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Solar Sales Tax Exemption in Rhode Island

January 3, 2024 | Reading Time: 3 minutes

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

No, Rhode Island residents do not have to pay taxes on solar energy systems or installation.

Sales Tax

According to the Rhode Island Sales Tax Exemption General Laws, all renewable energy products such as solar panels, inverters, batteries, and installation costs are not subject to sales tax.

Therefore, Rhode Island’s flat 7% state sales tax does not apply to any solar equipment or installment fees, saving you thousands of dollars.

Example: If you were to purchase a $40,000 solar system, you would save $2,800 in sales tax.

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 sales tax exemption?

No, your solar installer will not charge you sales tax on your solar system or installation.