New! Federal Tax Credit for Residential Customers
- Beginning January 1, 2021 residential customers are eligible for a 26% Federal tax credit on wood fired appliances with a minimum 75% efficiency. This includes wood and pellet stoves and wood and pellet boilers/furnaces.
- IRS guidance is expected Summer 2021, in the meantime find more information HERE
New! Coal Changeout Adder from CEDF
- Replace coal stove, furnace, or boiler with a pellet stove, furnace, or boiler
- Adder is up to $7,000 for residential and $27,000 for commercial projects
- Can be combined with other incentives
Residential Rebates
Automated Wood Heating Systems
- $3000 for Modern Wood Pellet Boilers or Furnaces from Efficiency Vermont
- $3000 for Modern Wood Pellet Boilers or Furnaces from Clean Energy Development Fund
- Washington Electric Coop Members: $1000 for Modern Wood Pellet Boilers or $500 for Modern Wood Pellet Furnaces
- Heating Oil Tank Removal Financial Assistance Program up to $2000 from the Department of Environmental Conservation
Wood and Pellet Stoves 
- $200 Wood Stove Changeout Rebate from Efficiency Vermont
- Vermont Electric Coop Members: $150 Bill Credit for the purchase of a pellet stove
- Washington Electric Coop Members: $250 Rebate for the purchase of a wood or pellet stove
- Stowe Electric Customers: $150 Rebate for the purchase of a pellet stove
- $300 Federal Tax Credit for stoves with at least 75% efficiency purchased in 2018, 2019 or 2020
Pellet Storage
Commercial & Institutional Rebates & Grants
Rebates
- $6000 Flat rate incentive for commerical buildings up to 5000sf from Efficiency Vermont and CEDF
- Custom Incentive for buildings over 5000sf, contact Efficiency Vermont
- Windham County: Up to $100,000 in Assistance from the Windham Wood Heat Inititiave
Grants
- USDA Rural Energy for America: Grants and loans to farms and small businesses
- USDA Community Facilities Direct Loan and Grant Program: Grants and loans to schools, town offices, libraries, fire stations, etc
- USFS Wood Innovations Grants: Grants primarily support businesses that grow the wood utilization market (ie pellet mill, wood based insulation, etc) but also wood heating equipment
- Vermont Working Lands Enterprise Initiatve Grants: Grants for Vermong's ag and forestry related businesses
US Forest Service - Wood Energy Technical Assistance
The USFS Wood Energy Technical Assistance Program offers targeted technical assistance to move clean and efficient thermal and CHP projects from concept to the point where the owner can move forward with implementation, and to ensure implemented projects provide successful models for future projects. The technical assistance provided is flexible in scope to meet the unique needs of each project. The following are potential examples of assistance that may be provided, and the scope will be tailored to each project as determined to be appropriate by the USFS:
- initial screening;
- feasibility study;
- operational troubleshooting;
- energy / emissions metering;
- data analysis on existing wood energy systems to document and improve their performance;
- and general technical assistance targeted to help move projects or state and local programs forward (presentations to Boards, provision of information to regulatory agencies, etc.).
To request assistance complete this form and send it to Lew McCreery, at Lew.McCreery@usda.gov.
Financing Options
Financing options exist for projects of all sizes, from pellet stoves up to large wood chip systems. The most commonly used financing products are listed below.
- Home Energy Loan from Efficiency Vermont and VSECU - Rates as low as 0%
- Rural Energy for America: Grants and loans to farms, small businesses, and community facilities in eligible areas
- Community Facilities Direct Loan and Grant Program
Vermont Sales and Use Tax Exemption:
Starting July 1, 2018, advanced wood heat boilers will qualify for a retail sales and use tax exemption. The exemption is on qualifying equipment and directly associated equipment must meet the following requirements: (A) installed as a primary central heating system; (B) rated as high-efficiency, meaning a higher heating value or gross calorific value of 85 percent or more; (C) containing at least one week fuel-storage, automated startup and shutdown, and fuel feed; and (D) meeting other efficiency and air emissions standards established by the Department of Environmental Conservation. On a typical residential sized boiler, this represents an esimated average savings of $900/boiler. This exemption sunsets in June 2023.
