State and Federal Energy Incentives

Below contains incentives that are available across the state by OER, RI Energy, RI Commerce, and federal agencies for renewable energy and energy efficiency improvements. These incentives are separated by Residential, Commercial, Farm-Agriculture, Municipal-State-Fed, and Institutions-Nonprofits. Click each section below to view the available incentive programs.

Here are all the rebates and incentives available to Rhode Island residents.

Renewable Energy (Solar & Energy Storage)

There are two solar PV incentive programs in Rhode Island.  One is called Net-Metering and can be paired with a grant from the Renewable Energy Fund (REF), and one is called the Renewable Energy Growth (REG) program. You can choose one program or the other, but not both. Either of the solar programs discussed below can be paired with the 30% Federal Investment Tax Credit for solar PV. 

The Tax Credit, Net metering, the REF grant, and the REG incentive program are all discussed below. 

The Federal Investment Tax Credit

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. Not everyone has the tax liability to claim the ITC (e.g., retired persons, persons on disability, etc.) Please consult a tax professional for more information on whether you have the tax liability to claim the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners purchase solar systems outright and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional. To learn more, visit: http://www.seia.org/policy/finance-tax/solar-investment-tax-credit.

Net Metering

The net-metering program is one of two solar programs available to homeowners and businesses interested in going solar. Customers can choose to have a net-metered system, OR an REG system (see below), but not both. The decision is binding for the lifetime of the contract. Net-metering is a mechanism for crediting the power produced by renewable energy systems installed behind a customer meter. Net-metering allows customers with eligible renewable energy systems to receive bill credits for all power generated up to 125 percent of the on-site consumption during a billing period. To participate in net metering, a renewable energy system must be sited on the customer’s premises. Eligible customer-sited net metering systems must be sized to meet on-site loads, based on a three-year average of electricity consumption at the property. For more information on net-metering, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Renewable Energy Fund (REF) Small-Scale Solar Program

Homeowners are eligible for the Small-Scale solar program. Your selected solar installer will apply to the REF on your behalf. This grant is available for Net-Metered systems only. After the solar PV system is installed, the grant will go directly to the installer after the completion paperwork is processed and a quality assurance evaluation of the system is complete. If using the REF Small Scale program, make sure the turnkey contract with your installer clearly shows how much the grant is for and includes a clause with an option for cancellation in case the grant program becomes fully subscribed. This is a popular program with a limited annual amount of funding.

  • Funding: Small Scale: $.65/watt, max $5,000 per customer, $190,000/installer
  • Energy Storage Adder Incentive: Flat $2,000/project for solar+storage systems
  • Round 24-1 Small Scale, February 23, 2024; 9am

Flyer

Solar Installers can access the application using the following link: https://commerceri.com/wp-content/uploads/2021/11/Small-scale-Solar-DIRECT-Application-11.15.21.pdf

Affordable Solar Access Pathways 

The Affordable Solar Access Pathways (ASAP) Program, administered by the Renewable Energy Fund and the Rhode Island Office of Energy Resources, will provide qualifying households in environmental justice areas access to affordable rooftop solar and energy efficiency services through an innovative solar lease. PosiGen, a public benefit corporation and certified B Corp with a mission to provide “Solar For All,” was selected as the lease provider for the ASAP program. To learn more about the program, you can visit PosiGen's ASAP Program website and schedule a consultation here.

Renewable Energy Growth Program 

The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. The program enables customers to sell their generation output under long-term tariffs at fixed prices. Participants sign a 20-year long-term contract with a fixed electricity price and a Production-Based Incentive (PBI) payment. Participants receive bill credits on their electricity bill up to the amount owed, and any excess generation is compensated to the customer in the form of a direct deposit.  You must be an RI Energy customer to use this program.  Eligible technologies include wind, solar, small-scale hydropower, and anaerobic digestion.  REG Program customers are NOT eligible for a grant from the REF (above). To learn more about this program, please visit Rhode Island Energy's REG website. You can learn more about the 2023 REG program by reviewing this 2023 flyer.

Connected Solutions

Through Rhode Island Energy, Connected Solutions incentivizes customers who have energy storage battery systems to limit their energy use when demand on the New England electric grid is forecasted to be at its peak. Customers are compensated on a pay-for-performance basis for the average kW they curtail during dispatch events. Net-metered customers AND Participants in the REG program are both eligible for co-participation in the residential battery demand response program. To learn more, please visit  https://www.rienergy.com/RI-Home/ConnectedSolutions/

Energy Efficiency

Start here with a no-cost energy assessment

Find out how much energy your home is wasting by signing up for a no-cost energy assessment. This is the first step to lowering your energy bills. This opportunity is available for homes with 1-to-4-units through Rhode Island Energy. To schedule a home energy assessment, call 1-888-633-7947 or visit https://www.riseengineering.com/residential/get-started. 

