Rhode Island’s Solar Rebates, Incentives, and Tax Credits for the Year 2023

Rhode Island's Solar Rebates, Incentives, and Tax Credits for the Year 2023

With the spotlight on solar energy, Rhode Island beams at the 32nd spot nationwide, generating enough solar power to electrify 120,280 households. So, what’s the buzz about high electric bills and inviting solar incentives in Rhode Island? Hold on tight, as we unveil how homeowners can pocket substantial savings by making the big switch to solar energy!

Rhode Island’s Power Play in Renewable Energy Rhode Island is pushing boundaries with an ambitious Renewable Energy Standard (RES). With a law recently passed targeting 100% renewable energy by 2033, this little state has big plans. Dive into this comprehensive guide on the hot solar incentives in Rhode Island and discover how you can shave off dollars on your solar panel investments.

The Sizzling Federal Solar Tax Credit Nationwide, the most appealing incentive is the solar Investment Tax Credit (ITC), a golden opportunity that lets homeowners trim 30% off their total system cost. This credit can be a boon to your federal income tax for the solar-installing year.

The ITC is in no mood to slow down! Thanks to the Inflation Reduction Act of 2022, it’ll continue:

  • 30% off solar costs until 2032
  • 26% off until 2033
  • 22% off until 2034

After 2035? It’s sunset for the ITC unless renewed or extended.

Thinking numbers? In Rhode Island, a 6-kW system costs $17,220 on average. This could mean a sizzling $5,166 off your federal income taxes, bringing your net system cost down to a mere $12,054.

If you’re ready to dance with the ITC, grab the IRS Form 5695 and attach it to your federal tax return. Need a hand? A tax expert could be your partner!

State Solar Incentives – Rhode Island’s Solar Symphony Get ready for a spectacular array of state incentives that Rhode Island residents can tap into. From cash rebates and tax credits to net metering and tax exemptions, the deals are hot!

  • Rhode Island Renewable Energy Fund: Up to $5,000 for homeowners, and it doesn’t stop there! Recent additions include the “Energy Storage Adder” pilot program.
  • Renewable Energy Growth Program: Earning 26.15–27.75 cents per kilowatt-hour for your solar generation? Yes, please!
  • Sales and Property Tax Exemptions: Save around $1,205 with a 100% sales tax exemption and pay no additional property taxes even with a value increase post-solar installation.
  • RI Agricultural Energy Program: Farmers, this one’s for you! Up to $20,000 for renewable energy systems, including solar!
  • PACE Financing: A commercial financing opportunity for businesses ready to harness the sun.

Rhode Island Net Metering – It’s a Game-Changer! Send your surplus solar energy to the grid and get billing credits in return. All the big utility companies in Rhode Island are on board, and your installer will handle all the paperwork.

Are Solar Panels Worth it in Rhode Island? A Big Yes! Though small in size, Rhode Island’s solar scene is mighty. High electricity rates nearly double the national average make the state a ripe ground for solar investments. With a payback period of under eight years and potential electricity savings for over two decades, we can only see dollar signs!

Couple this with a rich bouquet of financial incentives, and you’ve got a compelling reason to go solar. Add the environment-friendly cherry on top, and it’s a win-win! Lowered carbon emissions, energy resilience, independence, and increased property value — Rhode Island makes the solar switch a sun-kissed adventure.

So, are you ready to join Rhode Island in its renewable energy revolution? The Ocean State is, without a doubt, worth the solar bet!

Chris has been in the marketing industry for well over a decade. Chris loves writing about anything related to saving money. A passion for teaching people through writing has given him a unique opportunity to use his skills in the marketing industry. In his spare time he likes spending time with his family. training his new puppy, and taking long road trips to places like Banff & Lake Louise, Alberta.
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