Upgrading your home’s energy efficiency can be one of the smartest money-saving and comfort-enhancing decisions you make. Right now, you can save big on insulation, heating and cooling upgrades, and other home improvements that increase energy efficiency with rebates and incentives.

In Vermont, where winters are long and heating costs are high, the key to unlocking real savings lies in both how and when you make improvements. From a building science standpoint, there’s a right way to approach these projects—and it starts with your building envelope.

In this guide, we’ll walk through how to sequence your upgrades the smart way, why insulation comes first, and how Vermont homeowners can stack rebates and tax credits to dramatically reduce upfront costs.

Start with the Envelope: Why Insulation Comes First

Think of your home as an interconnected collection of systems, where changes in one area of the home can affect a completely different area or system. Before upgrading your heating system or adding a new heat pump, you need to make sure they are the right size. That’s where insulation and air sealing come in.

Upgrading insulation improves your home’s thermal boundary, keeping heated or cooled air inside and outdoor temperatures out. But just as important is air sealing, which addresses uncontrolled air leaks in what’s called the pressure boundary.

Leaks in the pressure boundary will lead to drafts, moisture issues, and unnecessary strain on your HVAC system. Spray foam insulation can improve both the thermal and pressure boundaries by insulating while also sealing gaps when installed under the guidance of building science expertise.

When the building envelope is tight and well-insulated, everything else—ventilation, heating, cooling, and indoor air quality—performs better. This sets the stage for long-term savings and more strategic system upgrades, which can also reduce your upfront costs.

The Smart Order of Home Efficiency Upgrades

Here’s the preferred upgrade sequence recommended by the building science professionals at Vermont Foam Insulation:

1. Free On-Site Evaluation

Start with a professional site evaluation to identify areas of heat loss, air leaks, and underperformance.

2. Air Sealing and Insulation Upgrades

Seal gaps, cracks, and penetrations—especially in attics, basements, and around plumbing or electrical. Also, focus on insulation in high-impact areas like the attic and basement/crawl space. Spray foam insulation offers superior performance in Vermont’s climate.

3. Ventilation Assessment

A tighter home needs proper ventilation. This may include bath fans, range hoods, or mechanical ventilation systems like HRVs/ERVs.

4. Heating and Cooling System Sizing

With your home better sealed and insulated, you can now consider downsizing or upgrading your HVAC. This is the time to explore heat pumps, heat pump water heaters, and other electrification measures.

How to Stack Rebates & Tax Credits in Vermont (2025)

One of the biggest advantages of following this sequence? It allows you to stack multiple incentives while reducing both your upfront installation costs and ongoing energy bills.

Here’s how Vermont homeowners can layer rebates and credits:

Efficiency Vermont Rebates (Home Performance with ENERGY STAR®)

Up to 75% off project costs, up to $4,000 for most households
Up to 90% off, up to $9,500 for income-eligible households
Must work with an Efficiency Excellence Network (EEN) contractor like Vermont Foam Insulation

0% Interest Home Energy Loan

Finance up to $20,000 for qualifying energy upgrades
Pay over time with little or no interest, and use this loan to cover costs upfront—before rebates arrive
Available through participating lenders. We help you apply.

Federal 25C Tax Credit (Energy Efficient Home Improvement Credit)

Claim 30% of insulation and air sealing material costs, up to $1,200 per year
Can also claim 30% of heat pump and heat pump water heater installation costs up to $2,000

Heat Pump & Water Heater Rebates (Efficiency Vermont)

Rebates available for cold-climate heat pumps and heat pump water heaters
These pair perfectly with an upgraded, well-insulated envelope

Pro Tip: Insulation Makes All Other Upgrades Work Better

Here’s the often-overlooked truth:

Adding a heat pump to an under-insulated home is like pouring hot water into a leaky cup.

If your home still leaks air and lacks proper insulation, even the best HVAC systems can’t perform efficiently. But once your building envelope is upgraded, you’ll:

Need less heating and cooling overall
Be able to install smaller, lower-cost equipment
Get better performance from heat pumps and ventilation systems
Qualify for more rebates and tax incentives

Get Expert Help from Vermont Foam Insulation

At Vermont Foam Insulation, we’re experts in both building science and rebate optimization. We’ll walk you through:

Insulation and air sealing upgrades
Rebate qualification and paperwork
Energy loan applications
Planning for future HVAC or electrification steps

Let’s start with what matters most—your comfort, your energy savings, and the smartest path forward. Call Vermont Foam Insulation at 802-724-4712.

