Rhode Island Tax Incentives for Solar Panels - Momentum Solar

How to Switch to Solar Power?

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Get a free quote from our experts. Learn what system configuration suits you the best and just how much money you can save!

Step 2

Sit back while we take care of the design and permits and governement incentive application for your solar panels. All you have to do is give us your approval to move forward!

Step 3

Stress-free Installation and activation. We take care of everything from roof repair, tree cutting, and installation. Sit back, relax and watch the magic happen!

Solar Panels in Rhode Island

Solar panels in Rhode Island prove to be a wise investment due to the region’s abundant sunlight and escalating electricity costs. In fact, estimated savings for Rhode Island solar homeowners over 20 years can well exceed $20,000!

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How Much Can I Save?

Like many Rhode Islanders, your decision to go solar is likely motivated by the substantial long-term cost savings associated with a residential solar system. Many homeowners find that their solar panel system in Rhode Island can pay for itself quickly. Here’s a breakdown of the average costs and savings Rhode Island residents can anticipate:

Energy Bill Offset: Many homeowners will see a huge offset in their energy bills once they install their solar panel system. This is primarily because solar panels can, oftentimes, produce enough electricity to cover a home’s energy needs, depending on the size of the system and the home’s overall energy consumption.

Average Electricity Bill: The average monthly electricity bill in Rhode Island is around $230. By switching to solar, homeowners can significantly reduce or in some cases completely eliminate, this pricey recurring expense.

Cost of Solar Installation: after factoring in the Federal Investment Tax Credit (ITC) and state-level incentives, the net cost of going solar can be shockingly low.

Payback Period: With the solar incentives available in Rhode Island and savings on monthly electricity bills, the average payback period for a solar installation is just a few years. Given that solar panels typically come with a 25-year warranty, this leaves many homeowners with nearly two decades of virtually free electricity.

It’s clear that going solar in Rhode Island isn’t just an environmentally-conscious decision, but a fiscally responsible one too. With Momentum Solar, we make the transition to solar as seamless and straightforward as possible, providing you with top-quality solar installations and helping you navigate through the various incentives available.

How it Works

You’ve probably seen a few solar panels installed on rooftops in your neighborhood. Perhaps you’re wondering how these panels convert the sun’s rays to clean, renewable solar energy. The process behind solar energy generation is remarkably simple.

When sunlight hits the photovoltaic (PV) panels, electrons become “excited”, creating a direct current (DC) of electricity. This current is fed into an inverter, which converts DC electricity into alternating current (AC) electricity so it can be used by appliances in your home.

A meter installed on the system keeps track of the energy generated and consumed by your home. Rhode Island has a great net-metering program or the option to participate in the Renewable Energy Growth (REG) program. These incentives (detailed below) give owners credit for excess solar energy produced by their panels that is then sent into their neighborhood’s grid.

Solar Incentives

Rhode Island, with its scenic coastline, is becoming a renewable energy trailblazer by offering financial incentives to homeowners shifting to solar power. A key advantage is the Federal Solar Investment Tax Credit (ITC), which lets homeowners deduct 30% of solar energy system installation costs from their federal taxes. To claim this, homeowners need to file IRS Form 5695 during their tax return, but consulting a professional is recommended.

Besides the Federal ITC, Rhode Island provides local incentives and rebates to make solar energy more attainable. Important programs include net metering, the Renewable Energy Growth (REG) Program and the Property Tax Exemption for Renewable Energy Systems. The REG program offers long-term contracts for solar systems under 10 kW at a fixed rate, promising steady revenue for up to 20 years. The Property Tax Exemption excludes the renewable-energy system’s added value from property tax valuation, preventing tax hikes due to your solar system’s added home value.

Together, federal and state incentives can greatly offset the cost of going solar, making it an appealing option in Rhode Island. Homeowners should consult a solar expert or tax advisor to maximize these incentives. It’s a perfect time to go solar in Rhode Island, allowing you to cut energy bills, enhance property value and support a cleaner future. The sun is shining and Rhode Island is eager to help you tap into its power!

Net Metering in Rhode Island

Net metering in Rhode Island is a significant advantage for solar panel owners. It allows homeowners with solar panels to feed excess energy that their systems generate back into the electric grid. In return, they receive a credit on their utility bill. This helps to offset the cost of power drawn from the utility when the solar system isn’t producing enough electricity, such as during the night or on cloudy days.

Net metering is an undoubtedly beneficial program for Rhode Island homeowners. It enables you to use the electric grid as a sort of “battery,” storing your excess solar energy credits during the day when your panels are most productive By providing credits on your electric bill for the excess power your solar system sends back to the grid, net metering can help to significantly offset your energy costs.

Environmental Benefits

Transitioning to solar power in Rhode Island comes with numerous environmental benefits. By choosing solar, homeowners are contributing to the state’s ambitious clean energy goals, reducing dependence on fossil fuels and promoting a healthier, more sustainable environment.

  • Reducing Carbon Emissions: Making the switch to solar power presents a substantial opportunity for Rhode Islanders to directly combat climate change and air pollution. Every 1,000 kWh generated by a solar PV system averts the emission of 1,102 pounds of carbon dioxide, 2.03 pounds of sulfur dioxide, and 0.54 pounds of nitrogen oxides—pollutants that fossil fuel power plants release in abundance.
  • Conserving Water: Unlike conventional power plants, solar panels require no water to produce electricity. This means reduced strain on the state’s water resources and less impact on local ecosystems.
  • Improving Air Quality: Solar power also reduces harmful pollutants like sulfur dioxide and particulate matter, which are associated with traditional electricity production. This leads to better air quality and overall public health.
  • Contributing to Rhode Island’s Renewable Energy Goals: Rhode Island is committed to reaching 100% renewable energy by 2030. By adopting solar power, homeowners play a vital part in helping the state achieve these targets.
  • Encouraging Energy Independence: By generating their own power, solar households decrease the state’s reliance on imported energy, bolstering energy security and resilience against power outages.

By investing in solar, Rhode Island residents can not only save on their energy bills, but also make a positive impact on the environment and contribute to the broader clean energy movement in the state.

Momentum Solar is in Rhode Island

Momentum Solar is known for its’ “no-strings-attached” offering — homeowners can go solar for little-to-no money out of pocket and, oftentimes, have the benefit of a lower electric bill. Affordable roof repairs or replacements are offered for homes that are being prepped for installation. 

Momentum Solar is committed to helping Rhode Islanders convert to clean, price-protected solar energy. We provide guidance at every step in the process, and offer a free, no-obligation consultation! 

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