VERMONT
SEPA
Vermant
REnEwable Energy and
Energy EfficiEncy IncentivEs
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RENEWABLE ENERGY INCENTIVES
VERMONT
Vermont Renewable Energy and Energy Efficiency Incentives
Climate change and energy security are major challenges of our time and the
environmental implications are as much local as they are global. Reducing our use of
fossil fuel-based energy reduces greenhouse gases that contribute to global climate
change. EPA New England is providing this resource fact sheet as a starting point for
residential, municipal and commercial energy consumers. It outlines the federal, state
and utility incentives for energy efficiency and renewable sources of energy.
(left) Woakhip heating& automated
conlrok; photo courtesy of D. Sachs/
(center) UVM safer array, photo courtesy
of Alters Renewobks, Inc.
(right) High-efKdency nrnaturbine,
photo courtesy of Essex Junction WWIF
Federal
Energy Efficient &
Energy Improvement Mortgages
• Credits a home's energy efficiency in the mortgage itself
• Gives borrowers the opportunity to finance cost-effective,
energy-saving measures
• Energy Efficient Mortgages (EEM) fund new homes that are
already energy efficient
• Energy Improvement Mortgages (EIM) allow borrowers to
include the cost of energy-efficiency improvements in
existing homes without increasing the down payment
• Sponsored by federally insured mortgage programs
• Visit energystar.gov - enter "Mortgage" in the search box
Residential Renewable Energy Tax Credits
Credit available for systems placed in service by 12/31/2016:
Applies to qualified systems for photovoltaics, solar water heat, wind,
fuel cells, geothermal heat pumps, solar electric technologies.
Credit is up to 30% of the cost.
Credit limit:
• No limit on solar photovoltaic electric systems
• $2,000 for solar water heating
• $500 per O.SkW for small wind (<100kW) up to $4,000
• $500 per O.SkW for fuel cells
• $2,000 for geothermal heat pumps
• Visit dsireusa.org - click "Federal Incentives," then scroll
to "Personal Tax Credit" and click on "Residential Renewable
Energy Tax Credit"
Residential Energy Efficiency Tax Credits
Credit available until 12/31/2009:
Applies to qualified water heaters, furnaces, boilers, heat pumps, air
conditioners, building insulation, windows, doors, roofs, circulating fans used
in qualifying furnaces, stoves that use biomass fuel to heat a home or to heat
water. Credit is up to 10% of cost of building envelope improvements, or up
to 100% for qualified energy property.
Credit limit:
• No more than $500 for all improvements combined
• $50 for advanced main air circulating fans
• $150 for natural gas, propane or oil furnace or hot water boilers
• $200 for windows
• $300 for electric heat pump water heaters
• $300 for electric heat pumps
• $300 for central air conditioners
• $300 for natural gas, propane or oil water heaters
• $300 for biomass stoves
• Visit energystar.gov - enter "Tax Credits" in the search box
Residential and Corporate Energy
Conservation Subsidy Exclusion
• Electric utility customers joining an energy conservation
program may receive a:
• Reduction in the purchase price of electricity
. Non-refundable credit against the price of electricity
. Rate reduction that is not included in income and not taxable
• Visit dsireusa.org - click "Federal Incentives," then scroll to
"Corporate Exemption" and click on "Residential Energy
Conservation Subsidy Exclusion (Corporate)" or scroll to
"Personal Exemption" and click on "Residential Energy
Conservation Subsidy Exclusion (Personal)"
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USDA Rural Energy for America Program (REAP)
• Promotes energy efficiency/renewable energy for agricultural
producers and rural small business
• Grant program open to commercial, schools, local, state and
tribal governments, rural electric cooperatives, agricultural,
public power sectors
• Maximum limit of grant equals 25% of project cost with various caps
• Visit www.rurdev.usda.gov/rbs/farmbill
Tribal Energy Program
• Federal grant program to promote tribal energy efficiency with
eligible systems, including passive solar space heat, solar
space and water heat, photovoltaics
• Visit eere.energy.gov/tribalenergy
State
Sales Tax Exemption
• Solar water heat, solar thermal electric, photovoltaics,
landfill gas, wind, biomass, combined heat and power/
co-generation, anaerobic digestion, fuel cells using
renewable fuels
• Open to residential, commercial, agricultural and general
public sectors
• For on-and-off grid systems up to 250kW
• Visit dsireusa.org - click on "VT," then scroll to "Sales
Tax Exemption"
Property Tax Exemption
• Solar water heat, solar space heat, solar thermal
electric, photovoltaics, landfill gas, wind, biomass,
hydroelectric, combined heat and power/co-generation,
anaerobic digestion, small hydroelectric, fuel cells
using renewable fuels
• Open to residential, commercial, industrial, agricultural sectors
• Adoption of exemption varies by municipality
• Visit dsireusa.org - click on "VT," then scroll to "Property
Tax Exemption"
Corporate Tax Credit for Solar
• Solar water heat, solar space heat, solar thermal electric,
solar thermal process heat, photovoltaics, solar hybrid lighting
• Open to commercial and industrial sectors
• 30% for property put in service by the end of 2016
• Visit dsireusa.org - click on "VT," then scroll to
"Corporate Tax Credit"
Vermont Small Scale Renewable Energy Incentive Program
• Solar water heat, photovoltaics (PV), wind, micro-hydro
