Through a grant from the Vermont Department of Public Service, VGS offering the Switch & Save program for the purchase and installation of heat pump water heaters for existing VGS customers and qualifying households within our service territory using the map below. We’ve partnered with participating contractors to handle the installation and receive the incentive payments from VGS, which will leave customers with little to no out-of-pocket costs.

Customers with annual household income less than 120 percent of Vermont’s area median income will be eligible for the Switch & Save program. Households earning less than 80 percent of area median income will receive 100% of the equipment and installation costs up to a program cap of $5,000 per household. Households earning less than 120 percent of area median income will receive 90% of the equipment and installation costs up to $4,500. Program details and eligibility are outlined below.

Program Incentive Levels Based on Household Income

Tank SizesHouseholds at Less than 80% of Area Median IncomeHouseholds at Less than 120% of Area Median IncomeEstimated Annual Energy Costs **
50 gallon or 65 gallon (depending on size of household)Free heat pump water heater + installation (up to $5,000 cap)**Responsible for 10% of the cost of heat pump water heater + installation$174
* Existing VGS customers AND Qualifying Vermonters who are not existing VGS customers within our service territory can participate in this program.
** Additional costs will be evaluated on a case-by-case basis.
*** Estimated annual electric utility costs based on heating water for a typical family. Family size, gallons-per-day, temperature rise, and energy factor values are all adjustable. Actual performance may vary. 

Qualifying Area Median Income (AMI) Levels Based on Household Size

CountyIncome Level1 Person2 People3 People4 People5 People6+ People
Chittenden & Franklin80% AMI$63,600$72,700$81,800$90,850$98,150$105,400
Chittenden & Franklin120% AMI$95,600$109,200$122,800$136,400$147,400$161,120
Addison80% AMI$55,550$63,450$71,400$79,300$85,650$92,000
Addison120% AMI$83,280$95,160$107,040$118,920$128,520$138,000
Income is defined as the total annual gross income of all family and non-family members 18+ years old living within the household. To calculate income, take the monthly amount from the last one-to-two paychecks for yourself and the people in your household (before taxes) and multiply by 12. Include all wages, including regular salaries and overtime. If you are self-employed, use the previous month of pretax income and multiply by 12.

All sources of income must be counted from all persons in the household based on anticipated income expected within the next 12 months. Possible types of income include but are not limited to: wages, salary, tips, bonuses or commissions payments, public assistance, social security/SSI, child support, regular gifts, unemployment, income earned on assets (savings, IRA, etc.) and some types of financial aid.

Search the map below to see if your address qualifies for VGS’s Heat Pump Water Heater Program

Beginning February 1, 2022, as part of its Climate Plan, VGS is excited to offer its customers, and qualifying Vermonters in surrounding communities, one of the most energy efficient electric water heaters available:

Please contact our Customer Care Team at 802-863-4511 option 8 to confirm eligibility.