Rhode Island House bill would reinstate 25-percent solar tax credit

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http://www.providencejournal.com/breaking-news/content/20140404-rhode-island-house-bill-would-reinstate-25-percent-solar-tax-credit.ece

PROVIDENCE, R.I. — After Doug Sabetti founded Newport Solar in 2009, his business grew fast.

Helped by a state tax credit that lowered the cost of renewable energy systems for homeowners, he got so much work installing solar panels that he had to hire two workers. But when the General Assembly abolished the tax credit the following year as part of an effort to balance the state budget, Sabetti lost any new projects and he had to lay off his employees.

Although homeowners can pay off a solar electric or solar hot-water system in less than a decade through savings on their energy bills, the hefty upfront costs can be a deterrent. That’s why the state credit, which was equivalent to 25 percent of the total cost, was so important. It reduced the payback on a system by at least three years, said Sabetti.

“That’s a tremendous help,” he said. “It’s a huge incentive.”

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