Potential savings and incentives as often the main reason homeowners switch to solar for their home electricity: the combination of rebates, tax breaks*, net metering allowances, and more make solar a smart financial choice over traditional fossil fuel power. But what are the risks of going solar in Rhode Island? They can be modest, but they do exist. Here’s what you need to know about potential stumbling blocks on the road to safer energy.
Changes to net metering and other incentive programs
Financial incentives, including rebates and tax credits*, are reasons why solar can be an affordable option and has the potential to reduce energy expenses for Rhode Island homeowners. However, some of these incentives are available for a limited time or can be withdrawn by new legislation.
Rhode Island is among the friendliest states for solar energy. The Renewable Energy Fund currently provides grants for residential clean energy projects, but it might hit a funding cap and be closed to new applications.
Also, the federal solar tax credit is being reduced by a fixed amount each year after 2022 and is scheduled to eventually disappear. New federal legislation is required to extend this program, so if you don’t act soon you might not be able to access this very lucrative solar energy tax credit program*.
Climate suitability
One of the risks of going solar in Rhode Island is its coastal climate that brings rainy weather even throughout the summer. The local weather means there is less available sunshine on a daily basis than in other locations. While this is sometimes a challenge, it’s not a deal-breaker – there’s still more than enough sunshine to make solar a winning investment for most Rhode Island homeowners.
Taking your solar with you is costly
If you decide to move, your current solar system is likely staying put. It’s simply too expensive to remove a solar system from one home and remount it to another. However, the good news is that you probably wouldn’t want to move it: solar installations can add value to homes, so the sale price can be higher if you leave the solar system in place.
Higher upfront cost
Solar has a higher upfront cost than traditional residential power, because of the equipment and installation costs. There are incentives and benefits to solar that make the investment more than worth it, but you should be sure to have the financial flexibility to support the initial costs of a solar system installation.
Your Solar Power Choices in Rhode Island
Contact Freedom Forever today to get greater insight into decisions about your energy future. Our team can help you weigh the pros and cons of solar power, and make the best decision about whether now is the right time to make the switch to solar.
*You should contact a qualified tax expert and consult with them. Neither Freedom Forever’s family of independent authorized dealers nor Freedom Forever itself can give you tax advice. A qualified tax professional will understand your situation and be able to give you the most relevant advice.