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Discover the Power of Solar Energy in Rhode Island!

Welcome to Rhode Island, the Ocean State, where the commitment to renewable energy shines as brightly as the sun. Despite being the smallest state in the United States, Rhode Island boasts a surprisingly strong potential for solar power, thanks to its favorable geographic location and progressive energy policies. The state?s dedication to combating climate change and its ambitious renewable energy goals have made solar installations increasingly popular among homeowners and businesses alike. With a variety of incentives, including net metering, tax credits, and grants, Rhode Island is making solar energy an accessible and appealing option for reducing energy costs and contributing to a greener planet. Learn how leveraging the power of the sun can light up your home, decrease your carbon footprint, and support Rhode Island?s leadership in sustainable living. Join us in capturing the endless energy of the sun and stepping into a brighter, more sustainable future in Rhode Island.

Solar State Incentives

Rhode Island State Solar Incentives

Community Remote Net Metering Program
H.B. 5853 and S.B. 684 of 2023 require a redesign of Rhode Island's community remote net metering program to include disadvantaged communities and environmental justice communities.
Farm Energy Program
The Agricultural Energy program offers grants to agricultural businesses for energy efficiency and adoption of renewable energy technologies.
Property Tax Exemption for Renewable Energy Equipment
Rhode Island's H.B. 8354 exempts residential and manufacturing renewable energy systems from property taxes, promoting the use of renewable resources such as solar, wind, and geothermal energy.
Renewable Energy Professional Certification
H.B 8200 mandates all non-electrical renewable energy work to be conducted by a holder of a Renewable Energy Professional Certificate. Electrical work should be done by a licensed electrician.
Renewable Energy Growth Program
The Renewable Energy Growth program promotes grid-connected renewable energy installation with specific MW targets, offering multi-year performance-based incentives to eligible projects. The program targets 400 MW of renewable energy from 2020-2029.
Rhode Island C-PACE program
Rhode Island has authorized PACE financing for energy improvements, allowing property owners to repay borrowed funds via a special property assessment. However, not all local governments offer this.
Commercial Scale Renewable Energy Grants (Commerce RI)
The Rhode Island Commerce Corporation is offering incentives for commercial scale renewable energy projects through the Rhode Island Renewable Energy Fund.
Small Scale Solar Grants (Commerce RI)
Commerce Rhode Island offers financial grants for small solar photovoltaic and solar water heating systems, funded by Rhode Island Renewable Energy Fund and ACPs.
Interconnection Guidelines
Rhode Island's SB 637 prohibits distribution companies from charging for system modifications unrelated to interconnection, with repayments required for accelerated modifications.
Local Option - Property Tax Exemption for Renewable Energy Systems
Rhode Island's H.B. 8354 exempts qualifying renewable energy equipment in residential and manufacturing sectors from property taxes, excluding commercial facilities.
Green Building Standards for State Facilities
Rhode Island's updated Green Building Act mandates LEED or equivalent certification for public building projects over 10,000 square feet, starting July 2023.
Renewable Energy Products Sales and Use Tax Exemption
Rhode Island's tax incentive program promotes renewable energy adoption by exempting certain products from sales and use taxes, encouraging more sustainable practices.
Renewable Energy Standard
Rhode Island's Renewable Energy Standard mandates 100% electricity from renewables by 2033. This target was previously 38.5% by 2035.
Rhode Island Renewable Energy Fund (RIREF)
Rhode Island's Renewable Energy Fund, created in 1996, supports renewable energy and demand-side management through a surcharge on utilities. The fund supports various projects and systems.
Net Metering
In 2018, RI Energy expanded community solar to include educational institutions, hospitals, and non-profits, removing the 30MW cap on remote net metering for public entities.
Rhode Island Solar Easement Laws
Rhode Island law allows property owners to establish solar easements, which must be in writing and include a detailed description of the property and terms of agreement.

Federal Solar Incentives

USDA - Rural Energy for America Program (REAP) Grants
REAP, administered by USDA, provides financial aid to small rural businesses and agricultural producers for sustainable energy projects. Grants cover 25% of the project cost, up to $25 million.
Interconnection Standards for Small Generators
New FERC order mandates small generators under 20 MW to maintain operation during abnormal frequency and voltage events, enhancing interconnection efficiency.
USDA - Rural Energy for America Program (REAP) Loan Guarantees
The Rural Energy for America Program (REAP) supports agricultural producers and rural businesses in the US by providing financial aid for renewable energy projects and energy efficiency improvements.
Clean Renewable Energy Bonds (CREBs)
Clean Renewable Energy Bonds (CREBs) were used by public entities to fund renewable energy projects. They were repealed in 2017.
Qualified Energy Conservation Bonds (QECBs)
Qualified Energy Conservation Bonds (QECBs) financed energy projects by local governments. Discontinued in 2018, they offered tax credits as interest to bondholders.
Office of Indian Energy Policy and Programs - Funding Opportunities
The DOE's Office of Indian Energy Policy and Programs aids tribes in attaining energy self-sufficiency and economic growth through renewable energy and energy efficiency technologies.
Fannie Mae Green Financing – Loan Program
Fannie Mae's Green Financing offers loans for multifamily properties aiming for energy and water efficiency improvements. Eligible properties can access favorable rates and additional loan proceeds.
Energy-Efficient Mortgages
Energy efficient mortgages (EEM) allow homeowners to finance energy-saving renovations or purchase new energy-efficient homes. These loans, insured by the U.S. government, aim to promote energy efficiency.
Green Power Purchasing Goal for Federal Government
The Energy Policy Act of 2005 set a goal for federal buildings to use 7.5% renewable energy by 2013. This target was increased to 30% by 2025 but later rescinded in 2018.
USDA - High Energy Cost Grant Program
USDA's grant program, enhancing energy generation in rural areas, concluded its latest application period on July 6, 2021. Updates can be found on the program website.
Residential Energy Conservation Subsidy Exclusion (Personal)
US law exempts energy conservation subsidies provided by utilities from taxation but requires adjustments for federal tax credits. IRS guidance on solar rebates is unclear.
Residential Renewable Energy Tax Credit
H.R. 5376 extends tax credit for energy storage systems and excludes biomass heaters, with credit amounts varying by technology type and installation date.
U.S. Department of Energy - Loan Guarantee Program
The Inflation Reduction Act has allocated $11.7 billion to the LPO for new loans, boosting loan authority by $100 billion, and setting up the Energy Infrastructure Reinvestment Program.
Business Energy Investment Tax Credit (ITC)
The Inflation Reduction Act of 2022 updates the federal Business Energy Investment Tax Credit, introducing new eligibility criteria, bonus credits, and transitions the tax credit to a new section.
Renewable Electricity Production Tax Credit (PTC)
The Inflation Reduction Act of 2022 introduces changes to the federal renewable electricity production tax credit, introducing new bonus credits and eligibility criteria.
Residential Energy Conservation Subsidy Exclusion (Corporate)
U.S. energy conservation subsidies provided by public utilities are tax-exempt, but this does not extend to certain electricity-generating systems. Tax credits can't be claimed for unsubsidized expenses.
Modified Accelerated Cost-Recovery System (MACRS)
The Tax Cuts and Jobs Act of 2017 allows 100% depreciation for qualified assets, impacting renewable energy technologies. MACRS classifies these technologies for depreciation purposes.
Energy and Emissions Goals and Standards for Federal Government
President Biden's Executive Order 14057 sets ambitious sustainability goals for the US, including 100% carbon-free electricity by 2030 and a fully zero-emission federal fleet by 2035.