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Testimony highlights heat-pump growth, rental barriers and federal rebate uncertainty
Summary
Efficiency Vermont described rapid growth in heat-pump installations, programs to reduce barriers for renters and disadvantaged households, and said certain federal rebate programs (IRA-funded home rebates) are conditional or on hold pending federal approvals.
Peter Wolk of Efficiency Vermont told the House Energy and Digital Infrastructure Committee on Jan. 30 that cold-climate heat pumps have expanded rapidly in Vermont but that barriers remain for renters and low-income households and that some federal rebate programs are currently frozen.
Wolk said cold-climate heat pump installs rose from about 1,300 units per year a decade ago to roughly 10,000–11,000 units per year in recent years. He described Efficiency Vermont’s approach: combine a statewide baseline rebate funded through the energy-efficiency charge with additional, income-sensitive rebates provided by some distribution utilities under Tier 3 programs. Wolk said the upfront customer experience is often seamless: for many installations the incentive is removed at point of sale so homeowners do not pay the incentive portion out of pocket.
Committee members asked for specifics on baseline rebate amounts and income-eligible incentives. Wolk said incentive levels vary by utility territory and customer income; he offered to provide the committee with rebate details for members’ districts.
Wolk detailed efforts to serve renters, calling the rental market “one of the most challenging to serve” because of split incentives between landlords and tenants. He said Efficiency Vermont is piloting portable/window cold-climate heat-pump units for renters—a pilot launched in September with about 60 low-income renter participants—and that the program is intended to test real-world performance and inform manufacturers.
On federal funding, Wolk said the Inflation Reduction Act–funded Home Energy Rebate Program (often called HEAR or HOME in his testimony) had conditional approval for Vermont but was then paused amid a federal funding freeze; he said that leaves roughly $29 million in HEAR funding for Vermont in limbo. He also said some other federal solicitations such as Solar for All may be on pause. Wolk warned the committee the federal funding uncertainty could delay or constrain programs aimed at low- and moderate-income households.
The committee discussed workforce constraints that could limit program expansion (contractor capacity, training needs and supply-chain availability), and Wolk said Efficiency Vermont works with wholesalers, manufacturers and local contractors to align supply and training with growing demand.
Committee members asked whether installations were “maxed out”; Wolk said they are not maxed but that utilities’ banked Tier 3 credits and workforce limits can affect the pace in particular service territories. Members asked Efficiency Vermont to provide geographic install data and program specifics for follow-up work.
The committee did not vote on any proposals during Wolk’s testimony but requested multiple follow-up items, including rebate-level tables by utility territory and workforce-capacity assessments to inform future legislative or budget decisions.
