The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
Rhode Island Solar Incentives Overview
Rhode Island has excellent solar incentives with the REG program providing $0.27/kWh for 15-20 years, plus a $0.65/W REF rebate (capped at $5,000), $2,000 battery adder, 7% sales tax exemption, and 20-year property tax exemption.
Rhode Island average solar cost: $2.91/W • Payback: 9.4 years • 25-year savings: $100,462
Available Incentive Programs in Rhode Island
Renewable Energy Growth (REG) Program
Above-market production payments for 15 years
Max: $20,000
Eligibility:
Small-scale solar (up to 25 kW) in Rhode Island Energy territory
How to Claim:
- 1Apply through the REG program before installation
- 2Receive a fixed above-market rate for all production for 15 years
- 3Payments are separate from your electric bill savings
Note: Enrollment windows open periodically; check for current availability
Program websiteRhode Island Renewable Energy Fund (REF) Rebate
$0.65/W (capped at $5,000) + $2,000 battery adder
Max: $5,000
Eligibility:
Residential solar systems up to 25 kW
How to Claim:
- 1Apply through the Rhode Island Commerce Corporation during grant rounds (spring/summer/fall)
- 2Submit proof of installation and system specifications
- 3Receive rebate check within 6-8 weeks
Note: Subject to available funding; grant rounds open periodically
Program websiteSales Tax Exemption
7% sales tax exempt
Max: $2,500
Eligibility:
All residential solar in Rhode Island
How to Claim:
- 1Automatic — installer excludes sales tax
Note: Permanent exemption
Program websiteReady to Get a Solar Quote?
Get a free, no-obligation quote from NuWatt Energy. We handle design, permits, and installation.
Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in Rhode Island who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
Get Your Rhode Island Solar Quote
See all available RI incentives applied to an instant quote for your home.