Providence, 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, monitoring and control equipment (if specified by the manufacturer or required by law), and related renewable energy system components. The exemption saves you 7% on the purchase price of eligible equipment—for example, on a $20,000 solar system, you would save approximately $1,400 in sales tax.

To qualify for this exemption, the equipment must be specifically listed in Rhode Island General Law § 44-18-30(57) and purchased as part of a renewable energy system installation. The exemption applies automatically at the point of sale when you purchase qualifying equipment from Rhode Island retailers. There are no application deadlines or time limitations—this exemption remains available as long as the statute is in effect. Keep in mind that standard materials that could be fabricated into mounting racks are not exempt, and the exemption applies to the equipment itself rather than installation labor costs. Your solar installer should be familiar with this exemption and can help ensure you receive the proper tax treatment on your equipment purchases.

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 this improvement is completely exempt from local property taxes. This means your property assessment won’t go up due to your solar installation, even though solar panels typically increase your home’s market value.

The exemption applies to all residential solar equipment and continues for as long as you own the system. There are no dollar amount caps or time limits on this benefit—the full value of your solar installation remains exempt from property taxation indefinitely. To qualify, the solar system must be installed on residential property in Rhode Island. This exemption works automatically once your solar system is in place, though you should verify with your local tax assessor that the exemption has been properly applied to your property assessment. This benefit provides ongoing savings by preventing your annual property tax bill from increasing due to your investment in clean energy.

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 means the grant amount should be reflected as a reduction in your total project cost.

The program offers $0.65 per watt of installed solar capacity, with a maximum grant of $5,000 per homeowner. If you’re adding battery storage to your solar system, you can receive an additional flat payment of $2,000. Keep in mind that each installer has an annual cap of $190,000 in total grants, and the program has limited funding each year, making it quite popular and competitive.

This grant is only available if you choose the net metering option for your solar system—you cannot combine it with Rhode Island’s Renewable Energy Growth (REG) program. Because funding is limited and the program can become fully subscribed, make sure your contract with your installer clearly states the grant amount and includes a cancellation option if the program runs out of funding before your application is processed. The program operates in rounds with specific application dates, so timing your installation is important.

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 20-year contract at fixed prices. Instead of traditional net metering, you’ll receive bill credits for the power you produce, plus a Production-Based Incentive (PBI) payment. Any generation that exceeds what you owe on your electricity bill is paid to you through direct deposit.

This program is available to Rhode Island Energy customers who want to install solar, wind, small-scale hydropower, or anaerobic digestion systems. You must choose between REG or the net metering program—you cannot participate in both, and your decision is binding for the life of the contract. If you select REG, you won’t be 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.

The REG program offers long-term price stability through its 20-year fixed-rate contract, making it easier to predict your solar investment returns over time. To learn more about current rates and enrollment details, visit Rhode Island Energy’s REG website or review their program materials.

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: 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 electricity 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, those 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 you can transfer credits to another account under your ownership. This program provides a straightforward way to reduce your electricity bills while maintaining control over any surplus energy production your system generates throughout the year.