Rhode Island solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented, and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

The Net Metering policy in Rhode Island has made it easier for the customers to sell unused electricity back to the grid instead of storing the energy in batteries. Your PV system will pay for itself primarily through the Net Metering program. You gain credits by selling solar energy that you haven’t used into the commercial grid. The credit value in Rhode Island is equal to the full retail electricity price of your provider. Unused credits have no expiration date, they will roll over to the next month and can help offset future electricity usage.

If you are installing a new solar energy system in Rhode Island, you can get some of the costs back by applying for the Renewable Energy Growth (RE Growth) Program. RE Growth offers financial benefits to National Grid customers which depend on the amount of electricity their systems generate. Those participating in the REG incentive receive 28.75 cents for each kilowatt-hour their solar panel system produces during the first 15 years. National Grid provides bill credits and monthly cash payments. The value of this offer certainly stands out when compared to the regular retail rate of about 19 cents per kWh. This program is not compatible with Net Metering since it uses a feed-in tariff.

Rhode Island property owners will not have to pay any additional property taxes on the added value their solar system brings to their home due to the property tax exemption for renewable energy systems. Rhode Island ensures any new PV system installed will not be part of your property tax. However, any such home improvement will definitely make it about 4% more valuable on the property market, says the 2019 Zillow report.

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner.

It is legal to install solar panels on your house in Rhode Island. However, you may face some restrictions when installing a solar PV system. It’s best to contact your homeowner’s association (HOAs) or community organizing body to be certain of any regulations that may be in your area. HOAs in Rhode Island define a neighborhood’s aesthetic rules. You may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal.

Storm activity is typical from June 1st through November 30th. Located right on the east coast, Rhode Island residents should always be prepared for a hurricane.  Solar panels are manufactured to withstand most hurricanes, and in any power outage solar panels will help you survive a blackout. In 2011, Hurricane Irene left 256,000 out of 480,281 customers without power across Rhode Island. As stated by the Environmental Protection Agency, our climate is changing and natural disasters are becoming more frequent, but by powering your home with solar energy you will no longer have to worry about blackouts.