Large Commercial Pellet Boiler

Incentives are available for high-efficiency, low-emission pellet boiler heating systems in new and existing facilities. A pellet boiler heating system includes a high-efficiency pellet-fired boiler, thermal energy storage, outdoor pellet storage, and necessary control systems. The pellet boiler(s) heating system must be installed in an efficient manner and displace boiler fuel-use at facilities without access to natural gas (such as oil, propane, and coal). Incentives are offered under this large commercial program to offset the installed system costs for systems with thermal output over 300 MBtu/h (88 kW).


System Type Incentive Maximum Incentive per Facility
Pellet Boiler
Output over 300 MBtu/h (88kW)
40% of Total Installed Cost $200,000
Tandem* Pellet Boilers
Output over 300 MBtu/h (88kW)
45% of Total Installed Cost $270,000

*A tandem boiler installation includes two or more smaller pellet boilers rather than one large pellet boiler and can minimize cycling to maintain efficiency, emissions, and maintenance costs in certain installations.

Incentives are based on the installed project costs. 80% of the incentive will be paid based on proof of installation and system commissioning. The remaining 20% will be paid at the end of the Measurement and Verification (M&V) period (up to 12 months) and when acceptable environmental and thermal performance has been achieved.

Renewable Heat NY (RHNY) will provide up to $40,000 for pollution control on eligible boilers at K-12 schools, healthcare facilities, and other buildings with sensitive populations. 

RHNY large commercial incentives are offered on a performance basis through the Existing Facilities Program. Applications for the Existing Facilities Program go through the Consolidated Funding Application.

Design and Installation

The qualified pellet heating system must be designed by a qualified designer and installed by a qualified installer to ensure proper boiler system sizing and cost-effective design to maximize efficiency and minimize emissions. For more information see the list of qualified technologies [PDF], designers, and installers. For system eligibility requirements please refer to the Renewable Heat NY Technical Guidance Document for Large Commercial Pellet Boilers [PDF].