What is the Vermont Solar and Small Wind Incentive Program?
The Vermont Solar and Small Wind Incentive Program was originally established pursuant to Renewable Energy Legislation passed by the Vermont State Legislature during the spring of 2003 and signed into law by Governor Douglas on June 17 th , 2003. The initial program, which funded the installation of more than 220 renewable energy systems, was fully subscribed in the summer of 2004, with all installations completed by the summer of 2005. A second round of funding for solar installations was made available in September, 2005. These funds came from Central Vermont Public Service (CVPS) and Green Mountain Power (GMP) through monies that the two utilities received from the Nuclear Electric Insurance Limited (NEIL) and the American Nuclear Insurers (ANI) funds due to the sale of their interests in the Vermont Yankee Nuclear power plant. Combined with funds unspent from the first round, this money will support the installation of roughly 110 additional solar systems and was fully reserved by late October, 2005. Funds for the support of wind development were made available in September 2005 through U.S. Department of Energy funds secured by Senator James Jeffords for the VT Department of Public Service Wind Development Program. Approximately $454,600 in incentives was made available for qualifying small wind systems for individuals, businesses, schools, and local and state governments. In July, 2006, the Vermont Clean Energy Development Fund authorized an additional $500,000 to the Vermont Solar and Small Wind Incentive Program for incentives for renewable energy systems. In addition, CVPS and GMP provided roughly $238,000 of incentive funds to support qualifying solar electric and solar hot water systems for customers in their service territories, again from their NEIL funds. Along with money left over from solar projects that were not completed in the previous rounds, these contributions result in a total of $980,000 of new incentive funding. The program was opened for new reservation applications in September 2006. The Renewable Energy Resource Center (RERC), a project of the Vermont Energy Investment Corporation, administers the incentive program and provides consumer education and support services.
What are the program's accomplishments, goals, and expected outcomes?
The overarching goal of the program is to accelerate and increase market demand for high-quality solar and small wind systems. Through previous rounds of the program, approximately $1,373,920 of incentives was awarded, supporting the installation of more than 345 renewable energy systems. The incentives available under the new offering are expected to support the installation of approximately 210 new renewable energy systems in the state within a one-year period. The timing and the total number of systems receiving incentives will depend upon the size of installations and market reaction to the program. The program incentives cover approximately 20-25% of the total installed cost for eligible systems. The incentives are expected to leverage approximately $4.5 million in private investment. Total energy savings are estimated to be roughly 8,000 gallons/year of fuel oil (from off-set of hot water heating) and 425 MWh of electricity (combined total for wind and solar electric systems). The program administrator will track and report total system costs, estimated energy savings, avoided environmental emissions, and job activity within the solar and small wind delivery sector of Vermont 's economy.
PROGRAM INCENTIVES
The program offers incentives on renewable energy systems installed by Vermont Solar and Wind Partners. The following tables provide basic information on the incentive level for each system type. Detailed instructions on how to calculate incentives for a specific system application are contained in the program's incentive reservation forms.
What are the incentive amounts for solar electric systems?
Installer: Vermont Solar Partner Incentive Amount ($/Watt) by Customer Type:
Individuals, businesses - $1.75
Multi-family low-income housing projects - $3.50 Maximum Incentive:
Individuals, businesses--$8,750
Multi-family low-income housing projects - The lesser of $35,000 or 50% of total installed cost
Solar electric system incentives are calculated according to the total array output based on the module manufacturer's rated panel output under standard test conditions (STC).
What are the incentive amounts for solar hot water systems?
Installer: Vermont Solar Partner Incentive Amount ($/100 Btu/day) by Customer Type:
Individuals, businesses - $1.75
Multi-family low-income housing projects - $3.50 Maximum Incentive:
Individuals, businesses--$8,750
Multi-family low-income housing projects - The lesser of $35,000 or 50% of total installed cost
Solar hot water system incentives are calculated according to the Solar Rating and Certification Corporation's OG 100 collector rating for kBtu/Day output under Clear C conditions. Alternative equivalent ratings for non-flat plate collectors may be submitted for consideration.
What are the incentive amounts for small wind systems?
Installer: Vermont Wind Partner Incentive Amount ($/Watt) by Customer Type:
Individuals, businesses $2.50 base - up to $4.00 with Vermont-made components*
Schools, farms, and local/state governments - $4.50 Maximum Incentive:
Individuals, businesses--$12,500
Schools, farms, and local/state governments - The lesser of $20,000 or 50% of total installed cost
System incentive amounts are determined based on manufacturer's total rated turbine output with a hub-height wind speed of 11 meters per second.
