When compared to other states, Rhode Island has some of the best solar panel incentives. They’ve even offered residents a rather hefty performance-based incentive. This means that they can now benefit from a $0.2845 kW/h with introduced rebates of $0.90/W. Hence, the installation costs are reduced.
Along with the previously mentioned savings, you’ll also be able to save more with the federal tax credit, net metering, and high electric rates. On average, you can have a system installed for just $11,957 after you’ve claimed the tax credits. While there are some variations in the prices, the average price stands at $2.69/W.
Within the last ten years alone, the average cost for solar panels has drastically reduced. During the year 2020, the state was even subsidized to offer 26% federal tax credits and net metering laws. When combined, these made an excellent investment for residents and business owners.
Due to this, the price you pay for energy during the next 25 years is a huge saver.
- 1 Federal Solar Tax Credit in Rhode Island
- 2 Net Metering In Rhode Island
- 3 Renewable Energy Fund In Rhode Island
- 4 Renewable Energy Growth Program in Rhode Island
- 5 Property Tax Exemption for Renewable Energy Resources in Rhode Island
- 6 Sales and Tax Exemptions in Rhode Island
- 7 How Much Electricity Can Your Solar Systems in Rhode Island Produce?
- 8 What Are the Pros and Cons of Installing Solar Panels in the State of Rhode Island?
- 9 Conclusion
Federal Solar Tax Credit in Rhode Island
The biggest incentive for persons within the state of Rhode Island is that incentives are offered for installing the panels. This is offered to both business owners and homeowners in the state.
However, at the end of the year 2020, the previously offered tax credit rate of 26% would have been decreased to 22% after installations were carried out.
Since all involved parties intend to get the best incentive and the most considerable sum possible, solar panel companies are expected to receive a flood of new jobs very soon. So, if you’re currently offering these services, you have a lot to look out for.
If you’re looking to install solar panels in Rhode Island, you’re in the perfect position to maximize all of the savings from these incentives.
Installing solar panels in Rhode Island has never looked better than they do right now!
Net Metering In Rhode Island
The policies set in place within the state of Rhode Island allow utility companies to compensate their customers. In essence, this ensures that solar panel systems produce a lot more than what is needed by a business or home. Hence, the extra energy produced is credited by the company.
As such, you’ll receive credit for the excess that you’ve managed not to use. This can also be thought of as being the cost that you save from your regular electricity rates.
Renewable Energy Fund In Rhode Island
The state has set up a specially designed Renewable Energy Fund to offer grants. These grants should easily cover up to a whopping 30% of the entire cost associated with the project. If you sign up for this program, you’ll be able to receive a wattage that costs $0.90 as long as you have a solar panel system installed.
However, your system should cost up to $7,500. This allows you to create a huge incentive and a smaller payback period. This means that your system will pay you faster than initially expected.
Renewable Energy Growth Program in Rhode Island
Unlike other programs of the same nature, this one was made differently. It promotes the usage of fully optimized renewable energy systems. So, if ever you sign up for this one, you’ll receive $0.2845 for every kW produced by your system.
However, it should be noted that before you receive the credit, you’ll be reminded of the incentives that can come your way.
Property Tax Exemption for Renewable Energy Resources in Rhode Island
After installing the units in your home, the initial value of your home increases. Besides the value, the taxes required to be paid also increases.
In the state of Rhode Island, you never have to worry about this since there are tax exemptions in place for energy resources. Due to this, up to 100% of the assessed values are exempted.
Sales and Tax Exemptions in Rhode Island
When purchasing any solar energy system, the state laws prevent the sales tax from being applied to them. If you didn’t already know, some of these taxes could easily increase by over $1000. When the exemption is applied, you’ll save more than you had initially thought.
How Much Electricity Can Your Solar Systems in Rhode Island Produce?
Based on your panels’ location, you’ll be able to receive different amounts on different days. When panels are installed on pitches rooves facing the south at 31 degrees, they can easily generate up to 1168kW/h.
What Are the Pros and Cons of Installing Solar Panels in the State of Rhode Island?
The main advantage is that the state offers both federal tax credits and incentives that benefit those who’ve installed solar panels. Besides this, they also offer high rates for their electricity throughout the state. Hence, solar panel owners can easily make a high rate on their investment.
The main disadvantage to this is that there is sometimes not enough exposure for the entire year. This means that you won’t produce as much energy as you would like to.
Additionally, the net metering policies do not insist that companies pay credits for excess energy. There’s a high chance that you won’t receive the most for your excess.
As we conclude, we have just looked at the solar panel laws in the state of Rhode Island. The state offers a ton of benefits if you’re interested in investing in solar panels. So, if you’re interested in installing solar panels, now is the perfect time to do so!