FAQ

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.

The overarching goal of the program is to accelerate and increase market demand for high-quality solar, small wind and micro-hydro 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, small wind and micro-hydro delivery sector of Vermont 's economy.

Are there any changes to the program now that it's being funded by the American Recovery and Reinvestment Act of 2009?

Yes, the following changes have been made to the incentive program for all incentives reserved after January 1, 2010 (those funded by the American Recovery and Reinvestment Act of 2009):

• 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

• 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.

• 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.

• 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.

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.****

Yes. Please check here for proposed incentive levels for 2010-2011. 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 or 1-877-888-7372 x1170.

Are there different incentive amounts depending on customer type?

Yes. Please visit here for proposed incentive levels by customer type. 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 or 1-877-888-7372 x1170.

Are there limits on the total amount of incentives per customer?

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. 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; $90,000 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:

Maximum Incentives
Customer Type	Maximum Cumulative Incentive
Individuals	10 kW Solar Electric; 200 kBtu/day Solar Hot Water; $25,000 Wind; or $8750 Micro-hydro
Commercial & Industrial	150 kW Solar Electric; 1000 kBtu/day;1 turbine up to 150kW Wind; or $8750 Micro-hydro
Special Category	35% of installed cost Solar, $17,500 Micro-hydro or 1 turbine up to 150 kW Wind

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.

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 .

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, solar electric, and all 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.

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 ,solar hot water, and micro-hydro). The combined total incentive amount cannot exceed the incentive limits set for each technology.

Do portable systems (wind, solar electric, solar thermal hot water, micro-hydro ) qualify?

Yes. Inverters for all systems must be UL 174 listed or listed by another nationally recognized testing laboratory for their intended application.

There are six primary steps in program participation, with additional certification/permitting required for 60+ kW PV, 20+ kW wind and all micro-hydro systems. Residential customers will receive incentive payments directly, while incentive payments for non-residential customers will be paid to the installer in compliance with Davis-Bacon Act reporting requirements.

Are there different requirements for residential and non-residential installations?
Yes, there are different reporting requirements for residential and non-residential installations if the customer applied for an incentive after 01/01/2010. If yours is a residential installation, your installer will need to submit American Recovery and Reinvestment Act reporting information regarding number of hours and pay rate of all laborers on an installation. Non-residential installations also require this American Recovery and Reinvestment Act reporting information as well as weekly reporting required by the Davis-Bacon Act.

Federal NEPA Environmental Compliance Requirement for Large Scale Systems:
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.*** 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.

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.

Incentive reservation forms are available from Vermont Solar and Wind Partners, or they can be downloaded directly from the RERC website (here) . 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. Solar and wind incentive reservations are active for nine months from the date of the incentive reservation approval. Micro-hydro reservations are made for one year, with a one-year extension available if progress toward permit approval can be shown.

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, your installer will complete and return by mail the Project Documentation and Final Incentive Request Form , which must be signed and dated by you. 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 (solar and wind) or one-year (micro-hydro) 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.

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.

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.

What if I don't complete the installation within the approved nine-month period?

The federal government has stipulated that ARRA funds are to be moved into the market quickly. Holding up funds for any reason is frowned upon. Customers and installers will receive reminder letters 1 month prior to a given deadline – if we do not receive (by fax, email, mail, or delivered in person) the Final Incentive Request and Project Documentation form by the deadline given in the Incentive Reservation approval letter , the reservation will be withdrawn and considered forfeited . Forfeited reserved incentives will be put back into the budget for other incentives. If the installation has not begun by the nine month deadline the customer may reapply, however, if installation has begun, or is finished, and we do not receive final project documentation by the deadline, the customer will forfeit their incentive and be ineligible to reapply for that system .

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.

What information is available on the systems that have been installed with program support?

Vermont Small Scale Renewable Energy Incentive Program
255 S. Champlain Street, Suite 7
Burlington , VT 05401-4894
Tel: (877) 888-7372
www.rerc-vt.org

Frequently Asked Questions:

INTRODUCTION AND PROGRAM BACKGROUND