What pays for a heat pump water heater in South 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).
Green Mountain Power
Green Mountain Power's page sends you to Efficiency Vermont for the rebate. GMP says a heat pump unit runs at about 550 watts while a standard electric water heater uses 4,500 watts.
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.
Efficiency Vermont lists the amount as a discount or rebate, so ask your installer which one applies and have it written on the quote. Keep the model number, since the rebate depends on the unit being on the qualifying list.
Electricity is a bigger share here
The Census Bureau's 2020 to 2024 American Community Survey counts 9,466 occupied homes in South Burlington. 2,263 (24%) heat mainly with electricity, 5,971 (63%) with natural gas, 544 with fuel oil and 264 with propane. The Census does not count water heating fuel, so look at your tank label. If it is an electric resistance tank, a heat pump unit can use a fraction of the electricity. Green Mountain Power puts a heat pump unit at about 550 watts against 4,500 watts for a standard electric water heater.
Basements, townhouses and condos
17% of South Burlington housing units are attached homes and 26% are in buildings of ten or more units. A heat pump water heater pulls heat from the surrounding air and removes moisture from that space as it works, which Green Mountain Power presents as a benefit in a damp basement. In a small closet or a condo utility room, it can be a problem, and we did not verify installation clearance rules for any model, so ask the installer to confirm the space before you order.
Homes built from 2000 on
3,568 South Burlington homes (37%) were built in 2000 or later. Their tanks may be newer too, and the rebate is for a qualifying heat pump unit, so there is no rebate-driven reason to replace a tank that still works. Replace at end of life, or when you are already doing a panel upgrade or heat pump project.
Gas customers
Vermont Gas's Clover Energy lists heat pump water heaters among its products, and it has a water heating cost comparison tool on its heat pump page. We did not read prices or any Vermont Gas water heater rebate, so compare the operating cost of a gas tank and a heat pump unit with your own bills.
How to claim a water heater rebate in South 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
Does South Burlington get the Burlington Electric water heater offers?
No. Those are for Burlington Electric customers. South Burlington is Green Mountain Power territory, so Efficiency Vermont's $600 applies.
How much extra do income-eligible households get?
$400 more, up to $1,000 total, per Efficiency Vermont's page.
Will a heat pump water heater fit in my condo?
It needs space and air around it, and a drain for condensate. Ask the installer and your association.
Should I replace a working electric tank?
Usually wait until it fails unless you are already doing related electrical work. The rebate applies at replacement either way.
Is there a Vermont Gas rebate?
We did not read one. Vermont Gas lists heat pump water heaters through Clover Energy, but we did not verify prices.
What to do next
Read the South Burlington 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 South Burlington rebates → Every Efficiency Vermont rebate →