Rhode Island

The Renewable Energy Sales Tax Exemption in Rhode Island eliminates the state’s sales tax on purchases 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 the full 7% Rhode Island sales tax.

Equipment that qualifies for this exemption includes 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 to both the equipment itself and certain components that become integral parts of these systems. Homeowners should note that standard items like regular hot water tanks or materials that could be fabricated into mounting racks don’t qualify for the exemption.

The Rhode Island Residential Solar Property Tax Exemption is a state tax benefit that prevents homeowners from paying additional property taxes on the value that solar panels add to their home. When you install a solar system, your property value typically increases, but this exemption ensures you won’t face higher property tax bills because of that increased value.

This incentive applies to residential solar installations throughout Rhode Island. There is no specific dollar limit to the exemption – it simply excludes the entire value of your solar equipment from property tax assessments. To qualify, you must own a residential property with a solar energy system installed. The exemption is automatically applied with no application process required in most municipalities, though it’s always wise to confirm with your local tax assessor. There is no expiration date for this incentive, meaning it continues 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 with a maximum grant of $5,000 per customer to help offset the cost of installing a solar system. Additionally, if you add energy storage to your solar installation, you can receive a flat $2,000 incentive.

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 funding is paid directly to your installer after your system is installed and passes a quality assurance evaluation. Important considerations include ensuring your contract clearly shows the grant amount and includes a cancellation clause in case funding becomes fully subscribed, as this popular program has limited annual funding. 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 system through a 20-year contract with Rhode Island Energy. Unlike net metering, which provides bill credits, the REG program pays you a fixed price for all the electricity your system generates through a Production-Based Incentive (PBI).

To participate, you must be a Rhode Island Energy customer and have an eligible renewable energy system (solar, wind, small-scale hydropower, or anaerobic digestion). The program provides bill credits up to the amount of your electricity bill, with any excess generation paid directly to you via direct deposit. Important note: If you choose the REG program, you cannot also receive a grant from the Renewable Energy Fund, though you can still claim the 30% Federal Investment Tax Credit. This program choice is binding for the lifetime of your contract, so consider your options carefully before deciding.

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 model administered by PosiGen, qualified residents can install rooftop solar systems with no upfront costs and guaranteed energy savings. The program also includes complimentary energy efficiency upgrades following a home energy audit to maximize your overall energy savings.

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. Unlike traditional solar financing, this program requires no minimum credit score. Benefits include a discounted solar lease with guaranteed first-year savings, a 25-year performance guarantee with compensation if your system underproduces, and complete maintenance and warranty support throughout the lease term. PosiGen handles all repairs, warranty claims, and insurance for the full 25 years, providing peace of mind along with energy savings.

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 at the Last Resort Service supply rate or transfer credits to another account you own. The only reduction in credit value comes from renewable energy and energy efficiency charges (approximately 2.2-2.5 cents per kWh) that are excluded from 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.

While there are no mentioned deadlines for enrollment or specific eligibility requirements in the provided information, homeowners should consult with Rhode Island Energy for the most current program details and to determine which option—Net Metering or Feed-In Tariff—would provide better financial returns based on their specific energy usage patterns and solar system size.