Providence, RI

The Renewable Energy Sales Tax Exemption in Rhode Island eliminates state sales tax on purchases of qualifying renewable energy equipment. This incentive makes solar panels, wind turbines, and related components 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 specified by manufacturers. The exemption applies to both homeowners and businesses purchasing these systems. There are no deadlines or expiration dates for this incentive, as it’s an ongoing program. When purchasing solar or other renewable energy equipment, be sure your contractor or vendor is aware of this exemption to ensure you receive the tax benefit at the point of sale.

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 expiration date or specific dollar limit. To qualify, you simply need to own a residential property with a solar energy system installed. There’s no application process specified 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 investment.

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 be installing a net-metered solar system (not a Renewable Energy Growth program system). Your selected solar installer will handle the application process on your behalf, and the grant is paid directly to them after installation is complete and passes quality inspection. Be aware that this is a popular program with limited annual funding, so it’s important to ensure your contract includes cancellation options 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, this program allows you to sell your solar electricity at a fixed price through a 20-year contract with Rhode Island Energy. When your system generates electricity, you’ll receive bill credits up to the amount you owe, with any excess being paid to you via direct deposit.

To participate, you must be a Rhode Island Energy customer. The program provides a Production-Based Incentive (PBI) with guaranteed fixed pricing for 20 years, creating predictable returns on your investment. It’s important to note that if you choose the REG Program, you cannot also receive grants from the Renewable Energy Fund, though you can still claim the 30% Federal Investment Tax Credit. This program represents a long-term commitment, as your decision to participate 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 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, complete maintenance, and warranty support throughout the lease term. While specific dollar savings aren’t mentioned, 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’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 your excess production rolls over from month to month as dollar credits indefinitely. As of February 2024, there’s added flexibility: you can request a cash out at the Last Resort Service supply rate or transfer credits to another account you own. The only reduction in value comes from renewable energy and energy efficiency charges (approximately 2.2-2.5 cents per kWh) that aren’t included in the credit calculation.

Rhode Island also offers a Feed-In Tariff program as an alternative, 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.

There are no mentioned eligibility restrictions or deadlines for these programs, making them accessible options for Rhode Island homeowners considering solar. For the most current rates and program details, it’s recommended to contact Rhode Island Energy (formerly National Grid) directly before making your solar investment decision.