What Our Customers Are Saying

Thank you so much for “foaming” us. We are blown away by the incredible work. Your crew was equally kind and personable. We look forward to working with you again and will be showing our family our Foam Home at Thanksgiving. Thanks again

Julie

Ludlow, VT

Btw, it’s simply amazing what a difference the basement insulation has made already. This morning I walked barefoot from the kitchen (over uninsulated crawlspace–always has a cold floor) into the dining room. The difference in floor temperature was startling. The dining room floor literally felt as though it had radiant heat installed, it was that warm. My poor basement freezer–it used to have such an easy time staying cold. Now it will have to struggle against tropical conditions! Thanks, Jonathan

Jonathan

Norwich, VT

VFI did an insulation job for me last year in Wallingford, VT. Just have to say. WOW! What a difference! For the first time since we have owned the house the thermostat actually gets to the set temperature. We estimate we will save about $2600 on our heating bill alone this year! That is a 65% savings over the previous heating seasons. Obviously there was virtually zero insulation in the walls and what was installed was installed incorrectly. Just have to say thanks again and if you guys ever need a referral, I’m happy to supply one any time one is needed! Warmest Regards, Scott (and Wendy)

Scott & Wendy

Wallingford, VT

Happy New Year to you both! Buddy and I just wanted to give you an update on our home since we had the insulation installed last summer. We are VERY pleased with how cozy the house is and are constantly amazed at the evenness of the temperature. We have noticed a marked decline in the amount of wood we are burning (compared to last year) and we don’t think the oil burner has kicked on once by itself. We typically wake up to a house that is 70 degrees, even though the wood fire had long since died down!! So….if you would like to use us as a reference we would be happy to share our experience with any of your prospective customers. Trust us…we will have nothing but good things to say!! Thank you and best for the New Year! Lynn & Buddy

Lynn & Buddy

WIndham, VT

Dear Willy and Crew, Thank you so very much for a job well done. We are proud and excited about the heating savings. You run a fine operation. Please let us know if you need a reference in the Brattleboro / Guilford area. We would be happy to provide one. Fondly, Richard and Ann-Marie

Richard & Ann-Marie

Brattleboro, VT

I can’t believe how warm the bathroom on the new master side is and the powder room on the front of the house. What a difference! Thanks so much for your patience and hand holding throughout the process. The guys were hard working and respectful and a pleasure.

Toby

Winhall, VT

Your crew came in and did a great job and cleaned you after themselves. I am very satisfied and we are ready for the cold weather when it gets here. Thanks Paul

Paul P.

Springfield, VT

Energy Audit — was done very professionally. Very happy.

Paul W.

Manchester, VT

The old drafty house now holds warmth in.

Ed B.

Rupert, VT

Liz F. of West Dover

VT Foam wrote up a quote on the spot, did a test on my building, came back to spray exactly when they said they would, did terrific prep work, cleaned up after, ran a new test on the building and submitted (via electronic download) paperwork to Efficiency Vermont – ALL in a seamless, professional manner! I could not have asked for a better company to do the work!

Liz F.

West Dover, VT

…We’ve been uncertain how we’ll insulate the pony wall and the eaves, and had been considering wool insulation, regular fiberglass insulation, and blown cellulose. Now, Will is here to check out the house and tell us what he thinks about it being a candidate for foam. Will works at Vermont Foam Insulation We are sold on his close cell foam when he tells us that at an R-value of 6.5 per square inch, we’ll get great insulation using just 3-4 inches of the stuff. We’re even more sold when he tells us that his team is doing a job just ten minutes down the road, and he thinks they’re overstaffed. He could send a guy over to do the job in just an hour! Will is as good as his word. Less than an hour after he leaves, a friendly man arrives with a big truck and a long hose and a full-body protective suit. In under an hour, we have a fully insulated home.

Tyler K.

Arlington, VT

Timely service. Very professional and knowledgeable.

Stratton Mt., VT

I have used you all from your beginnings and think the world of you and your expertise. Of course I love my warm home too.

Ian M.

Rockingham, VT

You are the very best.

Kaye M.

Dorset, VT

VFI made the project happen with ease and the crew were friendly and competent.

Daniel O.

North Springfield, VT

VFI did a great job on my basement. Arrived as scheduled and cleaned up very well when done.

Paul A.

Belmont, VT

Good service. We’re happy.

