Rhode Island Solar Rebates and Incentives

The biggest little state in the Union, aka Rhode Island, might be the nation’s smallest state, but its got a big heart for renewables. The state gets just under 4.5 kilowatt hours (kWhs) per square meter on a daily basis, which makes it a decent location for solar power. The state also has a renewable portfolio standard (RPS) requiring that 16 percent of all electricity produced in the state comes from renewable sources by 2020. To help its residents adopt solar and other renewables, the state offers various financial incentives, like tax breaks and rebates.

Rhode Island’s renewable resources are not limited to solar power. The state has rich offshore wind potential and has contracted with Deepwater Wind to install more than 400 megawatts (MWs) of offshore wind turbines, which would provide about 15 percent of the state’s energy needs. However, court cases against the wind farms have so far kept Deepwater from starting construction. The first, the Block Island Wind Farm is planned at 28.8 MWs and will allow Deepwater to gain experience from the wind farm before building the 385 MW Rhode Island Sound Wind Farm. As such the state’s electricity now is produced overwhelming by the state’s five natural gas-fired power plants. At present only 2 percent of Rhode Island’s electricity comes from renewable sources.

Rhode Island also has the nation’s lowest overall electric use on a per capita basis, according to the DOE’s Energy Information administration. That’s thanks in part to mild summers, with little need for air conditioning and because most homes don’t use electricity to heat their homes in the winter. The low energy use should make it easier for people to install solar and other renewables, since a solar system won’t need to produce as much electricity as it would in neighboring states.
 

 

Solar Rebate and Incentive Programs

  • Renewable Energy Sales Tax Exemption


    Program Type Tax Exemption
    Technologies Photovoltaics, Solar Hot Water Heating and Solar Space Heat
    Amount 100 percent exemption from sales tax
    Required Documentation N/A
    Official Web Site http://www.rilin.state.ri.us/Statutes/TITLE44/44-18/44-18-30.HTM

    http://www.rilin.state.ri.us/Statutes/TITLE44/44-3/44-3-21.HTM

    http://www.rilin.state.ri.us/Statutes/TITLE44/44-57/INDEX.HTM
     

    Rhode Island offers a variety of tax exemptions including sales and property tax exemptions. The sales tax exemption is statewide while the property tax exemptions are determined by local municipalities.

    Under the sales tax exemption solar electric systems, inverters for the systems, solar thermal systems as well as the mounting and ballast equipment for such installations are exempted from sales tax. The tax extends to other forms of renewable energy, including wind turbines and geothermal heat pumps.

    Rhode Island first enacted a property tax exemption for solar energy in 1980. Under that exemption, cities or towns may opt to exempt taxation any renewable energy system located in the city or town. The language regarding the statute is vague and only comprises two sentences. To determine whether a home or property is exempted from property tax related to an installation, system owners should check with the municipality where the system is located.

    The law also prohibits residential PV systems, solar hot-water systems and active solar space-heating systems from being assessed more than the value of conventional heating, hot water and energy systems for the purpose of property taxation. To qualify for the exemption, the equipment must be new.

  • Residential Renewable Energy Tax Credit


    Program Type Personal Tax Credit
    Technologies Photovoltaics, Solar Hot Water Heating and Solar Space Heat
    Amount Covers 25 percent of system costs up to set ceilings. $15,000 maximum system cost for PV
    Required Documentation A lot. Read below
    Official Web Site http://www.energy.ri.gov/programs/renewable.php

    Homeowners in Rhode Island installing a solar or renewable energy system may qualify for a personal tax credit of 25 percent on up to $15,000 of the system’s costs. Systems that cost more will receive the maximum credit of $3,750. The credit may be claimed either by the homeowner or the business that paid for the system.

    The credit covers three solar technologies, PV, active solar heating and solar hot water. PV and active solar heating are eligible for the credit on up to $15,000. Solar hot water systems are eligible for tax credits of 25 percent of the system’s cost up to $7,000. Systems that are more expensive can qualify for the maximum credit of $1,750.

    Under the state’s program, a PV system must be least 24 square feet in size to be eligible for the credit. The credit applies to both on-grid and off-grid systems, but off-grid systems must be tied to a battery backup. Active solar-heating systems must have a minimum collector area of 125 square feet to be eligible for the credit, and the system must include heat storage and/or a distribution mechanism. Solar hot water heaters must include an 80 gallon or more storage tank and have a minimum collector area of 34 square feet.

    Before applying for the tax credit, the system must be approved by the Rhode Island Office of Energy Resources. The approval must be attached to the income tax filing. The approval process requires documentation of the system, its costs and all permits.

  • Rhode Island Net Metering


    Program Type Net Metering
    Technologies Photovoltaics, Solar Thermal and Wind Energy
    Amount Credited to customer's next bill at slightly less than the retail rate                                            
    Required Documentation Interconnection agreement with utility
    Official Web Site http://www.ripuc.state.ri.us/eventsactions/docket/4079page.html

    Rhode Island customers can net meter systems up to 3.5 MWs in size for some utilities, less for others. The law applies only to investor-owned utilities. Utilities are only able to net meter 2 percent of their peak capacity and of that 1 MW of net metered production must come from installations no larger than 25 kW, most home-sized systems are no bigger than 3 kW.

    Under the law, net-metered customers that generate more electricity than they need can choose to credit the net excess generation (NEG) forward and apply it to future months at a rate slightly less than their retail rate. Or they can choose to receive compensation for NEG on a monthly basis. If the customer wants to roll over NEG toward future months he or she must inform the utility of that choice. If they choose to roll over excess generation, that generation will carry forward indefinitely until they have used the credited excess generation up.

  • Rhode Island Solar Power Financial Incentives


    Financial Incentives

    Corporate Tax Credit

    Personal Tax Credit

    Production Incentive

    Property Tax Exemption

    Sales Tax Exemption

    State Grant Program

    State Loan Program

    Utility Loan Program

    Utility Rebate Program



    Rules, Regulations & Policies

    Appliance/Equipment Efficiency Standards

    Building Energy Code

    Energy Standards for Public Buildings

    Generation Disclosure

    Net Metering

    Public Benefits Fund

    Renewables Portfolio Standard

    Solar Access Law/Guideline




    Related Programs & Initiatives

    Alternative Fuels and Advanced Vehicles Data Center
     

    The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.



    Green Power Network
     

    The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.



    Weatherization Assistance Program
     

    The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.



    Wind Powering America
     

    The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.