The Vermont
Department
of Public Service
Department
of Public Service
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The Vermont Department of Public Service |
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The
Vermont
Small Scale Renewable Energy
Incentive Program |
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Frequently Asked Questions:What
is the Vermont Small Scale Renewable Energy Incentive Program?
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Customer Type |
Installer |
Incentive Amount ($/Watt or 100 Btu/d)) |
Maximum Incentive |
Individuals, businesses
Schools, farms, local/state governments |
Vermont Solar Partner |
$1.75 |
$8,750 |
Low-income multi-family* |
Vermont Solar Partner |
$3.50 |
The lesser of $35,000 or 50% of total installed cost |
Small Wind Systems
Customer Type |
Installer |
Incentive Amount ($/Watt) |
Maximum Incentive |
Individuals, businesses
Low-income multi-family* |
Vermont Wind Partner |
$2.50 base **
|
$12,500 |
Schools, farms, and local/state governments |
Vermont Wind Partner |
$4.50 |
The lesser of $20,000 or 50% of total installed cost |
Micro-hydro Systems
Customer Type |
Installer |
Incentive Amount ($ per 3 ft-gal/min)** |
Maximum Incentive |
Individuals, businesses |
Vermont Hydro Partner |
$1.75 |
$8,750 |
Schools, farms, local/state governments, & low-income multi-family projects* |
Vermont Hydro Partner |
$3.50 |
The lesser of $17,500 or 50% of total installed cost |
Additional Notes:
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).
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.
Wind system incentives are determined based on manufacturer's total rated turbine output with a hub-height wind speed of 11 meters per second.
* To qualify for an incentive in the Low-income, Multi-family Housing category, projects must be for buildings with three or more units of affordable housing. Affordable housing is defined as total cost of housing (including rent and utilities expenses) that requires no more than 30% of the gross income of a household earning 80% of the county's median income as defined by HUD (24 V.S.A. § 4303 (1)). Repeated incentives to the same owner for different buildings will be considered depending on program and market conditions.
** There are additional incentives available for systems that use commercially available 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 commercially available Vermont-manufactured tower, increased to $3.50/Watt for systems using a commercially available 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.
Are there limits on the total amount of incentives per customer?
Customers may apply for incentives for more that one renewable system, whether installed at the same time or over multiple installations. To ensure that the program achieves its goals as equitably and efficiently as possible, there are maximum per-entity incentive caps, set by technology type and shown in the table below.
Maximum Incentives |
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Maximum Cumulative Incentive |
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Individuals, businesses |
$8,750 Solar/Micro-hydro or $12,500 Wind |
Low-income multi-family projects |
$35,000 Solar, $17,500 Micro-hydro or $12,500 Wind |
Schools, farms, and local/state government projects |
$8,750 Solar, $17,500 Micro-hydro or $20,000 Wind |
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 will be included in the calculation of this cap.
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.
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 50% 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 .
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 solar electric, and micro-hydro 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, small wind, or micro-hydro 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 micro-hydro 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, 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.
Can I qualify for an incentive if I have had an incentive before?
Yes, up to the maximum limits per customer stated above.
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, micro-hydro ) 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.
There are six primary steps in program participation, with additional certification/permitting required for wind and micro-hydro systems; however, at this time there are no additional NEPA requirements.
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.
State and Federal Permit Requirements for Micro-Hydro Projects:
Link to “ Vermont Micro-hydro permitting process” PDF
Links:
http://www.anr.state.vt.us/dec/permits.htm
http://www.usace.army.mil/CECW/Pages/reg_materials.aspx
http://www.ferc.gov/help/processes/hydro-proj.asp
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 (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.
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, 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.
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.
Can I receive the Vermont Business Solar Tax Credit *AND* an incentive?
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?
Solar and wind 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. Micro-hydro projects are eligible for a one-year extension if progress toward permit approval can be shown.
What if I want to remove the installation after I receive an incentive ?
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.
How do I know how much incentive money is still available in the program?
Please contact us for current information on funds available :
1-877-888-7372
info@rerc.org
What information is available on the systems that have been installed with program support?
See our Progress Report Page.
Where do I send the Incentive Reservation and Project Documentation Forms?
Send all application and project forms to:
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
Who are the currently approved Vermont Solar and Wind Partners?
Click here to be directed to a complete and up-to-date list of partners. (This link takes you away from the RERC website)
http://www.revermont.org/installers.php
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