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30% base ITC + up to 70% with bonus adders. Begin construction before July 4, 2026 for maximum federal incentives.
The Section 48/48E commercial ITC is STILL AVAILABLE for Rhode Island businesses. Combined with REG program revenue, C-PACE financing through RI Infrastructure Bank, MACRS 20% bonus depreciation, and the state's 100% renewable-by-2033 mandate, 2026 is the last best year for commercial solar in the Ocean State.
Base ITC
30%
Max ITC
70%
MACRS Bonus 2026
20%
Renewable Mandate
2033
Section 48 ITC Deadline
Begin construction before July 4, 2026 to qualify for 30-70% commercial ITC
MACRS Bonus: 20% in 2026
Drops to 0% in 2027 — accelerated depreciation disappears entirely
FEOC Supply Chain
Verify domestic content by July 4, 2026 for +10% ITC adder
Important 2026: The residential 25D tax credit is DEAD (expired Dec 31, 2025). But the Section 48/48E commercial ITC is STILL available through July 4, 2026. The system owner claims the ITC, NOT the installer or the business occupying the building (unless the business owns the system outright).
The Section 48/48E commercial ITC allows stacking multiple bonuses on top of the 30% base. The entity that owns the system claims these credits — NOT the installer.
Requires meeting domestic content thresholds for steel, iron, and manufactured products. Must be verified before the FEOC deadline of July 4, 2026.
Work with your installer to verify supply chain compliance now.
Available for projects in census tracts that meet energy community criteria: brownfield sites, communities with closed coal facilities, or areas with high fossil fuel employment and above-average unemployment.
Check eligibility at the DOE Energy Community Tax Credit Bonus tool.
+10% for projects in low-income communities or on Tribal land. +20% for qualified low-income residential buildings or qualified low-income economic benefit projects. Allocated through competitive process.
Limited annual allocation — apply early for best chance.
The system OWNER claims the ITC. If a business buys the system outright (cash, loan, or C-PACE), they claim it. If a PPA provider or lessor owns the panels, THEY claim the ITC and pass savings through lower rates.
The installer NEVER claims the ITC — only the system owner.
Commercial solar systems qualify for 5-year MACRS depreciation. In 2026, there is an additional 20% first-year bonus depreciation — but this drops to 0% in 2027.
When combining MACRS with the ITC, the depreciable basis is reduced by half the ITC amount. Example: $1,000,000 system with 30% ITC ($300,000) = depreciable basis of $850,000.
| Year | Standard MACRS | With 2026 Bonus (20%) | Note |
|---|---|---|---|
| Year 1 | 20.00% | 36.00% | 20% bonus + 20% standard on remainder |
| Year 2 | 32.00% | 25.60% | |
| Year 3 | 19.20% | 15.36% | |
| Year 4 | 11.52% | 9.22% | |
| Year 5 | 11.52% | 9.22% | |
| Year 6 | 5.76% | 4.60% |
On a $850,000 depreciable basis: 36% or $306,000 deducted in Year 1. At 21% corporate tax rate, that is $64,260 in Year 1 tax savings alone.
Total 5-year tax benefit: ~$178,500
Same $850,000 basis: only 20% or $170,000 deducted in Year 1. At 21% corporate tax rate, that is $35,700 in Year 1 tax savings — $28,560 less.
Same total over 5 years, but less upfront cash flow
Prices are pre-incentive installed costs. Larger systems cost less per watt due to economies of scale. These ranges reflect Q1 2026 market pricing in Rhode Island.
Small Business
25-100 kW
Cost per Watt
$1.80 - $2.55/W
Example System
50 kW
Example Cost (pre-incentive)
$90,000-$127,500
Mid-Size Commercial
100-500 kW
Cost per Watt
$1.40 - $1.90/W
Example System
250 kW
Example Cost (pre-incentive)
$350,000-$475,000
Large-Scale
500 kW+
Cost per Watt
$1.10 - $1.50/W
Example System
1,000 kW
Example Cost (pre-incentive)
$1,100,000-$1,500,000
* Pre-incentive costs. After 30% ITC, MACRS depreciation, and REG program revenue, effective costs are substantially lower. See case study below.
