| Program Type | Personal Tax Credit |
|---|---|
| Technologies | Photovoltaics, Solar Hot Water Heating and Solar Space Heat |
| Amount | Covers 25 percent of system costs up to set ceilings. $15,000 maximum system cost for PV |
| Required Documentation | See below |
| Official Web Site | http://www.energy.ri.gov/programs/renewable.php#taxcredit |
Home and business owners in Rhode Island installing a solar or renewable energy system may qualify for a tax credit of 25 percent on up to $15,000 of the system’s costs. Systems that cost more will receive the maximum credit of $3,750. The credit may be claimed either by the homeowner or the business that paid for the system.
The credit covers three solar technologies, PV, active solar heating and solar hot water. PV and active solar heating are eligible for the credit on up to $15,000. Solar hot water systems are eligible for tax credits of 25 percent of the system’s cost up to $7,000. Systems that are more expensive can qualify for the maximum credit of $1,750.
Under the state’s program, a PV system must be least 24 square feet in size to be eligible for the credit. The credit applies to both on-grid and off-grid systems, but off-grid systems must be tied to a battery backup. Active solar-heating systems must have a minimum collector area of 125 square feet to be eligible for the credit, and the system must include heat storage and/or a distribution mechanism. Solar hot water heaters must include an 80 gallon or more storage tank and have a minimum collector area of 34 square feet.
Before applying for the tax credit, the system must be approved by the Rhode Island Office of Energy Resources. The approval must be attached to the income tax filing. The approval process requires documentation of the system, its costs and all permits.