30% Investment Tax Credit (ITC):
The ITC is a 30 percent tax credit for solar systems on residential (under Section 25D) and commercial (under Section 48) properties. The original use of the equipment must begin with the taxpayer, or the system must be constructed by the taxpayer. The energy property must be operational in the year in which the credit is first taken. Source: DSIRE
5 year MACRS Depreciation + 50% Bonus:
Under the federal Modified Accelerated Cost Recovery System (MACRS), businesses may recover investments in solar property through depreciation deductions. The property may be depreciated over a 5 year period. Equipment placed in service before January 1, 2018 can qualify for 50% bonus depreciation. Equipment placed in service during 2018 can qualify for 40% bonus depreciation. Equipment placed in service during 2019 can qualify for 30% bonus depreciation. or more information on the federal MACRS, see IRS Publication 946. Source: DSIRE
Renewable Energy Fund (REF) Commercial Development Program:
Commerce RI, the economic development agency of Rhode Island, offers a cash grant for homeowners and businesses that install renewable energy systems. The grant is awarded to the applicant upon project completion and inspection. The value of the grant depends on the scale of the solar array being installed. Find out more: REF - Commercial
Utility and Regulatory Programs
Net-metering is a regulatory policy that allows electricity users to generate electricity on site via systems up to MW in size, and receive credit for excess electricity delivered to the utility. Systems must be sized to produce no more than the 3 year average annual electrical use.
Renewable Energy Growth Program (REG):
The REG program offers fixed dollar-per-kilowatt hour payments for all energy produced over a 20 year term. The system owner may elect to receive a separate check for all system production, or associate an electric account to incorporate bill credits. National Grid opens several enrollments per year to accept projects into the program through a competitive bidding process.
Commercial Property Assessed Clean Energy Program (C-PACE):
Property owners may be eligible to finance up to 100% of clean energy project costs, including energy efficiency upgrades and roof replacement, by financing through the C-PACE program with no money down. The loan is paid back to the municipal tax assessor over a long term. The C-PACE program is sponsored by the Rhode Island Infrastructure Bank. Find out more: http://ri-cpace.com/