Residential Solar Energy Property Tax Reduction

Last updated: August 28, 2018

Program Overview

Implementing Sector:State
Category:Financial Incentive
State:Rhode Island
Incentive Type:Property Tax Incentive
Web Site:http://www.energy.ri.gov/renewable/tax/
Administrator:Rhode Island Office of Energy Resources
Start Date:01/01/2001
Eligible Renewable/Other Technologies:Solar Water Heat, Solar Space Heat, Solar Photovoltaics

Authorities

Name:R.I. Gen. Laws § 44-57-4 (a)(6)

Summary

NOTE: H.B. 8354 enacted on July 2016 included provision that exempted qualifying renewable energy equipment used in residential and manufacturing sector to be exempt from property taxes throughout the state, thereby superseding the reduction in solar energy property tax assessment provision. Renewable energy equipment used in commercial facilities are not included in the exemption.

Rhode Island law provides that for purposes of local municipal property tax assessment, certain residential solar-energy systems may not be assessed at more than the value of a conventional heating system, a conventional water-heating system, or energy production capacity that otherwise could be necessary to install in a building. Qualifying systems include photovoltaic (PV) systems, solar hot-water systems and active solar space-heating systems. Equipment must be new. (Passive solar systems, and systems installed on boats or vehicles do not qualify.)

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