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Solar Property Tax Exemption in Rhode Island

January 8, 2024 | Reading Time: 3 minutes

Do you pay property taxes on a solar energy system in Rhode Island?

No, Rhode Island residents do not have to pay property taxes on solar energy systems despite increased property value.

Property Tax

According to the Rhode Island Property Tax Exemption General Laws, residential and commercial properties are not subject to additional property tax after installing solar panels despite consequently increasing their property’s value. This exemption occurs annually when property value is assessed.

Example: Without this exemption, if your home is worth $400,000 and you added a $40,000 solar system, your town would now appraise your house at $440,000. The average  property tax rate in Rhode Island is 1.3% which would increase your annual property tax by $530 a year for the life of the solar system.

Estimated Value of Property Tax Exemption: Over of the first 25 years of the solar systems life, you’ll save an average of $13,250 in property taxes.

Why are taxes waived when installing solar in Rhode Island?

Rhode Island has implemented tax exemptions to encourage renewable energy adoption throughout the state and work toward net-zero greenhouse gas emissions.

There are many renewable energy incentives currently available in Rhode Island. You may even qualify for more than one.

Do I need to apply for the solar property tax exemption?

No, you not need to apply for the solar property tax exemption. Instead, your town will not acknowledge your system when assessing your home’s value.