The Clean Energy Act of 2004 established Rhode Island’s renewable energy standard (RES) requiring state utilities to generate 16 percent of retail electricity sales from renewable sources by 2020.
Qualifying sources include: solar; wind; ocean heat; planetary heat; hydroelectric facilities with less than 30 megawatts (MW) capacity; biomass facilities using eligible biomass fuels; and fuel cells using renewable resources.
Utilities may apply no more than two percent of renewable energy from sources installed prior to January 1, 1997 toward the mandate.
Utilities may purchase renewable energy certificates (RECs) or make an alternative compliance payment (ACP). The Rhode Island Public Utilities Commission (PUC) set the ACP at $60.93 per megawatt hour.
In 2009, the RES was amended requiring utilities to enter into long term contracts for 90 MW in capacity of renewable energy, 3 MW of which must be solar energy. The PUC set a three-year (2010-2013) graduated compliance schedule.
Source: Database for State Incentives for Renewables and Efficiency