This section provides information on the types of funding currently available through the Clean Energy Development Fund and related incentives offered by others. If you would like to look at example feasibility studies / projects or listings of completed projects, please choose from the sub-menu to the left.
January 8, 2024. RFP: Sustainable Energy for Schools and Municipalities
This request for proposals (RFP) is intended to provide financial and technical support for the installation and/or repair of clean energy technologies in underserved public schools in communities and municipalities in Vermont to lower their energy costs, decrease harmful air emissions from heating and power sources; and increase the exposure and experience with clean energy technologies in these public buildings. The clean energy measures to be supported via this project will be limited to the following three technologies: solar photovoltaics (PV), advanced wood heating, and cold climate air- or ground-source heat pumps.
Date RFP Issued: Monday, January 08, 2024
Answers to Questions on the RFP received before Tuesday February 3, 2024
Proposals Due on or before 5:00pm: Friday, March 1, 2024
- Excel Budget Sheet Required for Proposals under this RFP.
- Grant awards will have specific reporting requirements included for energy measurement and verification (M&V). Details on reporting and the M&V plan will be posted here shortly.
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November 02, 2023. Advanced Wood Heating for Schools
In response to the request for proposals from Schools for $2 million in wood heating grants (see 7/31/23 announcement) the Public Service Department received twenty-eight applications requesting over $4.3 million in grant funds.
Of those twenty-eight applications the PSD requested comprehensive applications from eighteen schools seeking just over $2.8 million in grant funds. On October 31, seventeen schools submitted comprehensive applications requesting over $2.5 million in grants. Those applications are currently under review.
July 10, 2023. Notice of Funding Opportunity for Clean Energy for Schools and Municipalities.
The Public Service Department (PSD) is issuing this notice of funding opportunity (NOFO) for Vermont’s public schools and municipalities to access $1.0 million in U.S. Department of Energy (DOE) funds through a congressionally directed spending award originating with Vermont Senator Bernie Sanders.
Grant awards will be made to provide financial and technical support for the installation and/or repair of clean energy technologies in public schools and municipal buildings in underserved and disadvantaged communities in Vermont with the goal of lowering their energy costs, decrease emissions from heating and power sources, and increase the exposure and experience with clean energy technologies in these public buildings.
The clean energy measures supported via this funding opportunity will be limited to the following three technologies:
- Solar photovoltaics (PV) systems (up to 15kW AC)
- Advanced wood-fueled heating systems
- Cold climate air- or ground-source heat pumps
The PSD will be issuing a request for proposals in the summer of 2023 that will provide full details on the program including how schools and municipalities can apply for the funding.
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Affordable Community Renewable Energy (ACRE) program
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August 9, 2022. Questions and Answers on the July 19th ACRE RFP.
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July 19, 2022. ACRE RFP
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The Vermont Public Service Department is seeking proposals for the Affordable Community Renewable Energy (ACRE) Program. Through this grant program, federal American Rescue Act Plan (ARPA) funding is available for the creation and implementation of programs for the benefit of Vermont electric utility customers with low-income. Please review the Request for Proposals (RFP) for complete details. Questions regarding the RFP are due August 5, 2022. Initial Proposals should be sent to the Public Service Department no later than August 30, 2022.
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June 7, 2022. New draft Affordable Community Renewable Energy (ACRE) program design outline issued.
Comments sought by June 21, 2022.
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September 29, 2021. CEDF Releases a Draft Outline of the $10M Community-scale Renewable Energy Program for Low-income.
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September 27, 2021. Responses to the RFI Issued on July 18, 2021.
This PDF is a compilation of the responses the Public Service Department (Department) received in reply to the request for information issued regarding the design and implementation of an Community-Scale Renewable Energy Program for Low-income Vermonters.
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July 18, 2021. Request For Information Released
The Public Service Department released a Request For Information (RFI) regarding the design and implementation of an Affordable Community-Scale Renewable Energy Program (Program). The Program was created by the Vermont General Assembly in Act 74 of the 2021 legislative session. Act 74 appropriates $10 million to the Department of Public Service (Department) for the Program to “support the creation of renewable energy projects for Vermonters with low-income” and stipulates that the Program shall be developed “consistent with the parameters of the Clean Energy Development Fund". Responses to this RFI were due Wednesday August 18, 2021.
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Small-Scale Renewable Energy Incentive Program:
There are different incentives in the SSREI Program. The SSREI Program is administered by the Renewable Energy Resource Center (RERC). Detailed information and application forms can be found on the RERC's web site.