Heating and Cooling

  • High Efficiency Heat Pumps – up to $1,000 per ton: Clean Heat RI offers a rebate for high-efficiency electric heat pumps. To learn more, please visit the Clean Heat RI website. Clean Heat RI offers incentives to assist homeowners, non-profits, and small-to-mid-size business owners with the purchase and installation of high-efficiency electric heat pumps, with an emphasis on families in environmental justice communities, minority-owned businesses, and community organizations. Please visit CleanHeatRI.com to schedule a consultation and learn about how heat pumps work, explore heat pump types for your home, determine operating costs & available incentives, and receive guidance on working with installers.
  • For more information about incentives available through your utility company, visit: Clean Heating & Cooling Incentives.
  • Boilers and Furnaces – up to $1,000: Rhode Island Energy offers rebates up to $1,000 for a boiler and up to $600 for a furnace. To learn more, visit: Natural Gas Heating | Rhode Island Energy (rienergy.com).

Water Heaters

Appliances and Electronics

Weatherization Assistance Program 

WAP helps income-eligible households reduce heating bills by providing whole house energy efficiency services to households that qualify for LIHEAP. Some services available include installing insulation and providing health and safety measures including installing smoke and carbon monoxide detectors, reducing drafts, and providing proper ventilation. To learn more, please visit https://dhs.ri.gov/programs-and-services/energy-assistance-programs/weatherization-assistance-program-wap

Energy Savings Hub

The Department of Energy launched the Energy Savings Hub to provide families and consumers access to energy savings through President Biden’s Investing in America plan. This hub gives everyone access to the tax credits and rebates that are available to help with energy savings and efficiency. To learn more, please visit https://www.energy.gov/save 

Here are all the clean transportation rebates and incentives available to Rhode Islanders.

DRIVE EV Individual

Driving Rhode Island to Vehicle Electrification DRIVE EV is an electric vehicle (EV) rebate program administered by the Rhode Island Office of Energy Resources (OER) to support adoption of electric vehicles by Rhode Island residents, small-businesses, non-profits, and public sector entities. For RI residents, rebates of up to $2,500 are available. For small-businesses, non-profits, and public sector entities, rebates of up to $2,500 are available, with an extra $1,000 rebate per vehicle for applicants located in high-asthma municipalities. An additional $2,000 rebate is available for income eligible residents. To learn more, please visit https://drive.ri.gov/. 

E-Bike rebates

The Erika Niedowski Memorial Electric Bicycle rebate helps increase access to zero emission electric bicycles, making them more affordable and accessible to Rhode Islanders. Rebates of up to $400 are available or up to $1,000 for income eligible residents. To learn more, please visit https://drive.ri.gov/erika-niedowski-memorial-electric-bicycle-rebate-program.

Visit the FuelEconomy.gov Tax Center to see Which Vehicles Qualify for a Clean Vehicle Tax Credit

The Inflation Reduction Act (IRA) provides new opportunities for consumers to save money on clean vehicles. FuelEconomy.gov has developed a new tool through the FuelEconomy.gov’s Tax Center to help consumers shop for clean vehicles eligible for these tax credits and help car buyers navigate the requirements. The website provides a simple calculator to help buyers determine the credit for pre-owned vehicles, provides information on claiming each of the credits, and answers frequently asked consumer questions.

Visit the FuelEconomy.gov Tax Incentives page at https://fueleconomy.gov/feg/taxcenter.shtml

PowerUpRI rebate

The PowerUpRI rebate program offers financial incentives for the purchase and installation of eligible EV supply equipment (commonly known as EV chargers) and any necessary electrical upgrades. 

Type of Rebates  Electrical Upgrade  Rebate Amount Costs Covered
Standard No Upgrade Needed 50% up to $350.00 Purchase Price
Upgrades Needed 50% up to $700.00 Purchase and Installation Costs 
Income Qualified  No Upgrades Needs 75% up to $500.00  Purchase Price 
Upgrades Needed 75% up to $1,000.00 Purchase Price and Installation Costs

To learn more, please visit https://drive.ri.gov/powerupri.  

The National Electric Vehicle Infrastructure (NEVI) Phase 2A

The NEVI Phase 2A program is open to public, non-profit, and private entities to support the installation of EV charging stations, prioritizing public accessibility and equitable distribution across the state. Eligible applicants include businesses, municipalities, academic institutions, non-profits, and federally recognized Tribal organizations. The program offers up to 80% federal funding, with a required 20% applicant match—although additional matching contributions are encouraged. The maximum funding per site is set at $1 million for DC Fast Chargers, $250,000 for Level 2 chargers, and up to $1.25 million for sites featuring a combination of both DC Fast Chargers and Level 2 chargers. Applications will be accepted from November 14, 2024, through February 28, 2025.

To learn more, please visit https://energy.ri.gov/transportation/ri-nevi-program/nevi-phase-2a.   

Here are all the rebates and incentives available to commercial businesses.

Renewable Energy (Solar, Wind, Energy Storage)

The Federal Investment Tax Credit

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. Please consult a tax professional for more information on whether you have the tax liability to claim the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government. This credit is used when businesses purchase solar systems outright and have them installed on their commercial property. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional. To learn more, visit: http://www.seia.org/policy/finance-tax/solar-investment-tax-credit.

