A pile of debris sits in front of a house.
Second Street in Barre as seen on Aug. 8, three weeks after the July 2023 flood. Income-eligible Vermonters and businesses affected by the flood can apply for funding through Efficiency Vermont starting next month to replace heating and water systems. Photo by Glenn Russell/VTDigger

Starting on Sept. 5, income-eligible Vermonters and businesses impacted by the catastrophic summer floods can apply for funding through Efficiency Vermont to replace home heating and water systems, along with other appliances. 

The programs are an expansion of a previously announced program in which the state allowed the energy efficiency utility to redirect $10 million that was awarded for weatherization projects toward grants for Vermonters to replace damaged or destroyed appliances and equipment. 

The funding, available to residential applicants with low and moderate incomes, is based on annual income and the median area income of an applicant’s home county.  In addition to the $10 million grant program through Efficiency Vermont, $25 million from the American Rescue Plan Act and $1 million from the Vermont Public Utility Commission bring the total to $36 million. 

Funding will cover heating and cooling systems, including: ducted and ductless heat pumps, central wood pellet systems, wood/pellet stoves, and qualifying Energy Star-rated boilers and furnaces. Residents and businesses can also use the money for heat pump hot water systems, Energy Star-rated hot water systems, and qualifying appliances such as refrigerators, freezers, clothes washers and dryers, window air conditioners, dehumidifiers and air purifiers. 

Those who qualify can use the money to upgrade home electric panels to be compatible with cold climate heat pumps and other forms of electrification. 

Peter Walke, managing director of Efficiency Vermont, said an overlap exists between people in the state who spend the highest percentage of their income on energy bills and those who were hit hardest by the flooding. The programs could serve as a piece of a solution to both problems, he said. 

“We need to continue to evolve as a state to help our programs that are designed to help people save on energy, and to save money, meet those who are in their greatest need,” he said. “That’s part of the hope of this flood relief program, is to help people get back on their feet and to help them get into options that are going to save them money over the long term.”

Efficiency Vermont is still determining how much money might be available to individual applicants, depending on their income and the project, Walke said. Programs will include incentives and reimbursements that can date back to July 10. 

Some applicants may need to pay for the project upfront, then be reimbursed, though Walke said he expects that a significant portion of applicants have already replaced their appliances. 

In terms of potential upfront cost, Efficiency Vermont is “trying to figure out other ways to help,” Walke said. 

“There are programs, such as the Weatherization Repayment Assistance Program and the Home Energy Loan program, where you can get financing as low as 0% to take on these projects,” he said. “That could be the way to access upfront capital to be able to purchase something that they would then get a rebate for.”

Renters can also apply to replace “appliances used for remediation, health, and safety, such as air conditioners, dehumidifiers, and air purifiers,” without approval from the landlord, according to a press release from Efficiency Vermont.

The programs are intended to augment federal support, and the organization encouraged applicants to complete the Federal Emergency Management Agency process before participating in any Efficiency Vermont programs to avoid jeopardizing FEMA eligibility.  

The programs are designed to work with other flood relief programs from other energy organizations in the state, including electrification incentives for heating systems and expanded electric and efficient vehicle incentives for flood-impacted residents.

VTDigger's senior editor.