Expert Advice: Does Solar Make Sense in Rhode Island?

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Curious about solar panels information and facts? We're here to let you know that solar in Rhode Island is a great investment for any property owner! Residential and commercial solar panels reduce utility costs while increasing property values. Solar power is also clean energy, produced without any fumes or pollutants.

If these quick reasons aren’t enough to convince you to “go solar,” keep reading! Knowing a bit more about solar benefits is sure to help you make up your mind. This information can also help you know what to discuss with a solar installation contractor near you.

Why Does Solar Make Sense in Rhode Island?

Check out some added details about Rhode Island solar power benefits! Once you do, you might realize why it’s becoming so popular with property owners in the state:

• Using solar panels reduces your utility costs year-round. In fact, some sources state that you can save $1600 or more annually with solar power. (https://www.saveonenergy.com/solar-energy/rhode-island/)
• A solar panel installation increases property value, typically by 4% or more. Potential homebuyers often pay about $15,000 more for a home with solar panels than those without. This allows you to build equity faster and earn more for your sale if you put your property on the market.
• While electricity doesn’t produce pollutants, power plants that make electricity are anything but “green”! In fact, electric power plants are the largest commercial producers of carbon dioxide. (https://www.lung.org/clean-air/outdoors/what-makes-air-unhealthy/electric-utilities) On the other hand, solar panels produce no pollutants during their operation.
• Solar panels cover roofing materials, protecting them from damage. Since they also absorb sunlight, they help keep structures cooler during summertime. In turn, you might run your air conditioner less often throughout the hot summer season.

Does RI Have a Solar Tax Credit?

Solar tax credits are an excellent means of reducing your solar installation costs. While Rhode Island doesn’t offer a state tax credit, there are other programs that make solar more affordable than ever.

• When a solar investment increases property values, the state doesn’t tax that added value. You can then enjoy increased equity without a larger tax bill every year.
• Rhode Island offers a sales tax exemption for a solar system installation. That means not having to pay sales taxes on your solar panel components.
• The state’s Renewable Energy Growth or REG program offers cash credit for solar power. Under this program, the state issues a Performance Based Incentive (PBI) credit for solar produced by your panels. This PBI shows up as a credit on your electric bills. It also means a cash payment if those panels produce more power than your property consumes.

In addition to these state benefits, don’t forget about the federal tax credit! The 2022 Inflation Reduction Act offers a 30% federal tax return credit for your solar installation. In other words, you can typically expect to claim 30% of your solar installation costs on your tax return. These credits apply to the year of installation but drop to 26% for 2033 and 22% for 2034.

Lastly, note that local solar incentives vary by area. For instance, some companies offer grants for solar installation. Also, some local utility companies might buy your solar power through net metering. Since these programs are not mandated by the state, there is no guarantee that they’ll apply to your installation.

Is There a Downside to Having Solar?

While solar power is a great choice for just about any property, it’s not without some considerations. First, note that installation costs can be out of reach for some property owners. Second, not every roof absorbs enough sunlight to make solar worth that cost.

Also, roofers usually need to remove and then return solar panels when making roof repairs. This process often costs several hundred dollars. In turn, many contractors recommend solar for roofs in good condition!

However, most property owners who invest in solar have no regrets over their decision. In fact, many are happy to recommend solar to others. Solar panels are also becoming less expensive but more effective every year. In conclusion, the “pros” of solar power installation typically far outweigh any “cons” of solar.

RC Roofing is happy to help explain these details about solar in Rhode Island. Remember to check with your accountant or tax professional if you’re thinking of claiming solar on your returns. Also, your local energy company can offer more information about local incentives. In the meantime, call our Rhode Island solar installation contractors for your FREE solar installation quote. We’ll explain your best options for solar and review your expected installation costs. To get your property started with a valuable solar installation, reach out to our team today.