Incentives target solar projects

A new study this month suggests solar energy in Rhode Island is saving electricity ratepayers money. Solar companies think there are more savings and business to be had — especially on the commercial side — with the rollout of a new state incentive program that could pump an estimated 160 megawatts into the grid over the next five years.

The study, conducted by the nonprofit Acadia Center, looked at six solar-energy systems in Rhode Island and estimated solar power in the grid saves ratepayers between 19 and 25 cents per kilowatt hour, largely because it produces an alternative energy resource during hours of peak demand.

The report was released earlier this month by the Maine-based clean-energy advocacy group, which has an office in Providence and did similar studies for Massachusetts and Connecticut solar projects this year. The Rhode Island study comes on the heels of National Grid PLC, Rhode Island’s largest electricity utility company, and the R.I. Office of Energy Resources on June 15 starting the state’s newest renewable energy incentive plan, the Renewable Energy Growth program.

Depending on the size and performance of each project, the program pays anywhere between 29.8 cents and 41.35 cents per kilowatt hour for solar generation pumped back into the grid.

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The incentive, approved by lawmakers in 2014, is one of a just a few available in Rhode Island and has solar-installation professionals excited about the business prospects.

Vito Buonomano, owner of Providence-based Northeast Solar & Wind Power LLC, expects the new program will allow him to crack into the smaller-scale solar-installation market, which he’s largely avoided until now.

“The small-scale, zero to 25 kilowatt projects, I think are going to be a lot easier [now],” he added.

Stuart Flanagan, principal of NPTRE Newport Renewables LLC in Newport, says his company has seen an increase in solar interest. But Flanagan says there are other contributing factors, such as soaring winter electricity rates, driving commercial ratepayers toward the idea of setting up solar systems.

“The annual spikes in electricity costs get people thinking about it,” Flanagan said.

The majority of Newport Renewables’ solar projects thus far have been done in collaboration with the Renewable Energy Fund program. The incentive program run by R.I. Commerce Corp. uses accrued ratepayer surcharges and makes the capital available through grants and loans for residential, commercial and municipal renewable energy projects.

This year, the state is allowing a total of 25 megawatts worth of Renewable Energy Growth projects, with 3 megawatts designed for small solar projects equaling 25 or fewer kilowatts. But National Grid estimates the program could generate 160 megawatts of renewable energy in the next five years – enough electricity to power roughly 30,000 homes per year. •

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