1. Vision Comprehensive Energy Plan 2016 called out modern wood heat as a key strategy to reach the 90% renewable goal by 2050: – Set goal to Increase the use of modern wood heating in Vermont to achieve up to 35% of our thermal space heating needs by 2030 (currently 15%) Renewable Energy Standard includes renewable thermal The Clean Energy Development Fund has made a strategic decision to focus on growing the advanced wood heating market in Vermont. Wood heat is best “bang for the buck”. – Stimulate Vermont economy by increasing local wealth retention through avoided fossil heating fuels and increased local wood. – Sustain and enhance the Vermont Forested Working Landscape by creating local, stable markets for low-grade timber. NE Biomass Heating1

2. SSREI Program Incentive Levels and Number of Solar Photovoltaic systems installed NE Biomass Heating 20152 $/watt

3. Concept R&D Demonstration Commercialization Market Establishment & Tech Transfer & Scale up Clean Energy Sector Development Pathway – Technology & Market Development Market Penetration Time  Private Equity & Commercial Credit Co-operatives Venture Capital Other Public Funding (e.g., Grants, Loans, Incentives) ESCOS – Thermal Purchase Agreements Public Equity & Debt CEDF Competitive Grants CEDF Incentives Owner Equity CEDF Subordinated & Low Interest Debt CEDF Credit Enhancements (e.g., Loan Loss Reserves) Innovators Early Adopters Early Majority Late Majority Laggards