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| Guess which month Rhode Island began marketing its solar incentives? (Tim Faulkner/ecoRI News) |
NORTH SMITHFIELD — Solar energy is becoming a better bargain in
Rhode Island, as the costs for home systems are on par with Massachusetts, one
of the top states for solar energy in the country.
In both states, incentives cover 50 percent or more for new solar
panel installations, just as the cost for panels has declined in recent years.
Currently, the average solar-electric system for a home costs
between $12,000 and $17,000 — after all of the incentives are applied. That is
still a pile of cash, but, unlike some home improvements, a renewable-energy
project repays itself and continues to deliver savings after the payback
period.
Incentives
A 30 percent federal tax credit is available for solar on
primary and secondary residences, as well as businesses. State grants through
the Renewable
Energy Fund offer another 30 percent to 40 percent cost
reduction.
Rhode Island’s distributed generation (DG) program will soon
offer fixed energy-purchase pricing for 15-20 years. It’s more complicated than
the grants and tax breaks, but the program provides another tool for making
solar a money-saver.
A new state marketing program called Solarize Rhode
Island reduces installation costs by about 20 percent. It also
comes with local tax breaks.
Through a combination of these incentives, new solar panels pay
for themselves in seven to eight years, according to installers. Although their
value depreciates slightly each year, a solar system offers a continuous return
on investment during the life of the solar panels, which is an estimated 25
years.
The payments arrive in the form of credits on your monthly
electric bill. New solar systems are built to match a home’s electricity
consumption. A new solar PV system provides onsite electricity while excess
flows back into the power grid. The utility company — in Rhode Island's case
National Grid — must pay for the electricity. The owner of the PV solar panels
is compensated by receiving a smaller electric bill.
A California study also shows that
homes with solar panels sell at a premium compared to homes without.
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| Rhode Island has a lot of catching up to do |
Low maintenance
Solar panels have no moving parts. Occasional cleaning is needed
to remove dust and debris. Snow may also require removal. Because the panels
are dark, pitched and coated in glass, snow generally doesn’t stick. A typical
warranty covers the life of solar panels.
Financing
In 2013, the General Assembly approved the Property Assessed
Clean Energy (PACE) program. Details are still being worked
out, but PACE allows property owners to pay for a solar project in the same way
they pay property taxes. The main benefit: any unpaid balance transfers to a
new owner if the property is sold. This allows the sellers and buyers to
equally share in the costs and benefits of a solar-energy system. The payments
can also be spread across 20 years.
Each city/town council must approve the program. So far, 31
states have adopted PACE legislation. In Rhode Island, East Providence was the
first community to approve the program.
Admirals Bank, which has a regional
banking center in Providence, also offers loans up to $25,000 for solar
projects.
Solarize Rhode Island
This program, a town-by-town marketing push to install solar
panels on homes and businesses through mailers and meetings, allows residents
in a host community learn about discounts on hardware and installation costs,
and about a 20-year property-tax exemption for the solar system.
On Oct. 10, North Smithfield became the first Rhode Island
municipality to launch Solarize. North Smithfield is hosting a public workshop Oct. 15 from 6:30-8 p.m.
Little Compton and Tiverton will join in November.
Nearly 50 communities in
Massachusetts and more than 40 in Connecticut have been through the 12-week
solar push. The results in Connecticut are significant: In 20 weeks, the
Solarize program doubled the amount of solar capacity in the state. The
previous solar threshold took six years to reach.
The recent Rhode Island launch took place at National Marker Co.
(NMC), which is installing a 214-kilowatt rooftop solar array. The North
Smithfield company's president, Michael Black, said he wanted the first
Soalrize project in hopes of inspiring others.
Brian F. Keane, president of SmartPower,
the group that manages Solarize initiatives, said solar energy gains traction
in a community when residents see and talk about it. “They’ll buy solar when
their friends and family buy solar," he said.
Colorado-based RGS
Energy was selected as the exclusive contractor for the
Solarize program in North Smithfield. The company has been the installer of
choice for many Massachusetts and Connecticut Solarize rollouts.