PROGRAM ELIGIBILITY

****Currently accepting new reservation request applications.*****

****Please be advised that on June 1, 2010 the Vermont Small Scale Renewable Energy Incentive Program is revising the Wind Incentive from a straight rated capacity based incentive to a hybrid upfront capacity payment to buy-down the capital cost and a one year performance payment to reward proper siting of wind turbines in windy locations. For more information about this change, please contact us directly - selowson@veic.org 877-888-7372 x1170.

Updated: May 25, 2010

Program status:

In April 2010, an additional $5,275,000 in funding, made available through the American Recovery and Reinvestment Act and the Vermont Clean Energy Development Fund, has been made available to the Vermont Renewable Energy Incentive Program.  These funds are provided through a new incentive structure, provided here.

•  Both residential and non-residential installations have reporting requirements set forth by the American Recovery and Reinvestment Act of 2009. These requirements include information on number of laborers for an installation and their rate of pay.

•  Non-residential installations utilizing funds from the federal American Recovery and Reinvestment Act of 2009 require special reporting as dictated by the Davis-Bacon Act. This federal funding requires specific reporting on the number of workers that were hired to complete a project, how many hours were worked, and rate of pay. These forms are available at: http://www.dol.gov/whd/forms/wh347.pdf

• In order to qualify as a Special Category Customer you must be a non-profit, public-serving institution e.g. low-income, multi-family housing authorities; K-12 public schools; hospitals; etc.

• All projects for public buildings and public works must comply with the "Buy America Provision". All major components of an installed renewable energy system (plus any other equipment that costs $5,000+) must be produced in the United States.

• All projects for buildings that are 50 years and older must be in compliance with Section 106 of the National Environmental Policy Act. Please visit the Vermont Division for Historic Preservation for more information. For a list of qualified consultants to review your project, please click here.

• All large-scale, ground mounted systems - PV and Wind - must have a SHPO (State Historic Preservation Office) review due to possible archeological disturbance issues. Please contact the Vermont Division for Historic Preservation for more information.

•  Customers/Grantees receiving an incentive via the Vermont Small Scale Renewable Energy Program cannot also receive a grant/loan through the Clean Energy Development Fund. 

• Customers/Grantees cannot receive more than one ARRA funded incentive/grant/loan for the same project.

•  Incentive payments for residential installations are made by check to the homeowner; incentive payments for non-residential installations are made by check to the installer.

All projects must comply with the American Recovery and Reinvestment Act requirements. Failure to comply will result in immediate disqualification from the program and a withdrawal of all current incentives and denial of all future incentives. For a full list of requirements, please visit here.

The weekly reporting form is available at the Department of Labor.

Directions to fill out this form are available here.

The link for the wage rates for Vermont counties surveyed is available here.

Frequently Asked Questions may be reviewed here . This document includes some, but not all, requirements of the Act.

Please note: The Federal Government has not fully developed the implementing instructions of the Recovery Act, particularly concerning specific procedural requirements for the new reporting requirements. The Contractor will be provided these details as they become available. The Contractor must comply with all requirements of the Act. If the Subrecipient/Grantee believes there us any inconsistency between ARRA requirements and current award terms and conditions, the issues will be referred to the Grant Administrator for reconciliation.***

New equipment purchased and installed in Vermont after the program's start date, September 1, 2006 , is eligible for incentive.

Solar Electric Systems - Only grid-connected photovoltaic electric systems are eligible for incentives. All new systems must include the components necessary to result in a functional, independent system. Upgrades to existing systems are also eligible, but to be eligible, an upgrade must include new modules with a rated output of at least 1 kW. New modules must be UL 1703 listed. All inverters must be UL 1741 listed or listed by another nationally recognized testing laboratory. All systems must comply will all applicable requirements of the current version of Vermont Public Service Board Rule 5.100.

Solar Hot Water Systems - Solar hot water systems must be complete systems capable of serving domestic hot water loads. The thermal collectors used in the systems must have an OG-100 output rating from the Solar Rating Certification Corporation (SRCC) or an equivalent organization. Upgrades to existing solar hot water systems are also eligible, but to be eligible, an upgrade must include new collectors with a rated output of at least 15 kBtu/day. Systems that heat water for swimming pool use are not eligible.

Small Wind Systems - Only grid-connected wind energy systems are eligible for incentives. All new systems must include the components necessary to result in a functional, independent system. Upgrades to existing systems are also eligible, but to be eligible, an upgrade must include new turbines with a rated output of at least 1 kW. All inverters must be UL 1741 listed or listed by another nationally recognized testing laboratory. All systems must comply will all applicable requirements of the current version of Vermont Public Service Board Rule 5.100.

