Water Heater Rebates in Montpelier, Vermont

What pays for a heat pump water heater in Montpelier

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 lists the offer as up to $1,000 for income-eligible households and $600 for everyone else.

A mix of fuels

The Census Bureau's 2020 to 2024 American Community Survey counts 3,721 occupied homes in Montpelier. 1,678 heat mainly with oil, 841 with propane, 583 with electricity, 322 with wood and 221 with piped gas. The wood share (9%) is the highest of our five Vermont cities. A household that heats with wood and makes hot water with an electric tank is a direct fit for a heat pump water heater, because the tank is then the electric appliance with the most to save.

Rentals

47% of Montpelier households rent, and 894 housing units are in buildings of five or more units. The tenant rarely picks the water heater. If you are a landlord replacing a tank, Efficiency Vermont lists heat pump water heater rebates for residential properties and businesses. We did not confirm how it treats a multi-unit rental, so ask Efficiency Vermont.

Mild basements, cold winters

Montpelier's average January low is -11.9°C. A heat pump water heater takes heat from the room it sits in, so it works best in a space that stays above freezing, such as a heated basement. We did not verify the minimum air temperature for any model, so check the manufacturer's specification if your basement is unheated.

The power draw, in plain numbers

Green Mountain Power says a heat pump water heater runs at about 550 watts against 4,500 watts for a standard electric water heater, roughly eight times less power while running. That is not the same as yearly energy use, but it is the basis for GMP's claim of lower electricity use and cost. Montpelier's average January low is -11.9°C and its record low in 2015 to 2024 was -30.7°C, so a basement here can get cold enough that it is worth asking the installer how the unit behaves in a cold room.

Before you buy

Ask the installer for the model number and check it against Efficiency Vermont's qualifying list. Ask what happens to your old tank and whether the electrical circuit is ready. If you plan a larger project, read our Montpelier heat pump guide and insulation guide first.

How to claim a water heater rebate in Montpelier

1. Check which fuel heats your water today, and the age of the tank.
2. Choose a heat pump model on Efficiency Vermont's qualifying list and ask the installer to apply the discount on the invoice.
3. Confirm the installation spot has the space and drainage the unit needs.
4. If your income may qualify, ask Efficiency Vermont about the extra $400 before you order.
5. Keep the invoice and model number for your records.

Common questions

What to do next

Read the Montpelier heat pump guide and the insulation guide.

By Sam Menard. Sources, last read October 3, 2026: Efficiency Vermont: heat pump water heater rebates, Green Mountain Power: heat pump water heater, Efficiency Vermont: all residential rebates, US Census Bureau ACS 5-year 2020-2024, table B25040 (house heating fuel). All Montpelier rebates → Every Efficiency Vermont rebate →