*There will be additional incentives available for systems that use components manufactured in Vermont by a Vermont-based company and certified as such by Renewable Energy Vermont (www.revermont.org). Incentives will be increased to $3.00/Watt for systems using a Vermont-manufactured tower, increased to $3.50/Watt for systems using a Vermont-manufactured turbine, and increased to $4.00/Watt if both are used. The maximum total incentive will still be $12,500. The additional Vermont component incentives are not be available to schools, farms, or local/state governments, which are eligible for a $4.50/Watt incentive for qualified systems.
The Vermont Department of Public Service has created a small wind website specifically to address questions about the siting, permitting, installation, and net-metering of systems in Vermont . The website includes detailed wind resource maps at the county level. All incentive participants are encouraged to use this resource at www.vtwindprogram.org . Additional small wind information is available from Renewable Energy Vermont at www.revermont.org.
PROGRAM ELIGIBILITY
What types of renewable energy systems qualify?
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.
Are there any restrictions on the minimum or maximum sizes for systems?
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.
For multi-family low-income projects, program incentives will support the first 10 kW of installed capacity for a solar electric system or the first 1,000 kBtu/day rating for solar hot water collectors; larger systems are eligible but will receive an incentive capped at the lesser of $35,000 or 50% of the total installed cost of the system.
For other customers, program incentives will support the first 5 kW of installed capacity for a solar electric or wind system or the first 500 kBtu/day rating for solar hot water collectors. Larger systems are eligible for program support, but will receive an incentive capped at $8,750 for solar and $12,500 for wind. Incentives for wind systems installed by schools, farms, and local and state governments are limited to the lesser of $20,000 or 50% of the total installed cost of the system. Portable systems and solar hot water for swimming pools are not eligible for incentives.
What guidelines or requirements apply to system installation?
All systems must be installed in accordance with manufacturer's recommendations and all applicable local, state, and federal codes and permits. Solar electric and small wind 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 and all solar electric 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.
Can I qualify for incentives for a system composed of two or three of the approved technologies?
Yes. Participants are eligible for incentives for systems that include two or three different technologies (wind, solar electric and solar hot water); however, a single application for a hybrid system must be submitted and will be assigned a single reservation number. The combined total incentive amount for hybrid systems cannot exceed the following amounts: $8,750 for solar hybrid systems, $12,500 for solar/wind hybrid systems (or $20,000 for solar/wind hybrid systems installed by schools, farms, or local or state governments), and $35,000 for solar hybrid or solar/wind hybrid systems installed by multi-family low-income projects.
Can I qualify for an incentive if I have had an incentive before?
No. Customers (businesses or individuals/households) are eligible to receive only one incentive from the program; that is, customers who received an incentive under any previous round of the Vermont Solar and Small Wind Incentive Program are ineligible to receive another incentive under this offering.
Do off-grid systems qualify for incentives?
No - Off-grid systems are not eligible for incentives.
Do portable systems (wind, solar electric, solar thermal hot water) qualify?
No - Portable systems are not eligible for incentives under this program.
Are there any restrictions on the type of system inverters?
Yes. Inverters for all systems must be UL 174 listed or listed by another nationally recognized testing laboratory for their intended application.
Are low-income multi-family housing projects eligible for wind incentives?
Yes - low-income multi-family housing projects are eligible for incentives of $2.50 per Watt for wind systems, with special increased incentives up to $4.00 per Watt as outlined above if Vermont-made components are used. The maximum wind incentive for these customer types is $12,500.
Are school, farm, and local/state government projects eligible for solar incentives?
Yes - projects undertaken by these customers are eligible for incentives of $1.75 per Watt for solar electric systems and $1.75 per 100 Btu/d for solar hot water systems, to a maximum (in total) of $8,750.
PROGRAM PARTICIPATION STEPS
There are six primary steps in program participation, with additional certification required for wind systems.
Federal NEPA Environmental Compliance Requirement for Wind Systems: Vermont is required to comply with the National Environmental Policy Act (NEPA) for all wind turbines. NEPA compliance is required given the majority of funding for wind systems is from the Department of Energy.
The following reservation approval process is therefore proposed for small wind systems in the new program:
1) The installer submits an incentive reservation form.
