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The commercial ITC is still alive. RI small businesses can claim 30-70% off solar, plus MACRS depreciation, REG payments of $0.27/kWh for 15 years, and net metering credits. But the deadline is July 4, 2026.
Last updated March 2026
Critical Deadline: Section 48/48E commercial ITC requires construction to begin before July 4, 2026. MACRS bonus drops from 20% to 0% in 2027. Residential 25D ITC is dead ($0) since December 31, 2025. Commercial ITC is claimed by the business entity, not the installer.
Unlike the residential 25D credit (dead since 2025), the commercial ITC is alive and stackable. On a $90,000 system (50 kW), here is what a RI small business can claim:
30% = $27,000
+10% = $9,000
+10% = $9,000
+10-20% = $9,000-$18,000
Maximum ITC: 60-70% = $54,000-$63,000 on a $90,000 system. Minimum (base only): 30% = $27,000.
Any business entity that owns the solar system
LLCs, S-Corps, C-Corps, sole proprietors, partnerships
Nonprofits can use direct pay (elective payment) for 2024-2025 placed systems
Third-party owners (PPA/lease providers) claim ITC, pass savings to business
Begin construction before July 4, 2026
FEOC (domestic content) deadline: July 4, 2026
MACRS 20% bonus depreciation: 2026 only (drops to 0% in 2027)
Must have sufficient tax liability to use the credit (or use direct pay if applicable)
MACRS lets you depreciate the solar system over 5 years. Combined with 20% bonus depreciation in 2026, you recover 36% of the depreciable basis in Year 1 alone.
Depreciable basis = $90,000 - ($27,000 ITC × 50%) = $76,500
| Year | Standard % | With 20% Bonus | Cumulative |
|---|---|---|---|
| Year 1 | 20.00% | 36.00% | 36.00% |
| Year 2 | 32.00% | 25.60% | 61.60% |
| Year 3 | 19.20% | 15.36% | 76.96% |
| Year 4 | 11.52% | 9.22% | 86.18% |
| Year 5 | 11.52% | 9.22% | 95.40% |
| Year 6 | 5.76% | 4.60% | 100.00% |
Tax savings: At 21% corporate rate, MACRS on $76,500 saves $16,065 over 5 years. At a 32% combined federal+state rate, it saves $24,480.
Rhode Island's Renewable Energy Growth program pays guaranteed production incentives per kWh generated — on top of net metering credits and the ITC.
Apply during April enrollment window (first-come-first-served)
Ceiling price ~$0.27/kWh for PY2026 (fixed for full term)
Small commercial (≤25 kW): 15-year contract
Medium commercial (25-250 kW): 20-year contract
Payments are separate from net metering — you get BOTH
Monthly direct deposit from RI Energy
REG income is taxable. Consult your accountant.
Net metering credits stack on top of REG payments. Post-April 2023 commercial systems receive credits at 80% of the full retail rate.
Credit Rate
80% of retail rate
Post-April 2023 systems. At $0.29/kWh retail = $0.232/kWh credit.
Annual Cap
125% of consumption
System sized up to 125% of annual usage. Excess credits at avoided cost.
Rollover
12 mo monthly rollover
Credits roll month-to-month. Annual reconciliation in March.
Larger systems cost less per watt. All prices are pre-incentive installed costs in Rhode Island as of Q1 2026.
| System Size | Typical Business | $/W | Total Cost |
|---|---|---|---|
| 10-25 kW | Small retail, restaurant, office | $2.30-$2.80 | $23,000-$70,000 |
| 25-100 kW | Warehouse, multi-tenant, manufacturing | $1.80-$2.55 | $45,000-$255,000 |
| 100-500 kW | Large commercial, industrial | $1.40-$1.90 | $140,000-$950,000 |
Savings based on RI Energy commercial rate of ~$0.29/kWh. REG income and net metering credits included.
Real scenarios showing how ITC, MACRS, REG, and net metering stack for different business types.
Retail / Food Service | 18 kW system
3.8 years
payback
Total System Cost
$43,200
ITC Credit
$12,960 (30%)
Net Cost After ITC
$23,940 after ITC
MACRS Tax Savings
$6,300 (Year 1-5 at 21% bracket)
REG Annual Income
$4,900/yr for 15 years
Net Metering Credit
$1,400/yr
Owner-occupied, claimed ITC directly. REG enrollment April 2026.
20-Year Savings
$145,000
Service / Automotive | 35 kW system
2.8 years
payback
Total System Cost
$73,500
ITC Credit
$29,400 (40% — base 30% + 10% domestic content)
Net Cost After ITC
$34,900 after ITC
MACRS Tax Savings
$9,200 (Year 1-5)
REG Annual Income
$9,500/yr for 15 years
Net Metering Credit
$2,800/yr
Domestic content bonus for US-made panels (Silfab 440W). FEOC-qualified.