Net Metering

The net-metering program is one of two solar programs available to homeowners and businesses interested in going solar. Customers can choose to have a net-metered system, OR an REG system (see below), but not both. The decision is binding for the lifetime of the contract. Net-metering is a mechanism for crediting the power produced by renewable energy systems installed behind a customer meter. Net-metering allows customers with eligible renewable energy systems to receive bill credits for all power generated up to 125 percent of the on-site consumption during a billing period. To participate in net metering, a renewable energy system must be sited on the customer’s premises. Eligible customer-sited net metering systems must be sized to meet on-site loads, based on a three-year average of electricity consumption at the property. For more information on net-metering, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Renewable Energy Fund (REF) Commercial Scale Solar Program

Business’s, nonprofits, academic institutions , municipal/state buildings or other large facilities are eligible for the Commercial Scale solar program. The grant payment will go to whoever the applicant or grantee of the project is. Your selected solar installer will apply to the REF on your behalf. This grant is available for Net-Metered systems only. After the solar PV system is installed, the grant will go directly to the installer after the completion paperwork is processed and a quality assurance evaluation of the system is complete. If using the REF Small Scale program, make sure the turnkey contract with your installer clearly shows how much the grant is for and includes a clause with an option for cancellation in case the grant program becomes fully subscribed. This is a popular program with a limited annual amount of funding. 

  • Funding: Commercial Scale: Starts at $.70/watt and progressively goes down as the size increases (see a checklist for full incentive calculator    $400,000 cap
  • Energy storage Adder Incentive: $.50/watt, max $40,000 per project
  • Round 24-1 Commercial Scale: Friday, March 1, 2024; 9am

Flyer 

Solar Installers can access the application using the following link: https://commerceri.com/wp-content/uploads/2021/10/REF-Commercial-Scale-Application-10.15.21.pdf

Renewable Energy Growth Program 

The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. The program enables customers to sell their generation output under long-term tariffs at fixed prices. Participants sign a 20-year long-term contract with a fixed electricity price and a Production-Based Incentive (PBI) payment. Participants receive bill credits on their electricity bill up to the amount owed, and any excess generation is compensated to the customer in the form of a direct deposit.  You must be an RI Energy customer to use this program.  Eligible technologies include wind, solar, small-scale hydropower, and anaerobic digestion.  To learn more about this program, please visit https://energy.ri.gov/renewable-energy/wind/renewable-energy-growth-program-reg-program. You can learn more about the 2022 REG program by visiting https://ngus.force.com/servlet/servlet.FileDownload?file=0156T00000FLwcH.

Connected Solutions

Through Rhode Island Energy, Connected Solutions incentivizes customers to limit their energy use when demand on the New England electric grid is forecasted to be at its peak. Customers are compensated on a pay-for-performance basis for the average kW they curtail during dispatch events. Net-metered customers AND Participants in the REG program are both eligible for co-participation in the residential battery demand response program. To learn more, please visit  https://www.rienergy.com/RI-Business/Energy-Saving-Programs/ConnectedSolutions

Brownfields Solar PV Program

The Rhode Island Commerce Corporation (RI Commerce) and the Rhode Island Office of Energy Resources (OER) provide funds to install solar PV on Brownfield locations. All projects must be in accordance with the Rules and Regulations for the Renewable Energy Fund. Applications will be accepted as a first come, first served process on a rolling-basis until funding is exhausted. https://commerceri.com/financing/renewable-energy-fund/

Commercial Property Assessed Clean Energy (C-PACE)

Commercial Property Assessed Clean Energy (C-PACE) is a financing program that allows commercial property owners to repay the costs of energy efficiency or renewable energy projects in conjunction with their property tax payments. Municipalities must opt-in to C-PACE in order to participate. The list of participating communities can be found here: https://riib.org/solutions/programs/commercial-property-assessed-clean-energy/

Energy Efficiency

Clean Heat RI

Administered by the Rhode Island Office of Energy Resources, Clean Heat RI offers incentives to assist homeowners, non-profits, and small-to-mid-size business owners with the purchase and installation of high-efficiency electric heat pumps, with an emphasis on families in environmental justice communities, minority-owned businesses, and community organizations. Please visit CleanHeatRI.com to schedule a consultation and learn about how heat pumps work, explore heat pump types for your home, determine operating costs & available incentives, and receive guidance on working with installers.

A Bright Idea for New Construction: Save Up to 45% on Lighting System

Rhode Island Energy offers technical guidance and financial incentives that can cover up to 45% of the equipment and installation costs. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Cold Storage

Rhode Island Energy offers a rebate of up to $1,500 per unit on qualifying cold storage equipment for vaccine storage. To apply, visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business for more information.

Custom incentives for new construction and major renovations

Rhode Island Energy is offering financial incentives to its commercial customers who are building new facilities or undergoing major renovations. This incentive can be up to 75% of the cost of the project. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Custom incentives for retrofit projects

Rhode Island Energy offers incentives of up to 50% of the total cost to upgrade to energy efficiency equipment for facilities. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Energy Management systems for existing facilities

Energy management systems (EMS) can help businesses save energy by turning off equipment automatically when it is not needed. To learn if an EMS is right for you, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Energy savings for municipalities

All municipal Rhode Island Energy customers are eligible for its municipal program. This program helps cities and towns improve their natural gas and electric savings by offering assistance and incentives. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business

