Heat pumps provide energy-efficient heating and cooling and work well in cold climates. Switching to electric heat pump technology will reduce your fossil fuel usage. Burlington Electric Department offers rebates of up to 75% of installed cost.
If you heat your building with natural gas – as most Burlingtonians do – you might not save money with an air-source heat pump; your electric bill could go up by more than your gas bill goes down.
Weatherize First. Field studies show that heat pumps work best in weatherized buildings. For very well-insulated and air-sealed buildings, heat pumps do not require a fossil fuel backup for operation in extremely cold outdoor temperatures.
Learn more about weatherization.
Contact BED Energy Services to get started with free, unbiased advice. We’ll walk you through the decision-making process and help you maximize your energy investments.
Heat Pump Technologies Overview
On May 7, 2024, BED and Burlington 2030 District hosted a webinar with heat pump expert George Martin (President, LN Consulting), members of the BED Energy Services Team, and Steve Conant (Manager of The Soda Plant – a BED commercial customer and Burlington 2030 District property using advanced heat pump technology).
Which Heat Pump is Right For Me?
Mini-Split Heat Pump
- Heats & cools specific rooms.
- Ductless. Inexpensive to install.
- Mini-splits can provide an easy-to-install heating and cooling solution for buildings without ductwork for rooms that were not previously conditioned.
- Mini-splits can be more affordable than other heat pump system types, so can serve as a more accessible way for some building owners to strategically electrify and reduce their carbon footprint.
- For cooling, a Mini-splits may cost 40% less to operate than room air conditioners of equivalent capacity.
- Some of the latest Mini-splits models can provide space heating without fossil fuel backup at very low outdoor temperatures.
- Mini-splits can last 12 – 15 years, depending on the installation location and exposure of the outdoor unit.
Mini-Split Heat Pump
Rebate Amount:
- $2,100: Single-zone or multi-zone ≤ 2 tons or 24,000Btu/hr (1 ton = 12,000Btu/hr.)
- $400: Enhanced rebate for Income-Qualifying customers*
- $2,500: Single-zone or multi-zone > 2 tons (1 ton = 12,000Btu/hr.)
- $500: Enhanced rebate for Income-Qualifying customers*
Total rebate will be capped at 75% of the installed cost.
This rebate is in addition to the $350-$450 BED rebate available to your contractor when they purchase the unit. This applies to both a first and second mini-split heat pump system. Check with your contractor about this additional rebate. This rebate from your contractor is included in the 75% maximum rebate.
This rebate is available to all BED residential and small business customers in existing buildings. For new construction projects (including new homes and new auxiliary buildings), please contact BED for separate rebate offerings.
Natural gas customers should be advised that heat pumps will likely increase annual heating costs while reducing a home’s carbon footprint.
Rebates are designed to support heat pump installations that displace a significant percentage of the space heating load of a building and are installed in the main occupied spaces. Garages, auxiliary buildings and other smaller spaces are not eligible.
| persons in household | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
| max. income | $66,600 | $76,100 | $85,600 | $95,100 | $102,750 | $110,350 | $117,950 | $125,550 |
Have the following items ready:
- Your Burlington Electric Department account number. It is printed on your monthly bill.
- A scan or photo of your contractor’s invoice marked “Paid in Full.”
- If you are financing through VSECU, VFCU, or GMCU: a scan or photo of quotes from your contractor.
Terms & Conditions
- This rebate form must be submitted within 90 days of installation.
- Total rebate amount (including contractor rebate, this online rebate, and low-income bonus rebate) is limited to 75% of installed cost.
- Installed model must appear on the Qualified Products List.
- Limit 2 rebates per household or business.
- Households or businesses that receive a rebate for a centrally ducted system are not also eligible for a ductless (mini-split) rebate.
- Equipment must be purchased through local participating qualified professionals and HVAC Distributors only. Customer sourced equipment is not eligible.
- Contractors are required to secure the necessary permits from Burlington’s Permitting and Inspections Department.
