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Coal Change-Out

NEW! Coal Change-Out Adder - combine with existing CEDF incentives to get up to 50% off the cost of a new heating system. 

  • Replace coal stove, furnace, or boiler with a pellet stove, furnace, or boiler
  • Adder is up to $7,000 for residential and $27,000 for commercial projects 
  • Application and process: click here for application
  • A maximum of $300,000 in funds is available. The program will operate on a first-come first-served basis until all funds are spent or December 31, 2023, whichever comes first. Funds remaining will be posted at and ample notice will be given prior to the end of the program.  

For example: Susan uses a coal stove to heat her small business. She shops around and settles on a $5,000 total project for a new pellet stove.

50% of the project cost is $2,500. Susan will receive a $2,500 coal change out adder to cover the full 50% of the project cost. (The project additionally qualifies for a $650 Efficiency Vermont discount on the pellet stove purchase.)

For example: Mike use a coal furnace to heat his home. He shops around and settles on a $24,000 total project for a new pellet furnace.

50% of the project cost is $12,000. Mike is already receiving a $3,000 CEDF incentive. Mike maxes out the full $7,000 coal change out adder to bring his total CEDF incentive package to $10,000. (The project additionally qualifies for a $3,000 Efficiency Vermont rebate.)



1. Customer finds retailer/installer via RERC or Efficiency Vermont

2. Retailer/installer applies on customer’s behalf for coal change-out adder BEFORE project starts (application linked to the right)

3. RERC reviews application, determines adder amount

4. Customer receives approval & voucher for coal change-out adder

5. Retailer/installer completes project & submits voucher, invoice, and photos of installed system

6. Retailer/installer receives a coal change-out adder check from the CEDF (on applicable projects, the check will also include the CEDF’s fixed $3,000 incentive for a boiler/furnace).

Participating Installers/Retailers

Pellet boiler/furnace installers

Pellet stove retailers


Existing coal heater (coal stove, boiler, or furnace) must be installed and functional. The coal heater being removed must be destroyed/recycled. The new advanced wood heating system installed must be eligible for the CEDF pellet boiler/furnace incentive OR wood/pellet stoves must be Step Two EPA certified with a <2.0 GPH emissions rating and an EPA rating of >70% efficient as measured by the Higher Heating Value.

Contact RERC at [email protected] or 877-888-7372 with any questions about customer or stove/boiler/furnace eligibility.