Incentives for solar energy get first look

PROVIDENCE -- Feb 24 - McClatchy-Tribune Content Agency, LLC - Alex Kuffner The Providence Journal, R.I.

The first pieces of the Senate package aimed at boosting the number of jobs in clean energy and other "green" sectors of the economy went before legislators on Tuesday, with hearings on bills that would largely benefit the state's budding solar industry.

The Senate Finance Committee held hearings on legislation that would establish a statewide exemption for small renewable energy systems from municipal property taxes, create a state rebate for residential installations of photovoltaic panels, and extend the life of the state fund that has helped drive the development of the solar sector in Rhode Island.

"We're trying to grow green jobs. This is a way to do that," Sen. Louis DiPalma, a Middletown Democrat and member of the committee, said in regard to one of the tax-exemption bills.

Solar installations in the United States have surged in recent years as the costs of panels and other equipment have come down and financing options, including third-party leases, have expanded. Installations across the country have increased every year over the past decade and a half, from 4 megawatts in 2000 to 7,286 megawatts in 2015, according to the Solar Energy Industry Association.

Solar capacity has increased in Rhode Island, but with only 15 megawatts, the Ocean State lags the rest of New England, according to figures compiled by the association. In comparison, Massachusetts has 1,037 megawatts and Connecticut has 221.

Legislation introduced by Sen. Joshua Miller, D-Cranston, aims to make the state more competitive by offering a $500 rebate to residential systems with a capacity of 10 kilowatts or less. His bill would set aside $100,000 every year from the state Renewable Energy Fund for the program.

"It has no impact on the tax code, but it brings Rhode Island up to speed with Massachusetts and Connecticut, to get Rhode Island up to their level of incentives," said Miller.

Although there were no objections to his proposal, the tax-exemption bills drew more discussion, with Peder Schaefer, associate director of the Rhode Island League of Cities of Towns, saying that failing to tax renewable energy systems could force others to pay more.

"I urge caution on this," he said.

Support was broader for extending until 2027 the Renewable Energy Fund, which is supported by a surcharge on electric ratepayers. Over the past three years, $9 million in grants and loans has been disbursed from the fund and leveraged with $21 million in private capital, said Chris Kearns, chief of program development at the state Office of Energy Resources.

"It helps clean energy jobs grow," said Sue AnderBois, policy analyst with the Northeast Clean Energy Council.

All the bills were held for further study.

--akuffner@providencejournal.com -- On Twitter: @KuffnerAlex