Vermont Business Magazine The Vermont Department of Forests, Parks and Recreation is now accepting applications for the Advanced Wood Heating Assistance program. Funded by a $300,000 USDA Forest Service Wood Innovations grant, the program provides partial funding for municipalities to install or upgrade advanced wood heating systems. Vermont municipal buildings, including town office buildings, town garages, schools, and grange halls, are eligible to apply for funding.
Advanced wood heating systems can replace oil and gas furnaces in existing or new installations, using locally sourced wood, wood residues, and wood waste (including cordwood, chips, and pellets) as fuel. They meet all air quality regulations, can be fully automated depending on fuel and storage type, and can reduce and/or stabilize energy costs.
According to a 2016 study, 80 cents of every dollar spent on wood heat stays in Vermont, compared to just 22 cents for oil or propane. What’s more, by supporting the forest economy, advanced wood heat systems help keep forests as forests, which bolsters Vermont’s resilience to climate change.
“The advanced wood heating equipment available today is modern, efficient and low maintenance,” said Rachael Mascolino, a VEIC engineer who works with towns interested in installing advanced wood heating systems. “For buildings that have fossil fuel boilers and water-based distribution, upgrading to a pellet or dry chip boiler will utilize a local renewable fuel in a fully automated system.”
“These funds are a great opportunity for organizations across the state to stabilize their energy costs through reducing their reliance on fossil fuels,” said Chris Heine of the Department of Public Service and the Clean Energy Development Fund.
Advanced wood heating grant funds will be awarded on a first-come, first-served basis, and can reimburse up to 50% of project costs, with a maximum grant amount of $50,000.
To apply, visit the Forest Economy Financial Assistance and Grants website and complete the 2025 Advanced Wood Heating Assistance for Schools & Municipalities application. Applications are accepted on a rolling basis. Please contact Molly Willard at [email protected] or 802-261-1681 with any questions.
The Vermont Department of Forests, Parks and Recreation is responsible for the conservation and management of Vermont’s forest resources, the operation and maintenance of the State Park system, and the promotion and support of outdoor recreation for Vermonters and our visitors. In addition, FPR is responsible for the acquisition, planning coordination and administration of all Agency of Natural Resources lands.
6.9.2026. Vermont Agency of Natural Resources Website.
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Vermont Business Magazine