Rhode Island State Solar Power Rebates, Tax Credits, and Incentives

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STATE LEGISLATION

Among the earliest Colonists to arrive in America, those who settled in the colony of Rhode Island were probably the feistiest and most independent. By 1663 they had negotiated a charter with King Charles II establishing Rhode Island as a highly autonomous self-governing colony with religious freedom and recognized territorial claims. Theirs was the most generous charter to be issued by England, but pressure was growing in the Motherland to tighten up colonial control.

The colonists were reluctant to give up what they had achieved, and on May 4, 1776, Rhode Island became the first of the thirteen original colonies to break from British Rule and declare independence. The people of Rhode Island were also the first to engage in armed hostilities with the British. True to form, they were the last to ratify the Declaration of Independence, demanding that the Bill of Rights be added to guarantee individual freedoms. Rhode Island, in spite of its diminutive size, has obviously played a large role in shaping the history of this country, as well as their own destiny.

They continue to shape their own destiny in modern times in matters of energy independence. In April of 2007, Governor Donald L. Carcieri submitted Senate bill 943 to the General Assembly to create the Rhode Island Power Authority to drive alternative energy development. In 2004, the state had adopted a Renewable Portfolio Standard that calls for 20% of Rhode Island’s energy needs to be met by clean energy sources. It is an aggressive commitment, consistent with the array of individual incentive programs that encourage solar power development (see below). Rhode Island’s lawmakers have earned a Solar Legislator Score of “Excellent”.
STATE INCENTIVE PROGRAMS, UTILITY REBATES, UTILITY LOANS, and UTILITY INCENTIVES
Rhode Island has created a number of incentive programs to promote clean energy. Listed below are those that are applicable to solar power, with links to the Database of State Incentives for Renewables and Efficiency (DSIRE) which provide program details.

FINANCIAL INCENTIVES

    Corporate Tax Credit
    Personal Tax Credit
    Production Incentive
    Property Tax Exemption
    Sales Tax Exemption
    State Rebate Program
    Utility Rebate Program

RULES, REGULATIONS, AND POLICIES

    Energy Standards for Public Buildings
    Interconnection
    Net Metering Rules
    Public Benefits Fund
    Renewables Portfolio Standard
    Solar Access Law/Guideline

EXAMPLE RESIDENTIAL SOLAR INSTALLATION

Providence, the State Capitol, is also the largest city in Rhode Island. Electrical service is provided by Narragansett Electric (National Grid), a utility which serves 38 communities and 465,000 customers throughout the state. Rates are generally high throughout the New England area, and Rhode Island averages 13.04 cents/kWh applied to an average usage of about 7440 kWh/year. The solar rating here is “good”, but that is not the only reason why power from the sun is a good bet in this state.
To reduce dependence on conventional electricity by 50%, a Photovoltaic system will require 350 square feet of roof area, and equipment and installation costs will be approximately $31,500 (mid-range estimate). Now let’s look at what it will actually cost you after taking advantage of Rhode Island’s progressive solar incentive programs.

  • Expected state rebate: $14,175
  • State tax credit/deduction: $4,331
  • Less income tax on state tax credit: ($1,213)
  • Federal tax credit: $2,000

Estimated NET COST: $12,207

  • Increase in Property Value: $8,540
  • 25-year Utility Savings: $17,918
  • Greenhouse gas (CO2) saved over 25-year system life: 76.0 tons


CONSENSUS

Rhode Island has taken the “holistic” approach, and is tackling the state’s energy problems on a broad front. The previous example shows how a potential solar user can benefit significantly from just a couple of the state’s legislative actions. Keep up the good work, Rhode Island. ‘Nuff said.

Click here to have multiple solar installers bid to upgrade your Rhode Island home or business.

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3 comments.

michael johnson
Comment on March 10th, 2009.

RI is not solar friendly and this site needs to update its information. There is NO rebate. National grid does NOTHING for PV installs. They only supply net metering because the government made them. The wind energy that the state is supporting is just smoke and mirrors. Look where the money is going. None of it is going to produce 1 watt of green power.

Joe Boisvert
Comment on May 2nd, 2009.

Michael Johnson is correct, RI is absolutely NOT solar friendly. There is no rebate and nothing from National Grid. And , like everything else here, getting any info from the state on solar energy is like pulling hen’s teeth.

Comment on June 12th, 2009.

There was incentive money in 2005 because we received some, but it was from the end of the program. We have the panels and our utility bills are essentially zero. The Feds should incentivize installation, the systems work with no problems.

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