Cranston, RI

Rhode Island’s Renewable Energy Sales Tax Exemption eliminates state sales tax on the purchase of qualifying renewable energy equipment. This incentive makes solar panels, wind turbines, and other clean energy systems more affordable by reducing their upfront cost by 7% (Rhode Island’s sales tax rate).

Eligible products include solar photovoltaic panels, solar thermal collectors, geothermal heat pumps, wind turbines, mounting equipment, and monitoring systems required by law or specified by manufacturers. The exemption applies automatically at the point of sale – no application is required. There are no deadlines or expiration dates for this permanent tax exemption, making it available to all homeowners purchasing qualifying renewable energy equipment in Rhode Island.

The Rhode Island Residential Solar Property Tax Exemption allows homeowners to install solar energy systems without increasing their property taxes. When you add solar panels to your home, the value of your property typically increases. Under this state tax exemption, the added value from your solar installation is exempt from property tax assessment, meaning you won’t pay additional property taxes on the value your solar system adds to your home.

This exemption applies to residential solar installations throughout Rhode Island and has no specified expiration date or dollar limit. To qualify, you simply need to own a residential property in Rhode Island with a solar energy system. There is no application process mentioned in the legislation, but it’s recommended to check with your local tax assessor to ensure the exemption is properly applied to your property assessment. This incentive makes going solar more affordable by eliminating the potential property tax increase that would otherwise result from your home improvement.

The Renewable Energy Fund (REF) Small-Scale Solar Grants program in Rhode Island provides financial support to homeowners installing solar PV systems. This state-run program offers $0.65 per watt with a maximum grant of $5,000 per customer to help offset the cost of installing a residential solar system. For homeowners adding energy storage to their solar system, an additional flat incentive of $2,000 per project is available.

To qualify, your system must be net-metered (not part of the Renewable Energy Growth program), and your selected solar installer will apply for the grant on your behalf. The grant is paid directly to your installer after system installation, inspection, and quality assurance evaluation. Important considerations include ensuring your contract clearly shows the grant amount and includes a cancellation clause in case funding becomes unavailable, as this popular program has limited annual funding. The next application round (24-1) opens February 23, 2024, at 9am, so interested homeowners should contact qualified installers well before this date.

The Renewable Energy Growth (REG) Program in Rhode Island offers homeowners a way to earn income from their solar energy systems. Unlike traditional net metering, REG participants sign a 20-year contract with Rhode Island Energy at a fixed electricity price, receiving a Production-Based Incentive (PBI) payment for the energy their system generates. You’ll receive bill credits up to the amount you owe, with any excess generation paid directly to you via direct deposit.

To participate, you must be a Rhode Island Energy customer. The program is available for solar, wind, small-scale hydropower, and anaerobic digestion systems. Important to note: if you choose the REG Program, you cannot also receive a grant from the Renewable Energy Fund (REF), though you can still claim the 30% Federal Investment Tax Credit. You’ll need to decide between REG or net metering, as you cannot participate in both programs simultaneously, and this decision is binding for the lifetime of your contract.

The Affordable Solar Access Pathways (ASAP) Program is a Rhode Island state initiative designed to make solar energy accessible to lower-income homeowners in environmental justice areas. Through an innovative solar lease arrangement with PosiGen (the selected provider), eligible homeowners can install rooftop solar systems with no upfront costs while receiving complementary energy efficiency upgrades to maximize savings.

To qualify, you must live in a 1-4 unit home within 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 suitable roof condition. The program requires no minimum credit score and guarantees first-year energy cost savings. Benefits include discounted lease pricing that provides savings for both standard and low-income utility customers, plus a comprehensive 25-year performance guarantee with maintenance, repairs, and warranty support throughout the lease term. For a free assessment to determine if you qualify, you can visit PosiGen’s ASAP Program website.

Rhode Island Energy’s Net Metering program offers homeowners with solar panels a straightforward way to save on electricity bills. When your solar system produces more electricity than you’re using, the excess is sent to the grid, and you receive credits on your bill at a 1:1 ratio. This means for every kilowatt-hour (kWh) you export to the grid, you get credited for one kWh on your monthly bill—essentially using the grid as a virtual battery for your solar energy.

The financial benefit is significant as excess production rolls over from month to month as dollar credits indefinitely. As of February 2024, homeowners have new options: you can request a cash payout for excess credits (at the Last Resort Service supply rate) or transfer credits to another account you own. It’s worth noting that while most of your exported energy is credited at the full retail rate, a small portion (approximately 2.2-2.5 cents per kWh) related to renewable energy and efficiency charges is excluded from the credit calculation.

Rhode Island also offers a Feed-In-Tariff program as an alternative to net metering, which credits all solar production at 31 cents per kWh (2022 rate). Some of this credit reduces your monthly bill while the remainder is paid as a check each month with no annual true-up period. Homeowners should consult with a solar professional to determine which program—Net Metering or Feed-In-Tariff—would provide better financial benefits based on their specific energy usage patterns.