Rhode Island Solar Grant: The Renewable Energy Fund

What solar incentives does Rhode Island offer in 2026?

Rhode Island gives homeowners two main things: a cash grant toward the system and bill credits for the power it makes. The grant comes from the Renewable Energy Fund (REF), which Rhode Island Commerce runs. The bill credits come from net metering with Rhode Island Energy. A sales tax exemption on the equipment rounds it out.

We're headquartered in Pawtucket. Our Rhode Island solar incentives page covers the full list, including the property tax side, and our 2026 incentive guide shows how Rhode Island compares with its neighbors.

Does Rhode Island have a solar tax credit?

Not right now. A lot of people search for a "Rhode Island solar tax credit" and expect a credit on their state return like Massachusetts offers. Rhode Island's Division of Taxation only allows the credits listed on Schedule CR, and the 2025 form lists no solar or renewable energy credit. An older residential renewable energy credit is still written into state law, but it isn't on the form, so it can't be claimed.

The grant fills that role instead, and it works for more homeowners. A tax credit only helps if you owe enough state tax to use it. The REF grant comes off the price of your system whether you owe taxes or not.

On the equipment, state law exempts solar panels, inverters, mounting racks and manufacturer-specified monitoring equipment from Rhode Island sales tax.

How much does the Renewable Energy Fund grant pay?

For 2026, the small-scale program pays $1.65 per watt of solar capacity for homes that own their system, up to $14,500 per project. The grant is based on the system's rated DC size, and systems of about 8.8 kW or larger receive the maximum. That's a big jump from 2025, when the program paid $0.65 per watt up to $5,000.

If you add a battery, the program awards a flat $5,000 more, as long as the battery is installed with solar that's also funded through the program in the same award.

Funding is limited and reserved first come, first served as installers submit each project. Rhode Island Commerce's 2026 schedule lists three small-scale rounds, closing May 1, July 17 and October 16, and says each one closes early if the money runs out. The last 2026 round closes October 16, 2026. As of October 15, 2026, Rhode Island Commerce hadn't announced 2027 rounds or grant levels, so ask your installer what's open when you sign.

Who qualifies for the grant, and who applies?

The program's 2026 request for projects sets these requirements:

• You own the home, and it's in Rhode Island.
• You own the system. The grant is for direct-ownership projects only, paid with cash or a loan.
• The system is net metered. It can't also be enrolled in Rhode Island Energy's Renewable Energy Growth program. You choose one or the other.
• The roof gets enough sun. A shade analysis has to show a total solar resource fraction (TSRF) of at least 80%.
• Nothing is installed yet. The grant has to be approved before installation starts, and the project must be finished within 12 months of signing.

You don't fill out the application yourself. A registered, licensed installer applies on your behalf with your signed contract, an electrical drawing, a recent electric bill and the shade report. The contract has to show the system size, the total price, the grant amount and what you owe after the grant comes off, and it has to say what happens if the grant isn't approved. Installers also have to provide at least a three-year workmanship warranty.

In practice, the grant shapes your timeline. Once you sign, your installer submits your project in the next open round, and funds are reserved in the order projects are submitted, while they last. Installation is scheduled after approval. If a round's money runs out, your contract should let you wait for a later round or go ahead without the grant.

How does the grant work with net metering?

They do different jobs. The grant lowers what you pay for the system once. Net metering lowers your electric bill every month for as long as the panels run, which is where most of a Rhode Island system's value comes from.

Under state law, the power your panels produce up to the amount your home uses in a billing period earns a credit at the sum of Rhode Island Energy's per-kWh supply (last resort service), distribution, transmission and transition charges. That's most of the per-kWh price on your bill. Fixed monthly customer charges still apply.

For home systems of 25 kW or less, power beyond your usage earns a lower "excess" credit, set at the wholesale ISO-New England energy price. After the annual reconciliation, you can cash out a leftover credit balance. Because excess power is worth less, a good design matches the system to what you actually use, not the biggest array your roof can hold.

State law also lets Rhode Island Energy offer an optional billing plan that estimates a year of production and usage, evens out your monthly bills, and settles up against the real numbers after 12 months.

With Rhode Island rates where they are, those credits add up. Our article on electricity prices in Rhode Island explains what's been driving bills up.

What if you lease or choose a PPA?

The REF grant goes to owners, so it fits a cash purchase or a solar loan. For buyers it matters more in 2026: the federal 30% homeowner credit ended for systems installed after December 31, 2025, so the grant is now the main up-front incentive for a Rhode Island owner.

A lease or power purchase agreement (PPA) works differently, and it's often the better deal. Because those systems still qualify for the 30% federal credit, you get a lower monthly payment or a lower rate per kWh, usually with $0 out of pocket. The company that owns the system claims the credit and passes the value to you in your price. You still save through net metering, since the credits land on your Rhode Island Energy bill.

Evergreen Solar offers cash, loan, lease, PPA and prepaid PPA, so we can price your home both ways and show you which comes out ahead. Read how to pay for solar in 2026 for the full comparison, or how the federal credit works with a lease. To see what the grant and net metering would mean for your roof, call us at (508) 507-2908.

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