Federal Solar Investment Tax Credit Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

Rhode Island’s Renewable Energy Growth Program The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. Residential customers who choose to participate in this program will receive a set rate for each kilowatt-hour produced by National Grid.    

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. In Rhode Island, the rate credited for the solar generation that does not exceed your consumption during a billing period is equal to the utility’s retail rate minus a minimal conservation charge. Excess credits may be carried forward to the next bill or purchased by the utility (at its discretion). To simplify billing, utilities may estimate a net-metered customer’s generation and consumption over 12 months.

Rhode Island Property Tax Exclusion Adding a solar energy system to your home will not increase your property taxes.

Rhode Island Sales Tax Exemption In Rhode Island, no sales tax will be added to the purchase of your solar system.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.