A Review of Home Heating Energy Efficiency in Vermont

Vermont's Global Warming Solutions Act sets significant emissions reduction mandates by 2025, 2030, and 2050. Reducing emissions in Vermont's thermal sector is one component for reaching these goals. We consider the impacts of household adoption of weatherization, cold climate heat pumps, biofuels, and natural gas on Vermont's climate goals. We identify an Energy Efficiency Gap in the thermal sector occurring primarily due to costs of greenhouse gas (GHG) emissions on the environment, and possible barriers to adopting energy efficiency technologies.
This report evaluates options for Vermont's energy efficiency policies in the residential thermal sector, focusing on cost-effectiveness, climate goals, and equity across homeowner incomes. The report examines existing proposals and possible alternative solutions, including:
1. Clean Heat Standard
2. Fuel Tax Increase
3. Thermal Efficiency Benefit Charge
4. Biofuels Blending Requirement
5. Low-Interest Financing Programs
6. Energy Efficiency Utilities (EEU) Modifications
Through a mixed methods approach—expert interviews, literature review, case study, and data analysis—we identified low-interest financing and EEU modifications as the policies that best meet the specified criteria. To maximize the success of any policy, we identify three structural challenges that will need to be addressed: 1) trade workforce development, 2) grid infrastructure and resilience, and 3) community engagement.