Rhode Island Solar Incentive Programs

The state of Rhode Island provides many incentives for those wishing to convert to solar energy systems. Grants and rebates reduce the costs to the greatest extent, and Rhode Island does have each in place. Additional incentives are also available through the federal government.

Summary of Rhode Island Incentive Programs
•State Tax Credit 25%
•State Grant Program and Utility Rebates

Federal Incentives

Federal Investment Tax Credit (ITC)

Commercial solar energy systems can take advantage of the Federal Investment Tax Credit 48E, which provides a tax credit of 30% of the total cost of the system, provided prevailing wage and apprenticeship requirements are met. 

Residential systems can no longer claim any federal solar tax credit, as the One Big Beautiful Bill eliminated it for systems installed after January 1st, 2026. 

Commercial Depreciation

Commercial asset owners can write off 100% of a project’s value in depreciation in the first year. The One Big Beautiful Bill reinstated the 100% bonus depreciation, while simultaneously eliminating the Modified Accelerated Cost Recovery System (MACRS) that previously depreciated solar energy systems over 5 years. 

The depreciable basis of a project is reduced by half of the ITC value when combined with the 30% ITC. Here’s a quick example:

• Project cost = $800,000
• 30% credit = $240,000
• Reduced depreciation basis: $800,000 – ($240,000 / 2) = $680,000

A company’s tax rate is then taken into account to calculate the exact amount they’re able to write off. 


Rhode Island Rebates

Rhode Island offers grants through its Renewable Energy Development Program to many sectors in varying amounts depending upon the applicant type and scope of project, with a maximum amount of $750,000.

National Grid administers rebates to residential customers of up to $1500, and to commercial, industrial, and multi-family residential of up to $100,000 per project.

Rhode Island Tax Credits

The state allows credit for both commercial and residential installations of 25%.

Rhode Island exempts solar energy equipment from sales tax, and provides an option to each locality to exempt renewable-energy systems.  People’s Power & Light also offers a production incentive of $.03 kWh.

Financing Options

The state loan programs are available to all sectors, up to a maximum amount of $750,000 depending on the size of project and type of applicant (e.g.,  residential, commercial, multi-family.)

Additional information is available at the DSIRE:Database of State Incentives for Renewables & Efficiency