EnergySmart Grocer

The EnergySmart Grocer program offered by Rhode Island Energy for grocery stores to improve their energy efficiency. These energy efficiency upgrades, such as refrigeration and lighting, can help grocery stress improve their operating costs. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Instant Point of Sale energy-saving incentives on HVAC systems, heat pumps, variable refrigerant flow systems, PEI Pumps, and ERV/HRV technologies

Rhode Island Energy offers incentives for energy efficient HVAC systems at a discounted price for their commercial customers. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Instant Point of Sale Foodservice Incentives for Business

Rhode Island Energy offers rebates for business that purchase qualifying natural gas or electric foodservice equipment. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Instant Point of Sale Gas Water Heating energy saving Incentives for Businesses

To learn more about how installing high efficiency water heaters can result in thousands of dollars of savings for your business, visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Instant Point of Sale Lighting Incentives for Business – Get Discounted Pricing on LED Lighting and Controls

Rhode Island Energy offers discounted pricing on energy efficient LED products and controls. This allows businesses to install high quality LED lighting at a discounted price and does not involve any rebate forms. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Instant Point of Sale Vending Machine Control Incentives

Rhode Island Energy has incentives for a Vending Miser retrofit to existing vending machines that can save between $200 to $500 in annual electric costs. Vending Miser is a power control technology for cold beverage vending machines. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

New construction incentives on high efficiency compressed air systems

Rhode Island Energy has incentives for installing high efficiency compressed air system to your new facility. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Pay for Performance

If your business is interested in Pay for Performance incentives offered by Rhode Island Energy, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business to learn more.

Reduce your facilities energy consumption with variable speed drives

Variable speed drives (VSDs) are energy-saving controls that enhance the efficiency of your building’s mechanical systems, particularly on HVAC fans or pumps. VSDs adjust the speed of a component as its loads increase or decrease. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

High-Efficiency Natural Gas Heating Equipment – $300 to $15,000 rebate

Rhode Island Energy offers rebates from $300 to $10,000 for businesses on natural gas furnaces, water heaters, boilers, and controls. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Retrofit lighting for your existing facility – save up to 45%

Rhode Island Energy offers technical guidance and financial incentives that will cover up to 45% of the equipment and installation costs. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Serve up Savings

The Serve Up Savings program offered by Rhode Island Energy assists restaurants in Rhode Island to optimize their business through energy efficiency upgrades. This can include lighting, kitchen equipment, and HVAC upgrades. This program offers up to 50% of the total project cost in incentives as well as a free energy assessment. To learn more about the program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business

State of the art efficiency with new chiller technology and design

Rhode Island Energy supports its commercial customers with designing and implementing energy efficient chiller technology. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Rhode Island Rebounds Ventilation Program

The Rhode Island Rebounds Ventilation Program through RI Commerce is a statewide effort to improve indoor air quality in an effort to reduce the transmission rate of COVID-19 and support small businesses recovery. Funds will be used to assist in making purchases and completing projects that improve indoor air quality of impacted small businesses. To learn more about the program, visit: https://commerceri.com/ri-rebounds/Ventilation/

Visit this link to access the FAQ document: https://commerceri.com/wp-content/uploads/2023/03/Ventilation-FAQ.pdf

Here are all the rebates and incentives available to farmers in Rhode Island.

RI Agricultural Energy Grant Program

The Rhode Island Office of Energy Resources (OER) manages the Agricultural Energy Grant Program that provides grants of up to $20,000 for eligible energy efficiency and renewable energy projects located on farms throughout Rhode Island. Our goal is to support clean energy projects in the agricultural sector. Interested applicants should review the Program Guidance document and ensure applications comply with program terms & conditions. Applications should be sent via email to Abigail.Hasenfus@energy.ri.gov on or before the listed closing date of the funding round to be considered. Grant awards are subject to availability of funds and are awarded at the sole discretion of OER; submission of an application does not guarantee an award.

For more information, please visit the RI Agricultural Energy Program webpage: https://energy.ri.gov/energy-efficiency/farmers

Clean Heat RI

Administered by the Rhode Island Office of Energy Resources, Clean Heat RI offers incentives to assist homeowners, non-profits, and small-to-mid-size business owners with the purchase and installation of high-efficiency electric heat pumps, with an emphasis on families in environmental justice communities, minority-owned businesses, and community organizations. Please visit CleanHeatRI.com to schedule a consultation and learn about how heat pumps work, explore heat pump types for your home, determine operating costs & available incentives, and receive guidance on working with installers.

The Federal Investment Tax Credit

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. The tax credit can be paired with RI AgEP, REAP, or the REG program. Please consult a tax professional for more information on whether you have the tax liability to claim the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government. This credit is used when a farm or agribusiness purchases solar systems outright and have them installed on their property. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional. To learn more, visit: http://www.seia.org/policy/finance-tax/solar-investment-tax-credit.

Renewable Energy Fund (REF) Small-Scale OR Commercial-Scale Solar Program

Agricultural Operations are eligible for the Small-Scale OR Commercial-Scale solar program, depending on the electric rate-code received by the farm or agribusiness.  Your selected solar installer will apply to the REF on your behalf. This grant is for Net-Metered systems only. After the solar PV system is installed, the grant will go directly to the installer after the completion paperwork is processed and a quality assurance evaluation of the system is complete. If using the REF Small Scale program, make sure the turnkey contract with your installer clearly shows how much the grant is for and includes a clause with an option for cancellation in case the grant program becomes fully subscribed. This is a popular program with a limited annual amount of funding.

