What pays for a heat pump water heater in Burlington
We re-read Efficiency Vermont's heat pump water heater page, the utility pages that link to it and Burlington Electric's pages on October 5, 2026. Amounts are maximums.
Efficiency Vermont heat pump water heater
A $600 discount or rebate, plus $400 more for income-eligible households. Applies to qualifying heat pump water heaters (effective August 16, 2025). BED customers are not eligible for Efficiency Vermont's income bonus on heat pumps, so ask BED whether the extra $400 applies to you.
BED partner offer
Efficiency Vermont's partner table lists up to $1,200 for Burlington Electric customers on a heat pump water heater. BED's own water heater page mentions only the $600 statewide discount.
BED contractor discount
BED's rebate page lists up to $800 cash back for heat pump water heaters bought at an HVAC distributor, paid to the contractor at purchase. Ask your installer whether it was passed on.
Free tank wrap and showerheads
For electric resistance water heaters. BED says a wrap and low-flow showerheads can save up to $75 a year. Do not wrap gas or propane tanks.
Home Energy Loan
Efficiency Vermont lists a Home Energy Loan from 0% interest alongside its small-appliance rebates. Ask whether a water heater project qualifies.
Three BED and Efficiency Vermont figures do not line up: $600, up to $800 and up to $1,200. They may describe different channels, such as a discount at purchase versus a post-purchase rebate. We cannot tell which stack, so ask BED Energy Services for the total for your address and keep the quote.
What Burlington homes heat with
The Census Bureau's 2020 to 2024 American Community Survey counts 12,342 Burlington households (71%) heating mainly with natural gas and 3,387 (19%) with electricity. It does not count the fuel for water heating, so check your own bill or tank label. If your tank is electric, a heat pump unit is the clearest upgrade. If it is gas, BED's page suggests an add-on storage tank on your boiler or a heat pump water heater as alternatives to a stand-alone gas tank.
Why a heat pump water heater saves
BED says heat pump water heaters can be two to three times as efficient as a standard electric resistance water heater. Its laundry page puts the saving at 30% to 50% less energy than a standard electric tank. They also pull heat from the air around them, which is why Green Mountain Power describes them as a water heater and a dehumidifier in one. That helps in a damp basement.
Renters, condos and shared systems
58% of Burlington households rent, and 33% of housing units are in buildings of five or more units. A tenant usually cannot choose the water heater. A landlord who owns a small building with separate tanks can take the same rebates. In a large building with one central system, the rebate pages we read do not say what applies, so ask BED.
The panel and the hot-water load
A heat pump water heater draws far less power than an electric resistance tank, but it still needs a circuit. BED's electric panel upgrade guide, which also covers heat pumps and EV chargers, is the place to start if your service is already full. BED may charge for the disconnect and reconnect during a panel change.
Do it with the heat pump
If you are already planning a space-heating heat pump (see the Burlington heat pump guide), ask the contractor to quote the water heater in the same visit. It does not change the rebate amounts, but one set of site visits and one invoice is simpler than two.
How to claim a water heater rebate in Burlington
- Check which fuel heats your water today, and the age of the tank.
- Choose a heat pump model on Efficiency Vermont's qualifying list and ask the installer to apply the discount on the invoice.
- Confirm the installation spot has the space and drainage the unit needs.
- If your income may qualify, ask Efficiency Vermont about the extra $400 before you order.
- Keep the invoice and model number for your records.
Common questions
How much is the heat pump water heater rebate in Burlington?
Efficiency Vermont lists $600, up to $1,000 for income-eligible households. BED customers may see up to $1,200 in partner offers, and BED's own page mentions $600, so confirm with BED.
Does BED give anything for an old electric tank?
BED provides a free tank wrap and low-flow showerheads for electric resistance water heaters, saving up to $75 a year by its estimate.
What if I heat my water with gas?
BED suggests an add-on storage tank on your boiler or a heat pump water heater instead of a new stand-alone gas tank. Compare operating costs before switching.
Can I get the rebate as a renter?
The equipment owner buys the unit, so ask your landlord. Efficiency Vermont lists these rebates for residential properties.
Where does the contractor discount come from?
BED's rebate page lists midstream cash back of up to $800 at HVAC distributors, paid to the contractor. Ask the installer to show it on the invoice.
What to do next
Read the Burlington heat pump guide and the insulation guide. For EV charging at home, see the Vermont EV charger page.
By Sam Menard. Sources, last read October 5, 2026: Efficiency Vermont: heat pump water heater rebates, Burlington Electric Department: water heaters, Burlington Electric Department: rebates, US Census Bureau ACS 5-year 2020-2024, table B25040 (house heating fuel). All Burlington rebates → Every Efficiency Vermont rebate →