Residential Incentives

Wood Energy Incentives for Residential Users

Automated Wood Heating Systems

• $6000 for Wood Pellet Boiler or Furnace from Efficiency Vermont and the Clean Energy Development Fund 

Wood and Pellet Stoves 

• $400 Wood Stove Rebate from Efficiency Vermont

Pellet Storage

• Up to $3000 voucher to purchase a pellet storage bin from a participating vendor - offered by the Clean Energy Development Fund

Federal Tax Credit for Residential Customers

• All wood heating appliances (Pellet stoves, pellet boilers, pellet furnaces, wood stoves, and wood boilers) with 75% or greater efficiency are eligible for a 26% federal tax credit. The tax credit may be claimed on the appliance itself as well as the sales tax, labor and installation costs, and any parts essential to the operation of the appliance, ex a hearth pad under a stove. 
• The tax credit is calculated on the pre-rebate price.  
• More information on eligibility is available on the Energy Star website.

Financing

• Home Energy Loan from Efficiency Vermont and VSECU, Opportunities Credit Union, and NeighborWorks of Vermont - This loan offers income-eligible financing as low as 0% APR for 60 months. It is more accessible than traditional financing tools and can be used for small projects like a new pellet stove, or large projects like a weatherization project. 

Examples

• Residential pellet boiler: A homeowner has a pellet boiler installed for $24,000. It is eligible for the 26% federal tax credit, or $6240. It is also eligible for the $6000 rebate from Efficiency Vermont and CEDF. The net cost to the customer is $11,760. They choose to finance this with the Home Energy Loan at 0% APR for 60 months. Their monthly payment is $196.
• Woodstove Rebate: A homeowner decides to upgrade their non-EPA-certified wood stove to a new model or install a stove for the first time. They select a stove with 76% efficiency, which makes it eligible for the 26% federal tax credit. They are also eligible for the $400 rebate from Efficiency Vermont. With delivery and installation, their new stove costs $2500. Less the $650 tax credit and $400 rebate their total net cost is $1450.
• Residential pellet furnace, converting from a coal furnace: A homeowner who currently heats with a coal furnace decides to install a pellet furnace for $20,000. It is eligible for the 26% tax credit ($5200), the $3000 from Efficiency Vermont, the $3000 from CEDF, and the $7000 coal changeout adder from CEDF. This brings their net total to $1800. 
• *Note*: These examples are for illustrative purposes only. Exact costs of appliances and installation will vary depending on exact unit selected and the circumstances of the installation.