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Rhode Island solar incentives in 2026: what is real

Updated Oct 28, 2026 · By No BS Clean Energy · Sources below

First published Sep 28, 2026. Revised Oct 28, 2026: every incentive re-checked at its source.

On this page
  1. The short answer
  2. How much is the state grant?
  3. What does REG pay?
  4. How does net metering help?
  5. Which ones can I combine?
  6. Do I pay sales tax on solar?
  7. Does solar raise my property tax?
  8. Is the federal credit still there?
  9. Quick answers

The short answer

Rhode Island still has real help for home solar. A state grant pays up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026 if you own the home and the system. REG pays for each kWh your panels make, for years. You pick the grant or REG, not both. Net metering credits your bill. Panels skip RI sales tax. The federal tax credit is gone for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026.

IncentiveWhat it is worthWho gets it
State grant (REF)Up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026 for solar, plus $5,000$5,000Extra grant for adding a home batteryOnly with a solar project that also gets the grant. The battery money has its own pot and can run out on its own. Battery projects get 18 months to finish.RI Commerce, REF Energy Storage Adder Request for Projects (v6, rev. 4/6/2026)Project Funding, 'Small Scale Program' rowVerified Oct 28, 2026 with a batteryOwners of the home and the systemYou must own the home and the system. Leases and PPAs don't qualify.Who can get the grantYou must also own the property, and it must be in Rhode Island.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 6Verified Oct 28, 2026
REG31.55¢31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 per kWh for 15 years31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026, systems up to 15 kW31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026Homes that pick it instead of the grant and net metering
Net metering27.553¢27.553¢27.553¢ per kWh (Oct 2026, standard home rate A-16)Home solar credit per kWh, standard home rate A-16This changes when supply rates change. It shows on your bill as the renewable generation credit.RI Energy, Addendum to RIPUC Tariff No. 2095, Net Metering Credit by Rate Class, Oct 2026For the Month of October 2026. Row (21) Renewable Net Metering Credit, column A-16 (Fixed LRS): $(0.27553)Verified Oct 28, 2026 per kWh in October 2026Home systems not in REG
Sales taxNo RI sales taxNo RI sales tax on panels, inverters or rackingRI sales tax on solar equipmentThe law does not list batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026 on panels, inverters and rackingEvery buyer. Batteries are not on the listBatteries are not on the list.Are home batteries on the sales tax exemption list?The list names solar storage tanks, which means hot-water tanks, not batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026
Property taxUp to your townUp to your townProperty tax on solarAsk your town hall whether your town has an ordinance.R.I. Gen. Laws § 44-3-21§ 44-3-21 (full text, one sentence)Verified Sep 28, 2026Homes in towns with an exemption ordinance
Federal tax creditNothing for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026No one with a new system

How much is the state grant?

The state's Renewable Energy Fund, or REF, pays up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026 for home solar. Add a battery and it pays $5,000$5,000Extra grant for adding a home batteryOnly with a solar project that also gets the grant. The battery money has its own pot and can run out on its own. Battery projects get 18 months to finish.RI Commerce, REF Energy Storage Adder Request for Projects (v6, rev. 4/6/2026)Project Funding, 'Small Scale Program' rowVerified Oct 28, 2026 more. You must own the home and the systemYou must own the home and the system. Leases and PPAs don't qualify.Who can get the grantYou must also own the property, and it must be in Rhode Island.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 6Verified Oct 28, 2026. Leased systems and PPAs don't qualify. A PPA is a deal where you buy the panels' power, not the panels. The grant comes off your contract price. How the grant works.

What does REG pay?

REG, short for Renewable Energy Growth, pays for each kWh your panels make. Home systems up to 15 kW31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 get 31.55¢ per kWh31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 for 15 years31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026. A kW is how solar systems are sized. How REG pays.

How does net metering help?

Net metering credits your bill for the power your panels make. Credited at the supply and delivery parts of your rate. Fixed monthly charges stay.Credited at the supply and delivery parts of your rate. Fixed monthly charges stay.What your solar credit coversFixed monthly charges on your bill are not covered by credits.R.I. Gen. Laws § 39-26.4-2(22)§ 39-26.4-2(22)(i)-(iv), 'Renewable net-metering credit'Verified Sep 28, 2026 On the standard home rate, the credit was 27.553¢ per kWh27.553¢27.553¢ per kWh (Oct 2026, standard home rate A-16)Home solar credit per kWh, standard home rate A-16This changes when supply rates change. It shows on your bill as the renewable generation credit.RI Energy, Addendum to RIPUC Tariff No. 2095, Net Metering Credit by Rate Class, Oct 2026For the Month of October 2026. Row (21) Renewable Net Metering Credit, column A-16 (Fixed LRS): $(0.27553)Verified Oct 28, 2026 in October 2026. How net metering works.

Which ones can I combine?

You pick a path. One is the grant plus net metering. The other is REG on its own, because REF and REG can't be combinedPick one. REF and REG can't be combined.Can you use the grant and REG together?RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 1Verified Oct 28, 2026 and REG replaces net meteringREG replaces net metering. You get one or the other.Does REG work with net metering?A system already on net metering can't join REG. Ask in writing who receives REG's cash part; RI Energy's documents differ on it.RI Energy, RE Growth Program Tariff for Residential Customers, RIPUC No. 2151-M (effective 4/1/2026)Sheets 6-7, project segmentation paragraphVerified Sep 28, 2026. See both priced for one system in the REF or REG example.

Do I pay sales tax on solar?

Not on the main parts. No RI sales tax on panels, inverters or rackingNo RI sales tax on panels, inverters or rackingRI sales tax on solar equipmentThe law does not list batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026. An inverter turns panel power into the kind your home uses. Racking holds the panels in place. Batteries are not on the list.Batteries are not on the list.Are home batteries on the sales tax exemption list?The list names solar storage tanks, which means hot-water tanks, not batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026 Check how your quote treats a battery.

Does solar raise my property tax?

It depends on your town. Each city or town may exempt solar by local ordinanceUp to your townProperty tax on solarAsk your town hall whether your town has an ordinance.R.I. Gen. Laws § 44-3-21§ 44-3-21 (full text, one sentence)Verified Sep 28, 2026. It is not automatic statewide. Ask your town hall whether yours has one. How to check your town.

Is the federal credit still there?

No. The federal tax credit for home solar is gone for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026. Finished means installed, not signed or paid. What that means for you.

Quick answers

Can I get the state grant and REG?
No. You pick one or the other.
Is there still a federal solar tax credit?
No, not for home systems finished after Dec 31, 2025.
Do I pay sales tax on solar panels?
No. Panels, inverters and racking are exempt. Batteries are not on the list.
Does solar raise my property tax?
It depends on your town. Each town decides by ordinance.

Sources

  1. RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26). Read Oct 28, 2026.
  2. RI Commerce, REF Energy Storage Adder Request for Projects (v6, rev. 4/6/2026). Read Oct 28, 2026.
  3. RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026). Read Sep 28, 2026.
  4. RI Energy, RE Growth Program Tariff for Residential Customers, RIPUC No. 2151-M (effective 4/1/2026). Read Sep 28, 2026.
  5. R.I. Gen. Laws § 39-26.4-2. Read Sep 28, 2026.
  6. RI Energy, Addendum to RIPUC Tariff No. 2095, Net Metering Credit by Rate Class, Oct 2026. Read Oct 28, 2026.
  7. R.I. Gen. Laws § 44-18-30. Read Sep 28, 2026.
  8. R.I. Gen. Laws § 44-3-21. Read Sep 28, 2026.
  9. IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025). Read Sep 28, 2026.