Rhode Island Solar Incentives, Rebates & Tax Credits (2026)

Rhode Island's residential grant now pays $1.65 per watt on systems up to 8.8 kW, capped at $14,500 — covering roughly 20–35% of a typical install. This is a large increase from the previous $0.65 per watt and $5,000 cap, and most sites, including some state pages, still show the old figures. Batteries add a flat $5,000. Important restrictions: direct ownership only, so no lease or PPA; the system must be net-metered; you need at least 80% unshaded solar resource; and it cannot be combined with REG. Your installer applies on your behalf and the grant is paid to them.

REG is the performance tariff alternative to the REF grant — you pick one, not both. For the program year running April 2026 to March 2027, small-scale solar of 1 to 15 kW earns 31.55 cents per kWh for 15 years, and 15 to 25 kW systems earn 28.65 cents for 20 years. Be aware the small solar capacity allocation was cut from 9 MW to 3 MW this year, so slots go quickly. Older rates of 33.85 and 32.35 cents are still widely quoted, including on state-affiliated pages — those were last year's.

Rhode Island Energy pays $225 per kW of average summer performance for enrolled home batteries, and your rate can be locked for the first five summers. It stacks with solar without reducing your other incentives.

Rhode Island exempts solar modules, inverters, mounting racks, monitoring equipment and storage from its 7% sales tax under RIGL 44-18-30(57). Residential renewable systems in service since 2016 are also exempt from property tax statewide under RIGL 44-3-3(a)(48) — this is mandatory, not a local option.