By
TIM FAULKNER/ecoRI
News staff
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| Richmond Town Council president Henry Oppenheimer said the town’s new solar array will teach Chariho High School students about asset development. (Tim Faulkner/ecoRI News) |
RICHMOND, R.I. — There was a bit of give, especially with taxes,
before the construction of a 2-acre solar project in an industrial park near
Interstate 95 was approved.
First, the Town Council approved a hefty cut for the project’s tax
bill, restructuring what is called tangible asset tax from about $30,000 to a
$3,750 per year flat fee for 12 years. In addition, Nexamp, the owner and
developer of the project, also pays property taxes and a fee to lease the land
from a local property owner.
During the May 20 ribbon-cutting ceremony for the 500-kilowatt
project, officials said the solar array’s best attribute is that it serves as a
real-life laboratory for students at Chariho High School.
“One of the biggest issues here was the tie-in to education,” Town
Council president Henry Oppenheimer said. “The town will get its tax revenue,
it will be clean, renewable energy, the kids at Chariho will learn about asset
development. They will have the advantages as they go forward.”
“You can’t duplicate (these concepts) in the classroom. You can
only duplicate them in real life,” Chariho School District superintendent Barry
Ricci said.
Marion Gold, commissioner of the state Department of Energy, said
teaching about renewable energy helps build careers. “There are a lot of
clean-energy jobs but there is a real need for training workers of the future
so that they get the skills they need,” she said. “So it’s really great that
you are getting the kind of hands on experience with this project.”
Oppenheimer noted that there are environmental benefits as well.
In the late 1970s, he wrote business plans for oil development companies while
he taught finance at Texas Christian University in Fort Worth, Texas. The oil was
so abundant wells were pumping in the city. With solar energy, he said, there
is little risk of pollution, accidents and abandoned equipment that comes with
oil busts.
“But this (solar array) will be here for 20 to 30 years,” he said.
New solar incentives
Part of the financing for the Richmond project came through a
state program that allows a fixed-price purchase agreement for the electricity.
Through the state-sanctioned distributed generation (DG) program,
Nexamp received a price purchase agreement of about 19.5 cents per
kilowatt-hour for 15 years. This fixed pricing allows Nexamp to project a
long-term revenue stream that makes the project profitable for the business and
attractive to lenders and investors.
The DG program branched out this year to include fixed pricing for
solar systems suited for homes and businesses. Solar companies see it as a
great deal for customers and the industry.
“I am looking forward to the residential program launching because
we have several people signed up for it already,” said Doug Sabetti, owner of
Newport Solar, an installer of mostly smaller solar arrays for homes and
commercial customers.
The new solar energy program, called Rhode Island Renewable Energy
Growth, opens June 15. Enrollment forms for the program were posted
June 1.
A revamped and expanded DG program for wind, hydropower and larger
solar begins with a two-week enrollment Aug. 3 and a second enrollment Oct. 19.
SolarCity power
The California-based solar company made famous by it financial
backer and largest shareholder, Elon Musk, now offers a low-cost solar loan
program in Rhode Island. The MyPower loan is available in Coventry, Cranston,
Cumberland, East Providence, Johnston, North Providence, South Kingstown,
Warwick, West Warwick and Woonsocket. Other communities are expected to follow.
EDITOR’S
NOTE: SolarCity will NOT be available in Charlestown. Maybe some day.
Rhode Island is the fourth state in New England and the 18th in
the country were SolarCity operates.
The new loans typically require no upfront cost and are repaid by
the electric customer. The payment is typically the same amount or less than
the monthly electric bill. Unlike a lease program, the property owner owns the
solar array purchased with a MyPower loan.
SolarCity recently announced the opening of a new sales and
support center in Fall River, Mass. It’s expected to staff 80 employees.