How much does it cost to heat and cool a 2,000 sq ft home in Vermont?

In Vermont (23.4¢/kWh via Green Mountain Power (GMP)), a 2,000 sq ft home averages $1,463/year ($122/month) with a high-efficiency heat pump, $1,342/year with a natural gas furnace and central AC, and $4,482/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Vermont?

At Vermont's natural gas rate of $1.85/therm, the economic break-even electricity price for a COP 3.1 heat pump is 21.3¢/kWh. Comparing this against Vermont's residential electricity rate of 23.4¢/kWh determines annual operating savings.

Vermont Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$122/mo

VT Electricity / Gas Rate

23.4¢ / $1.85

15-Yr Savings vs Baseboard

+$41,685

Vermont Annual Heating & Cooling Bills by Home Size

In Vermont, a 2,000 sq ft home averages $1,463/year ($122/mo) using a cold-climate heat pump ($1,422/yr winter heating + $41/yr summer cooling), compared to $1,342/year with a natural gas furnace and $4,482/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$732/yr ($61/mo)	$671/yr ($56/mo)	$2,241/yr ($187/mo)	+$19,035
1,500 Sq Ft	$1,097/yr ($91/mo)	$1,006/yr ($84/mo)	$3,361/yr ($280/mo)	+$30,360
2,000 Sq Ft	$1,463/yr ($122/mo)	$1,342/yr ($112/mo)	$4,482/yr ($374/mo)	+$41,685
2,500 Sq Ft	$1,829/yr ($152/mo)	$1,677/yr ($140/mo)	$5,602/yr ($467/mo)	+$52,995
3,000 Sq Ft	$2,195/yr ($183/mo)	$2,013/yr ($168/mo)	$6,723/yr ($560/mo)	+$64,320
3,500 Sq Ft	$2,560/yr ($213/mo)	$2,348/yr ($196/mo)	$7,843/yr ($654/mo)	+$75,645

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Verify 2026 Federal 25C Tax Credit & Green Mountain Power (GMP) rebate eligibility and compare turnkey contractor pricing for a 3.0-Ton system (2,000 sq ft).

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