• Open to residential/multi-family/low-income, commercial,
schools, state and local governments, agricultural sectors
• Provides funding for new solar water heating, PV, small
wind, and micro-hydro systems
• Systems must be installed by registered Vermont Solar and
Wind Partners
• Visit rerc-vt.org/incentives
Clean Energy Development Fund (CEDF)
Loan and Grant Programs
• Solar thermal electric, photovoltaics, wind, biomass, fuel
cells, combined heat and power/co-generation, anaerobic
digestion, small hydroelectric, microturbines
• Open to residential, commercial, non-profit, local
government sectors
• Promotes the development and deployment of clean
electric-energy technologies
• Funds may purchase land, buildings, equipment and installation,
and working capital
• Systems must be grid-tied
• Loan amounts range from $50,000 - $1 million for no more than
90% of project costs
• Grant amounts vary by solicitation
• Visit publicservice.vermoritgov/energy/ee_dearienergvlund.htrnl
Utility
Vermont Gas—Residential Energy Efficient
Retrofit and Equipment Replacement Programs
• Furnaces, boilers, heat pumps, duct/air sealing, building
insulation, water heaters, indirect fired storage tanks
• Open to residential/multi-family sectors
• For Vermont Gas customers whose homes used at least
0.6 ccf of natural gas per square foot over the past year
• Rebate typically one third of the installed cost of
recommended measures, with the remaining balance paid for
with a reduced interest loan
• Visit vermontgas.com/efficiency_programs/res_programs.html
Vermont Gas—Commercial Energy
Efficiency Programs
• Water heaters, furnaces, boilers, heat recovery, steam-
system upgrades, kitchen exhaust hoods, heat
exchangers, modulating burners, pool heaters
• Open to commercial, industrial, construction, installer/
contractor sectors
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RENEWABLE ENERGY INCENTIVES • VERMONT
ility, cont'd
• Technical assistance available
• Rebate amounts vary by equipment/project
• Post-project inspection required
• Visit vermontgas.com/efficiency_programs/
comm_programs.html
Production Incentive from Green Mountain
Power—Solar GMP
• Photovoltaics (PV)
• Open to residential, commercial, industrial, nonprofit,
schools, federal, state and local governments, agricultural,
and institutional sectors
• Bonus payment of $0.06 per kilowatt-hour to customers with
net-metered PV systems
• Visit greenmountainpower.com/solar_GMP.html
State Contacts:
Vermont Department of Public Service
Anne Margolis
(802) 828-4017
anne.margolis@state.vt.us
Renewable Energy Resource Center
(877) 888-7372
rerc-vt.org
Efficiency Vermont
(888) 921-5990
efficiencyvermont.com
Federal Contacts
US Department of Agriculture
REAP Grant
(800) 670-6553
US Environmental Protection Agency
EPA New England
Cynthia Veit
(617) 918-1666
veit.cynthia@epa.gov
John Moskal
(617) 918-1826
moskal.john@epa.gov
Burlington Electric Department—Neighbor$ave
Rebate Program
• Rebates for equipment insulation, lighting
• Open to residential sector
• Products and technical advice
• Visit www.burlingtonelectric.com/EnergyEfficiency/
neighbor.htm
Multiple Energy Efficiency Products/
Incentives from Efficiency Vermont
• Efficiency Vermont offers VT residents and businesses rebates,
incentives, and information on energy efficient appliances
and products such as water heaters, lighting, boilers, etc.
• Visit efficiencyvermont.org/pages/
Success Stories
Municipality—Essex Junction, VT, installed a high
efficiency microturbine to provide heat and electricity to its
wastewater treatment plant. The systems will provide about 40% of
the plant's electricity needs, saving the city approximately $30,000
per year in electricity costs. The turbine runs on gas, that is a
renewable by-product of the wastewater treatment process. This
system will cut the plant's greenhouse gas emissions by more than
250 tons a year, which is the equivalent of taking 42 cars off the road.
University—A 5-kilowatt solar array was installed at the University of
Vermont in 2001 as a collaborative project of the UVM Physical Plant
Department and the UVM Environmental Council. The demonstration
project was supported by financial and in-kind contributions from the
Burlington Electric Department and the U.S. Department of Energy's
Million Solar Roofs program. This array and a residential sized wind
turbine have helped raise interest in renewable energy on campus. In
2007 students persuaded the trustees to raise the student fee by $10
per semester to create a new Clean Energy Fund of $200,000 per year
to help fund campus renewables projects. Story courtesy of UVM-Office
of Sustainability.
Secondary School—Champlain Valley Union High School has
experienced huge energy savings with a 39% reduction in energy use
per sq. ft. and 11% decrease in total energy use even with an expanded
floor plan. Their team approach called for several high performance
improvements including daylight harvesting, use of wood chips for space
heating and hot water, centrally controlled lighting, classroom occupancy
sensors, and variable frequency drives for superior air handling and
heating. With a project payback of one year including state incentives, the
wood chip system has achieved oil cost savings of more than $150,000
per year. Story courtesy of Deb Sachs, 10% Challenge Program.
United States
Environmental Protection
Agency New England
EPA901-F-09-011
April 2009
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