Renewable Portfolio Standards
Ahead of other state’s self-imposed deadlines, Rhode Island’s Renewable Portfolio Standards (RPS) came due in 2019. The goal was 14.5% by that year. These standards set a goal for how much of a state’s energy should come from renewable sources by a certain year. Utility companies pay fees if they miss the deadline, motivating them to offer deals.
The cost of electricity in Rhode is well above the national average, making going solar more financially rewarding.
Strong and clear net metering laws are a bonus in Rhode Island. Net metering is the measuring system for when solar panels or other renewable energy generators connect to the public utility. Net metering allows customers to offset the cost of the power they pull from the utility with credits they earn through their home energy system. If your system produces more power than you need, the excess is sold to the grid, which you see as a credit on your energy bill.
The standards in Rhode Island are among the best in the nation. Interconnection standards are the requirements for connecting solar and other electrical generation systems to the grid. They make installation easier and usually less expensive, and net metering is more reliable too.
Solar Tax Credits
The tax credit is good for 10% of the purchase price and installation of your solar power system, up to $9,000. Just take the amount directly off your tax payment, like it’s cash. This makes it a more valuable credit than a mere deduction from your taxable income.
Sales Tax Exemption
Pay no state sales tax in Rhode Island on the purchase of an installed solar energy system.
Property Tax Exemption
The value of your Rhode Island home will not be reassessed after you add a solar system. You keep paying property tax based on the value before adding the system.
Federal Tax Credit
On top of these great rebates and exemptions for everyone living in Rhode Island, there’s also the hefty tax credit from the Federal government. The Investment Tax Credit (ITC) is currently worth 26 percent of the system cost, and will be deducted from your Federal income tax. The credit goes only to those who buy their system (cash or loan), not those who lease. When you lease a system, incentives go to the third-party owner. That’s a great reason to buy, not lease.