Federal solar credit ended Dec 31, 2025
Sorted & Saved

Incentives · Rhode Island

Rhode Island Solar Incentives, Rebates and Tax Breaks

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

Rhode Island homeowners who buy solar in 2026 can still use 2 state, utility or local programs listed below. The federal Federal Residential Clean Energy Credit (25D)[1] is gone for systems installed after 2025, so state and utility programs now carry more of the savings. Each card shows the value, the deadline and the official source we checked.

On this page [ 5 ]

Federal incentives

Federal · tax creditClosed

Federal Residential Clean Energy Credit (25D)

30% for systems installed 2022–2025; not available for installations completed after December 31, 2025[1]

The 30% federal credit for homeowners who bought solar ended with Public Law 119-21. A system counts in the year its installation is completed, so paying in 2025 for a 2026 installation does not qualify.

Who
Homeowners who bought and installed a system by December 31, 2025 claim it on IRS Form 5695 for that tax year.
Deadline
December 31, 2025
Checked
November 5, 2026
Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[2]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026

State incentives in Rhode Island

State · rebateClosed

Renewable Energy Fund (REF) Small-Scale Solar Grant (Commerce RI)

$1.65 per watt DC for systems up to 8.8 kW; larger systems get the maximum of $14,500 per project (paid to the installer, who passes it through)[3]

Direct-ownership (not leased/PPA), net-metered systems on property the applicant owns in Rhode Island, with a shade (TSRF) score of at least 80%. The installer applies, and the grant cannot be combined with the Renewable Energy Growth program. The last 2026 small-scale round (26-3) closed October 16, 2026, and no 2027 round dates were posted as of 2026-11-05.

Who
Direct-ownership (not leased/PPA), net-metered systems on property the applicant owns in Rhode Island, with a shade (TSRF) score of at least 80%. The installer applies, and the grant cannot be combined with the Renewable Energy Growth program. The last 2026 small-scale round (26-3) closed October 16, 2026, and no 2027 round dates were posted as of 2026-11-05.
Maximum
$14,500
Deadline
None set in the source
Checked
November 5, 2026
State · performance paymentAvailable

Renewable Energy Growth (REG) Program - Rhode Island Energy

15- or 20-year fixed per-kWh tariff paid on all production instead of net metering. The Commerce RI page cites 33.85 or 32.35 cents/kWh for small solar 'this year', depending on size and term.[4]

Alternative to net metering run by Rhode Island Energy. It cannot be combined with the REF grant, and the year of the quoted rates was not stated.

Who
Alternative to net metering run by Rhode Island Energy. It cannot be combined with the REF grant, and the year of the quoted rates was not stated.
Deadline
None set in the source
Checked
November 5, 2026
State · tax exemptionAvailable

Sales Tax Exemption for Renewable Energy Products (R.I. Gen. Laws 44-18-30(57))

100% exemption from Rhode Island sales tax on solar PV modules, inverters, manufactured mounting racks and manufacturer-specified monitoring equipment[5]

Applies to the listed renewable energy products (panels, DC-to-AC inverters, manufactured racks and ballast pans, manufacturer-specified monitoring and control equipment), not to generic electrical materials. No sunset appears in the statute text.

Who
Applies to the listed renewable energy products (panels, DC-to-AC inverters, manufactured racks and ballast pans, manufacturer-specified monitoring and control equipment), not to generic electrical materials. No sunset appears in the statute text.
Deadline
None set in the source
Checked
November 5, 2026

How these incentives stack

Cash rebates are paid first and usually reduce the cost a tax credit is based on. State tax credits only help if you owe enough state income tax. Exemptions (sales and property tax) apply automatically or through a form, and they do not reduce what you owe the installer on paper, so check that a quote does not charge tax that the law exempts. The calculator applies the programs it can model and lets you switch utility rebates on or off.

FAQ

Frequently asked questions

Does Rhode Island have a solar tax credit?

No. Rhode Island offers exemptions and utility programs instead of a state income tax credit; see the list above.

Can I still get the federal solar tax credit?

No, not if you buy the system and installation is completed after December 31, 2025 (Federal Residential Clean Energy Credit (25D)[1]). If a company leases you the panels or sells you the power, that company may still claim a business credit and may pass some value on through the price.

sources

[ 5 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026
  2. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  3. Commerce RI - Renewable Energy Fund Small-Scale Program Request for Projects (revised 4/6/26)assets.simpleviewinc.com · checked Nov 5, 2026
  4. Renewable Energy Fund - Rhode Island Commerce (Homeowner Resources section)commerceri.com · checked Nov 5, 2026
  5. R.I. Gen. Laws § 44-18-30(57) - Renewable energy products, read via web.archive.org snapshot of 2026-10-05webserver.rilegislature.gov · checked Nov 5, 2026

Incentive list last re-checked November 5, 2026. Programs change; confirm with the program before you sign.

Change log

  1. Monthly output per kW in Providence updated to [83.2, 87.1, 118.2, 128.1, 135.1, 128.8, 138.2, 128.2, 114.1, 95.4, 70.9, 66.4] kWh/kW/month (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  2. Average solar radiation on the panels in Providence updated to 4.7 kWh/m2/day (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  3. Solar output per kW in Rhode Island (PVWatts, Providence) updated to 1293.6 kWh/kW/yr (NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)).
  4. Renewable Energy Fund (REF) Small-Scale Solar Grant (Commerce RI): now "$1.65 per watt DC for systems up to 8.8 kW; larger systems get the maximum of $14,500 per project (paid to the installer, who passes it through)" (closed).
  5. What the rule says updated to “excess renewable net-metering credits shall be equal to the wholesale electricity rate, which is hereby declared to be the ISO-New England energy clearing price” (R.I. Gen. Laws § 39-26.4-2(8) (as amended by P.L. 2025, ch. 256 and ch. 269, effective June 27, 2025), read via web.archive.org snapshot of 2026-10-14 (rilegislature.gov refuses direct fetches)).