- This offer is valid through December 31, 2025.
- This rebate is only for BED customers with active accounts.
- Burlington Electric Department reserves the right to inspect installation and/or verify purchase.
- Burlington Electric Department reserves the right to modify or end this offer at any time.
- Please be aware that if your rebates from BED total more than $600 in a calendar year you may be required to complete and submit a W9 form. A W9 form will be provided in this rebate form if it is required.
Centrally Ducted Heat Pump
- Replaces or augments existing gas furnace & ducts
- Can heat & cool entire home/building
Ducted heat pump systems use existing ductwork to distribute conditioned air for both heating and cooling to your entire building or home. They can also be retrofit to work with your existing furnace. Customers considering these systems should work with HVAC contractors with controls systems experience to program a Centrally Ducted Heat Pump system for effective and energy-efficient operation.
IMPORTANT: Centrally ducted heat pumps are classified as either Standard Performance Systems or High Performance Systems.
Standard Performance Systems Rebates
| Nominal Size | Your Contractor’s Point-of-Sale Discount | BED Online Rebate | BED Bonus for Qualifying Customers* |
| ≤2 ton | $1,000 | $0 | $500 |
| >2 ton to <4 ton | $1,500 | $0 | $500 |
| ≥4 ton | $2,000 | $0 | $500 |
High Performance Systems Rebates
High Performance Systems perform better at lower temperatures displacing more fossil fuel usage.
| Nominal Size | Your Contractor’s Point-of-Sale Discount | BED Online Rebate | BED Bonus for Qualifying Customers* |
| ≤2 ton | $1,000 | $1,350 | $500 |
| >2 ton to <4 ton | $1,500 | $3,950 | $500 |
| ≥4 ton | $2,000 | $5,450 | $500 |
Both the indoor and outdoor unit must appear on the NEEP Qualified Product List to receive this higher rebate. To see if you qualify, visit the NEEP QPL and filter the results as follows:
- Ducting Configuration: “Singlezone Ducted, Centrally Ducted”
- ENERGY STAR Certified: “ENERGY STAR V6.1 Cold Climate”
- Eligible for Federal Tax Credit: “CEE Tier1 Path A (2025)”
*Qualifying customers are eligible for a rebate of $500 per condenser. See Terms & Conditions for details.
Centrally Ducted Heat Pump
Rebate Amount
IMPORTANT: Centrally ducted heat pumps are classified as either Standard Performance Systems or High Performance Systems.
Standard Performance Systems Rebates
| Nominal Size | Your Contractor’s Point-of-Sale Discount | BED Online Rebate | Income-Qualified Enhanced Rebate |
| ≤2 ton | $1,000 | $0 | $500 |
| >2 ton to <4 ton | $1,500 | $0 | $500 |
| ≥4 ton | $2,000 | $0 | $500 |
Your system must appear on the NEEP Qualified Product List to receive the above Standard Performance Systems rebate.
High Performance Systems Rebates
High Performance Systems perform better at lower temperatures displacing more fossil fuel usage.
| Nominal Size | Your Contractor’s Point-of-Sale Discount | BED Online Rebate | Income-Qualified Enhanced Rebate |
| ≤2 ton | $1,000 | $1,350 | $500 |
| >2 ton to <4 ton | $1,500 | $3,950 | $500 |
| ≥4 ton | $2,000 | $5,450 | $500 |
To qualify for the High Performance Systems rebate:
- Your contractor must set the cross-over temperature to 15F.
- Your contractor must note the cross-over temperature on the quote or final invoice.
- Both the indoor and outdoor unit must appear on the NEEP Qualified Product List to receive this higher rebate. To see if you qualify, visit the NEEP QPL and filter the results as follows:
- Ducting Configuration: “Singlezone Ducted, Centrally Ducted”
- ENERGY STAR Certified: “ENERGY STAR V6.1 Cold Climate”
- Eligible for Federal Tax Credit: “CEE Tier1 Path A (2025)“
An additional rebate per condenser is available for qualifying customers.
