If you’re a Rhode Island resident who is considering going solar, there are several state incentive programs that you need to know about.
When combining the state-level solar incentives and rebates with the federal Investment Tax Credit (ITC), these incentives help make your new solar energy system a great investment.
Small-Scale Solar Grants
This a solar grant program which provides new solar owners a per watt grant via their installation company. Rhode Island homeowners have typically been able to save more than $5,000 on their installation with this cash rebate offering.
Remember, funds for this program are limited annually, and enrollment in the program fills up quickly. Confirm the current status and availability of rebates on the Rhode Island Commerce’s website.
Net Metering
As a Rhode Island homeowner who puts solar panels on their roof, you want to make sure you get credit for all of the power your system generates.
Fortunately, Rhode Island has a net metering policy in place that credits you for the extra electricity your system produces, which is then allowed to be used as credits when your system doesn’t generate enough power. You can learn more about National Grid’s net metering program here.
Property & Sales Tax
Rhode Island offers residents a few different property & sales tax breaks to help offset the cost of going solar. The Residential Solar Energy Property Tax Exemption states that your property taxes will not increase as a result of the value your new solar panels add to your home.
The state also does not collect sales tax on the purchase of your new solar energy system with Rooftop Power thanks to the Renewable Energy Products Sales and Use Tax Exemption.
Renewable Energy Growth
National Grid’s Renewable Energy Growth (REG) program is one of Rhode Island’s best solar incentive programs. Residential customers who participate in the REG program will receive 28.75 cents for each kilowatt-hour (kWh) their solar panel system generates for the first 15 years of their systems life. The value of this offer is highlighted when compared to the regular retail rate of around 19 cents per kWh.
Customers taking advantage of the REG incentive will receive payments from National Grid primarily via bill credits, and any remaining earnings as cash payments. As this is a feed-in-tariff program, system owners who participate do not have net metering.
Federal Solar Tax Credit
The federal government also has incentives and rebates that solar customers can take advantage of to offset the cost of going solar. Utilizing the Investment Tax Credit (ITC), you can reduce the cost of your PV solar energy system by 26 percent.
Keep in mind that the ITC applies only to those who buy their system outright (either with a cash purchase or solar loan) and that you must have enough income for the tax credit to be meaningful.
Did you know that Rhode Island gets on average just under 5.0 kWh of solar energy per square yard, which is more than Germany (a world leader in solar) and much of Hawaii (a sunny vacation destination)?