The Renewable Energy Growth (REG) program provides performance-based payments for commercial solar in Rhode Island. Fixed-rate payments per kWh over the contract term provide a predictable revenue stream.
REG payments stack with federal incentives — a RI commercial solar project can combine:
ITC
30-70%
MACRS
5-Year
REG Revenue
15-20 yr
Net Metering
1:1 Credit
Rhode Island's Commercial Property Assessed Clean Energy (C-PACE) program allows 100% financing of commercial solar installations with no upfront cost, administered through the Rhode Island Infrastructure Bank.
Commercial property owner applies through RI Infrastructure Bank. No personal guarantee required.
Solar system is installed on the commercial property. The business owns the system and claims the ITC and MACRS.
Repaid as a voluntary assessment on property tax bill. Up to 25-year terms at fixed rates. Assessment transfers with the property on sale.
100% Financing
No down payment required. Finance the entire project.
You Own the System
Unlike PPA or lease, the business claims ITC and MACRS directly.
Transfers With Property
If the property is sold, the C-PACE assessment stays with the property — not the owner.
Long Fixed Terms
Up to 25 years at fixed rates. Payments are often cash-flow positive from Day 1 when combined with energy savings and REG revenue.
How you finance determines who claims the ITC. Choose the structure that matches your business's tax situation, capital availability, and ownership preferences.
PPA (Power Purchase Agreement)
ITC claimed by: PPA Provider
Upfront: $0
Pros
No upfront cost, guaranteed savings, ITC passed through as lower rates
Cons
Lower long-term savings, no MACRS benefit for business
Best For
Nonprofits, public entities, cash-constrained businesses
C-PACE (RI Infrastructure Bank)
ITC claimed by: Business (property owner)
Upfront: $0
Pros
100% financing, long terms (up to 25 years), fixed rate, stays with property on sale
Cons
Property tax lien, requires commercial property ownership
Best For
Commercial property owners wanting to own the system with no upfront cost
Commercial Loan
ITC claimed by: Business (if they own the system)
Upfront: 10-20% down
Pros
Business owns the system, claims ITC + MACRS, highest long-term savings
Cons
Requires sufficient tax liability, debt service during payback
Best For
Profitable businesses with strong tax appetite
Cash Purchase
ITC claimed by: Business
Upfront: 100%
Pros
Maximum savings, no interest, full ITC + MACRS + REG revenue
Cons
Large capital outlay, opportunity cost of capital
Best For
Well-capitalized businesses seeking maximum ROI
Rhode Island's 2033 Act on Climate mandate is the most aggressive renewable target in New England. This creates strong long-term policy certainty for commercial solar investments.
2033
100% renewable electricity target
$0.28
Per kWh — RI commercial electric rate
No Cap
RI has no separate commercial net metering cap
Rhode Island's compact geography and streamlined permitting processes give commercial solar projects a significant timeline advantage over larger states.
Site Assessment & Engineering
1-2 weeks
Financing & Contracting
2-4 weeks (C-PACE may take 4-6 weeks)
Permitting
2-4 weeks (RI municipalities are solar-friendly)
Equipment & Installation
3-8 weeks depending on system size
Inspection & Interconnection
1-3 weeks (RI Energy is the single utility)
Total: 9-21 weeks (2-5 months)
Significantly faster than larger states with multiple utility territories and complex permitting.
Single Utility Territory
Rhode Island Energy (formerly National Grid) serves virtually the entire state. One utility means one interconnection process, consistent rules, and faster approvals.
Solar-Friendly Municipalities
With the 100% renewable mandate, RI municipalities have strong incentive to streamline solar permitting. Many have adopted expedited review processes.
Compact Grid
RI's small geography means shorter interconnection distances and fewer grid constraints for most commercial-scale projects.
Established Installer Network
Dense concentration of experienced commercial solar installers relative to state size means competitive pricing and fast scheduling.
Bottom line: If you start the process in Q1-Q2 2026, you can realistically have your commercial solar system operational before the July 4 ITC deadline and the end-of-year MACRS bonus cutoff.
