Agricultural Energy Loan Program
Administered by Vermont Agricultural Credit Corporation (VACC)
If you operate a farm or forest-product business in Vermont, this program offers loans up to $5 million to help you invest in renewable energy generation (solar, wind, geothermal, biomass, hydroelectric, and more) or energy efficiency improvements (insulation, HVAC upgrades, LED lighting, and controls). You'll get variable or fixed-rate financing with terms tailored to your project's cash flow and asset life; contact a Vermont Agricultural Credit Corporation loan officer to discuss your specific project and financing percentage.
This program finances a wide range of agricultural renewable energy and efficiency projects for farm and forest-product businesses, creating customer opportunities across solar PV, heat pumps, building envelope work, and industrial systems. Loan amounts are negotiable and can reach $5 million, with terms determined case-by-case; your customer should initiate contact with a VACC loan officer early to structure the financing before formal application.
The Vermont Agricultural Credit Corporation administers this Act 87 loan program for agriculture- and forest-product entities engaged in renewable energy or efficiency projects. Loan structure is flexible—maximum $5 million per project (unlimited for New Market Tax Credit projects)—with variable or fixed rates, case-by-case terms, and fees including a 1% commitment fee (minimum $250, maximum $5,000), $30 credit report fee, and applicable appraisal and recording costs. Eligible borrowers must be Vermont residents operating farms or forest businesses, or current/prospective owners of agricultural land or equipment in the state.
Program details
- Program ID
- 5513
- Last updated
- 6/18/2025
Eligibility
- Sectors
- agricultural
- Technologies
- geothermal electric solar thermal electric solar photovoltaics wind (all) biomass hydroelectric combined heat & power landfill gas geothermal direct-use anaerobic digestion fuel cells using renewable fuels equipment insulation lighting lighting controls/sensors chillers furnaces boilers heat pumps air conditioners heat recovery steam-system upgrades compressed air programmable thermostats caulking/weather-stripping duct/air sealing building insulation windows doors siding roofs agricultural equipment reflective roofs led lighting
Program summary
The Agricultural Energy Loan Program (AELP), created through Act 87 in 2013, is administered by the Vermont Agricultural Credit Corporation (VACC). The AELP provides loans to agriculture- or forest-product-based companies for renewable energy and energy efficiency projects.
The maximum loan amount is $5,000,000, and the percentage of the project funded by VACC is negotiable. Loans are provided at variable rates, although fixed rates may be available in some circumstances; current rates can be found here. Loan terms are determined on a case-by-case basis.
Fees associated with AELP loans include a 1% commitment fee ($5,000 maximum and $250 minimum); a $30 credit report fee; if applicable, an appraisal fee; document recording fee, flood certificate fee and other out-of-pocket fees. Projects involving New Market Tax Credit (NMTC) have no maximum.
Contact & resources
- Contact email
- edenny@veda.org
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
