Renewable Energy Incentives

Tax Credits & Rebates

Renewable energy is increasingly encouraged with benefits for the planet, individuals, businesses, and economies, but switching to renewables can be daunting due to initial costs. Federal, state, and local incentives encourage renewable energy adoption to reduce dependence on dirty fossil fuels, increase local economic health and help citizens save money.

What Are Renewable Energy Incentives?

With the promising future of renewable energy, federal, state, and local governments have invested in renewable sources through tax credits, rebates, grants, loans, and tax holidays. For qualifying installations, incentives can help offset the costs of installation and encourage more people to implement these eco-friendly solutions.

 Qualifying projects and tech, for example, include:

  • Heat pumps
  • Small wind turbines
  • Biomass fuel heaters
  • Solar energy systems
  • Electric Vehicles
  • Efficiency measures such as Energy Star appliances, LED bulbs, and more efficient motors of various types.

 

 

renewable energy incentives feel good image

State Rebate Programs
State programs are generally geared toward meeting greenhouse gas emissions targets.  Additional benefits from using renewables, such as reducing peak power demands or retaining local wealth are also considered. Here in the Northeast, for instance, we are heavily dependent on heating oil imported from other countries. By purchasing wood fuel instead of fossil fuels, billions of dollars can be kept in our region to re-circulate and improve living standards.

Many governments encourage the use of renewable wood heat as a means for achieving renewable energy goals. In our home state of New Hampshire, one goal established by Governor Lynch in 2006 is to achieve 25% use of renewable energy by 2025. Biomass is a key component of the solution, allowing us to switch that heavy demand for heating oil over to domestically sourced wood. Vermont wants to transition to 90% renewable energy by 2050.

 We try to stay abreast of all renewable energy incentives. Below are some notable government biomass incentives, but you can always check with your state's energy department to find programs in your state.

Renewable energy tax credit
Fröling PE1 Wood Pellet Boiler

Federal Tax Credit

 Explore these further on the U.S. Department of Energy's website.

As of December 2020, installations of wood-fueled boilers and stoves for home heating with an efficiency of 75% or better qualify for a federal tax credit. In 2022 and 2023, this wood boiler tax credit will be 22%. At this time, the government boiler incentive will not go beyond 2023, so if you're considering switching, now's the time to do it while you can get a tax rebate for pellet stoves and wood boilers.

The tax credit should equate to federal tax savings of around $5,000 per installation and is processed through the homeowner's IRS tax return. The tax credit can be applied to the entire cost of the boiler installation including buffer tanks. Tax credits only apply to completed system installations taking place within the tax year and are not retroactive. 

The Investment Tax Credit or ITC, which has been available for other renewable energy installations for years, was finally granted for efficient wood heating after almost a decade of effort by the wood heating industry. Please visit this link for more history on the federal tax credit.

Many people have wanted to switch to renewable home heating, but higher installation costs have been a deterrent to pellet boiler purchases compared to gas and oil heating systems. Between the tax credit and rebates, savings can reach $16,000, making pellet boiler installation costs very competitive with installation costs for oil or gas boilers.

What Tarm Biomass Products Qualify for Incentives?

All Tarm Biomass Fröling PE1 wood pellet boiler installations qualify for the 22% federal tax credit, as well as many of our other products. Some states require boilers to have a certain efficiency level, such as New Hampshire's 80%, while others accept from a list of approved products, like those certified by the Environmental Protection Agency (EPA). Here are some of the efficiency ratings for Tarm Biomass products:

  • Fröling PE1: 78%
  • Fröling P4: 85%
  • Fröling S3 Turbo 50: 80.35%

Read your state's incentive requirements to learn which qualifications you'll need to meet. Our product pages contain more detailed information, and you can always contact us to discuss qualifying products.

Please consult a tax accountant before making any final decisions. We at Tarm Biomass will provide the required certificates of efficiency and stand ready to answer any questions about pellet boiler installation options.

wood boiler tax credits

Start Burning Wood Today!

Renewable heating with wood sources has a lot of advantages. Government incentives address one of the largest barriers to installation: cost. Convert to renewable energy, save money and help the planet with high-efficiency products from Tarm Biomass.

If you have any questions about installing wood boilers, finding a qualifying product or placing an order, please reach out to our customer service representatives today!