Benefits of Solar Energy
Solar energy offers multiple perks. Here are some highlights.
- Lowered energy bills: Solar panels allow you to generate your own energy to power your home, decreasing your periodic electricity costs. Going off-grid can eliminate your bills completely. Plus, a significant number of states offer net metering, which permit you to earn money by selling your unused energy back to the grid.
- Reduced carbon footprint: Adopting solar is a surefire way to reduce your carbon footprint and home fossil fuel dependency.
- Better energy independence: Adding a battery backup or storage system lets you have trustworthy energy during grid outages and storms.
What Solar Incentives Are Available to Providence Homeowners?
Rhode Island agencies and electric companies offer several solar incentives to help cut your solar system costs. Below is a breakdown of relevant solar programs where you live.
Incentive Type: Property Tax Incentive
Incentive Amount:
Varies (local option)
Incentive Type: PACE Financing
Website: riib.orgIncentive Type: Sales Tax Incentive
Website: energy.ri.govIncentive Amount:
100% exemption
Incentive Type: Property Tax Incentive
Website: energy.ri.govIncentive Amount:
100% exemption from property taxes
Incentive Type: Grant Program
Website: commerceri.comIncentive Amount:
Solar PV
Direct Ownership: $1.05/W
Third Party Ownership: $0.70/W
Solar Domestic Hot Water Heating
Direct Ownership: 25% of project contract price
Third Party Ownership: 10% of total contract price
Incentive Type: Personal Tax Credit
Website: ecowatch.comIncentive Amount:
30% federal tax credit for systems placed in service after 12/31/2021 and before 01/01/2033. Good for: solar water heat, solar photovoltaics, biomass, geothermal heat pumps, wind (small), fuel cells using renewable fuels.
How To Choose the Best Solar Company in Providence
The more informed your provider search is, the better your solar installation will ultimately perform. Here are some crucial criteria to remember while shopping for a solar provider.
Licensing and Training
To install a solar energy system in Rhode Island, a company must have both a State Electrical Contractor's License and at least a Journeyperson's License from the Department of Labor and Training. Look for private accreditations from the North American Board of Certified Energy Practitioners (NABCEP), one of the solar industry's most reputed trade groups. Its program includes certifications for both solar photovoltaic and water heating installers.
Cost of Solar Panels in Providence
The style of solar panels you select dictates how much power you can produce. Monocrystalline panels and high-quality and cost more but give you the best performance. Polycrystalline panels work with a tried-and-true mechanism and cost less, but produce less power. Thin-film panels aren't meant for large home installations, but they're excellent for small projects like sheds and RVs.
Additional system add-ons, such as electric vehicle (EV) chargers and battery storage, will add to your overall installation costs. However, they might make your solar system more efficient and convenient to use. Not all solar contractors include these extras, so look for a provider that sells them if it's important for you.
Generally speaking, it will cost about $20,350 for a five-kilowatt solar array in Providence. This table lists more specific pricing information for different solar panel types and system components in your area.
| Solar Panel Cost | Average Cost |
|---|---|
| Solar Monocrystalline | $1,148 |
| Solar Polycrystalline | $895 |
| Thin-Film | $523 |
| Solar Battery | $734 |
| Solar Home EV Charger | $2,754 |
Financing Solar Energy in Providence
Choosing the ideal financing solution will affect your overall solar system cost and potential savings. Common payment options include loans, power purchase agreements, cash payments, and leases. Most solar experts recommend paying cash or using a solar loan. Cash payments require a large up-front sum, but they save you from paying interest, grant you system ownership, and qualify you for cost-saving solar incentives. Solar loans have the same benefits, though you'll pay more in total due to interest and fees. Similar to a car or home loan, you'll pay a set monthly rate with potentially $0 down. Solar leases allow you to pay a monthly fee to rent your panels, while a PPA lets you pay a fluctuating rate based on only the energy you use. We generally don't recommend these options since you will not have ownership of your system and are disqualified from solar incentives, but they might be suitable in particular circumstances. Ask each provider you're vetting about the financing options it offers. A consultant can help you determine the most suitable option for your budget.
The table below lists the average payback periods for different capacities of solar systems in Providence.
The IRS allows you to claim a 26% federal solar tax credit on the full cost of the solar system, so long as you purchase it before 2032. City and state governments and utilities might also offer their own financing programs, rebates, and incentives that could save you more money.
| Solar System Capacity | Estimated Payback period |
|---|---|
| 1 kW | 2.0 years |
| 2 kW | 4.0 years |
| 5 kW | 9.9 years |
| 10 kW | 19.8 years |
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Frequently Asked Questions About Solar in Providence
How much money could I save by going solar in Providence?
Is solar energy widely available in Providence?
Should I expect a boost in my property value after switching to solar energy?
How can I assess my property's solar suitability?
How long is a Providence solar panel's average lifespan?
What upkeep do my solar panels need, and how often do they need it?
How are a solar lease and PPA different?
You don't own the panels with either option, though you can choose to opt out of the contract for a fee.
What's the difference between a PPA and traditional financing?
In contrast, solar loans can come from local banks, the government, specialty lenders and installer. You'll need to pass a credit check to qualify for most of them. While the upfront costs are larger, and you'll be responsible for taking care of the system, you'll also have full ownership rights and can apply for many more financial rewards.
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