NOTE: At current utility rates, natural gas customers should be advised that heat pumps may likely not decrease annual heating costs but can reduce a home’s carbon footprint.
| persons in household | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+ |
| max. income | $66,600 | $76,100 | $85,600 | $95,100 | $102,750 | $110,350 | $117,950 | $125,550 |
Have the following items ready:
- Your Burlington Electric Department account number. It is printed on your monthly bill.
- If your heat pump is being installed with a new furnace, BED needs to know the cost of just the heat pump installation. HVAC contractors should specify this line item separately in their invoice.
- A scan or photo of your contractor’s invoice marked “Paid in Full.”
- If you are financing through VSECU, VFCU, or GMCU: a scan or photo quotes from your contractor.
Terms & Conditions
- This rebate form must be submitted within 90 days of installation.
- Total rebate amount (your contractor’s point-of-sale discount, the BED online rebate, and the BED Bonus for qualifying customers) is limited to 75% of installed cost. Installed cost includes the heat pump and HVAC and electrical labor costs.
- BED’s online rebate only applies to full central distribution systems (duct work that leads to all heated spaces in the home). Short ducted heat pump systems are not considered full central distribution systems. Ductless rebates (e.g. mini-splits) will apply to short ducted installs.
- This rebate is available to all BED residential and small business customers in existing buildings. For new construction projects, please contact BED for separate rebate offerings.
- Garages, auxiliary buildings, and other smaller spaces are not eligible without prior approval from BED. Rebates are designed to support heat pump installations that displace a significant percentage of the space heating load of a building and are installed in the main occupied spaces.
- Limit 1 rebate per household or business. Households or businesses that receive a rebate for a centrally ducted system are not also eligible for a ductless (mini-split) rebate.
- Equipment must be purchased through local participating qualified professionals and HVAC Distributors only. Customer sourced equipment is not eligible.
- Equipment must be on Qualified Product List (QPL). High-Performance Systems must set the cross-over temperature to 15°F maximum. Contractor must note cross-over temperature on quote or final invoice.
- Contractors are required to secure permits from Burlington’s Permitting and Inspections Dept.
- This offer is valid through December 31, 2025.
- This rebate is only for BED customers with active accounts.
- Burlington Electric Department reserves the right to inspect installation and/or verify purchase.
- Burlington Electric Department reserves the right to modify or end this offer at any time.
- Please be aware that if your rebates from BED total more than $600 in a calendar year you may be required to complete and submit a W9 form. A W9 form will be provided in this rebate form if it is required.
Air to Water Heat Pump
- Replaces an aging gas boiler & baseboards
- Can heat & cool entire home/building
Air to Water heat pumps work similarly to the heat pumps mentioned above but they circulate water for heating and cooling, and can provide domestic hot water. Hydronic distribution uses water as a heat transfer fluid to distribute heat.
Heat pumps can be retrofit to work with your existing boiler. Customers considering these systems should work with HVAC contractors with controls systems experience to program an Air to Water heat pump system for effective and energy-efficient operation.
Rebate: BED has increased the air to water heat pump incentives from a maximum total today of $5,000 to $12,500 to support local projects.
Air to Water Heat Pump
Rebate Amount: Up to $12,000 ($2,000 per ton)
- $400: Enhanced rebate for income-qualifying customers.
Pre-approved weatherization may be eligible for a 50% (owner-occupied) or 75% (rental) rebate.
This rebate is available to all BED residential and small business customers in existing buildings. For new construction projects, please contact BED for separate rebate offerings. Natural gas customers should be advised that heat pumps will likely increase annual heating costs while reducing a home’s carbon footprint.
Have the following items ready:
- Your Burlington Electric Department account number. It is printed on your monthly bill.
- A scan or photo of your contractor’s invoice marked “Paid in Full.”
- If you are financing through VSECU, VFCU, or GMCU: a scan or photo quotes from your contractor.
Terms & Conditions
- This rebate form must be submitted within 90 days of installation.
