Perhaps the best incentive in Rhode Island is the Renewable Energy Growth Program for National Grid customers. The goal of the program is to promote the installation of renewable energy systems. When you install solar, you can receive a rebate of $0.2845 per kWh of energy your system produces, after a credit is applied to your bill for the amount of energy you produced. If you recieve a Rhode Island Renewable Energy Fund grant, you cannot take advantage of the Renewable Energy Growth program.
For example, if your solar system generated 200 kWh of power, you would have a performance-based incentive total of $56.90. Let’s say your home used a total of 300 kWh of power, at a rate of 19 cents per kWh - your total bill would be $57. You would receive a bill credit that is equal to the amount your solar system produced (200 kWh), times the rate of electricity (19 cents) - in this case the bill credit would be $38. That $38 is deducted from your total electric bill, meaning you would only have to pay $19. Then, to find the total incentive you will receive, you subtract the amount of your bill credit ($38) from your performance-based incentive total ($56.90). In this scenario, you would receive an incentive of $18.90.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.