Funding Opportunities & Projects

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.

August 12, 2020.  Coal Heating Change-out Adder.   The CEDF is now 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 $10,000, whichever is less) as an incentive from the CEDF, including disposal costs for old coal systems. The added 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:


February, 2020  Bulk Pellet Storage Incentives Available.

The CEDF, through its Small Scale Renewable Energy Incentive Program, is providing a cash incentive to Vermonters that purchase an eligible bulk pellet storage bin from a Participating Vendor.

Pellet stove (must be EPA 2015 or 2020 certified), pellet boiler/furnace, and pellet sap evaporator owners are eligible to apply for a cash voucher. The voucher will cover up to $3,000 or 85%, whichever is less, of the total storage bin/materials cost (not including labor).  The program will operate on a first-come first-served basis until all funds are spent or June 12, 2021, whichever comes first. Funds remaining will be posted at and ample notice will be given prior to the end of the program.  

2019 Bulk Wood Pellet & Dried-Chip Supply Infrastructure Grants

On October 4, 2019 the Clean Energy Development Fund (CEDF) asked for Letters of Intent (LOI) to apply for grants in support of the bulk pellet and dried wood chip supply sector in Vermont. Submitting an LOI was a required to be able to apply for a grant in this program.  The following seven entities sent in LOIs that met the program criteria and are now invited to send in grant applications: Bourne’s Energy, Froling Energy, Kirby Mulch Company, Lyme Green Heat, Maine Energy Systems, Northeast Kingdom Development Corporation, and Sandri Energy.

These entities are invited to submit a grant application to the CEDF for a grant in support of their bulk wood pellet and/or dried chipply and/or delivery infrastructure projects for the benefit of the Vermont advanced wood heating market in general and Vermonters specifically.

Three preliminary grant awards were annouced:

  • Bourne's Energy for screening and storage equipment to support and expand their bulk pellet delivery infrustructure
  • Lyme Green Heat for a bulk pellet delivery truck and trailer to expand their ability and lower costs of bulk pellet delivery
  • Vermont Energy Systems for a new bulk pellet storage and loading facility in the Northeast Kingdom

Wood stove change-out program [program ends on December 16, 2019]:

The incentive is available (through Monday, December 16, 2019) to customers via Participating Retailers for clean, efficient, EPA-qualified cord wood and pellet stoves that replace old, in-use and non EPA-certified wood stoves.

Pellet stoves: $1,000 incentive

Cord wood stoves: $800 incentive

A $100 incentive is also available to replace the catalyst in your existing EPA-certified woodstove.

Program Brochure

Program Web Site

  • Efficiency Vermont plans to continue to incentivize woodstove change-outs at their current levels through 2020. Stove change-outs, regardless of whether the old stove was EPA-certified or not, can get EVT’s incentive. Eligible change-outs can receive EVT's $650 new stove incentive + $100 change-out bonus (New stoves without a changing-out an old stove can still get the $650). 


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 Sale and Use Tax. 32 V.S.A. § 9741(52).

2019 Wood Heating Rebate Type Programs:

There are several wood heating incentives available in Vermont:

  • CEDF offers a flat-rate incentive of $3,000 for the installation of an approved pellet boiler or furnace.  For specific information:  or call 877-888-7372
  • Efficiency VT (EVT) has several wood heating incentives:
  • For Vermonters in Windham, Bennington, and Rutland counties there are specific pellet stove programs designed for low to moderate income residents to change-out old cord wood stoves for new pellet stoves or to install pellet stoves even if they don’t have an old wood stove.
    • In Windham County contact the Windham and Windsor Housing Trust: Tara Brown at 802-246-2119 or go to their web page:
      Do You Qualify For A New Pellet Stove?
    • In Rutland and Bennington Counties contact Melanie Paskevich at NeighborWorks of Western Vermont, (802) 797-8610) 
  • Members of Washington Electric Co-op (WEC) can get rebates on approved pellet boilers, furnaces, pellet stoves, and cord wood stoves:

Pellet Boilers - $1000 rebate

Pellet Furnaces - $500 rebate

Pellet Stove - $250 rebate

Wood Stove - $250 rebate

These can be in addition to the CEDF and EVT incentives. For more information see:

Or call WEC at: 802-223-5245

Incentives for Pellet-Fired Sap Evaporators


CEDF Sub-Grants

For Vermonters in Windham county there are specific wood heating programs that provide grant funding, technical support and more:

  • In Windham County
    • For residential low- and moderate-income residents there is a pellet stove program. Contact Tara Brown at the Windham and Windsor Housing Trust for more information: 802-246-2119.
    • For wood heating (pellet or chip boilers/furnaces) in municipal buildings, schools, and non-profits contact Marion Major at the Windham Regional Commission: 802-257-4547 ext. 109, or visit their website


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 only be claimed by individuals (despite being a credit for business investments) and is equal to 24% of the Federal ITC claimed (Federal ITC is currently 30% and thus the Vermont ITC is worth 7.2% of the eligible costs of the solar system). Citation: 32 V.S.A. § 5822 (d)(1)


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.