Burlington, Vermont

City Overview

Burlington is Vermont's largest city, with a population of over 44,000 residents. The Burlington Electric Department (BED), Vermont’s largest municipally-owned electric utility, serves more than 20,000 customers in Burlington and has delivered innovative energy efficiency programs for nearly 30 years. In 2014, Burlington became the first city in the country to source 100% of its electricity from renewable sources, and has committed to a goal of achieving Net Zero Energy by 2030. 

Burlington Programs, Policies, and Strategies

In 2017, Burlington became one of the first cities in the country to launch a cold-climate heat pump rebate program, which includes enhanced incentives for low- and middle-income customers, and coordinates with complementary programs to encourage weatherization upgrades. BED has continued to expand the incentive program, helping hundreds of Burlingtonians switch to cold-climate heat pumps and other clean technologies. As of December 2024, BED has helped install over 2,900 residential heat pump systems across Burlington, including heat pump installations in existing homes and several new multifamily rental buildings.

To support Burlington’s policy development efforts, BEI worked with Burlington to assess cold climate policies and existing building policies for consideration within the local context. In 2021, Burlington enacted the Thermal Energy Charter Change, approved by both Burlington voters and the state legislature, enabling Burlington to develop policies and fees to reduce fossil fuel use in buildings. Following discussions with stakeholders and a customer economics analysis completed by BEI to assess the economics of electrification in cold climates, Burlington enacted the Carbon Pollution Impact Fee (CPIF) in late 2023. The CPIF requires all newly constructed buildings, existing commercial buildings over 50,000 square feet, and all municipal buildings to install equipment powered by renewable energy at the time of system replacement or pay a carbon fee based on the lifetime emissions of the fossil fuel-powered equipment. The revenue from the carbon fee will help fund programs for under-resourced buildings, supporting a broader equitable transition away from fossil fuels in Burlington. 

In 2025, BEI will support Burlington in evaluating additional policy options. This includes advancing a proposed building performance standard to require energy performance improvements for commercial buildings 25,000 to 50,000 sq. ft. It also includes identifying implementation solutions for the Minimum Housing Code Weatherization Ordinance, which requires rental properties with high energy use to weatherize, thereby making them more “heat pump-ready.” On a parallel track, BEI will review the program landscape for building electrification across the Burlington region and identify programmatic improvements to increase heat pump installations for more difficult-to-reach buildings. Through BEI’s partnership, Burlington will continue advancing ambitious climate goals while ensuring an equitable transition for all residents.

Statewide Programs, Policies, and Strategies

Since 2023, BEI has also engaged in several statewide initiatives in Vermont. In partnership with VGS, Vermont’s investor-owned gas utility that is committed to transitioning to clean energy, and Vermont Community Thermal Networks, a statewide nonprofit, BEI is documenting case studies of thermal energy network projects that can serve as replicable models for transitioning away from fossil fuel utility infrastructure and identifying regulatory reform efforts to diversify system ownership.

BEI is also collaborating with statewide stakeholders and partners to equitably implement the Vermont Affordable Heat Act, which is one of only two statewide clean heat standards enacted in the country. BEI has developed a suite of equitable design and implementation recommendations to shape the Affordable Heat Act and inform the development of similar market-based electrification policies in other states.

By combining innovative municipal programs and statewide partnerships, Vermont and its largest city Burlington are creating a comprehensive framework for achieving ambitious climate goals, spearheading a utility transition, and working to ensure that no residents are left behind.