  • Funding: Small Scale: $.65/watt, max $5,000 per customer for small-scale
  • Energy Storage Adder Incentive : $2,000/project for residential rate codes, and $.50/watt, max $40,000 per project for commercial rate codes
  • Please visit the “Residential” and “Commercial” sections of this page, or the REF website, to view the dates for the small-scale and commercial-scale funding rounds: https://commerceri.com/financing/renewable-energy-fund/

Commercial scale flyer

Small-Scale flyer

Rural Energy for America Program (REAP)

The Rural Energy for America Program is offered at the federal level through USDA provides loans and grants to agricultural producers and rural small businesses for energy efficiency and renewable energy projects  To learn more visit, https://www.rd.usda.gov/programs-services/energy-programs/rural-energy-america-program-renewable-energy-systems-energy-efficiency-improvement-guaranteed-loans. 

Renewable Energy Growth Program 

The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. Eligible technologies include wind, solar, small-scale hydropower, and anaerobic digestion. The program enables customers to sell their generation output under long-term tariffs at fixed prices. Farmers and agribusinesses who participate in this program are NOT eligible for a grant from the RI AgEP or REF. To learn more about this program, please visit https://energy.ri.gov/renewable-energy/wind/renewable-energy-growth-program-reg-program.

Depending on the electric rate-code on-site (residentially or commercially) please view the “Commercial - Energy Efficiency” or “Residential - Energy Efficiency” section for additional Efficiency incentives.

Here are all the rebates and incentives available for municipalities, state government, and federal government. For additional Energy Efficiency incentives for municipalities, state government, or federal government, please view the “Commercial - Energy Efficiency” section.

Renewable Energy (Solar, Wind, Energy Storage)

Net Metering

The net-metering program is one of two solar programs available to homeowners and businesses interested in going solar. Customers can choose to have a net-metered system, OR an REG system (see below), but not both. The decision is binding for the lifetime of the contract. Net-metering is a mechanism for crediting the power produced by renewable energy systems installed behind a customer meter. Net-metering allows customers with eligible renewable energy systems to receive bill credits for all power generated up to 125 percent of the on-site consumption during a billing period. To participate in net metering, a renewable energy system must be sited on the customer’s premises. Eligible customer-sited net metering systems must be sized to meet on-site loads, based on a three-year average of electricity consumption at the property. For more information on net-metering, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Virtual Net-Metering

Virtual Net Metering (VNM) allows certain eligible customers to connect their electric load regardless of whether the renewable system is located on the customers premises. VNM is particularly useful because it allows eligible entities to offset their electrical load even if the property is not deemed suitable for a renewable energy project. It also allows entities with large electrical loads to offset 100% of their energy use across multiple projects in different areas around the state, where the electrical load would otherwise be impossible to offset on-site.  Eligible Virtual Net Metering customers include state agencies, quasi-state agencies, municipalities, public housing authorities, public schools, private schools, non-profits, federal government, and hospitals. Virtual net-metering is not available to residential or commercial customers. Virtual Net Metering projects are eligible up to 10 MW per project site. For more information, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Renewable Energy Fund (REF) Commercial Scale Solar Program

Business’s, nonprofits, academic institutions, municipal/state buildings or other large facilities are eligible for the Commercial Scale solar program. The grant payment will go to whoever the applicant or grantee of the project is. Your selected solar installer will apply to the REF on your behalf. This grant is available for Net-Metered systems only. After the solar PV system is installed, the grant will go directly to the installer after the completion paperwork is processed and a quality assurance evaluation of the system is complete. If using the REF Small Scale program, make sure the turnkey contract with your installer clearly shows how much the grant is for and includes a clause with an option for cancellation in case the grant program becomes fully subscribed. This is a popular program with a limited annual amount of funding. 

  • Funding: Commercial Scale: Starts at $.70/watt and progressively goes down as the size increases (see a checklist for full incentive calculator    $400,000 cap
  • Energy Storage Adder Incentive : $.50/watt, max $40,000 per project
  • Round 23-2: July 10th – Commercial Scale PV Grant Applications due at 9am. Base incentive TBD
  • Round 23-3:  October 20th – Commercial Scale PV Grant applications due at 9am. Base incentive TBD 

Flyer

Solar Installers can access the application using the following link: https://commerceri.com/wp-content/uploads/2021/10/REF-Commercial-Scale-Application-10.15.21.pdf

Brownfields Solar PV Program

The Rhode Island Commerce Corporation (RI Commerce) and the Rhode Island Office of Energy Resources (OER) seeks to fund solar PV on Brownfield locations. All projects must be in accordance with the Rules and Regulations for the Renewable Energy Fund Development Program. Applications will be accepted as a first come, first served process on a rolling-basis until funding is exhausted. https://commerceri.com/financing/renewable-energy-fund/

Energy Efficiency

Energy savings for municipalities

All municipal Rhode Island Energy customers are eligible for its municipal program. This program helps cities and towns improve their natural gas and electric savings by offering assistance and incentives. To learn more about this program, please visit https://www.rienergy.com/RI-Business/Energy-Saving-Programs/rebate-programs?regionkey=ri&customertype=business.

