State-Sponsored Incentives for Commercial Solar in Rhode Island
Don’t let Rhode Island’s small size fool you: state lawmakers have taken BIG steps to promote renewable energy among its citizenry. In 2004, Governor Donald Carcieri signed the Clean Energy Act, which required state electricity retailers to source at least 3% of their power from renewable sources by the end of 2006. With that goal in the bag, lawmakers further stipulated that the percent of renewable energy is to rise 1% each year through 2020, when the total renewable portfolio standard (RPS) will stand at no fewer than 16 percent. Beyond broad, long-term objectives, Rhode Island offers a number of favorable tax breaks and other incentives for renewable-energy systems. For more information, see the RIPUC website.
Be sure to also review our summary of federal incentives for commercial solar energy systems, which include accelerated depreciation rules and a 30 percent renewable energy tax credit.
Are you the owner of a Rhode Island home? If so, check out our list of residential incentives.
For a complete listing of solar energy installation professionals in your area, visit our Rhode Island Solar Directory.
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Production Based Incentive
Renewable Energy Certificate Incentive
Eligible: PV systems,wind
Amount: $0.03 per kWh generated.
Other Info: This production based incentive (PBI) is run through People's Power and Light, a non-profit organization that buys renewable energy credits (essentially, the "greenness" of the power you generate). Renewable energy generated whose REC's are sold through this program cannot be counted toward state wide renewable portfolio standards.
Rebates
RIEDC: Renewable Energy Fund Grants
Eligible: PV systems, solar water heat, other distributed generation renewable energy systems.
Amount: Grant amount varies by project type. Project cap of $750,000.
Other Info: Funding areas include non-profit affordable housing, municipal renewable energy investment, pre-development consultant and technical feasibility programs (commercial and non-profit), and renewable energy development programs (commercial and non-profit). This may not be applicable to most residential projects, but the program is noteworthy nonetheless.
National Grid Solar Thermal Rebate Program
Eligible: solar water heaters (solar thermal systems)
Amount: $3/therm based on estimated first year savings. Maximum incentive is 50% of project costs or $100,000.
Other Info: Supports commercial and industrial customers in the National Grid service area who install solar thermal systems.
Tax Credits
Renewable Energy Sales Tax Exemption
Eligible: PV systems, solar water and space heat, other distributed generation of renewables.
Amount: 100% sales tax exemption
Corporate Renewable Energy Tax Credit
Eligible: PV systems, solar water heat, other distributed generation renewable energy systems.
Amount: 25% of costs, $15,000 maximum system cost for PV and $7000 maximum cost of solar thermal.
Other Info: PV systems must have a minimum module size of 24 square feet. Solar hot water systems must have a minimum collector area of 34 square feet.
Local Option Commercial Property Tax Exemption for Renewable Energy Systems
Eligible: PV systems, solar water heat, other distributed generation renewable energy systems.
Amount: Varies by city/town. Local government can choose to exempt renewable energy systems from property tax liability.
Net Metering
In 1998, the Rhode Island Public Utilities Commission (RIPUC) mandated that Narragansett Electric (known as National Grid) offer net metering to all customers generating electricity with renewable-energy systems up to 25 kW in size. Seeing that National Grid serves 99% of the state’s mainland customers, Rhode Island’s net-metering rules are pretty comprehensive. This means that any excess power that’s generated by your renewable-energy system—called net excess generation, or NEG, in industry speak—will be credited to your next bill at the utility’s avoided cost rate.
On side note: In 2007, lawmakers OK’d a temporary increase in system size requirements. As a result, the maximum size has been raised to 1.65 megawatts (MW) for systems owned by cities or towns, and to 1 MW for all other customers.
Rhode Island: Commercial Solar Incentives |
