Pawtucket, RI

Rhode Island’s Renewable Energy Sales Tax Exemption eliminates state sales tax on purchases of qualifying renewable energy equipment. This incentive makes solar panels, wind turbines, and other clean energy systems more affordable by exempting them from the state’s 7% sales tax.

Eligible equipment includes solar photovoltaic panels, solar thermal collectors, geothermal heat pumps, wind turbines, mounting hardware, and monitoring equipment required by law or specified by manufacturers. The exemption applies to both the equipment itself and certain components that become integral parts of these systems. Homeowners purchasing solar or other renewable energy systems can save hundreds or thousands of dollars through this tax exemption, depending on the size and cost of their installation.

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 dollar limit or expiration date. 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 confirm how the exemption is applied in your municipality. This incentive provides long-term financial benefits by eliminating what could otherwise be hundreds of dollars in additional property taxes each year for the lifetime of your solar system.

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 of installed solar capacity, up to a maximum of $5,000 per customer. For homeowners adding energy storage to their solar system, an additional flat incentive of $2,000 is available.

To qualify, homeowners must install a net-metered solar system (not a Renewable Energy Growth program system). Your selected solar installer will handle the application process on your behalf, with the grant paid directly to them after installation is complete and the system passes quality assurance evaluation. Since this is a popular program with limited annual funding ($190,000 per installer), it’s important to ensure your solar contract clearly shows the grant amount and includes a cancellation option if funding becomes unavailable. The next application round (24-1) opens February 23, 2024, at 9am.

The Renewable Energy Growth (REG) Program in Rhode Island offers homeowners a way to earn income from their solar energy systems. Unlike net metering, the REG program provides a fixed electricity price through a 20-year contract with Rhode Island Energy. When your solar panels generate electricity, 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 and choose between this program or net metering (you cannot participate in both). The program features a Production-Based Incentive (PBI) payment at a guaranteed fixed rate for the full 20-year term. While REG participants aren’t eligible for the Renewable Energy Fund grant, they can still claim the 30% federal tax credit and can participate in the Connected Solutions program for battery storage systems. This program provides a predictable, long-term revenue stream that makes going solar financially attractive for many Rhode Island homeowners.

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), qualifying homeowners can install rooftop solar panels 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 roof in good condition. The program requires no minimum credit score and guarantees first-year energy cost savings. PosiGen provides a 25-year performance guarantee, maintenance, and warranty support throughout the lease term. While specific dollar savings aren’t stated, the program promises discounted pricing that will provide savings for residents on both standard residential (A-16) and low-income (A-60) utility rates.

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 back to the grid. Under this 1:1 net metering arrangement, each kilowatt-hour (kWh) you export is credited at nearly the full retail rate on your monthly bill, with only a small reduction (about 2.2-2.5 cents per kWh) for renewable energy and efficiency charges.

One of the most valuable aspects of Rhode Island’s net metering program is how flexible the credits are. Any unused credits roll over from month to month indefinitely as dollar credits on your account. As of February 2024, homeowners have new options for their excess credits – you can request a cash payment at the Last Resort Service supply rate or transfer credits to another account you own. This gives you more control over the financial benefits of your solar investment without any annual expiration of your credits.