Rhode Island Solar Incentives: 2024 Guide
While the upfront cost of installing a solar energy system can be substantial, Rhode Island provides a range of solar incentives to help lower the cost. Below is a list of all the solar incentives offered in Rhode Island.
Rhode Island Tax Credits and Rebates
Rhode Island offers several solar tax credits and exemptions to keep initial costs low.
Tax Credit: A tax credit directly reduces your income tax liability.
Tax Exemption: A tax exemption relieves you from paying taxes on a particular product or service.
Rebate: A rebate is a partial refund in the cost of a product or service after the purchase has been made. Many solar rebates are paid out through multiple years.
Here are the available solar incentives in Rhode Island.
Federal Tax Credit
The current federal solar tax credit is set at 30% of your system costs and associated expenses. This percentage will decrease to 26% in 2033 and further to 22% in 2034.
Renewable Energy Fund
The REF is a grant program offering property owners a maximum of $5,000 for homeowners or $75,000 for commercial projects depending on the size of the solar system.
The majority of solar energy systems generate an excess of electricity beyond the requirements of individual homes. With net-metering, owners of solar systems can sell the surplus energy back to their utility companies and earn credits on their utility bills.
ConnectedSolutions incentivizes homeowners to share energy from their batteries with the electrical grid. The program offers $1,000 per battery per year for five years. As a homeowners, you can expect to earn around $5,000 per battery. There is no limit the amount of batteries you can have.
Solar Installation Property Tax Exemption
Despite property value increasing after installing solar panels, the Solar Installation Property Tax Exemption releives property owners of paying additional property tax for 20 years after installation.
Home Solar Project Sales Tax Exemption
Massachusetts exempts purchasing all home solar system products from the 7% state sales tax.
Renewable Energy Growth Program
The REG Program is for residential and commercial property owners willing to sell all their renewable energy to the grid. At the end of the month, an energy surplus or deficit is calculated by subtracting the amount of consumed electricity from the amount sold. The customer will be compensated or billed respectively.
Estimated Savings Overview
Average Savings After Incentives
On average, the tax credits, rebates, and incentives cover 45% of the total cost of the system.
All these solar incentives may seem complicated so, we’ve put together a hypothetical example to help you better understand your potential savings.
|Hypothetical System Cost*
|Federal Solar Tax Credit
|Renewable Energy Fund
*The above example is purely hypothetical. Every solar system is custom-designed for each home, and costs will vary.
Homeowners can see a big reduction in electricity costs by going solar. Rhode Island is pushing to increase solar energy use and reduce greenhouse gas emissions. They’re providing residents with these solar incentives to support renewable energy initatives and make the transition more affordable for residents.
We are here to answer any of your questions. Call us today, (508) 717-3820