Vermont home energy costs & incentives

Residential electricity in Vermont averages 22.92 cents per kilowatt-hour — 32% above the national average, and that works against anything that runs on electricity.

Prices pulled August 16, 2026

What energy costs here

22.92¢

per kWh, residential electricity

32% above the national average of 17.3¢. 10th most expensive of 51.

Up 19% since 2021 (4.4% a year), against 27% nationally.

$1.74

per therm, residential natural gas

$18.00 per thousand cubic feet, 2025 annual. National average $1.48/therm.

Up 28% since 2021 (6.5% a year).

Heat pump vs. gas furnace — Close call

Vermont's electricity-to-gas price ratio works out at 3.9-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.

Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates

State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.

What's different in Vermont

Efficiency Vermont provides rebates, free energy consulting and virtual home energy visits, plus financing and dedicated income-based programs for qualifying households. The free consultation is the sensible first step — it costs nothing and it tells you whether equipment or envelope work is the better spend.

As in Maine, many Vermont homes heat with oil or propane rather than natural gas, so the gas comparison below understates the case for switching if that's your situation.

Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.

Vermont programs

Efficiency Vermont

Statewide rebates, free energy consulting and virtual home energy visits, financing, and income-based programs.

Program details

The federal position — the same everywhere

Residential Clean Energy Credit (Section 25D)Ended
Ended. No credit for expenditures made after 31 December 2025.
Energy Efficient Home Improvement Credit (Section 25C)Ended
Ended. No credit for property placed in service after 31 December 2025.

Full detail, sources and changelog on the national incentive tracker.

Where to check for your address

Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.

Not tax advice

Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.

If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.

Run the numbers for your house

These open with Vermont's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.

Guides behind these numbers

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