The federal energy tax credits have expired

Costs and payback figures on this page may still assume a federal credit that no longer exists. The 30% Residential Clean Energy Credit (25D) and the Energy Efficient Home Improvement Credit (25C) both ended for property placed in service after 31 December 2025, and the home EV charger credit (30C) ended after 30 June 2026. Assume no federal credit on work done today.

What expired, and what still exists →

Is Electrification Worth It in Vermont?

Vermont banned new fossil fuel heating in some towns. They're forcing the issue.

Burlington gets 7,800 heating degree days. Green Mountain Power electricity costs $0.18/kWh. Natural gas is $1.95/therm where available (mostly Burlington area). About 35% of Vermont homes heat with oil, 20% with propane. Efficiency Vermont offers rebates up to $7,500 for cold-climate heat pumps.

Vermont is all-in on electrification. If you're heating with oil or propane, switching to a heat pump saves $1,400-2,400/year. Even with expensive electricity, it's cheaper than fossil fuels. Payback after incentives: 3-5 years. This is state policy driving real change—and the economics actually support it.

Updated 31 July 2026Data from EIA, DSIRE, NREL
Heat Pump Payback
Not Recommended
With incentives
Annual Savings
$2,659
Full electrification
Available Incentives
$2,700
State + utility (federal credits expired)
CO₂ Reduction
14.3 tons
Per year

What Do Energy Costs Look Like in Vermont?

Here's the real data from EIA (Energy Information Administration). These are the rates that determine whether electrification makes financial sense.

Electricity Rate
$0.198/kWh
Natural Gas Rate
$2.12/therm
Average Electric Bill
$172/month
Average Gas Bill
$122/month
Climate Zone
cold
Heating Degree Days
7,600
Cooling Degree Days
450

Visual ROI Analysis

Payback Period Comparison

Lower is better • Shortest payback = fastest return on investment

Annual Savings Comparison

Higher is better • More annual savings = greater long-term benefit

Cumulative Net Savings Over Time

Point where line crosses $0 = payback achieved • Steeper line = faster savings growth

Which Upgrades Pay Off the Fastest?

The economics are broken down for each major upgrade. Pay attention to the payback period—that's how long until savings equal your net cost.

🌡️

Heat Pump HVAC

Upfront Cost$12,000 - $22,000
Total Incentives-$1,400
Net Cost$10,600 - $20,600
Annual Savings$149/yr
Payback PeriodNot Recommended
Lifetime ROI20%
CO₂ Reduction4.7 tons/yr
☀️

Solar Panels

Upfront Cost$15,000 - $30,000
Total Incentives-$0
Net Cost$15,000 - $30,000
Annual Savings$1,283/yr
Payback Period18.4 years
Lifetime ROI166%
CO₂ Reduction3.1 tons/yr
💧

Heat Pump Water Heater

Upfront Cost$2,500 - $4,500
Total Incentives-$800
Net Cost$1,700 - $3,700
Annual Savings$339/yr
Payback Period8.6 years
Lifetime ROI110%
CO₂ Reduction1.8 tons/yr

EV Charger + Electric Vehicle

Upfront Cost$800 - $2,500
Total Incentives-$500
Net Cost$300 - $2,000
Annual Savings$888/yr
Payback Period1.4 years
Lifetime ROI1163%
CO₂ Reduction4.8 tons/yr

Should You Go All-In?

Here's what it costs to electrify everything at once—heat pump HVAC, solar panels, heat pump water heater, and EV charger. The upfront cost is high, but so are the savings.

Total Upfront Cost
$30,300 - $59,000
Total Incentives
-$2,700
Net Cost After Incentives
$27,600 - $56,300
Annual Energy Savings
$2,659/year
Lifetime Savings (18 years)
$47,862
Simple Payback
17.4 years
💡

Best ROI for Vermont

Based on your state's energy costs and climate, EV Charger offers the best return on investment with an average payback of 1.4 years and an ROI of 1163%.

0.0 years slower than average compared to the national average.

Ready to electrify your Vermont home?

Get free quotes from local contractors who specialize in heat pumps, solar, and electrification.

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