What Montpelier heat pump buyers can get
We re-read Efficiency Vermont's heat pump pages and Green Mountain Power's heat pump page on October 5, 2026. Montpelier is served by Green Mountain Power. Amounts are maximums for qualifying cold-climate equipment.
Ductless heat pump
An instant discount from Efficiency Vermont: $375 for systems up to 2 tons and $475 over 2 tons, applied at purchase by your contractor.
Ducted heat pump
$1,200 up to 2 tons, $1,700 over 2 and under 4 tons, $2,200 at 4 tons or more, for qualifying cold-climate equipment.
Integrated controls
Cash back for controls that let a ductless heat pump run as the main heat and signal the old system only when needed.
Green Mountain Power income-eligible rebate
For households at or below 80% of area median income. A household of four in Washington County must be at or under $91,200. The rebate is combined with Efficiency Vermont's in one application on Efficiency Vermont's site.
Efficiency Vermont income bonus
$2,200 for Green Mountain Power low-income customers, $200 for most other utilities' customers. Rental property owners are not eligible. Income limits changed on July 1, 2026.
Ground source heat pump
Plus $500 for income-eligible households. New systems up to 10 tons, an Efficiency Excellence Network contractor, and not for wood-heating customers.
Washington County's $91,200 limit is for four people. Green Mountain Power lists smaller limits for smaller households. Because the income rebate rides on Efficiency Vermont's application, there is only one form to complete, but it is worth asking Efficiency Vermont how the two income-based amounts combine on your quote.
What Montpelier heats with
According to the Census Bureau's 2020 to 2024 American Community Survey, 1,678 of Montpelier's 3,721 occupied homes (45%) heat with fuel oil or kerosene, 841 (23%) with propane, 583 (16%) with electricity, 322 (9%) with wood and 221 (6%) with piped natural gas. Propane is a bigger share here than in nearby Barre and it arrives by truck like oil.
For a propane home, a ductless heat pump in the main living area can take over most daytime heating, with the propane system left for the coldest nights and the rooms the heat pump does not reach. For a wood-heating household, a heat pump can reduce the hours spent feeding the stove, although Efficiency Vermont excludes wood-heating customers from its ground source rebate.
Older houses and rental buildings
38% of Montpelier's housing units (1,487 of 3,921) were built in 1939 or earlier, and 47% of households rent. 911 units are in two-, three- or four-unit buildings. Efficiency Vermont's heat pump rebates are open to rental properties, though the income bonus is not, so owners of a multi-unit building in Montpelier should read the eligibility tab on Efficiency Vermont's page before counting on the bonus.
How cold Montpelier gets
Montpelier's average January low in our climate file is -11.9°C, the coldest of the Vermont cities we cover alongside Barre, and the coldest day between 2015 and 2024 hit -30.7°C. Only models on Efficiency Vermont's qualifying cold-climate list earn the rebates. Ask your contractor to confirm the capacity the unit delivers at the low end of its rated range, and plan a backup for nights that go below it.
Weatherize first, or at the same time
Efficiency Vermont's weatherization offer pays 75% of a qualifying insulation and air-sealing project up to $3,000, or up to $7,000 for income-eligible households in their primary home. A project at that scale usually shrinks the heating load, which lets a smaller heat pump do the job. Our Montpelier insulation guide has the details.
Top-rated installers in Montpelier
This is the Montpelier contractor with the most Google reviews. Check that any contractor you pick is in Efficiency Vermont's Efficiency Excellence Network, because the rebates require it.
How to claim a heat pump rebate in Montpelier
- Add up a year of oil or propane purchases.
- Ask two contractors for a load calculation and a quote listing model numbers.
- Confirm the models are on Efficiency Vermont's qualifying list and the contractor is in its network.
- If your income may qualify, apply through Efficiency Vermont's site so Green Mountain Power's rebate is included.
- Keep the invoice and model numbers.
Common questions
What is the Washington County income limit for Green Mountain Power's heat pump rebate?
$91,200 for a household of four, which is 80% of area median income. Green Mountain Power lists limits for other household sizes on its heat pump page.
Does a heat pump make sense for a propane home in Montpelier?
Often. Propane is delivered by truck, and a heat pump can carry the daily load. Weatherizing first and keeping propane for the coldest nights is a sensible plan.
Can I claim the income bonus as a landlord?
No. Efficiency Vermont says rental property owners are not eligible for the income bonus. The standard heat pump rebates are open to rental properties.
Will a ground source heat pump qualify if I heat with wood?
Efficiency Vermont says wood-heating customers are not eligible for its ground source heat pump rebate.
Is Montpelier covered by Burlington Electric's rebates?
No. Montpelier is Green Mountain Power territory, so the Efficiency Vermont and Green Mountain Power offers apply.
What to do next
Read the Montpelier insulation guide and the Montpelier water heater guide. Statewide pages cover solar and appliances. All programs are on the Green Mountain Power rebates page.
By Sam Menard. Sources, last read October 3, 2026: Efficiency Vermont: ductless heat pump rebates, Efficiency Vermont: centrally ducted heat pump rebates, Green Mountain Power: heat pump rebate, US Census Bureau ACS 5-year 2020-2024, table B25040 (house heating fuel). All Montpelier rebates → Every Efficiency Vermont rebate →