Incentives

There are many incentives available to homeowners, businesses, institutions, municipal building managers and other building owners to install modern wood heat boilers and furnaces to replace fossil fuel appliances:

The Commonwealth of Massachusetts and the federal government provide various incentives and funding support for modern wood heat projects.  We can help you learn more about and navigate these funding opportunities. 

Here’s a quick summary:
Commonwealth of Massachusetts
The MA Department of Agricultural Resources (MDAR) offers Energy Efficiency and Renewable Energy grant program for MA agricultural enterprises.  Grants of up to $50,000 are available for energy projects, including modern wood heat systems that displace use of fossil heating fuels.  Commercial greenhouses, dairy operations with high hot water demands, maple syrup producers that want to replace oil with wood pellets as fuel for their evaporators – all are excellent candidates for this grant opportunity.
 
To learn more, call Gerry Palano at MDAR at 617-626-1706.  

Green Communities Grants are generally due in the spring of each year. Check out Green Communities HERE to learn of the details for applying for a grant if you are a Green Community. These grants are for Green Communities, not homeowners or businesses.

If you haven’t already done so, please reach out to your Green Communities Regional Coordinator to communicate your community’s intention to submit an application and to get assistance in filing.

Alternative Portfolio Standard, Alternative Energy Credits – receive credits for heat produced from your wood pellet or wood chip boiler that owner can then sell to generate annual revenue.  Provides a performance incentive once operating but less helpful with initial capital cost.  More info HERE.

MassCEC wood boiler rebates – currently only available for residential systems, these rebates provide up to $12,000 toward installed capital cost with additional funding for low income homeowners.  MassCEC recently ended grants for commercial systems.  More info HERE. 


Federal Government

USDA Rural Energy for America Program – provides grants up to and loan guarantees for rural small businesses and agricultural enterprises.  Grants cover up to 25% of installed capital cost.  Next grant round not expected to open until April 2020.  More info HERE.

USDA Forest Service Wood Innovation Grants – provides matching grants for biomass heating systems on a competitive national basis.  Next grant round expected to be announced in the fall.  More info HERE.

USDA Community Facilities Direct Loan and Grant Program – Provides grants on a competitive basis and loans for community (e.g. municipal or public school) or non-profit facilities that can include energy upgrades including biomass boilers.  The Town of Bethlehem NH received a $30,000 grant in 2015 toward the cost of replacing an aging oil boiler with two OkoFEN wood pellet boilers in their elementary school.  Generally favors smaller, more rural communities with below average income profile.  More info HERE.

New Federal Tax Credit for Residential modern wood heat systems – The December 2020 stimulus package passed as part of COVID relief included a new federal tax credit for residential modern wood heat. The legislation contains a tax credit for high-efficiency residential wood heat – wood stoves, pellet stoves, and whole home heating units such as pellet boilers. This tax credit allows homeowners to take a 26% investment tax credit based upon the fully installed cost of the heating appliance, and has the potential to increase demand for wood heating in residential settings. The companion tax credit for commercial and industrial wood biomass heating systems was not included in this legislation and remains a priority of many in the forest industry.