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Financial Incentives for Renewable Energy in Vermont
Because Vermont provides few renewable energy incentive programs, REV works hard to promote legislation that creates new incentives for Vermont homeowners and businesses to install renewable energy systems. Check out our legislation page for information on possible future programs.
Here are the current state and local incentives:
CEDF Funding Now Available
The Vermont Department of Public Service is accepting project proposals for the following renewable energy grants and loans:
* CEDF grants for grid-connected renewable energy and combined heat and power technologies. Maximum awards of $25,000 are available for pre-project financial assistance, $60,000 for small-scale systems, and $250,000 for all other projects. Proposals are due Wednesday, October 1, 2008.
* Municipal Technical Assistance grants for municipalities, public schools, and Vermont state colleges to investigate installing renewable energy generation technologies and combined heat and power systems. Maximum award is $5,000.
* Low-interest loans for renewable energy projects including wind, solar, hydro, farm methane and combined heat and power. Interest rate now at 2%; loans fund up to 90% of eligible project cost for amounts between $50,000 and $250,000; individuals, businesses, nonprofits, municipalities and others may apply.
find out more here
Vermont Solar & Small Wind Incentive Program
The goal of this program is to accelerate market demand for high-quality solar and small wind systems in Vermont. Nearly $1 million in incentives is now available.
The program offers financial incentives only to renewable energy systems installed by local program partners. To take advantage of the incentives, you must go through an installer that has been approved by the Solar and Wind Partnership Program. You can find partner installers here.
Detailed information and instructions on how to calculate incentives for a specific system application can be found in the program's incentive reservation forms located at the Renewable Energy Resource Center (RERC).
The timing and number of systems receiving incentives depends on the size of installations and market reaction to the program. The program incentives cover approximately 20–25% of the total installed cost for eligible systems. The program administrator tracks and reports total system costs, estimated energy savings, avoided environmental emissions and job activity within the solar and small wind delivery sector of Vermont 's economy.
The program is administered for the VT Department of Public Service by the RERC, which is a project of the Vermont Energy Investment Corporation (VEIC) and which provides consumer education and support services.
In 2006, the Vermont Clean Energy Development Fund authorized an additional $500,000 to the Vermont Solar and Small Wind Incentive Program. Two electric utilities — Central Vermont Public Service (CVPS) and Green Mountain Power (GMP) — also provided incentive funds to support qualifying solar and small wind systems for customers in their service territories.
More Information:
To find out more about program incentives: Vermont Solar & Small Wind Incentive Program
To find a local partner installer: Vermont Solar & Wind Partnership ProgramClean Energy Development Fund
In 2005, the Vermont General Assembly established the Vermont Clean Energy Development Fund (CEDF) through Act 74, which specified that the CEDF would be funded by proceeds due to the state from Entergy Nuclear VT and Entergy Nuclear Operations, Inc., and by any other monies that may be appropriated to or deposited into the fund.
The CEDF offers low-interest loans to help finance a wide variety of clean and/or renewable electric energy technologies. The purpose of the program is to promote the development and deployment of cost-effective and environmentally sustainable electric power resources — primarily with respect to renewable energy resources and the use of combined heat and power technologies — for the long-term benefit of Vermont electric customers.
The VT Department of Public Service (DPS) manages the CEDF. Contact Kelly Launder for additional information.
More Information:
CEDF official website
CEDF loan brochure
CEDF loan application
DPS report
to the Legislature on the CEDF (800kb pdf)
CEDF strategic
plan, developed by DPS and the CEDF Investment Committee
Commercial Solar Tax Credit
details to come
Net Metering
REV has been working on making Vermont's net metering law more effective in promoting renewable energy. Net metering makes it easier and more cost-effective for Vermonters to generate their own electricity because the net metering law requires electric utilities to permit customers to reduce their electric bills by generating their own clean power using renewable energy systems. Any excess power they generate is fed back to their utilities, actually running their electric meters backwards!In 2006 the legislature passed Act 208, which includes several changes to the net metering law. The following four changes are the most significant :
1. Farmers can install net metered systems greater than 150kW (the limit for all other customers), but they can only net meter 150kW worth of the output. The remaining output will be sold to the utility under a contract between the farmer and the utility.
2. All net metering will be done on a rolling 12-month basis. This means that credits will not revert to the utility on December 31, as they did previously. Any net metering credit generated in July 2006 and month afterward shall be carried forward by the utility for 12 months. At the end of 12 months, if that credit remains it will revert to the utility without compensation to the customer.
3. Micro-hydro was added to the list of eligible technologies that can be net metered.
4. Customers can form net metering groups to share the output of a renewable energy system as long as the customers in the group belong to the same electric utility and are located contiguously.
More Information:
Web: VT Dept. of Public Service's Net Metering Page
Sales Tax Exemption
REV was successful in getting the sales tax exemption for renewable energy equipment expanded to include solar hot water systems and off-grid PV and wind systems. All PV and wind energy equipment, as well as all solar hot water equipment, is exempt from Vermont's 6 percent sales tax.Here is the Statutory language for the sales tax exemption:
"Title 32: Taxation and Finance, Chapter 233: Sales And Use Tax, § 9741. Sales not covered
(46) Tangible personal property to be incorporated into:
(A) a net metering system as defined in 30 V.S.A. § 219a;
(B) a home or business energy system on a premises not connected to the electric distribution system of a utility
regulated under Title 30 and that otherwise meets the requirements of 30 V.S.A. § 219a(a)(3)(A), (C), (D), and (E); or
(C) a hot water heating system that converts solar energy into thermal energy used to heat water, but limited to that
property directly necessary for and used to capture, convert, or store solar energy for this purpose."
Vermont Anemometer Loan Program
The mission of this program is to provide anemometer (wind measurement) equipment to Vermont residents who are considering the installation of small wind systems on their property.More Information:
Call: John Kidder 802-728-1783
Web: Vermont Technical College
Vermont Energy Investment Corporation
Vermont Energy Investment Corporation (VEIC) performs energy audits and energy ratings of homes for energy efficiency and works with Vermont lenders, real estate professionals, builders, home buyers, sellers and utilities to promote affordable, energy-efficient housing throughout Vermont. VEIC also works directly with the Renewable Energy Resource Center and Efficiency Vermont to help promote and rate homes with renewable energy systems.More Information:
Call: 802-865-3926 or toll-free 1-800-639-6069
Web: Vermont Energy Investment Corporation
Vermont Energy Star Homes Service
This is a state-wide service promoting energy efficient new construction. Direct financial incentives are available for homes meeting specified criteria, and renewable energy systems can help a new homeowner meet program standards.More Information:
Call: Jeff Gephart at 800-893-1997
E-mail: info@vtenergystarhomes.com
Web: Efficiency Vermont
USDA Rural Development Grants and Loans
details to come
P.O. Box 1036 Montpelier, VT 05601
(802) 229-0099
info@revermont.org