEC's own form, separate from the Efficiency Vermont application | Vermont Electric Cooperative |
Federal credit timing
Current IRS guidance says the Energy Efficient Home Improvement Credit cannot be claimed for property placed in service after December 31, 2025. A 2026 proposal should not quietly subtract the former federal heat pump credit.
Compare the real net project cost
Separate contractor price, point-of-sale discount, customer-filed rebate, income bonus, financing, electrical work, weatherization and any retained heating system. Ask who files each form and what documentation is required.
What to document before service
A clear record helps a professional understand the pattern before changing the system.
- Service address, ZIP and electric utility
- Proposed equipment model numbers and capacities
- AHRI or approved-equipment-list documentation
- Contractor quote with electrical and non-equipment work separated
- Income-qualification status when relevant
- Permit, invoice and installation-date requirements
What a complete evaluation should establish
An incentive review should separate an instant distributor discount from a utility rebate, income bonus, financing offer and tax provision. Confirm who receives each benefit, whether incentives can be combined, the installed-cost cap, eligible contractor or purchase-channel rules, and what happens if the final equipment differs from the quote.
After the work
Keep the signed proposal, model and serial numbers, AHRI certificate when applicable, invoices, proof of payment, permit closeout and all incentive correspondence. Recheck the issuing program immediately before signing and again before equipment is ordered because funding, lists and rules can change during a project.
Verify current details
Confirm anything time-sensitive on the issuing agency or utility page before you rely on “Vermont heat pump rebates and incentives for 2026” for a project.
Common questions
How much is the Burlington heat pump rebate in 2026?
BED lists multiple amounts based on ductless, ducted or air-to-water equipment, size and income eligibility. Confirm the current table for the exact project.
Can Burlington customers use Efficiency Vermont rebates?
Some statewide offers exclude or differ for BED customers. Start with BED and confirm whether any Efficiency Vermont offer can also apply.
Is the old federal $2,000 heat pump credit available in 2026?
Current IRS guidance says the Energy Efficient Home Improvement Credit is not available for property placed in service after December 31, 2025.
Does every heat pump qualify?
No. Equipment-list, capacity, performance, purchase channel, contractor, utility and installation rules apply.
What should I ask a contractor about rebate paperwork?
Whether each exact indoor and outdoor model is eligible, who files each form and when, whether the amount is deducted now or reimbursed later, which electrical, weatherization or backup-heat costs are excluded, and what documentation the homeowner must keep.