Rhode Island Solar is Booming
The smallest state in America packs a big renewable energy punch! Solar installations increased by 23.4 megawatts (MW) in 2017 and over the next 5 years SEIA projects solar growth to reach 197 MW. Solar power is booming in Rhode Island, mainly thanks to attractive state and local incentives. Let’s take a look at the 4 most attractive Rhode Island solar incentives.
The Renewable Energy Program
The Rhode Island Renewable Energy Growth Program is a Performance-Based Incentive (PBI) currently paying between $0.2855 and $0.3225 per kilowatt-hour (kWh) solar production. The capacity for this program was set at 6.55 MW, but as of June 19th, 2018, there are only 2.68 MW available in the program! This means the funds will likely run out before the expiration date. So, if you’re thinking about going solar in Rhode Island, now is the time to do it. You don’t want to miss out on this incentive.
Renewable Energy Fund (REF)
CommerceRI’s Renewable Energy Fund offers grants and loans for renewable energy technology, such as solar panel installations, for homeowners and businesses. The REF will offer grants for Small and Commercial Scale solar, with a funding cap of $1.7 million. The submission period begins August 6, 2018 and it’s likely the funds will run out quickly!
Property & Sales Tax Exemption
§44-3-3. Property exempt.
(a) The following property is exempt from taxation:
(48) Renewable energy resources, as defined in § 39-26-5, used in residential systems and associated equipment used therewith in service after December 31, 2015
§44-18-30. Gross receipts exempt from sales and use taxes.
There are exempted from the taxes imposed by this chapter the following gross receipts:
(57) Renewable energy products. Notwithstanding any other provisions of Rhode Island general laws, the following products shall also be exempt from sales tax: solar photovoltaic modules or panels, or any module or panel that generates electricity from light;
Federal Solar Investment Tax Credit
If that’s not enough incentive, Rhode Island residents can also take advantage of the Federal Solar Investment Tax Credit. This is a dollar-for-dollar reduction in a resident’s income taxes, equal to 30% of cost of their renewable energy system. You can claim this tax credit and benefit from the other local incentives offered.
Moral of the Blog: Now Is the Time to go Solar
Now is the time to go solar in Rhode Island. The incredible financial incentives for renewable energy systems won’t be around much longer. We encourage any Rhode Island residents interested in switching to solar to start their projects by the end of summer to ensure they don’t miss out on these incentives!
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