Micro-Hydro Systems – Only grid-connected micro-hydro energy systems are eleigible for incentives. All new systems must include the components necessary to result in a functional, independent system. All micro-hydro systems must comply with state and federal laws for hydroelectric systems. Upgrades to existing systems are eligible and may include: Upgrades or equipment improvements to generating and water handling equipment, permitted changes to intakes, penstock, or raceways resulting in increased energy output. The maximum cap for an upgrade is 100% of project cost or $8,750, to be based on the formula outlined in the incentive application form. All inverters must be UL 1741 listed or listed by another nationally recognized testing laboratory. All systems must comply with all applicable requirements of the current version of Vermont Public Service Board Rule 5.100 .

There are not specific minimum or maximum sizes for new eligible systems, although any systems that will be net metered must comply with eligibility requirements as defined by 30 VSA 219. The maximum size for net metering of small wind and solar electric systems is currently 15 kW (or 150 kW for farm-based systems). The Public Service Board may also grant up to five CPGs per year for non-farm systems of up to 150 kW. System upgrades must meet the minimum size requirements listed above.

All systems must be installed in accordance with manufacturer's recommendations and all applicable local, state, and federal codes and permits. Solar electric, small wind and micro-hydro systems must be interconnected to the electric utility grid and must be installed in accordance with the Vermont Interconnection Safety and Technological Requirements (VT Public Service Board Order of April 21, 1999) and the National Electric Code®.

All wind, solar electric and micro-hydro systems must operate as interconnected net metered power systems, must comply with all applicable requirements of the current version of Vermont Public Service Board Rule 5.100, and must obtain and provide a Certificate of Public Good pursuant to 30 V.S.A. § 248 from the Vermont Public Service Board.

Customers may apply for incentives for more than one renewable system, whether installed at the same time or over multiple installations. Residential customers have a lifetime maximum customer incentive amount of $25,000 and Commercial and Industrial customers have a two-year maximum customer incentive amount of $110,000 for solar and 1 turbine up to 150 kW for wind. Customers that have received incentives through this program previously may apply for an additional incentive up to the maximum for their customer category. Special Category customers are capped at 35% of total installed cost for Solar; 1 turbine up to 150 kW for Wind; $17,500 for Micro-hydro. To ensure that the program achieves its goals as equitably and efficiently as possible, there are maximum per-entity size caps, set by technology and customer type, shown in the table below:

Incentive caps are determined according to the cap for the technology being installed in the most recent incentive reservation application. Any incentive received under any previous round of the Vermont Small Scale Renewable Energy Incentive Program (formerly known as the Vermont Solar and Small Wind Incentive Program) will be included in the calculation of this cap.

Customers/grantees may not apply for both an Incentive and a Vermont Solar Tax Credit. If an incentive recipient claims the Vermont Business Solar Tax Credit, pursuant to 32 V.S.A. § 5930z, from the State of Vermont for the project that is the subject of this incentive payment, he or she shall remit the equivalent dollar amount of the tax credit to the State of Vermont for use by the Clean Energy Development Fund. Further, the Grantee, hereby, allows the Department of Taxes to inform the Clean Energy Development Fund through its administrator of such tax credit claimed by the Grantee and the amount of the credit granted.

If a customer/grantee (individual, business, low-income multi-family, school, farm, local-state government) receives an incentive but then removes the installation for which the incentive was approved, the customer will not be granted any further incentives for that specific project type (i.e., solar thermal ), except for in exceptional circumstances as determined by the Renewable Energy Resource Center and the Vermont Department of Public Service.

Customers (businesses or individuals/households) may re-apply for incentives for additional systems up to the maximums listed above.

Vermont is required to comply with the National Environmental Policy Act (NEPA) for all ground mouanted 60+kW PV systems and 20+ kW wind systems. After we receive your incetive reservation application, we will submit relevant data to the Clean Energy Development Fund, which will, in turn, submit to the Department of Energy. Once we receive approval from the DOE, we will notify your installer and the installation can begin. ***Please note that installation cannot begin until you receive notification from the Department of Energy that your system/ installation is in compliance with the National Environmental Policy Act.***

State and Federal Permit Requirements for Micro-Hydro Projects

Link to “ Vermont Micro-hydro Permitting Process” PDF