Rhode Island Solar Incentives, Rebates and Grants (2026)

Federal Tax Credit Update

The 30% federal residential clean energy credit (Section 25D) ended for systems placed in service after December 31, 2025. Homeowners who buy solar in 2026 can no longer claim it on their own taxes. Some third-party ownership programs (like a Propel lease) can still use commercial credits and pass part of that value to you as a discount.

State Programs

• REF Small-Scale Grant: $1.65/W up to $14,500 for solar you own, plus a flat $5,000 battery adder, for up to $19,500. Your installer applies. https://commerceri.com/renewable-energy-fund/
• Net metering: Rhode Island Energy credits the extra power your system sends to the grid on your bill. https://energy.ri.gov/energy-incentives/renewable-energy-incentives
• Renewable Energy Growth (REG) program: get paid per kWh for the power your system produces under a long-term tariff. REG cannot be combined with REF. https://www.rienergy.com
• Sales tax exemption: solar panels, inverters and manufactured mounting racks are exempt from Rhode Island sales tax (R.I. Gen. Laws 44-18-30). https://webserver.rilegislature.gov/Statutes/TITLE44/44-18/44-18-30.HTM
• Property tax exemption: renewable energy equipment on residential property is exempt from local taxation under state law. Let your town tax assessor know about your system.

Utility Programs

• ConnectedSolutions (Rhode Island Energy): earn payments for letting your home battery help the grid during peak demand. https://www.rienergy.com
• Rhode Island Energy energy efficiency programs: free home energy assessments and rebates. https://www.rienergy.com

Official Resources

• RI Office of Energy Resources: https://energy.ri.gov
• Commerce RI REF: https://commerceri.com/renewable-energy-fund/
• DSIRE incentive database: https://programs.dsireusa.org

Disclaimer

Incentive programs, rates and funding change often and are subject to eligibility, approval and available funds. This page is a general guide as of late 2026, not tax or legal advice. Always verify current terms with the official program and a tax professional.

Talk to a Local Installer

Local Solar and Electric is a locally owned, owner-installed solar and electrical company based in Warwick, RI, serving Rhode Island and Southeastern Massachusetts.

• Call: (401) 206-5532
• Email: operations@localsolarandelectric.com
• RI Class A Electrical License A-005417

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