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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.

School Heating Assistance with Renewables & Efficiency Program (SHARE)

October 11, 2022. Request for Proposals for Public School HVAC Grants.

The Clean Energy Development Fund at the Department of Public Service requests preliminary grant applications from public schools for repairs to existing heating ventilation and air-conditioning (HVAC) systems or the installation of new clean heating systems. $1.1 million of federal ARPA funds are available in this RFP. This is the second RFP in the Department of Public Service's HVAC High-poverty Schools Program.

Initial Application Due (Appendix A of the RFP): November 11, 2022

Hospitality HVAC Assistance Program

August 29, 2022.The Vermont Public Service Department is seeking proposals for the Hospitality HVAC Assistance Program. This program, funded through the American Rescue Plan Act of 2021 (ARPA), was proposed by the Clean Energy Development Board to offer relief to businesses in the hospitality, tourism and travel services industry that were negatively impacted by the Covid-19 pandemic. Funds granted through this program are for repairs or replacements of, and upgrades to, clean heating systems that assist businesses with energy-cost reduction/stabilization while reducing their reliance on fossil fuels. Grants can be up to a maximum of $25,000.

The Request for Proposals (RFP) has the full program details. Questions regarding the RFP are due October 7, 2022 and will be answered and posted this on this webpage by October 11, 2022. Proposals must be received by the PSD no later than November 7, 2022.

Affordable Community Renewable Energy (ACRE) program

Comments sought by June 21, 2022.

This PDF is a compilation of the responses the Public Service Department (Department) recieved in reply to the request for information issued regarding the design and implementation of an Community-Scale Renewable Energy Program for Low-income Vermonters.

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.

Small-Scale Renewable Energy Incentive Program:

There are five different incentives in the SSREI Porgram. The SSREI Program is administerd 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:  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 $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:

3. Bulk Pellet Storage Incentives

February, 2020 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. 

4. Woodstove Change-Out and Repairs

The ARPA funded Woodstove Change and Repair incentives are available for income-eligible customers interested in replacing old inefficient wood stoves with advanced EPA certified wood and pellet stoves, as well as making related repairs required to ensure the wood stove systems installed meet Vermont’s relevant Fire & Building Safety Codes. Visit RERC's web page for the change-out program for more information and applications:

5. Incentives for Pellet-Fired Sap Evaporators

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).

In addition to the CEDF incentives above there are several other wood heating incentives available in Vermont (As of 2022):
  • Efficiency VT (EVT) has several wood heating incentives:
  • 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 Stautory Citation: 32 V.S.A. § 5822 (d)(1)


The Federal Investment Tax Credit (ITC) is currently 26% of the allowable costs of a renewable energy system (including residential installations of wood heating systems, including wood and pellet stoves that are EPA certified). For central heating wood fueled systems (i.e. a pellet boiler) the tax credit has a maximum of $2,000.


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.