Russ M.

Manchester, VT

We have used VFI for a bunch of jobs now, and continue to give them the opportunity to do our work in the future. As a GC, it’s comforting to use the same trusted subs for our jobs. We are perfectionists and demand the highest quality of work for our customers and VFI helps make that possible.

Peter C.

Manchester, VT

Things went great at the cottage. Thank you so much.

Bob & Sandra D.

South Londonderry, VT

Excellent, and professional job. These guys work extremely hard doing s very difficult job. Will was great to work with.

Richard H.

Chittenden, VT

The installers were very professional and check the work site over before starting. They explained the entire process and did a great job of covering area of our basement so they would not get any insulation on them during the spraying process.

Scott D.

Arlington, VT

Professional from first contact to completion of job. Great communication. Attention to cleanliness. Concern for customer satisfaction. Could not ask for more!

Dottie S.

Sandgate, VT

We were more than pleased with the service and the results. Intend to use company again once we have moved to house permanently.

Jeanne

Weston, VT

Your professional work at my home lead me to recommend Vermont Foam for the total insulation of the new addition at our church. We are very pleased with the quality of the work.

Bob L.

Bondville, VT

I waited until the coldest part of winter was over before giving this review. Improvement in heating and comfort was amazing. We no longer have 8 – 10 foot icicles on the back roof. The previous year the icicles were so large that when they crashed down they broke the deck railing. We will have them back hopefully this year to do the other side of the house as their work was a retrofit and this time some partial walls will have to be opened to complete the foam installation. The saddest part about this is that this is not an old home but rather was built in 2006 with up to code fiberglass batting insulation which was done by the builder. if I were to build new I would without a doubt use foam insulation as there is no comparison to fiberglass batting and plastic wrap. I was also on site when they were doing the removal of old batting and installation, I was worried that the foam spray would make a mess of the house but they used plastic-wrapped barriers and layed down floor protectors wherever they walked, and were super professional and courteous especially since this is such a hard job. Peter

Peter M.

Jamaica, VT

Your company was very professional and made the process quick and easy for us. We appreciate how neat and tidy you left the job and the quality of the work. We felt the difference in our home right away. Insulating our basement was a great investment.

Pat G.

Ludlow, VT

I waited to write a review until the winter set in so I could really test my new insulation. President’s weekend 2016 (record cold -20 degrees at my house in Weston), and my great room was toasty warm ! I am really pleased I invested in the foam — thank you very much for your help, and great product!

Birgit S.

Weston, VT

Good company to work with. They are thorough & informative.

Keith H.

Winhall, VT

Will has been great with good info and fast fast response (sic)

Thomas H.

South Londonderry, VT

Excellent company to work with through entire process, responsive, timely, courteous, reliable. The application of the foam was meticulous. Even in a basement no migration to walls, pipes or floor. Result were great. Significant decrease in heating cost and moisture in basement minimized. No hesitation in recommending. I tell everyone about them.

Liz B.

Brattleboro, VT

The entire team at Vermont Foam were a pleasure to deal with from the start of our project thru to completion, including dealing with Efficiency Vermont. They explained what is involved with the insulation process very clearly.

Hallie L.

Rupert, VT

VFI has been great with good info and fast fast response.

Drew F.

Dalton, MA

The boys did a great job for us on a renovation project we did on an 1830’s brick house in S Londonderry

Michael G.

South Londonderry, VT

Very professional.

Joe S.

East Dover, VT

Professional, prompt and great customer service. It came out great! Quality products!

K.W.

Ludlow, VT

The crew was on time, worked efficiently, and did a great job. The area that was foamed is very tight, there are no gaps or drafts, and it is very efficient.

Russ H.

Ludlow, VT

Work done on time . Nice people to talk to and to work with. Great job!

George R.

Wardsboro, VT

These guys were great! The product and results are amazing. I highly recommend them. Honest and hardworking group.

Ethan M.

New London, NH

I appreciate VFI’s responsiveness. Good company to do business with. Work was well done.

Barry B.

Manchester, VT

Great job! Good plan. Workers competent. Right on schedule. Your weatherization reduced my airflow by 57 %.

Elias P.

Townshend, VT

Great Service! Fast, show up on time as scheduled and do what is takes to get the job done. These guys take insulation seriously and seal things up properly.

Ryan P.

