Renewable Energy Incentives
State and Federal Incentives
State Rebate Programs
Many governments encourage the use of renewable wood heat as a means for achieving renewable energy goals. For instance, in our home state of NH, 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. Vermont wants to transition to 90% renewable energy by 2050. Other states around the country have similar goals. Especially in the Northeast, where we are heavily dependent on heating oil, nearly 80% of all money spent on heating fuels exits our state economies. By purchasing wood fuel instead of fossil fuels, billions of dollars can be kept in our region to re-circulate and improve living standards. We try to stay abreast of all renewable energy incentives. You will find a list of those we know about below.
• A rebate payment of 40% of the system and installation cost, up to a maximum of $10,000.
• Minimum three ton capacity for pellet fuel storage.
• Must be a resident of New Hampshire and their primary residence.
• A rebate payment of 30% of the system and installation cost, up to a maximum of $50,000.
• Minimum three ton capacity for pellet fuel storage.
• An additional rebate payment of 30% for the installation of a thermal storage tank, up to a maximum of $5,000.
• $3,000 cash back after purchase.
• Rebates are for new, high-efficiency wood pellet boilers and furnaces that are installed as primary central heating systems.
• Replacement of natural gas-fired heating systems is not eligible.
• Systems must be classified as indoor systems and installed inside.
• Systems must be wood pellet only.
• Systems must have at least one-week fuel-storage and automated on/off and fuel feed.
Commercial buildings over 5000 sq. ft. may be eligible for funding of up to $1.25 per sq. ft. Please contact Renewable Energy Vermont for more details.
Vermont Renewable Energy Resource Center
• $3,000 per installed pellet boiler.
• Fuel storage capacity such that the system may continuously operate for a period of at least 14 days under peak load conditions.
• Automated fuel feed from a bulk storage container/area to the burn chamber in an integrated path.
• Automated on/off fuel feed control based on a demand for heat.
• Bulk fuel storage container systems must be able to receive automated bulk delivery of pellets.
• Customers are eligible for a $500 Pellet Storage Upgrade Adder for pellet storage systems that have at least 20 days of storage under peak load conditions.
• Residential and commercial installations qualify.
Residential Small Commercial Pellet Boiler Incentives
• Incentives are 45% of installed costs based on system size:
|Boiler Size (kW)||Boiler Size (Btu/hr)||Maximum Incentive|
• An additional $5,000 for documented recycling (removal and destruction) of old outdoor or indoor wood boiler, or $2,500 for recycling a whole house wood furnace is also available.
• Incentives are available on a first-come, first-served basis.
• You may qualify for a Green Jobs - Green New York Smart Energy Loan to help pay for eligible project costs.
• Pellets must be stored outside of the building as outlined in the Program Manual.
• System Performance Requirements:
|Particulate Emissions||less than 0.080 lb/mmBtu|
|Carbon Monoxide (CO) Emissions||less than 270 ppm at 7% O2|
Large Commercial Pellet Boiler Incentives
• Base award of 40% (up to $200,000 for units with output over 88kW (300,000 BTU/H).
• The incentive is for 45% of installed costs, with a cap of $270,000 for tandem pellet boilers with output over 300 MBtu/h (88kW).
|System Type||Incentive||Maximum Incentive per Facility|
Output over 300 MBtu/hr (88kW)
|40% of Total Installed Cost||$200,000|
|Tandem Pellet Boilers
Output over 300 Mbtu/hr (88kW)
|45% of Total Installed Cost||$270,000|
Advanced Cord Wood Boiler Incentives
• Incentives are available for advanced cord wood boiler heating systems with full thermal storage for installations in the residential and small commercial sectors.
• The installation must include full thermal storage as outlined in the Program Manual.
• Total up to $10,000, calculated as 25% installed cost up to $5,000 per unit.
• $5,000 for documented recycling (removal and destruction) of old outdoor or indoor wood boiler.
• $2,500 for recycling whole house wood furnace.
• Up to $5,000 per installed unit is available for customers with existing oil heat or propane.
• Incentives are available on a first-come, first-served basis, and will only be reserved for customers once an application has been approved by NYSERDA
Federal Tax Credit
As of December 2020, installations of wood-fueled boilers and stoves for home heating with an efficiency of 75% or better qualify for a 26% federal tax credit. 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 combining for savings up to $16,000, pellet boiler installation costs are now very competitive with installation costs for oil or gas boilers.
All Tarm Biomass Fröling PE1 wood pellet boiler installations qualify for the 26% federal tax credit. The tax credit phases down to 22% for installations taking place in 2022 and 2023. At this time, the tax credit will not go beyond 2023. The tax credit should equate to federal tax savings of $5,000-$6,000 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.
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.