Vermont heat-pump rebates, explained.

Ducted rebates vary with system size.

Efficiency Vermont lists centrally ducted heat-pump discounts of $1,200 for systems up to two tons, $1,700 for systems over two but under four tons, and $2,200 for systems of four tons or more. Burlington Electric Department has a separate baseline schedule. Check the electric utility before using these figures.

Efficiency Vermont: centrally ducted heat pumps · Source checked 2026-09-06

The equipment and purchase route matter.

Eligible new equipment must be installed in Vermont and appear on the qualified product list at purchase. The contractor obtains the instant discount through a participating distributor. Confirm the indoor and outdoor model combination and installation configuration; an eligible outdoor model alone is not a complete project approval.

Efficiency Vermont: centrally ducted heat pumps · Source checked 2026-09-06

Ductless rebates count systems, not indoor heads.

The published ductless discount is $375 for a system up to two tons and $475 for a system over two tons. A system means an outdoor unit with one or more indoor units. Burlington Electric’s listed baseline is different, at $350–$450.

For example, several indoor units connected to one outdoor unit do not automatically create several separate rebates. Ask the contractor to identify each eligible system on the equipment schedule.

Efficiency Vermont: ductless heat pumps · Source checked 2026-09-06

Ask about income and utility bonuses.

Efficiency Vermont lists income bonuses of $200–$2,200, depending on utility and income tier. Its centrally ducted page identifies $2,200 for eligible low-income Green Mountain Power customers, $1,000 for eligible VPPSA customers, and $200 for other eligible utilities. Rental-property owners and Burlington Electric customers are excluded from this particular bonus.

Efficiency Vermont: centrally ducted heat pumps · Source checked 2026-09-06

Use the current income limits.

The ductless program page notes new income limits effective July 1, 2026. Confirm household qualification using the current application, and ask whether any utility-specific incentive can combine with the equipment discount for your exact project.

Efficiency Vermont: ductless heat pumps · Source checked 2026-09-06

Track where the discount appears.

Request a proposal showing the full equipment and installation price, each expected incentive, and your remaining payment. If a discount is already included in the contractor’s price, do not subtract it a second time in your own budget.

Ask whether the proposed layout will serve every room you expect to heat. For ducted work, discuss the condition and capacity of the existing ducts. For ductless work, review indoor-unit placement and how closed bedrooms will be served. Record the answers alongside the rebate estimate.

Confirm the final combination.

Sources were checked September 6, 2026. Utility and income rules can change the result. Temperaly does not approve rebates; confirm the final incentive combination with the program before work begins.