By TIM FAULKNER/ecoRI News staff
EDITORS NOTE: In Charlestown, you have until September 8 to sign up
for Solarize
Charlestown. This program offers potentially lower cost installations
through a group-buying contract.
Rhode Island’s solar industry is no longer a fledgling subset of
the amorphous "green" economy, but a rapidly growing business sector
with some of the best financial incentives in the country.
In a recent report from
the Office of Energy Resources (OER), renewable-energy jobs, led by solar
energy, has increased 66 percent in two years. Rhode Island has some 1,700
solar jobs, up 16 percent in 2016. The state ranks second in the country for
green-energy jobs as a percentage of the workforce. Solar firms are growing,
with 18 percent growth in companies between six and 24 employees.
While the Ocean State
doesn’t rank in the top 10 of solar power per capita, Rhode Island ranks third
for “solar-energy friendliness” in a report by the solar advocacy website Solar
Power Rocks. The state earns an overall grade of A, whereas in 2014 Rhode
Island earned a D, The grading is based on solar policies, like the renewable
portfolio standard, and incentives, such as tax breaks.
The most eye-popping
statistic from the Solar Power Rocks report is Rhode Island’s estimated
four-year payback on investment, meaning a new solar array will pay for itself
in about four years. The quick payback matches Massachusetts, the top state in
the ranking, and is well above the seven-year payback in Connecticut. Most
states have a payback of 10 years or longer.
Several bills in the General
Assembly will further boost Rode Island’s solar stature and grow businesses.
Gov. Gina Raimondo recently signed into law S112, an extension and expansion of the the popular Renewable Energy Growth Program (REG) run by National Grid. The incentive offers fixed pricing for the purchase of solar electricity over a 15- or 20-year term. The legislation extended RE Growth until 2029, with a maximum limit of 40 megawatts per year.
Gov. Gina Raimondo recently signed into law S112, an extension and expansion of the the popular Renewable Energy Growth Program (REG) run by National Grid. The incentive offers fixed pricing for the purchase of solar electricity over a 15- or 20-year term. The legislation extended RE Growth until 2029, with a maximum limit of 40 megawatts per year.
Solar installers are happy
with the expanded incentive. Eric Martin, sales manager for Newport Solar, said
the program shaves thousands of dollars off electricity bills.
“This state-sponsored
program provides long-term predictability for both our business and our clients
as they look to install solar on their homes and businesses," Martin said.
There is of course the
environmental benefits of solar energy.
“Right now, Rhode Island
gets 95 percent of its energy from natural gas,” said Rep. Deborah Ruggiero,
D-Middletown, sponsor of a House solar bill. "The REG program helps the state
diversify its renewable-energy resources to meet our long-term energy needs,
while also helping to reduce greenhouse-gas emissions.”
As the General Assembly
heads into its final week, other bills may benefit the state's solar sector. A
state tax credit (S205)
for new solar installations — considered the missing link in Rhode Island’s
menu of incentives — is stalled in committee. H5123 creates a revolving fund for grants
and loans available to businesses with 500 or fewer employees.
Another law (S562)
signed by Raimondo on June 19, establishes a statewide solar permit and
application. A universal application overseen by OER and accepted by every city
and town is expected to speed up the pace of new solar projects and reduce the
so-called soft costs for installers.