Peru, VT

Your installers worked together as a perfect team, and their efficiency is reflected in the great job they did. Even their clean up was impressive; they left the attic in a spotless condition. We recommend Vermont Foam Insulation unconditionally.” Excellent, professional installation with minimal mess, and nice clean up, as well as follow up to ensure everything was just right. Highly recommended in all respects, including reasonable cost.

Ray B.

Newfane, VT

Fast and efficient.

Matt C.

South Londonderry, VT

Excellent crew – appreciated their positive attitude, even when issues came up. Thanks!

Peter V.

Brattleboro, VT

Good workers….know there business

Cliff H.

Mount Holly, VT

Excellent job on my basement and crawl space in Newport NH. I was so satisfied, I will be also using Vermont Foam Insulation at my home in Gilsum NH in a few months.

Mike B.

Newport, NH

Vermont Foam was on time, was in and out more quickly than I expected and did a great job. They had very little over spray, and cleaned up well. I would use them again if I had more foaming.

Charles H.

Shaftsbury, VT

Amazing workmanship and so timely. House is so much warmer. Customer service was impeccable. Highly recommend.

Shea S.

Londonderry, VT

VFI did a great job at my house. We had an old drafty stone-walled basement – full height and crawlspaces. VFI covered the dirt-floored crawlspaces with a heavy-duty plastic we had found & foamed the basement walls from the sills down to the plastic vapor barrier. Made a huge difference. Where they foamed the stone walls – that solved a long-standing water penetration issue, and even brightened up the basement. Customer service was great. The crew was very professional and left the place clean as a whistle. I highly recommend VFI.

Jim S.

Dorset, VT

Great service and work!

Lois C.

Woodstock, VT

Solid crew and quality work. I had them do work to a vacation home and was not there to supervise. Everything was done right the first time.

Jeffery T.

Barnard, VT

We have a house built in 1776. We had Vermont Foam do our basement and it helped keep our place much warmer in the winter. Gone were all the chilly drafts. And we burned 40% less fuel oil last winter. I heartily recommend Vt Foam Insulation.

Eric T.

Chester, VT

Your crew did a fantastic job insulating our re model job. Everyone worked hard,kept the job neat, and did some hard crawl space work without a single complaint! Would recommend your company to anyone that asked me, and will have you back on any job I need insulation work. Thank you!

Douglas H.

Townshend, VT

I can’t tell you how pleased we are with the outcome of that huge roof project this Fall. It might have seemed a foolish expense and a waste to replace all those nice old boards and shingles, to end up with a roof that looked just the same as it did before. We tried blown-in insulation 10 or more years ago, and that didn’t work. But now, after 40 years – and probably lots longer – for the first time we’ve had a heavy snow cover, and cold weather, but lo and behold, no icicles on the front of the house, no damp spots inside, or ice running down the front wall of the house! Thank you for your good work. Tim & Kay

Tim & Kay

West Chesterfield, NH

Pretty incredible. Insulating the walls of our crawl space and taping up the vapor barrier was the definite right choice The crawl space has stayed a pleasant and steady 48-50 degrees over the past few months and even has persisted at this level throughout this cold snap when it was 22 below zero outdoors!!! And, the Humidity has hovered at a very respectable 50% or less. And our floors are noticeably warmer And our electric bills are down WHAT CAN I SAY!! Thanks!

Joan & Barry R.

Winhall, VT

It’s been a pleasure working with you and your guys. Matt and Chris did a fantastic job. They were friendly, courteous, professional, and left the place clean and ready for our next phases. I’ve had some less-than-stellar experiences with insulators in the past, but your company has far exceeded all of my expectations on all fronts. We will absolutely be calling you for any and all of our future projects. Thanks again for everything!

Chris

Arlington, VT

As far as our dealings with Vermont Foam Insulation are concerned – they were good (very good). Essentially after 18 years spending winters in Florida we realized that the old “moused-up” fiberglass insulation in both attic space and crawl space (we don’t have a regular basement) should be replaced if we were to spend winters in our house again. After looking over our situation VFI agreed that we were definitely candidates for foam insulation and that having it eould make a very definite difference in keeping our winter space warm and reducing propane consumption and indeed it has. Your fellas completed what seemed to us a pretty miserable task, quickly and very efficiently, leaving everything very clean.

Sheila & Sam

Landgrove, VT

Excellent, professional installation with minimal mess, and nice clean up, as well as follow up to ensure everything was just right.Highly recommended in all respects, including reasonable cost.

Ray B.

Newfane, VT