R.I. solar companies poised for post-COVID-19 rebound

PROVIDENCE – Rhode Island companies that develop or support solar projects are poised to see big gains in the year ahead thanks to a new, renewable energy-friendly presidential administration in combination with a post-pandemic rebound in demand.

Among them is ISM Solar Development LLC, an East Providence-based developer of commercial and utility-scale solar arrays. After making a name for itself for developing the state’s first community solar farm in Burrillville, the company has begun or is preparing for construction of another four projects across the state plus eight in Maine, according to vice president Michael Lucini. Once completed, the 12 projects generate an additional 80 megawatts of renewable energy for the two states combined.

These growth plans come after a year in which his company, and the industry, reported significant losses due to COVID-19. The major hold-up, according to Lucini, came from permitting through municipalities, which due to budget constraints, difficulty in transitioning to virtual public meetings, and competing priorities, delayed project schedules for several months or even a year.

Indeed, after the state hit a record 150 megawatts of energy generated through solar projects in 2019, installations through the third quarter of 2020 brought in roughly 35 megawatts of additional power, according to data compiled by the Solar Energies Industry Association. 

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The full impact of the pandemic is unclear. The 2020 Rhode Island Clean Energy Industry Report, which came out in mid-2020 but was based on data collected through the fall of 2019, estimated the state had lost nearly 4,000 clean energy jobs since the start of the pandemic.

While the economic fallout of the pandemic continues, Lucini has started to see a rebound, which he attributed in part to the new presidential administration. Federal tax incentives are the primary driver behind the kind of large-scale solar arrays his company develops, particularly because the landfills, gravel pits and other repurposed sites ISM Solar works on are costly and require financial incentives.

Federal tax credits were set to expire at the end of 2020 but extended in the December stimulus bill, before Biden took office. The Biden administration’s emphasis in renewable energy, demonstrated by executive orders signed within days of his inauguration, gave Lucini further cause for optimism.

Legislation known as the CLEAN Futures Act introduced earlier this month that would establish federal targets for zero-net emissions was also important to Lucini.

“It would be the first time where the federal government is going to create the demand and standards,” he said, noting that until now, state targets have largely driven the industry. 

Rhode Island, under former governor Gina M. Raimondo, has rolled out a host of ambitious renewable energy goals and corresponding incentives through the state Office of Energy Resources, R.I. Commerce Corp. and via private utility company National Grid. Lucini lauded these efforts, in particular a pilot program through National Grid’s Renewable Energy Growth Program offering additional financial incentives to developers that build solar canopies in parking lots.

Doug Sabetti, owner and founder of Newport Solar, offered a different take. While his company, which focuses on residential rooftop solar arrays, was also poised to benefit from the change in presidential administration, lack of state funding might hamper growth.

Specifically, Sabetti named the latest round of grants distributed through R.I. Commerce Corp.’s Renewable Energy Fund as reason for his concern. Unlike in previous years, his company secured only half of the money it applied for through the first come, first serve grants for renewable energy projects this year.

Without that funding, Sabetti had put hiring plans on hold and worried over a now uncertain future for his company.

“You put all that work into the application, and then to not get the money…it’s not worth it,” he said.

Brian Hodge, a spokesman for R.I. Commerce, said in an email that the program was unable to fund all projects because of high demand.

While Sabetti was putting company growth on hold, Anthony Baro, who owns two solar-related companies, anticipated tripling company revenue this year.

Baro owns a small-scale commercial solar development company, E2SOL LLC, as well as well as a marine-engineering company, PowerDocks LLC, which uses solar energy-powered charging stations and floating docks for boats.

Baro’s bullish outlook stemmed in part from the new presidential administration, as well as what he described as industry momentum that has been growing over the last several years regardless of politics.

The combination of state and federal incentives offer “no reason” for customers not to make the switch to renewable energy, he said.

“There’s plenty of money in the market and the momentum is there,” he said. “The only reason you wouldn’t do it is if you don’t understand it.”

Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.