US SolarWorks has years of experience finding any incentives businesses are eligible for. To make the process easier, we will apply to any incentive programs on your behalf so you can focus on your business.
Federal Tax Credit
This tax credit is equal to 30% of expenditures for systems placed in service by December 31st of the previous year, with no maximum credit. This is calculated after all other rebates and incentives. The energy property must be operational in the year in which the credit is first taken, and certain line items may not qualify for the tax credit. After 2019, this tax credit will decrease by 4% annual. Dropping from 30% down to 26% in 2020, 22% in 2021, and then dropping to 10% for commercial in 2022.
Renewable Energy Certificates
When you install a solar system in Rhode Island or Massachusetts, you can participate in the Renewable Energy Certificate credits based on the amount of energy your system produces. RECs are clean energy credits that are equivalent to one megawatt hour of energy generated by renewables. Solar production is monitored and automatically reported to the REC Broker which consolidates this production into megawatt hour packages to be sold. The cash value of the RECs is mailed to you quarterly.
Net metering is a great incentive policy because it allows you to avoid the cost of electric power when your system is not running at full capacity due to weather or nighttime. This billing mechanism allows solar generators to be compensated at the retail rate of electricity for a surplus generation.
A net meter will allow the meter to run backwards to provide credit against what electricity is consumed at night or during other periods when electricity consumption exceeds the solar system’s production. Customers are only billed for their “net” energy use. Some months a customer could have a negative consumption – this is more production than consumption
Rhode Island State Rebate Program
Rhode Island offers an attractive direct state rebate based on the size of the system. Currently they pay a maximum of $80,000. US Solar Works applies on your behalf to get this rebate and will only start construction once we have received a reward letter. You as the customer will receive the rebate after the construction is complete and an inspector has reviewed the project. If you choose to take advantage of the state rebate, you are eligible for net metering by not the feed-in tariff.
Rhode Island Feed-In Tariff
Through the Renewable Energy Growth Program (REG), Rhode Island residents have the option of purchasing your electricity at a premium price for a contracted period of time. If you choose to utilize the REG Program, you are not eligible for net metering or the state rebate program.