- This rebate may not be used in combination with the Efficiency Vermont Air-to-Water rebate.
- Total rebate amount (including contractor rebate, this online rebate, and low-income bonus rebate) is limited to 75% of installed cost.
- Limit 1 rebate per household or business. Households or businesses that receive a rebate for a centrally ducted system are not also eligible for a ductless (mini-split) rebate.
- Equipment must be purchased through local participating qualified professionals and HVAC Distributors only.
- Customer-sourced equipment is not eligible.
- Equipment must be on Qualified Product List.
- Contractors are required to secure permits from Burlington’s Permitting and Inspections Dept.
- This offer is valid through December 31, 2025.
- This rebate is only for BED customers with active accounts.
- Burlington Electric Department reserves the right to inspect installation and/or verify purchase.
- Burlington Electric Department reserves the right to modify or end this offer at any time.
- Please be aware that if your rebates from BED total more than $600 in a calendar year you may be required to complete and submit a W9 form. A W9 form will be provided in this rebate form if it is required.
Ground-Source Heat Pump
Or Geothermal Heat Pump 
- For new construction or extensive retrofits
- Suitable for larger/community homes, commercial buildings
Ground-source heat pumps (GSHPs), also called “geothermal” heat pumps, are a type of heat pump that exchange heat between a building and the ground or groundwater by circulating refrigerant between indoor equipment and an outdoor loop.
- Lower and more predictable annual energy bills
- Resilient and reliable comfort and efficient energy performance year-round
- Emissions-free heating and cooling for low environmental impact
- A low maintenance, long-term solution for space conditioning needs
More about Ground-Source Heat Pumps
Preferred Heat Pump Installer Network
Burlington Electric Department recognizes these important partners – all members of Vermont’s Efficiency Excellence Network – for their work and ability to deliver the highest-quality heat pump services to our customers. If you would like your company to be included on our list of preferred heat pump installers, please contact Jennifer Green at 802-865-7349 or jgreen@burlingtonelectric.com.
Electric Panel Upgrades
With the growing popularity of heat pumps, electric vehicles, and other electric appliances, some Burlingtonians may soon reach the limits of their current electric panel. Upgrading your panel to accommodate your current and future needs — and help the city’s Net Zero Energy goal — requires some preparation. Burlington Electric Department can help you navigate this process.
Where To Begin
Call a licensed electrician. Any work done on your electric panel must be done by a licensed electrician. Burlington Electric Department recommends our partners in Vermont’s Efficiency Excellence Network. They have the expertise to deliver the highest-quality services to our customers. Note that workforce constraints are impacting contractor availability so we recommend contacting multiple professionals to compare pricing and project timelines.
Your electrician will contact Burlington Electric Department. Because your electric panel is inside your home (“behind the meter”), you will be responsible for hiring the electrician. However, you will still need to coordinate with BED on a few points like temporarily shutting off the power to your property while your electrician switches over from the old panel to the new panel. Your electrician is best qualified to speak to our team on your behalf.
There may be a charge from BED for the upgrade. In addition to your electrician’s fees, Burlington Electric Department may need to charge for the upgrades to our infrastructure to accommodate your property’s increased needs. This will be determined upon receiving and reviewing the Contractor Application submitted to BED by the electrician.
Financing
Several local credit unions are now offering exceptionally low rates on financing for panel upgrades in addition to their special rates on heat pumps and electric vehicles.
| GMCU | BED Renewable Energy Loan |
| Opportunities Credit Union | Home Improvement Loan (EV) Home Energy Loan (HP) |
| Vermont Federal Credit Union | Energy Efficiency Home Improvement Loan |
| EastRise | Green Loans |
Weatherization Repayment Assistance Program (WRAP)
The Weatherization Repayment Assistance Program (WRAP) allows homeowners and renters to finance qualifying weatherization projects like insulation and air sealing, as well as heat pumps and advanced wood heating systems, with repayment through a monthly charge on their utility bill. Learn more.