Financial Incentives for Renewable Energy in Vermont

CEDF: Program Announcement - August 26, 2010

Clean Energy Fund Accepting Applications for the Second Round of the VT Business Solar Tax Credit Program

NOTE: For Sub-150kW Solar Thermal and Photovoltaic Projects Only

Click here, or see the CEDF website, to download the application and instructions for the second round of the VT Business Solar Tax Credit Program, which is only for solar thermal projects and photovoltaic projects of no more than 150kW. The Clean Energy Development Board has set aside $500,000 for this second round. Applications will be accepted until October 15, 2010, at which time reservations for the $500,000 will be awarded.

Applications Reserved as of Aug. 26, 2010
Click for a list of the applications that have received reservations for VT Business Solar Tax Credit Certifications.

For more information on any of these programs, contact Andrew Perchlik, Director of the Clean Energy Development Fund.

find out more here

CEDF: Program Announcement - August 23, 2010

Clean Energy Development Board Establishes Rules for the VT Business Solar Tax Credit Certification Program

The Clean Energy Development Board (CEDB) will provide reservations for Business Solar Tax Credit certifications totaling $7,000,000. The reservations will be awarded to eligible applications received on or before the July 15th deadline, based on the following ranking criteria:

1st Priority: Solar thermal projects
2nd Priority: Commissioned projects, by the date of commissioning
3rd Priority: Photovoltaic projects, by the date a complete application for a Certificate of Public Good (CPG) was filed by the Public Service Board
4th Priority: Photovoltaic projects, by the date and time a complete application for the business Solar Tax Credit was filed with the CEDB

1) The Solar Tax Credit certification reservations shall only be awarded to applications that provided a Vermont taxpayer identification number to the CEDB.

2) Projects for which the total cost listed on the tax credit application exceeds $8,500 per kW of capacity (AC rating) will not be awarded a certification reservation unless the CEDB finds that the applicant has justified the proposed project costs to the CEDB’s satisfaction.

3) All applicants for the Solar Tax Credit that applied on or before July 15th were placed in a queue. The first $7,000,000 million of eligible projects in the queue were granted reservations for certification. Remaining projects in the queue may later be considered for tax credit reservations if additional funds become availablei. Solar Tax Credit certification reservations will be converted into certifications only once the applicant has received a CPG from the Vermont Public Service Board, if a CPG is required. If no CPG is required, the certification would be awarded once the project has been commissioned. Projects that are in the queue above the $7 million worth of awarded Solar Tax Credit reservations will be kept in the queue.

4) An additional $500,000 will be allocated for Solar Tax Credits certifications solely for solar thermal and photovoltaic projects that are less than 150 kWii. The application period for such projects will be reopened and new rules announced on the CEDF web site in the very near future.

5) If the CEDF funds do not allow for a project to receive a reservation for its full estimated tax credit amount, then that project will be awarded a reservation for a tax credit for a portion of the proposed project (based on the project’s $/kW costs listed in the projects tax credit application). The remaining kW of a project will be placed back into the queue and would be funded first, if additional funds are provided for the Solar Tax Credit Certification Program.

6) Applicants that do not receive reservations for solar tax credit certifications may be eligible for the Vermont Investment Tax Creditiii and they may also apply for incentive payments for their projects through the CEDB, administered Vermont Small-Scale Renewable Incentive Program. Applications will be deemed ineligible for the Solar Tax Credit if they receive a reservation for the Vermont Small-Scale Renewable Incentive Program.

Vermont Solar & Small Wind Incentive Program

The goal of this program is to accelerate market demand for high-quality solar and small wind systems in Vermont. Nearly $1 million in incentives is now available.

The program offers financial incentives only to renewable energy systems installed by local program partners. To take advantage of the incentives, you must go through an installer that has been approved by the Solar and Wind Partnership Program. You can find partner installers here.

Detailed information and instructions on how to calculate incentives for a specific system application can be found in the program's incentive reservation forms located at the Renewable Energy Resource Center (RERC).

The timing and number of systems receiving incentives depends on 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 program administrator tracks and reports total system costs, estimated energy savings, avoided environmental emissions and job activity within the solar and small wind delivery sector of Vermont 's economy.

The program is administered  for the VT Department of Public Service by the RERC, which is a project of the Vermont Energy Investment Corporation (VEIC) and which provides consumer education and support services.

In 2006, the Vermont Clean Energy Development Fund authorized an additional $500,000 to the Vermont Solar and Small Wind Incentive Program. Two electric utilities — Central Vermont Public Service (CVPS) and Green Mountain Power (GMP) — also provided incentive funds to support qualifying solar and small wind systems for customers in their service territories.

More Information:

To find out more about program incentives: Vermont Solar & Small Wind Incentive Program

Clean Energy Development Fund

The VT Department of Public Service (DPS) manages the CEDF. Contact Kelly Launder for additional information.

More Information:

CEDF official website
CEDF loan brochure

CEDF loan application

DPS report to the Legislature on the CEDF (800kb pdf)
CEDF strategic plan, developed by DPS and the CEDF Investment Committee

Commercial Solar Tax Credit

Net Metering

Sales Tax Exemption

Here is the Statutory language for the sales tax exemption:
"Title 32: Taxation and Finance, Chapter 233: Sales And Use Tax, § 9741. Sales not covered
(46) Tangible personal property to be incorporated into:
(A) a net metering system as defined in 30 V.S.A. § 219a;
(B) a home or business energy system on a premises not connected to the electric distribution system of a utility regulated under Title 30 and that otherwise meets the requirements of 30 V.S.A. § 219a(a)(3)(A), (C), (D), and (E); or
(C) a hot water heating system that converts solar energy into thermal energy used to heat water, but limited to that property directly necessary for and used to capture, convert, or store solar energy for this purpose."

Vermont Anemometer Loan Program

Vermont Energy Investment Corporation

Vermont Energy Star Homes Service

USDA Rural Development Grants and Loans

details to come