1. Advanced Wood Heating Systems
A flat-rate incentive of $3,000 for the installation of an approved pellet boiler or furnace. For specific information: www.RERC-VT.org or call 877-888-7372
2. Coal Heating Change-out
August 12, 2020. The CEDF is offering Vermont home and business owners additional cash incentives to switch from coal to advanced wood heating.
A homeowner that changes-out a coal stove or boiler with an eligible pellet stove or central wood heating system can receive up to 50% of the cost (or $6,000, whichever is less) as an incentive from the CEDF, including disposal costs for old coal systems. The added $3,000 cash incentive is in addition to the existing $3,000 available from the CEDF for a pellet boiler/furnace. New pellet heating systems are also eligible for incentives and financing through Efficiency Vermont. Businesses can receive up to $30,000 towards a coal heating system change-out.
To qualify for the additional incentives:
- The existing coal heater (coal stove, boiler, or furnace) must be installed and functional. The coal heater being removed must be destroyed/recycled.
- The new advanced wood heating system installed must be eligible for the CEDF pellet boiler/furnace incentive or if it is a wood stove it must be Step Two EPA certified with a <2.0 GPH emissions rating and an EPA rating of >70% efficient as measured by the Higher Heating Value.
For more information and to apply for this incentive go to: www.rerc-vt.org/coal-change-out
3. Bulk Pellet Storage Incentives
November, 2023. The CEDF suspended the incentives for bulk pellet storage bins due to a lack of funds. If additional funds are secured this incentive could be re-instated.
4. Incentives for Pellet-Fired Sap Evaporators
- This incentive has ended due to a lack of funds, but if you are a sugar maker interested in a pellet-fired evaporator please contact the CEDF or the RERC as there may be other resources we can point you to.
July 1, 2018 - Advanced Wood Boilers/Furnaces Exempt from Vermont's 6% Sales Tax
Beginning July 1, 2018, sales of advanced wood boilers are exempt from Vermont's 6% Sale and Use Tax. 32 V.S.A. § 9741(52).
This sales tax exemption is scheduled to end on June 30, 2024.
In addition to the CEDF incentives above there are several other wood heating incentives available in Vermont (As of November 2023):
- Efficiency VT (EVT) has several wood heating incentives:
- A custom incentive for commercial/institutional installations of pellet heating systems. Contact EVT to get details on this new program: (888) 921-5990 or visit:www.rerc-vt.org/advanced-wood-heating-systems
- A flat-rate incentive of $3,000 for the same list of approved pellet boilers/furnaces that qualify for the CEDF incentive. This can be combined with CEDF’s $3K incentive for a total of $6,000.
- Special incentives for those that qualify (based on income and program funding): www.efficiencyvermont.com/free-products
- Members/customers of several electric utilities offer incentives for wood & pellet stoves (as well as cold-climate heat pumps). Contact your utility to find out what they are currently offering.
Vermont Investment Tax Credit
The Vermont Investment Tax Credit, which includes business investments in solar (PV and hot water) systems that are eligible for the Federal Investment Tax Credit (ITC), is still available to Vermont individual tax payers. The credit can be claimed by individuals or businesses and is equal to 24% of the Federal ITC claimed (Federal ITC was 26% for 2021 and thus the Vermont ITC is worth 6.24% of the eligible costs of the Vermont-property portion of a renewable energy system).
Vermont Statutory Citation: 32 V.S.A. § 5822 (d)(1)
FEDERAL TAX CREDIT
The Federal Investment Tax Credit (ITC) for Solar PV and other renewable energy systems are eligible for a 30% tax credit for an installation between 2022-2032. It will decrease to 26% for systems installed in 2033 and to 22% for systems installed in 2034. The tax credit expires starting in 2035 unless Congress renews it.
There is no maximum amount that can be claimed.
The ITC includes residential installations of wood heating systems, (including wood and pellet stoves that are EPA certified) and heat-pumps.
For wood fueled systems the tax credit is capped at a maximum of $2,000.
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FEDERAL GRANT OPPORTUNITY
The U.S. Department of Agriculture (USDA) invites applications for loan guarantees and grants for Renewable Energy Systems and Energy Efficiency Improvement Projects. These loan guarantees and grants are part of USDA’s Rural Energy for America Program (REAP). REAP helps agricultural producers and rural small businesses reduce energy costs and consumption by purchasing and installing renewable energy systems and making energy efficiency improvements in their operations. Eligible systems may derive energy from wind, solar, hydro-electric, ocean, hydrogen, geothermal or renewable biomass (including anaerobic digesters). For more information about the program and how to apply for this funding, please see the Rural Energy for America webpage.