Small-Scale Renewable Energy Incentive Program (Vermont)

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Last modified on December 17, 2014.

Financial Incentive Program

Place Vermont

Name Small-Scale Renewable Energy Incentive Program
Incentive Type State Rebate Program
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Construction, State Government, Tribal Government, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional
Eligible Technologies Solar Water Heat, Photovoltaics, Hydroelectric, Small Hydroelectric
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Varies depending on technology and eligible sector

Eligible System Size PV: 25 kW

Systems over 10 kW must include a Certificate of Public Good application as submitted to the Public Service Board with reservation application.

Equipment Requirements PV: New, grid connected; modules must be UL 1703 listed; inverters must be UL 1741-listed or listed by another nationally recognized testing laboratory.
Solar water heating: New equipment; collectors must have an OG-100 output rating from SRCC or an equivalent organization.

All systems: 5-year warranty required on major system components and installation, with the exception of batteries, for which a 2-year warranty is required.

Start Date 6/17/2003 (initial funding)
Expiration Date 2014

Funding Source State, American Recovery and Reinvestment Act (ARRA) State Energy Program (SEP) funds

Installation Requirements Must be installed by registered Vermont Partners (no self-install). All grid-connected projects (solar PV) must apply for, secure, and provide proof that the Vermont Public Service Board has issued a Certificate of Public Good.

Maximum Incentive Varies depending on technology and eligible sector

Ownership of Renewable Energy Credits Not addressed

Program Budget Current round (starting October 2013): $1.4 million

Program Administrator Vermont Energy Investment Corporation
Date added to DSIRE 2005-09-12
Last DSIRE Review 2014-02-10

References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Note: On July 10, 2013, the Clean Energy Development Fund Board approved changes to the Small Scale Renewable Energy Incentive Program, effective October 1, 2013. Beginning in October, wind turbines, commercial PV systems, and solar thermal space heating will no longer be eligible for incentives. The PV incentive levels, maximum, and system size caps will be decreased. A new wind grant program will replace the wind incentives. See the full details here.

Vermont's Small Scale Renewable Energy Incentive Program, initiated in June 2003, provides funding for new solar water heating, solar electric (photovoltaic), and micro-hydro energy system installations. Currently in its seventh round of funding (almost $4.1 million dollars), the program is available to single- and multi-family residences, commercial and industrial businesses, farms, schools, builders/developers, and local & state governments. Vermont also allows third-party owned and leasing systems installed on residential property and less than 10 kW are considered residential leased systems; all other leased systems are considered commercial systems. In 2012, Vermont added an efficiency adder to encourage Vermonters to complete an audit or participate in specific efficiency programs (such as Energy Star Homes). Only systems installed by pre-approved installers will be eligible for funding. Funding must be reserved and applications approved before expenditures are made. Once solar (PV or Water Heating) reservations are granted, applicants have six months to complete their projects and submit the final application. Current incentives are as follows:

Solar Photovoltaic (PV)

For systems that generate at least 1,000 kWh/year per kW of rated DC capacity installed:

  • Residential PV: $0.25/Watt (W) generating capacity (DC) up to 10 kilowatts (kW). Total maximum incentive is $2,500. An additional efficiency adder may be available: $0.15/W (cap: $350).
  • Special Category (low-income housing non-profits, municipalities, public schools) PV: $1.25/W DC up to 10 kW, up to $12,500 or 50% of total installed cost. Efficiency adder: $0.15/W (cap: $450).

Systems that generate less than 1,000 kWh/year per kW of rated DC capacity may be eligible for a lower, pro-rated incentive payment.

Solar Hot Water

  • Residential Solar Hot Water: $1.50/100 British thermal unit/day (Btu/d) up to 200 kBtu/d, up to $3,000. efficiency adder of $0.50/100Btu/day ($350 cap).
  • Commercial Solar Hot Water: $1.50/100 Btu/d up to 200 kBtu/d, up to $16,500. Efficiency adder of $0.55/100Btu/day ($450 cap).
  • Special Category Solar Hot Water: $3.00/100 Btu/d up to 1,500 kBtu/d, up to $45,000 or 50% of total installed cost. efficiency adder of $0.55/100Btu/day ($450 cap). Solar Hot Water incentives are available for public swimming pools for Special Category customers only.

Micro hydro

  • Residential and Commercial: $1.75/3ft-gal/min up to $8,750.
  • Special Category: $3.00/3ft-gal/min up to $17,500 or 50% of total installed costs.

Systems greater than 10 kW may be eligible for the incentive but must first submit a Certificate of Public Good application as submitted to the Public Service Board. For more information on the program, eligible installers, remaining funds, and installations to date, visit the official program web site.

Incentive Contact

Contact Name Public Information (RERC)
Department Renewable Energy Resources Center

Address Vermont Renewable Energy Incentive Program
Address 2 128 Lakeside Avenue, Suite 401
Place Burlington, Vermont
Zip/Postal Code 05401
Phone (877) 888-7372


Authorities (Please contact the if there are any file problems.)

Authority 1: Act 69 of 2003
Date Effective 6/17/2003 (initial funding)

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"