Rhode Island Efficient Buildings Fund (RIEBF)

The Efficient Buildings Fund (EBF) is a revolving loan fund. These low-interest rate loans are given to governmental entities for energy efficiency and renewable energy projects where the annual energy savings achieved by the project exceeds the annual debt service. RIEBF is administered jointly by the Rhode Island Infrastructure Bank (RIIB) and the Office of Energy Resources. To learn more, please visit https://energy.ri.gov/renewable-energy/wind/rhode-island-efficient-buildings-fund-riebf.

Lead by Example

Public School Energy Equity Program

The Public School Energy Equity program provides technical support and financial grants to eligible school districts to assist with the accelerated deployment of the following technologies: LED Lighting with controls; Building Automation Systems; and Heat Pump Water Heaters. Eligible communities can fill out a brief application to OER for the technologies they would like support with and OER will, on a first-come, first-served basis provide the technical support, procurement documents, and financial grants to awarded communities to assist them with the adoption of these energy saving technologies. To learn more, please visit https://energy.ri.gov/LBE/programs/Schools



State Government Lead by Example Program

The State Government Lead by Example Program provides technical support, procurement assistance, and financial grants to RI State Agencies to assist with the accelerated deployment of the following technologies: LED Lighting with controls; Building Automation Systems; Heat Pump Water Heaters, Solar PV systems, and Demand Response. Agencies can fill out a brief application to OER for the technologies they would like support with and OER will, on a first-come, first-served basis provide the technical support, procurement documents, and financial grants to assist them with the adoption of these energy saving technologies. To learn more, please visit https://energy.ri.gov/lead-example/going-programs-and-case-studies/state-government-lbe-energy-program 

Here are all the rebates and incentives available for institutions and nonprofits. For additional Energy Efficiency incentives for institutions and nonprofits at non-residential facilities, please view the “Commercial - Energy Efficiency” section.

Direct Pay: Monetizing the Federal Investment Tax Credit 

Institutions and non-profits are now eligible to claim the Federal Investment Tax Credit.

IRS announced the launch of the IRS Energy Credits Online pre-filing registration tool [irs.gov] for taxpayers who intend to receive a direct payment or transfer a clean energy credit. Established by the Inflation Reduction Act (IRA), Elective Pay (or “direct pay”) and Transferability are credit monetization mechanisms to help states, local governments, non-profits, and other eligible entities access clean energy tax credits.  

Entities will use IRS Energy Credits Online to complete a required pre-filing registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return when making an elective payment or transfer election for a clean energy credit. An IRS Energy Credits Online user guide can be found here [irs.gov] and video tutorial here [irsvideos.gov].

You can access helpful fact sheets and resources summarizing the Investment Tax Credit (ITC) Direct Pay Fact Sheet for Nonprofits here:

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. Please consult a tax professional for more information on the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government.  In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional.

For more information on the Federal Investment Tax Credit for solar, visit https://seia.org/initiatives/solar-investment-tax-credit-itc

Who qualifies for direct pay for the solar ITC?

The Inflation Reduction Act includes a provision allowing tax-exempt entities to receive the solar investment tax credit as a direct payment. In the past, to make nonprofit solar projects financially viable, most organizations had to partner with developers or banks that could take advantage of the tax benefits. Now, tax-exempt organizations like public schools, cities and nonprofits can get those credits by direct pay, and receive a check for 30% of the project cost just like a tax-paying entity would receive the credit when filing taxes. Direct pay paves the way for organizations to own solar projects instead of just buying the power through Power Purchase Agreements. Although the industry is awaiting official guidance from the Treasury Department regarding the logistics of direct pay and other IRA provisions, the basic qualifying factors are spelled out in the statute. Click this link to learn more:  https://www.solarpowerworldonline.com/2022/09/who-qualifies-for-direct-pay-for-the-solar-itc/

Renewable Energy (Solar, Wind, Energy Storage)

Net Metering

The net-metering program is one of two solar programs available to homeowners and businesses interested in going solar. Customers can choose to have a net-metered system, OR an REG system (see below), but not both. The decision is binding for the lifetime of the contract. Net-metering is a mechanism for crediting the power produced by renewable energy systems installed behind a customer meter. Net-metering allows customers with eligible renewable energy systems to receive bill credits for all power generated up to 125 percent of the on-site consumption during a billing period. To participate in net metering, a renewable energy system must be sited on the customer’s premises. Eligible customer-sited net metering systems must be sized to meet on-site loads, based on a three-year average of electricity consumption at the property. For more information on net-metering, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Virtual Net-Metering

Virtual Net Metering (VNM) allows certain eligible customers to connect their electric load regardless of whether the renewable system is located on the customers premises. VNM is particularly useful because it allows eligible entities to offset their electrical load even if the property is not deemed suitable for a renewable energy project. It also allows entities with large electrical loads to offset 100% of their energy use across multiple projects in different areas around the state, where the electrical load would otherwise be impossible to offset on-site.  Eligible Virtual Net Metering customers include state agencies, quasi-state agencies, municipalities, public housing authorities, public schools, private schools, non-profits, federal government, and hospitals. Virtual net-metering is not available to residential or commercial customers. Virtual Net Metering projects are eligible up to 10 MW per project site. For more information, visit: https://energy.ri.gov/renewable-energy/wind/net-metering

