Advanced Wood Heating Systems

  •  We are currently accepting applications for new reservations for Solar Hot Water and Advanced Wood Heating Systems.

The Advanced Wood Heat incentive is available for efficient central wood pellet and wood chip systems. Most residential customers will benefit most from the flat-rate incentive.

  Flat-rate Incentive
Residential, Commercial/Industrial
Custom Incentive
Residential, Commercial/Industrial
+Custom Incentive
+ Public-Serving
Base Incentive Calculation $3,000 $1.25 per sq-ft heated space connected to the system $1.25 per sq-ft heated space connected to the system
Maximum Base Incentive $3,000 $60,000 $80,000 or 50% total installed cost, whichever is less
Thermal Storage Tank Adder Calculation $0 $10.00 per MBH $10.00 per MBH
Maximum Thermal Storage Tank Adder $0 $10,000 $15,000
Customer Lifetime Cap (with Adders) $70,000 $70,000 $95,000


Here are the links to download the incentive reservation forms. You should submit the form as soon as you are committed to install a system. Incentives are reserved on a first-come first-served basis. For more information on system and customer eligibility, please review each technology’s SSREIP Terms, Conditions, and Requirements (found under Application Documents).

Incentive Program Steps

  1. Customer & Reserving Company Sign Contract and Design System
  2. Apply for Incentive Reservation and Appropriate Permitting
  3. Incentive Reservation Approved
  4. Procure System and Install
  5. Submit Final Project Documentation for Review
  6. Incentive Check Sent to Reserving Company

Find an Approved Reserving Installer

If you would like to become a listed installer, please download and read the Terms, Conditions and Requirements below.

Advanced Wood Heating Terms, Conditions and Requirements


For full Small Scale Renewable Energy Incentive Program (SSREIP) policies and procedures, please see the SSREIP Terms, Conditions, and Requirements found here.

Details on the vFY2017 Custom Advanced Wood Heating System Incentive:

  • Available for systems with one or more boilers/furnaces.
  • Calculated based on the facility’s size (heated square footage): $1.25 per square-foot.
  • Includes an adder for thermal storage tanks proportional to heating system size: $10.00 per kBtu/hr of installed output.
  • Includes woodchip systems (green and dry).
  • Woodchip systems must meet an 80% (HHV) efficiency standard and limit total particulate matter emissions to no more than a 0.10 lb/MMBtu output. Pellet systems must continue to meet the current requirements (85% HHV efficiency and PM2.5).
  • Applications may be subject to an in-house design review. The Renewable Energy Resource Center will respond with further questions, approval or denial within (10) business days of application receipt.
  • This incentive cannot be combined with the flat-rate Advanced Wood Heating System incentive below.
  • May be combined with the Efficiency Vermont Central Wood Pellet Furnace and Boiler Rebate.

Details on the vFY2017 Flat-Rate Advanced Wood Heating System Incentive: