Cranston, RI Solar Panels

Rhode Island’s Renewable Energy Sales Tax Exemption eliminates the 7% state sales tax on qualifying solar equipment and components. This exemption applies to solar photovoltaic panels, inverters that connect to utility power lines, manufactured mounting racks and ballast pans, and monitoring equipment specified by the system manufacturer. The exemption saves you money upfront by reducing the purchase price of your solar equipment—for example, on a $30,000 solar system, you’d save approximately $2,100 in sales tax.

This exemption is available to all Rhode Island residents and businesses purchasing qualifying renewable energy equipment. There are no income requirements, application deadlines, or caps on the exemption amount. The tax exemption applies automatically at the point of sale when you purchase eligible equipment. Your solar installer should apply this exemption directly to your purchase, so you won’t need to file any additional paperwork or wait for a rebate.

It’s important to note that this exemption applies specifically to the equipment listed in the statute. Standard materials that could be fabricated into mounting systems, as well as general plumbing or electrical fixtures, are not covered unless they come as an integral part of a qualifying component from the manufacturer. Your solar provider should be familiar with which components qualify and will ensure the exemption is properly applied to your purchase.

Rhode Island’s Residential Solar Property Tax Exemption allows homeowners to add solar energy systems to their property without increasing their property tax bill. When you install solar panels on your home, the added value from that solar equipment is completely exempt from local property taxes. This means your property tax assessment stays the same as it was before installing solar, even though your home’s actual market value has increased.

The financial benefit varies based on your local property tax rate and the value of your solar installation. For example, if you install a solar system that adds $25,000 in value to your home and your local property tax rate is 1.5%, you would save approximately $375 per year in property taxes. These savings continue for as long as you own the solar system, providing ongoing financial benefits throughout the life of your investment.

This exemption is available to all residential property owners in Rhode Island who install qualifying solar energy systems. There are no income requirements or application deadlines—the exemption applies automatically once your solar system is installed and operational. Your local tax assessor will recognize the exemption when conducting property assessments. The exemption remains in effect for the entire time the solar equipment is part of your property, making it a long-term benefit that enhances the overall return on your solar investment.

The Renewable Energy Fund (REF) Small-Scale Solar Grants program provides direct financial support to Rhode Island homeowners who install solar panels through the net metering program. Your solar installer will handle the application process on your behalf, and once your system is installed and passes a quality assurance evaluation, the grant payment goes directly to your installer. This grant is designed to reduce the upfront cost of going solar, making clean energy more accessible to Rhode Island residents.

The program offers $0.65 per watt of installed solar capacity, with a maximum grant of $5,000 per customer. There’s also a $190,000 cap per installer to ensure fair distribution across the state. If you’re adding battery storage to your solar system, you can receive an additional flat incentive of $2,000 per project. Keep in mind that this grant is only available for net-metered systems—you cannot combine it with the Renewable Energy Growth (REG) program.

This is a popular program with limited annual funding, so it can become fully subscribed. Make sure your contract with your installer clearly shows the grant amount and includes a cancellation clause in case the program runs out of funding before your application is processed. The most recent funding round (Round 24-1) opened on February 23, 2024 at 9am, and new rounds are announced periodically throughout the year.

The Renewable Energy Growth (REG) Program is a state incentive administered by Rhode Island Energy that allows you to sell the electricity your solar system generates under a long-term contract with fixed prices. When you participate in REG, you sign a 20-year agreement that includes both a fixed electricity price and a Production-Based Incentive (PBI) payment. This means you receive predictable compensation for every kilowatt-hour your system produces over two decades.

Here’s how the financial benefit works: You receive bill credits on your Rhode Island Energy electricity bill up to the amount you owe each month. Any excess generation beyond your bill amount is paid to you directly through a deposit. This structure provides a stable, long-term income stream from your solar investment. To be eligible, you must be a Rhode Island Energy customer, and your system can use solar, wind, small-scale hydropower, or anaerobic digestion technology.

Important considerations: You must choose between REG or the net metering program—you cannot participate in both, and this decision is binding for the life of your contract. If you choose REG, you are not eligible for grants from the Renewable Energy Fund (REF). However, you can still participate in the Connected Solutions battery demand response program if you add energy storage to your system. Visit Rhode Island Energy’s REG website to learn more about current rates and enrollment details.

The Affordable Solar Access Pathways (ASAP) Program is a Rhode Island state initiative that helps qualifying households access rooftop solar through a special solar lease arrangement. The program combines solar installation with energy efficiency services, and is designed specifically for homeowners in environmental justice areas. Unlike traditional solar financing, this program requires no minimum credit score or income requirement, making solar accessible to more Rhode Island families.

The program offers a discounted solar lease with guaranteed first-year savings on your energy costs, with expected savings continuing throughout the 25-year lease term. Your solar system comes with a 25-year performance guarantee, plus maintenance and warranty support included. To qualify, you must live in a 1-4 unit home located in a designated Environmental Justice Focus Area or eligible census tract, have a household income at or below 80% of the state median income, and have a roof in good condition.

Important note: The ASAP program is currently on pause and not accepting new applications. The Rhode Island Office of Energy Resources and The Renewable Energy Fund are reviewing next steps, including whether to identify a new program vendor. If you’re interested in this program, check the Office of Energy Resources website for updates on when applications may reopen.

Rhode Island Energy (formerly National Grid) offers a 1:1 Net Metering program that allows you to receive credit for the excess solar energy your system sends to the grid. Each month, the electricity your solar panels produce and export is credited against your total consumption on a one-to-one basis. This means every kilowatt-hour (kWh) you send to the grid offsets one kWh you use from the grid at nearly the full retail rate, with only small renewable energy and energy efficiency charges (approximately 2.2-2.5 cents per kWh) excluded from the credit.

If your solar system produces more electricity than you use in a given month, the excess credits roll over indefinitely as dollar credits on your account. As of February 2024, you have additional flexibility with these accumulated credits—you can request a cash payout at the lower Last Resort Service supply rate, or transfer credits to another account under your ownership. This program provides a straightforward way to maximize the value of your solar investment while maintaining control over how you use your earned credits.