Renewable Energy Fund (REF) Commercial Scale Solar Program

Business’s, nonprofits, academic institutions, municipal/state buildings or other large facilities are eligible for the Commercial Scale solar program. The grant payment will go to whoever the applicant or grantee of the project is. Your selected solar installer will apply to the REF on your behalf. This grant is available for Net-Metered systems only. After the solar PV system is installed, the grant will go directly to the installer after the completion paperwork is processed and a quality assurance evaluation of the system is complete. If using the REF Small Scale program, make sure the turnkey contract with your installer clearly shows how much the grant is for and includes a clause with an option for cancellation in case the grant program becomes fully subscribed. This is a popular program with a limited annual amount of funding. 

  • Funding: Commercial Scale: Starts at $.70/watt and progressively goes down as the size increases (see a checklist for full incentive calculator    $400,000 cap
  • Energy Storage Adder Incentive : $.50/watt, max $40,000 per project
  • Round 23-2: July 10th – Commercial Scale PV Grant Applications due at 9am. Base incentive TBD
  • Round 23-3:  October 20th – Commercial Scale PV Grant applications due at 9am. Base incentive TBD 

Flyer

Solar Installers can access the application using the following link: https://commerceri.com/wp-content/uploads/2021/10/REF-Commercial-Scale-Application-10.15.21.pdf

Brownfields Solar PV Program

The Rhode Island Commerce Corporation (RI Commerce) and the Rhode Island Office of Energy Resources (OER) seeks to fund solar PV on Brownfield locations. All projects must be in accordance with the Rules and Regulations for the Renewable Energy Fund Development Program. Applications will be accepted as a first come, first served process on a rolling-basis until funding is exhausted. https://commerceri.com/financing/renewable-energy-fund/

Renewable Energy Growth Program 

The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. The program enables customers to sell their generation output under long-term tariffs at fixed prices. Participants sign a 20-year long-term contract with a fixed electricity price and a Production-Based Incentive (PBI) payment. Participants receive bill credits on their electricity bill up to the amount owed, and any excess generation is compensated to the customer in the form of a direct deposit.  You must be an RI Energy customer to use this program.  Eligible technologies include wind, solar, small-scale hydropower, and anaerobic digestion.  REG Program customers are NOT eligible for a grant from the REF (above). To learn more about this program, please visit https://energy.ri.gov/renewable-energy/wind/renewable-energy-growth-program-reg-program. You can learn more about the 2022 REG program by visiting https://ngus.force.com/servlet/servlet.FileDownload?file=0156T00000FLwcH.

Connected Solutions

Through Rhode Island Energy, Connected Solutions incentivizes customers to limit their energy use when demand on the New England electric grid is forecasted to be at its peak. Customers are compensated on a pay-for-performance basis for the average kW they curtail during dispatch events. Net-metered customers AND Participants in the REG program are both eligible for co-participation in the residential battery demand response program. To learn more, please visit  https://www.rienergy.com/RI-Home/ConnectedSolutions/

 

Here are all the clean energy tax credits that are available to Rhode Islanders.

List of Clean Energy Tax Credits for Consumers

To view the Department of Energy’s list of eligible clean energy and energy efficiency tax credits, visit https://www.energy.gov/policy/articles/making-our-homes-more-efficient-clean-energy-tax-credits-consumers  

Federal Investment Tax Credit (ITC)

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. Not everyone has the tax liability to claim the ITC (e.g., retired persons, persons on disability, etc.) Please consult a tax professional for more information on whether you have the tax liability to claim the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government. The Section 25D residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners or businesses purchase solar systems outright and have them installed on their homes. In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional.

For more information on the Federal Investment Tax Credit for solar, visit the Department of Energy’s Homeowner Guide to the Federal Tax Credit for Solar Photovoltaics: https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics

Click here to visit the Solar Energy Information Administration’s Federal ITC page: https://seia.org/initiatives/solar-investment-tax-credit-itc

Direct Pay: Monetizing the Federal Investment Tax Credit 

Institutions and non-profits are now eligible to claim the Federal Investment Tax Credit.

IRS announced the launch of the IRS Energy Credits Online pre-filing registration tool [irs.gov] for taxpayers who intend to receive a direct payment or transfer a clean energy credit. Established by the Inflation Reduction Act (IRA), Elective Pay (or “direct pay”) and Transferability are credit monetization mechanisms to help states, local governments, non-profits, and other eligible entities access clean energy tax credits.  

Entities will use IRS Energy Credits Online to complete a required pre-filing registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return when making an elective payment or transfer election for a clean energy credit. An IRS Energy Credits Online user guide can be found here [irs.gov] and video tutorial here [irsvideos.gov].

You can access helpful fact sheets and resources summarizing the Investment Tax Credit (ITC) Direct Pay Fact Sheet for Nonprofits here:

A tax credit is a dollar-for-dollar reduction in the taxes that you would otherwise owe the federal government and is based on the total installed project cost. Please consult a tax professional for more information on the ITC. As a state agency, RI OER is not authorized to provide tax advice.

