All federal benefits apply to entities in Rhode Island.

Homeowners and businesses can claim a tax credit equal to 30% of their solar installation costs. This applies to both owned and leased systems, including Power Purchase Agreements (PPAs) lasting at least 10 years. Note that the Inflation Reduction Act (IRA) of 2022 increased the solar installation credit to 30% with no dollar limit.

The REF provides financial support for residential solar installations to offset upfront costs. The grant is capped at $5,000, regardless of system size, and pays approximately $690 per kW installed, up to about 7.69 kW. Applications are reviewed on a first-come, first-served basis.

The REG program allows customers to sell their generation output under long-term tariffs at fixed prices. Participants sign a 20-year contract with a fixed electricity price and a Production-Based Incentive (PBI) payment. Participants receive bill credits on their electricity bill up to the amount owed, and any excess generation is compensated as a direct payment.

Rhode Island allows cities and towns to exempt, by ordinance, renewable energy systems from property taxation. This means installing a solar system will not increase your property's assessed value for tax purposes.

The state provides a sales tax exemption for solar energy systems, eliminating the 7% state sales tax on the purchase of solar equipment.

Rhode Island offers net metering for solar systems up to 125% of on-site consumption. Excess electricity generated by your solar system is credited to your utility account at the utility's avoided cost rate, which is typically lower than the retail rate. These credits can offset future electricity bills.

Under the Inflation Reduction Act (IRA) of 2022, tax-exempt organizations such as nonprofits are eligible to receive a direct payment equal to 30% of their solar installation cost, effectively mirroring the federal Investment Tax Credit (ITC).

Rhode Island offers a combination of federal incentives, state grants, tax exemptions, and utility programs to make solar energy a viable and beneficial investment for individuals, businesses, and nonprofits. The REF grant, REG program, and net metering options provide financial support and compensation for solar energy production. Additionally, property and sales tax exemptions reduce the overall cost of installation. Nonprofits can also benefit from direct payments equivalent to the federal ITC. These incentives make Rhode Island an attractive state for solar energy adoption.