Getting a solar home in Rhode Island has become easier owing to both the growth of Renewable Energy and the small-scale grant program offered by the state. When you add that to the 30% Federal tax credit, you find that your solar system already pays for itself to a large extent, leaving you with a promising 25 years of electricity.
Let’s discover all the solar incentives in Rhode Island you need to know.
Federal solar tax credit
When you install a solar system in Rhode Island, the Federal tax credit will save you a lot of money.
Between now and 2032, the federal solar investment tax credit is worth 30% off the solar purchase, permit, and installation cost. This will change to 26% in 2033.
Rhode Island Net energy metering program
Some states offer net metering, which gives you full credit for the electricity sent back to the grid by your solar panels. You’ll need to monitor the amount of energy produced by your solar system and the amount consumed so that you will be credited for the surplus energy production.
This credit can be as much as 125% of your monthly consumption and can be purchased by the utility or carried forward to your next bill.
Since 2016, the net metering limit was raised to 10 Megawatts of the overall generation capacity, while there is room for net metering coverage for 3rd-party-owned systems.
Solar Rebates in Rhode Island
You can get rebates for solar panels when you purchase them from major manufacturers. LG is an example of a manufacturer that offers a rebate of $600 on solar equipment, which can be redeemed by your installer the following year.
Renewable Energy Growth Program
This incentive from National Grid is a solar incentive that offers performance-based payments in the form of monthly cash payments and credits on your monthly electricity bill.
As of 2021, the performance-based incentive ranged between $.25 and $.29 cents/kilowatt-hour. Bearing in mind that a 6-kW home solar system will generate an estimated 10,000 kw/h every year, you can expect credits and payments worth $2,500 every year, for 15 to 20 years.
Rhode Island Renewable Energy Solar grant program
Policymakers in Rhodes Island set up a fund to help homeowners get solar systems by securing grants from the Rhode Island Renewable Energy Fund to handle their solar projects.
As of 2021, the grant had a maximum limit of $7,000 at the rate of $850 per kilowatt of installed solar, which is one of the best throughout the country.
Solar Panel Tax exemptions
When homeowners install solar systems, they get tax exemptions as the value of their homes increase by about 20 times the savings on electricity bills.
Rhode Island instituted a property tax law to ensure that the increased value from solar power systems remains with you, and doesn’t lead to an increase in taxes for you.
Also, you don’t pay sales and use taxes when you buy and install new solar panels.