The Federal Investment Tax Credit (ITC) can be paired with any of the solar program options below. The ITC is currently a 30% federal tax credit claimed against the solar installation to reduce the income taxes that a person or company claiming the credit would otherwise pay the federal government.  In the case of the Section 48 credit, the business that installs, develops and/or finances the project claims the credit. If you have any further questions about tax credits or whether you have the liability to claim it, please consult a tax professional.

For more information on the Federal Investment Tax Credit for solar, visit https://seia.org/initiatives/solar-investment-tax-credit-itc

Who qualifies for direct pay for the solar ITC?

The Inflation Reduction Act includes a provision allowing tax-exempt entities to receive the solar investment tax credit as a direct payment. In the past, to make nonprofit solar projects financially viable, most organizations had to partner with developers or banks that could take advantage of the tax benefits. Now, tax-exempt organizations like public schools, cities and nonprofits can get those credits by direct pay, and receive a check for 30% of the project cost just like a tax-paying entity would receive the credit when filing taxes. Direct pay paves the way for organizations to own solar projects instead of just buying the power through Power Purchase Agreements. Although the industry is awaiting official guidance from the Treasury Department regarding the logistics of direct pay and other IRA provisions, the basic qualifying factors are spelled out in the statute. Click this link to learn more:  https://www.solarpowerworldonline.com/2022/09/who-qualifies-for-direct-pay-for-the-solar-itc/

Direct/Elective Pay Pre-Filing Registration Tool 

IRS announced the launch of the IRS Energy Credits Online pre-filing registration tool [irs.gov] for taxpayers who intend to receive a direct payment or transfer a clean energy credit. Established by the Inflation Reduction Act (IRA), Elective Pay (or “direct pay”) and Transferability are credit monetization mechanisms to help states, local governments, non-profits, and other eligible entities access clean energy tax credits.  

Entities will use IRS Energy Credits Online to complete a required pre-filing registration process and receive a registration number. The registration number must be included on the taxpayer’s annual return when making an elective payment or transfer election for a clean energy credit. An IRS Energy Credits Online user guide can be found here [irs.gov] and video tutorial here [irsvideos.gov].

On Tuesday, January 9, 2023 at 2:00p ET, the Department of Treasury will host an Elective Pay webinar and provide an overview of the pre-filing registration process.

Register in advance for this briefing.

Earlier this year, Treasury issued proposed Elective Pay and Transferability guidance, which can be found here [public-inspection.federalregister.gov] and here [public-inspection.federalregister.gov]. In addition to the Treasury press release [r20.rs6.net], you can find FAQs [r20.rs6.net] and fact sheets [r20.rs6.net] that outline key information contained in the proposed guidance. You can also find helpful information on CleanEnergy.gov/directpay [r20.rs6.net]. Treasury and the IRS will carefully consider public feedback before issuing final rules.

Rewiring America Calculator

The Rewiring America Calculator calculates the total dollar amount of incentives you may be eligible for when electrifying your household.

https://www.rewiringamerica.org/app/ira-calculator

Visit the FuelEconomy.gov Tax Center to see Which Vehicles Qualify for a Clean Vehicle Tax Credit

The Inflation Reduction Act (IRA) provides new opportunities for consumers to save money on clean vehicles. FuelEconomy.gov has developed a new tool through the FuelEconomy.gov’s Tax Center to help consumers shop for clean vehicles eligible for these tax credits and help car buyers navigate the requirements. The website provides a simple calculator to help buyers determine the credit for pre-owned vehicles, provides information on claiming each of the credits, and answers frequently asked consumer questions.

Visit the FuelEconomy.gov Tax Incentives page at https://fueleconomy.gov/feg/taxcenter.shtml

 

Here are all the resources available for low-income heating assistance.

Application to receive a Low-Income (A-60) rate code through RI Energy

If you are facing increased financial pressures that impact your ability to pay your gas and electric bill, RI Energy may be able to help through their Discount Rate program. If you are a residential customer and are already enrolled in other income-eligible assistance programs available through the state, you may be eligible for a discount on your monthly gas and electric bill. Click this link to learn more and access the online application: https://www.rienergy.com/RI-Home/Bill-Help/Discount-Rates

Low Income Home Energy Assistance Program (LIHEAP)

LIHEAP helps eligible low-income households pay their heating bills through federal grants to the household. There are two components to this program, heating assistance and crisis assistance. To learn more, please visit https://dhs.ri.gov/programs-and-services/energy-and-water-assistance-programs/low-income-home-energy-assistance.

RI Energy: Additional Help Making Payments

Rhode Island Energy also has a dedicated page on their website that offers general help on making bill payments. This website provides 6 different resources available to customers, such as payment plans, debt forgiveness, shut-off protections, etc. Click this link to learn more: https://www.rienergy.com/RI-Home/Bill-Help/Help-Making-Payments

Weatherization Assistance Program

WAP helps income-eligible households reduce heating bills by providing whole house energy efficiency services to households that qualify for LIHEAP. Some services available include installing insulation and providing health and safety measures including installing smoke and carbon monoxide detectors, reducing drafts, and providing proper ventilation. To learn more, please visit https://dhs.ri.gov/programs-and-services/energy-assistance-programs/weatherization-assistance-program-wap