20-Year Savings
$285,000
Professional Office | 12 kW system
4.1 years
payback
Total System Cost
$31,200
ITC Credit
$9,360 (30%)
Net Cost After ITC
$17,340 after ITC
MACRS Tax Savings
$4,500 (Year 1-5)
REG Annual Income
$3,300/yr for 15 years
Net Metering Credit
$950/yr
Small roof. Maximized with high-efficiency panels (REC 460W). C-PACE financing considered.
20-Year Savings
$95,000
Case studies are illustrative scenarios based on Q1 2026 RI pricing, REG PY2026 ceiling price, and current utility rates. Actual results vary.
Beyond the ITC and REG, Rhode Island offers state-level financing and grants for commercial solar.
RI Infrastructure Bank
Low-interest loans for energy efficiency and renewable energy. Up to $500,000.
Rate
2-4% below market rate
Term
Up to 20 years
RI Infrastructure Bank
Commercial Property Assessed Clean Energy. Repaid through property tax assessment. Transferable on sale.
Rate
Fixed, competitive with commercial mortgage rates
Term
Up to 25 years
RI Commerce Corporation
Grants for commercial solar installations. Up to $75,000.
Rate
Grant (no repayment)
Term
Applied during open grant rounds
RI Energy (utility)
Performance-based incentives for commercial energy efficiency projects.
Rate
Varies by project size and type
Term
One-time payment
Yes. Section 48/48E commercial Investment Tax Credit (ITC) is still available for projects beginning construction before July 4, 2026. The base credit is 30%, with additional bonuses: +10% for domestic content (US-made equipment), +10% for energy community locations, and +10-20% for low-income community projects. Total can reach 60-70%. Note: this is the COMMERCIAL ITC claimed by the business or third-party system owner — the residential 25D ITC expired December 31, 2025.
Small business solar in Rhode Island costs $1.80-$2.80 per watt installed in 2026, depending on system size. A 25 kW system (typical small retail) costs $45,000-$70,000 before incentives. After the 30% ITC and MACRS depreciation, net cost drops 45-55%. With REG program income ($0.27/kWh for 15 years) and net metering credits, payback is typically 2.5-5 years.
Modified Accelerated Cost Recovery System (MACRS) allows businesses to depreciate the solar system over 5 years (instead of the full 25+ year lifespan). In 2026, there is a 20% bonus depreciation in Year 1 on top of the standard schedule. After the ITC, you depreciate 85% of the system cost (ITC reduces the depreciable basis by half the credit). For a business in the 21% federal bracket, MACRS saves an additional 15-18% of system cost.
Yes. The Renewable Energy Growth (REG) program has commercial tiers. Small commercial systems (up to 250 kW) receive guaranteed production payments of approximately $0.27/kWh (ceiling price varies by program year) for 15-20 years. This stacks with net metering credits and the ITC. REG enrollment opens April 1 annually on a first-come-first-served basis with an annual cap.
RI small businesses receive net metering credits for excess solar production sent to the grid. Post-April 2023 systems receive credits at 80% of the full retail rate. Credits roll over month to month and are reconciled annually in March. Systems are capped at 125% of annual consumption. For businesses with uneven demand (high summer, low winter), this acts as a virtual battery.
C-PACE (Commercial Property Assessed Clean Energy) is available through the RI Infrastructure Bank. It allows businesses to finance solar through a voluntary property tax assessment. Key benefits: no money down, fixed rate, up to 25-year term, and the financing transfers to the new owner if the property is sold. It is an excellent option for businesses that want to avoid traditional bank loans.
Projects must begin construction before July 4, 2026 to qualify for the Section 48/48E ITC. "Begin construction" means either starting physical work (site preparation, equipment delivery) or spending 5% or more of total project cost. The FEOC (domestic content) deadline is also July 4, 2026. MACRS bonus depreciation drops from 20% to 0% in 2027. Act in Q1-Q2 2026 to capture all incentives.
Yes. Rhode Island has the most aggressive renewable energy target in New England — 100% renewable electricity by 2033. This creates strong policy support for commercial solar: favorable net metering rules, REG program expansion, and utility cooperation. Businesses installing solar now position themselves ahead of rising renewable energy certificate (REC) prices and potential future mandates on building energy performance.
The commercial ITC deadline is July 4, 2026. REG enrollment opens April 1. MACRS 20% bonus expires at year end. Every month of delay costs money.
Full guide to commercial solar in RI: ITC, MACRS, REG, C-PACE, industry-specific analysis.
Read moreHow to enroll in the Renewable Energy Growth program. April 1 deadline, rates, and process.
Read more7% sales tax exempt. 20-year property tax exemption. How to claim both.
Read moreITC: Internal Revenue Code Section 48/48E, IRS guidance on domestic content and energy community bonuses.
MACRS: IRS Publication 946, 5-year property class for solar energy property.
REG: RI Public Utilities Commission, Renewable Energy Growth Program tariff PY2026.
Net metering: RI General Laws Title 39, Chapter 26.4.
C-PACE: RI Infrastructure Bank, Commercial PACE program guidelines.
Electricity rates: RI Energy commercial tariff schedule, Q1 2026.