Tax IncentivesResidential CustomersResidential Renewable Energy Tax Credit (Personal)Last DSIRE Review: 01/20/2007 Incentive Type:Personal Tax Credit Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Geothermal Heat Pumps Applicable Sectors:Commercial, Residential Amount:25% of costs Maximum Incentive:Based on maximum system cost of $15,000 for PV, active solar space heating and wind; Based on $7,000 maximum system cost for solar hot water and geothermal Carryover Provisions:Credit may not be carried over to subsequent years Eligible System Size:PV: minimum module size of 24 square feet Solar hot water: minimum collector area of 60 square feet Active solar heating: minimum collector area of 125 square feet Wind: minimum capacity of 250 watts at 28 mph Geothermal: minimum coefficient of performance of 3.4 or minimum efficiency ratio of 16 Project Review/Certification:Solar and geothermal installations must be approved by city or town inspector Website:www.energy.ri.gov/programs/renewable.php Authority 1:R.I.G.L. § 44-57-1, et seq. Summary:Rhode Island offers a personal tax credit for photovoltaic systems (on-grid and off-grid), solar hot-water systems, active solar-heating systems, wind-energy systems and geothermal-energy systems. The tax credit is equal to 25% of the system cost and applies only to residential installations. The credit is available to the resident or business that pays for the system. Photovoltaic (PV) systems must have a minimum module size of 24 square feet, and must either be connected to the grid or to a battery-storage system. PV systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for a PV system that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Solar hot-water systems must have a minimum collector area of 60 square feet and must include a storage tank that holds at least 80 gallons. Solar hot-water systems up to $7,000 are eligible for the full 25% credit. (A resident or business that pays for a solar hot-water system that exceeds $7,000 in cost will receive a credit based on a $7,000 system cost.) Active solar-heating systems must have a minimum collector area of 125 square feet, and must include a system for storing and/or distributing heat to the living area of a house. Active solar-heating systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for an active solar-heating systems that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Wind-energy systems must have a rotor diameter of at least 44 inches and a minimum factory-rated output of at least 250 watts (W) at 28 miles per hour. Wind-energy systems up to $15,000 are eligible for the full 25% credit. (A resident or business that pays for a wind-energy systems that exceeds $15,000 in cost will receive a credit based on a $15,000 system cost.) Geothermal systems must have either a minimum coefficient of performance of 3.4, or an efficiency ratio of 16 or greater. All geothermal systems must have a commissioning sign-off by the manufacturer or distributor of the equipment to verify the proper installation and performance of the system. In addition, all geothermal systems must meet the following standards:
Geothermal systems up to $7,000 are eligible for the full 25% credit. (A resident or business that pays for a geothermal system that exceeds $7,000 in cost will receive a credit based on a $7,000 system cost.) The following systems are not eligible for the credit: passive solar space-heating systems, passive solar hot-water systems, sunspaces, solar greenhouses, PV and wind systems on boats or recreational vehicles, solar collectors for pools, existing renewable-energy systems, used renewable-energy equipment, and repairs and replacements of existing renewable-energy systems. Applicants for the tax credit must obtain a systems certification from the Rhode Island Office of Energy Resources. Information required for the application is outlined in the statute. Although the statute contains a provision for the Office of Energy Resources to certify contractors in lieu of requiring system certification, contractor certification procedures are not in place at this time. Contact:Julie Capobianco |
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