Advanced Wood Heating Systems

  •  As of July 1, 2017, Advanced Wood Heating companies must also enroll in the Efficiency Excellence Network.

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 Custom Incentive
Base Incentive Calculation $3,000 $1.25 per sq-ft heated space connected to the system
Maximum Base Incentive $3,000 or 30% of total installed cost, whichever is less $20,000 or 30% of total installed cost, whichever is less
Thermal Storage Tank Adder Calculation $0 $10.00 per kBtu/hr
Maximum Thermal Storage Tank Adder $0 $5,000


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 reviews Advanced Wood Heating Terms, Conditions and Requirements to ensure eligibility.
  2. Customer & Reserving Company Sign Contract and Design System
  3. Apply for Incentive Reservation and Appropriate Permitting
  4. Incentive Reservation Approved
  5. Procure System and Install
  6. Submit Final Project Documentation for Review
  7. Incentive Check Sent to Reserving Company

Commercial/Industrial customers and Non-Profit Public Serving Entities with projects that must go out to bid may use the Advanced Wood Heating (Custom Bid) Reservation Application to reserve initial funds without a Reserving Company selected. Once the company or organization receives approval from the RERC, they have three months to select a bid and Reserving Company and submit a full Reservation Application. Once the full application is approved, installation may begin. Please note that the amount of funds reserved in the initial Custom Bid Reservation Application may change based on actual project specifications after the bid is selected.

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 vFY2018 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 vFY2018 Flat-Rate Advanced Wood Heating System Incentive: