Rhode Island Solar Incentives (2024) – MarketWatch

2 minutes, 44 seconds Read

Rhode Island offers an attractive set of state incentives. Homeowners who buy solar panels can benefit from a variety of programs, from cash rebates and tax credits to net metering and tax exemptions.

Rhode Island Renewable Energy Fund

Incentive value: Up to $5,000 for homeowners and micro businesses or up to $75,000 for commercial projects.

Frequency: One-time rebate

The Renewable Energy Fund (REF) aims to promote clean energy sources with a one-time rebate for installing solar. Funded by the state commerce department, the REF is the most important state-based incentive in Rhode Island.

Your installer will submit an application before beginning your solar project. The program will inspect the project upon completion and release the incentive amount to the installer. Your installer will then offer you an upfront discount equivalent to the grant amount.

The commerce department recently added energy storage to the incentive under its “Energy Storage Adder” pilot program.

Renewable Energy Growth Program

Incentive Value: 26.15–27.75 cents per kilowatt-hour (kWh)

Frequency: A periodic, performance-based incentive (PBI)

Rhode Island Energy’s Renewable Energy Growth (REG) program is designed to support the state’s distributed electricity generation projects. The program enables customers to sell solar generation under long-term tariffs at fixed prices. The small-scale REG program (for PV systems up to 25 kW) offers homeowners and small businesses a fixed tariff of 26.15 to 27.75 cents per kilowatt-hour of energy generated.

The program opens each year on April 1 and is available on a first-come, first-serve basis until fully subscribed. You must submit applications for the REG program through Rhode Island Energy’s website. You cannot combine the REG program with the REF program, but you can combine either program with the federal solar tax credit.

Renewable Energy Products Sales and Use Tax Exemption

Incentive value: 7% of your system value

Frequency: One-time tax exemption

Rhode Islanders enjoy a 100% sales tax exemption on purchases related to solar panel systems or other renewable energy projects. Considering the average system costs $17,220 in Rhode Island, which has a 7% sales tax rate, you could save around $1,205. The incentive is applied automatically when you purchase a new solar energy system.

Residential Solar Energy Property Tax Exemption

Incentive value: Savings vary

Frequency: One-time tax exemption

Rhode Island’s solar property tax exemption means you don’t have to pay additional property taxes even if the value of your property increases after installing a solar array.

RI Agricultural Energy Program

Incentive value: Up to $20,000

Frequency: One-time

Rhode Island’s Department of Energy Management partners with the Office of Energy Resources (OER) to offer the RI Agricultural Energy grant program. The incentive is meant to help local farmers “green” their operations. The solar grants offer up to $20,000 for eligible renewable energy systems, including solar photovoltaic (PV) systems and solar thermal projects.

To apply for the incentive, installers must fill out an application form on behalf of the customer.

Property Assessed Clean Energy (PACE) Financing

Incentive value: No direct savings

Frequency: One-time financing opportunity

Rhode Island offers a commercial PACE financing program to businesses willing to install solar power or other, eligible energy efficiency upgrades. The program offers solar loans that businesses can repay through installments added to their property taxes.

Interested solar customers can apply for a PACE loan through one of Rhode Island’s approved capital providers. Contact the program for more information.

This post was originally published on 3rd party site mentioned in the title of this site

Similar Posts