Three New England Solar States
New England is a comparatively small region filled with small states. Yet American history has proven that small states can do big things. Over 230 years ago they threw a big Tea Party. Now, so many years later, it has morphed into a big solar party. Indeed, as a region New England is quite solar-friendly and very much the east coast hub for solar innovation and development.
While Massachusetts has received the most national attention, I want to focus on what three other New England states are up to. Is it enough? What more can New England do for solar power? A three-state survey:
Rhode Island
The Ocean State. The smallest state in the union. A big proponent of solar power, Rhode Island offers the gamut of solar rebates and incentives. Municipalities decide whether a solar system is exempt from property taxes, but it cannot be assessed any tax liability greater than a conventional energy system. Rhode Island solar equipment is also exempt from state sales taxes.
But the real motivator is tax credits. Rhode Island offers to pay up to 25% of the total system costs, but the max system cost is $15,000. In other words the max credit is $3,750, and it cannot be carried over to subsequent tax years. This obviously favors solar water and space heat over PV systems.
On the bright side, Rhode Island’s net metering laws reserve space for small, homeowner-sized systems with all annual excess generation divvied out to the Rhode Island Renewable Energy Low-Income Fund.
Photo Credit: yeowatzup
Connecticut
Connecticut is sunny roughly 60 percent of the time but has solar rebates and incentives to rival the much sunnier states to the south. In fact, a Connecticut homeowner may be eligible for up to $18,000 in incentives for their solar power system — not counting federal rebates.
Connecticut, like Rhode Island, offers both property and sales tax exemptions for solar systems. Only this time there is no local option, state law mandates the exemptions.
The Connecticut Clean Energy Fund’s solar rebate program provides installers with the cash that is then passed on to eligible homeowners via a sizable discount. Incentive rates are a whopping $5.00 per watt for the first five kilowatts and $4.30/watt between 5 and 10 kW. That translates to $25,000 in rebates for a 5kW system. Rebates do vary based on the expected performance of the system.
Connecticut also offers a Renewable Energy Certificate incentive, state-funded loans and grants, and net metering.
Photo Credit: David Davies
Vermont
Vermont is the underachiever of today’s New England trifecta and still the state rivals many others in the nation. Vermont’s main obstacle has been its own executive branch. Governor Jim Douglas last year vetoed an energy bill that would have set an renewable energy standard for Vermont because it levied a tax on a nuclear plant.
Nonetheless renewable energy is on the minds of Vermont voters and therefore its legislators as well and it is devoid of solar incentives. Vermont does offer a sales tax exemption on solar equipment (net metered systems only) and a $1.75/watt DC tax rebate for PV systems ($1.75 per 100 BTU/day for solar water heat). State-funded loans and a net metering program highlight Vermont as well.
Certainly a renewable portfolio standard would really get Vermont’s utilities involved as well and really get things going for solar in the heart of New England. Look for it soon.
Photo Credit: yeowatzup
Posted on December 17th in Solar Information by Dan.