A Rhode Island small business (retail, restaurant, office) installs a 50 kW rooftop system in Q2 2026. Cash purchase to maximize incentives.
Payback Period
3.3 yr
25-Year Net Benefit
$380,000
Cost Reduction
51%
System Life
25+ yr
* Example uses 30% ITC (base only). Additional adders (domestic content, energy community, low-income) would further reduce effective cost and payback period. REG revenue is estimated. Actual savings depend on system production, utility rates, and business circumstances.
Multiple incentive windows are closing in 2026. Businesses should plan now to capture every available benefit.
Section 48/48E ITC
July 4, 2026Begin construction before this date to qualify for 30-70% commercial ITC
MACRS 20% Bonus
December 31, 2026Placed-in-service by year-end for 20% first-year bonus depreciation
FEOC Deadline
July 4, 2026Verify supply chain for domestic content bonus (+10%) before this date
MACRS Bonus Drops
January 1, 2027Bonus depreciation drops to 0% for systems placed in service in 2027+
Common questions about commercial solar in Rhode Island for 2026.
Yes. The Section 48/48E commercial Investment Tax Credit (ITC) is still available for commercial solar projects that begin construction before July 4, 2026. The base rate is 30%, with bonus adders for domestic content (+10%), energy community (+10%), and low-income projects (+10-20%) that can stack up to 70%. This is different from the residential 25D credit which expired December 31, 2025. For a commercial project, the entity that owns the system claims the ITC. If a third-party developer or financing company owns the panels (PPA or lease), they claim the ITC and pass savings to the business through lower rates.
The entity that OWNS the solar system claims the Section 48/48E ITC — not the installer. If a business buys the system outright with cash or a loan (including C-PACE financing through RI Infrastructure Bank), the business claims the ITC on their federal tax return. If the project uses a PPA or lease structure, the third-party developer/financing company that owns the panels claims the ITC and passes the savings to the business through lower PPA rates or lease payments. The installer never claims the ITC. Nonprofits and tax-exempt entities can benefit through PPA/lease structures where the for-profit system owner claims the credit.
C-PACE (Commercial Property Assessed Clean Energy) is a financing program administered through the Rhode Island Infrastructure Bank. It allows commercial property owners to finance 100% of a solar installation with no upfront cost. The financing is repaid through a voluntary assessment on the property tax bill, typically over 15-25 years at fixed rates. Key advantages: the assessment stays with the property if sold (not the owner), the business owns the system and can claim the ITC and MACRS depreciation, and there are no personal guarantees required. C-PACE is ideal for commercial property owners who want ownership benefits without large upfront capital.
The Renewable Energy Growth (REG) program is Rhode Island's performance-based incentive for solar. Commercial projects qualify for fixed-rate payments per kWh produced over 15 or 20-year terms, depending on project size. REG rates are set annually through a competitive enrollment process. For commercial-scale projects, REG provides a predictable revenue stream that stacks on top of the federal ITC and MACRS depreciation. Larger commercial projects (over 250 kW) may access higher rates through competitive solicitation. REG is administered by Rhode Island Energy and funded through a surcharge on ratepayers.
Commercial solar costs in Rhode Island range from $1.10/W to $2.55/W depending on system size. Small business systems (25-100 kW) cost $1.80-$2.55/W, mid-size commercial (100-500 kW) costs $1.40-$1.90/W, and large-scale projects (500 kW+) cost $1.10-$1.50/W. A typical 50 kW small business system costs approximately $90,000-$127,500 before incentives. After the 30% ITC, MACRS depreciation, and REG program revenue, the effective cost is substantially lower. Rhode Island's high commercial electric rates and small-state permitting speed (2-4 weeks) further improve project economics.
The Section 48/48E ITC deadline is July 4, 2026. With Rhode Island's fast permitting (2-5 months typical), there is still time to capture the full incentive stack — but the window is closing.
We help RI businesses navigate the ITC, MACRS, REG program, C-PACE financing, and permitting process to maximize your commercial solar investment.
Free assessment. No obligation. We will show you the exact incentive stack and payback for your specific property.