Warwick, RI

The Renewable Energy Sales Tax Exemption in Rhode Island eliminates state sales tax on purchases of renewable energy equipment. This incentive applies to a wide range of products including solar panels, solar thermal collectors, geothermal heat pumps, wind turbines, mounting equipment, and monitoring systems required by law or regulation.

This exemption provides immediate savings of 7% (Rhode Island’s sales tax rate) on the purchase price of qualifying renewable energy systems and components. For example, on a $20,000 solar panel system, this exemption would save you $1,400 in sales tax. There are no application forms to complete – the exemption is applied at the time of purchase when buying from retailers in Rhode Island.

To qualify, you must purchase equipment specifically listed in the exemption, such as solar photovoltaic panels, wind turbines, or geothermal heat pumps. Some components are only exempt if they’re specified by the manufacturer or required by law. The exemption applies to both residential and commercial purchases with no expiration date currently set for this program.

It’s important to note that standard components not specifically designed for renewable energy systems (like regular hot water tanks) don’t qualify for the exemption. If you’re purchasing a system, confirm with your installer which components are tax-exempt to ensure you receive the full benefit of this incentive.

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 despite the increase in your home’s value.

This exemption applies to residential solar energy systems installed on your property and remains in effect for as long as the system is operational. There are no specific dollar limits on the exemption amount – it covers the full value added by the solar installation. To qualify, you simply need to own a residential property in Rhode Island with a properly installed solar energy system. There are no application deadlines or expiration dates for this incentive, though it’s always wise to confirm with your local tax assessor that your system qualifies before installation. This permanent exemption provides significant long-term savings by preventing property tax increases that would otherwise result from your solar 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 incentive 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 per project is available.

To qualify, your system must be net-metered (not part of the Renewable Energy Growth program) and installed by a participating solar contractor who will apply for the grant on your behalf. The grant is paid directly to your installer after your system is installed, inspected, and approved. When signing a contract with your installer, ensure it clearly shows the grant amount and includes a cancellation clause in case program funds are depleted, 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 in advance of this date.

The Renewable Energy Growth (REG) Program in Rhode Island offers homeowners a way to earn income from their solar energy system through a 20-year contract with Rhode Island Energy. Unlike net metering (which provides bill credits), the REG program provides a fixed electricity price and a Production-Based Incentive (PBI) payment for the energy your 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. This decision is binding for the lifetime of your contract, so carefully consider which incentive program best suits your needs before signing up.

The Affordable Solar Access Pathways (ASAP) Program is a Rhode Island state initiative designed to make solar power 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 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 in good condition. The program offers significant benefits including: no minimum credit score requirement, guaranteed first-year energy cost savings, discounted lease pricing for both standard and low-income utility customers, and a comprehensive 25-year performance guarantee with full maintenance and warranty support. The program handles all system repairs and insurance throughout the lease term, providing homeowners with hassle-free clean energy access.

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, there’s added flexibility: you can request a cash payout for accumulated credits (at the Last Resort Service supply rate) or transfer credits to another account you own. The only reduction from the full retail rate is for renewable energy and energy efficiency charges (approximately 2.2-2.5 cents per kWh). This program has no specified end date, making it a reliable long-term benefit for Rhode Island solar homeowners.