Vermont context

Vermont Heating Incentives for Wood and Pellet Stoves in 2026

As of September 2026, Efficiency Vermont gives a $400 rebate on a new wood or pellet stove that is EPA certified, meets the programme's emissions limit and is more than 75 percent efficient, and up to $6,000 on a new central wood pellet furnace or boiler installed as the main heat, together with the Clean Energy Development Fund. Income-eligible households can borrow for efficiency work at rates as low as 0 percent over 60 months through Efficiency Vermont's lending partners. The federal 30 percent tax credit for wood and pellet stoves, capped at $2,000 a year, covered installations from January 1, 2023 through December 31, 2025, so it does not apply to a 2026 purchase.

Amounts and eligibility change during the year, so confirm the exact model with the programme before you buy. Chimney repair is not an incentive category, though a liner that is part of a qualifying appliance installation can sit inside the project.

Programmes and amounts, September 2026

Wood and pellet stove rebate: $400 from Efficiency Vermont, usually applied as an instant discount at a participating retailer, for an EPA-certified stove under 2.0 grams an hour of emissions and above 75 percent efficiency. Central wood pellet furnace or boiler rebate: $6,000 from Efficiency Vermont and the Clean Energy Development Fund for a new high-efficiency unit installed as the primary central heating system. Windham County has its own income-eligible pellet programme run by RERC-VT. Home energy loans: as low as 0 percent APR for 60 months for income-eligible households, through Efficiency Vermont with VSECU, Opportunities Credit Union and NeighborWorks of Vermont. Federal credit: 30 percent, up to $2,000 a year, for installations between January 1, 2023 and December 31, 2025 only.

Where to look

Efficiency Vermont for statewide efficiency programmes. Your electric utility for anything they run themselves: Burlington Electric Department inside the city, Green Mountain Power across the surrounding Chittenden County towns. The appliance manufacturer for their own promotions. Federal programmes change with legislation, so check the current status of any credit at the time you buy.

Checks before you buy

Whether the specific model qualifies, not the category, since eligibility turns on a listed model. Whether professional installation is required. Whether an old appliance has to be removed and proof retained. What documentation is required and when it must be submitted. And whether funding is still open, since a programme year can run out of money before it ends.

Where an inspection fits in

Some programmes and most insurers care about the installation being compliant, and a change of appliance is a defined trigger for a Level 2 inspection in any case. Doing the inspection as part of an upgrade instead of afterwards keeps the paperwork, the safety question and the incentive claim on the same timeline.

Three horizontal bands showing inspection coverage. Level 1 covers readily accessible portions only. Level 2 adds a camera scan of the whole flue plus accessible attic, crawl space and basement runs. Level 3 adds concealed areas reached by removing building or chimney components.Level 1Readily accessible partsRoutine annual service, nothing changedLevel 2Adds full flue camera scan and accessible concealed runsSale, fuel or appliance change, after any damaging eventLevel 3Adds concealed areas reached by removing componentsA suspected serious hazard a scan cannot confirm
The level is decided by your situation, not by preference, and each one reaches further than the last.

What to establish before assuming you qualify

This page names sources instead of amounts, because amounts change during a year and a stale figure is worse than none.

EstablishWhy it mattersAsk
Model-level eligibilityLists are model-specific, not category-specificDoes this exact model number qualify today?
Installation requirementOwner installation often disqualifiesMust it be professionally installed?
Old appliance removalSome programmes require proof of removalWhat documentation of removal is needed?
Documentation and deadlinesLate submission is a common failureWhat must be submitted, and by when?
Funding statusProgramme funds can run out mid-yearIs funding still open for this programme year?
Stacking rulesUtility, state and manufacturer offers may or may not combineCan this be combined with the others?
Inspection requirementA fuel or appliance change triggers Level 2 anywayDoes the programme require an inspection report?
Heating incentives

Common questions about heating incentives

How much is the Vermont rebate for a wood or pellet stove?+

Efficiency Vermont offers $400 as of September 2026 on a new EPA-certified stove that meets its emissions and efficiency requirements, often as an instant discount at a participating retailer. Central pellet furnaces and boilers qualify for up to $6,000.

Where should I check first?+

Efficiency Vermont for statewide efficiency programmes, then your own electric utility, then the appliance manufacturer. Checking all three is worth the time because they are independent of each other and can stack.

Who is my electric utility?+

Burlington Electric Department if you are within the City of Burlington, and Green Mountain Power across the surrounding Chittenden County towns. It matters here because the city runs its own municipal utility with its own programmes.

Is there still a federal tax credit for a wood stove?+

Not for a 2026 installation. The 30 percent credit, capped at $2,000 a year, covered wood and pellet stoves with at least 75 percent efficiency installed between January 1, 2023 and December 31, 2025.

Does the installation have to be professional?+

Programmes frequently require it, and it is worth confirming before you buy instead of after you install. An owner installation that disqualifies a rebate is an expensive way to save on labour.

Do I need to remove my old appliance?+

Some programmes require removal and proof of it. Where that applies, keep documentation, because reconstructing evidence that an appliance was removed and disposed of is difficult after the fact.

Can incentives be combined?+

Sometimes, and the rules on stacking differ by programme. A specific question worth asking each programme directly, not assuming either that they combine or that they do not.

When should I apply?+

Establish the requirements before purchase and submit as soon as the programme allows. Funding can run out during a programme year, which is the most common way a qualifying purchase ends up without the incentive.

Does this affect my chimney work?+

Indirectly but usefully. A change of appliance is a defined trigger for a Level 2 inspection, and some programmes and most insurers care about compliant installation. Doing them together keeps everything on one timeline.

Are there incentives for chimney repair?+

Efficiency programmes broadly target appliances and building efficiency instead of masonry repair. Where an upgrade includes a liner as part of a qualifying installation, that can sit inside the project: worth asking the programme directly.

Should I choose an appliance based on the rebate?+

Choose it on whether it suits the house and how you want to live with it, then check what is available for that choice. Buying the wrong appliance because it qualifies is a poor trade over the appliance's life.

Who can tell me whether my model qualifies?+

The programme itself, and the dealer commonly knows current eligibility for what they sell. What matters is the specific model number, because eligibility lists are model-level, not category-level.