2) The program administrator will notify the installer if the application is in order and assign an incentive reservation number.
3) Installer and customer apply to the Public Service Board for a Certificate of Public Good (CPG); see http://publicservice.vermont.gov/energy-efficiency/ee_netmetering.html .
4) Public Service Board issues a CPG.
5) Installer submits CPG to the program administrator.
6) Program administrator receives CPG and submits the NEPA paperwork on behalf of the installer to the Department of Energy's NEPA compliance officer.
7) The NEPA compliance officer will notify the program administrator once the project is approved, or if there are issues.
8) The program administrator will notify the installer that NEPA compliance has been received and the installation may proceed.
9) Installer completes installation and submits project documentation.
10) Program administrator reviews and approves project documentation forms.
11) Program administrator issues incentive check.
According to the DPS, the NEPA review process should take less then a month from start to finish. However, it will be important that installers apply for and receive a CPG and submit a copy to the program administrator as soon as possible in order to initiate the NEPA review process. Please note, we will strive to streamline this administrative process as much as possible.
How do I learn about renewable energy systems and installers in Vermont ?
Vermont Solar and Wind Partners are listed below and information can be obtained through our hot line at (877) 888-7372. A Clean Power Estimator is available to help customers evaluate the economics, energy production, and environmental benefits of solar electric and small wind systems.
How do I get an incentive reservation form?
Incentive reservation forms are available from Vermont Solar and Wind Partners, or they can be downloaded directly from the RERC website (www.rerc-vt.org) . The reservation form requires the signature of your selected installer. If you are applying for a hybrid system, you must fill out all of the applicable reservation forms and return in the same envelope; incentives for additional systems for the same customer will not considered if submitted at a later date. All questions on the reservation form must be completed or it will be returned.
How will I know if and when my incentive reservation application is approved?
Upon the approval of your application, you will be sent an incentive reservation letter that includes an incentive reservation number and expiration date. Incentive reservations are active for nine months from the date of the incentive reservation approval.
What happens after my incentive reservation is approved?
After receiving an approval and incentive reservation number, you should work with your installer to proceed with the installation of the system. After your system is fully installed, you can complete and return by mail the Project Documentation and Final Incentive Request Form. This form is available from Vermont Solar and Wind Partners, or it can be downloaded directly from the RERC website (www.rerc-vt.org) . The form must be completed and submitted before the end of the nine-month reservation period.
Any changes between the system as proposed in the incentive reservation form and the system as installed must be fully documented when the project documentation forms are submitted. Any such changes are subject to review and approval with respect to system eligibility and incentive calculation. If the Project Documentation and Final Incentive Request Forms comply with all of the program requirements, an incentive check will be issued to the installer promptly.
Is the incentive payment taxable?
In most instances, the incentive payments made under this program will be treated as taxable income by the IRS and the State of Vermont . It is the responsibility of the recipient of this incentive payment to consult with his/her tax advisor to determine the correct treatment of these payments for Federal and State tax purposes.
What if I don't complete the installation within the approved nine-month period?
Projects that do not submit a completed Project Documentation and Final Incentive Request Form within the approved timeframe must submit a new incentive reservation request form. Any such re-submission of an incentive request will be processed and considered on the basis incentive availability as of the date of the re-submission. Re-submissions are not guaranteed a second incentive reservation approval.
How do I know how much incentive money is still available in the program?
A chart indicating the amount of incentive reservations approved and the amount of remaining unreserved incentives is posted on the RERC web site and updated on a regular basis. The remaining incentive dollars will be tracked according to the four funding sources as follows:
• Wind: available to all customers statewide
• Solar, CEDF; available to support solar hot water and solar electric systems to all customers statewide
• Solar, CVPS: available for solar hot water and solar electric systems installed in CVPS service territory
• Solar, GMP; available for solar hot water and solar electric systems installed in GMP service territory.
What information is available on the systems that have been installed with program support?
The program will post and maintain a table on the RERC web site that shows the system type, size, installed cost, and location (by town name) for all systems installed with support from the incentive program.
Where do I send the Incentive Reservation and Project Documentation Forms?
Send all application and project forms to:
Vermont Solar & Small Wind Incentive Program
255 S. Champlain Street, Suite 7
Burlington , VT 05401-4894
Tel: (877) 888-7372 www.rerc-vt.org
Who are the currently approved Vermont Solar and Wind Partners?
