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The energy transformation ("Tier III") provisions of Act 56, passed by the Vermont Legislature in 2015, set targets for reducing consumption of fossil fuels and production of greenhouse gases. Electric utilities have been tasked with implementing programs to help their customers transition from fossil fuels to electric or other renewable sources. The requirement starts in 2017 at 2 percent of electricity sales (BTU equivalency) and rises each year until it reaches 12 percent in 2032. To be eligible, an energy transformation project must result in a net reduction in fossil fuels.

The programs that Co-op is offering through the Energy Transformation Program in 2018 are outlined below. 
Click here to read the full version of VEC's 2018 Plan. 
Click here to read the full version of VEC's 2017 Plan. 

Cold-Climate Heat Pumps 

Heating contributes about a third of Vermont’s carbon emissions, making it an important target for carbon reductions. Cold-climate heat pumps provide an opportunity for Vermonters to reduce the amount of oil or propane they use to heat their homes. VEC is offering members an incentive to install cold-climate heat pumps in their homes and businesses. In 2018 all VEC members who install a cold-climate heat pump will be eligible to obtain a $150 bill credit.  

Heat Pump Water Heaters

Heat Pump Water Heaters (HPWHs) are an efficient way to heat water with electricity, using heat pump technology. Rather than using electricity to generate heat directly, they pull heat from the air to heat your water. They can cost considerably less to operate than electric resistance water heaters. For HPWHs installed in 2018, VEC is offering a $150 bill credit. The HPWH must be an ENERGY STAR model to qualify.

Pellet Stoves

Heating with pellets can be an effective way to reduce the amount of oil or propane you use during a heating season. Pellet stoves operate similarly to wood stoves but pellets burn more efficiently and pellet stoves allow for more flexible placement in your home as a chimney is not always required. To help members reduce their fossil fuel usage, VEC is offering a $150 bill credit to members for the purchase of a pellet stove in 2018.

Electric and Plug-in Hybrid Electric Vehicles

The transportation sector contributes nearly half of Vermont’s greenhouse gas emissions. Electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) offer opportunities to reduce carbon emissiones, and the technology has continued to improve with better range and cold weather performance. To promote these options, VEC is offering the following bill credits for the purchase or lease of new or used EV or PHEV: 




Plug-in hybrid



Fully electric




2018 Nissan LEAF $5,000 rebate for VEC members.  Print and bring this flyer, along with a copy of your electric bill to the local Nissan dealer. Offer expires September 30, 2018. 

Public Charging Stations

VEC is offering bill credit incentives for the installation of Level 2 and Level 3 public charging stations. Eligible applicants are businesses and public entities (schools, towns, etc.) with stations that were operational after July 1, 2017 and before December 31, 2018, provided the charging station is available to the public. VEC is offering a $500 bill credit per connection ($500 for a 1-head charger, $1,000 for a 2-head charger) with a $2,000 maximum per member.  Note: This bill credit program is available for up to 30 connections. If this cap is reached, additional applicants will be wait-listed. 

 Zero Energy Modular Homes

Starting in 2019, VEC will be offering a $500 credit to members who purchase a Zero Energy Mondular (ZEM) home. ZEM homes run entirely on electric power and are highly energy-efficient. ZEM homes are more expensive to purchase than standard modular homes, but the operating costs are extremely low compared to traditional homes. More information will be available soon.

Electric Forklifts

VEC is offering bill credit incentives starting in 2019 for the purchase of electric forklifts. The credit applies to the purchase of new or used forklifts for new applications, or whenever a purchased electric forklift directly replaces a fossil fuel powered forklift. More information will be available soon.


Clean Air Program

VEC’s Clean Air Program (CAP) offers customized opportunities to members with off-grid or underserved homes or businesses to replace fossil fuel usage with electricity. These opportunities may include service upgrades or line extensions, the costs of which will be shared between the utility and the member through customized agreements. For example, someone in VEC's service territory who has a maple sugaring operation currently powered by a diesel or propane generator may be eligible to participate in the Clean Air Program and receive an incentive from VEC for the cost of a line extension to retire the generator. Contact VEC at 1-800-832-2667 or This email address is being protected from spambots. You need JavaScript enabled to view it. if you have a project that you think might be eligible for the Clear Air Program. 

For more information about any of the VEC Tier III programs please contact us at 1-800-832-2667 or This email address is being protected from spambots. You need JavaScript enabled to view it.