Renewable Energy Products Sales and Use Tax Exemption

RI Sales Tax Incentive commercial residential

Administered by: Rhode Island Department of Revenue Division of Taxation

Quick Summary

You can purchase solar electric systems, solar thermal systems for heating water or space, geothermal heat pumps, wind turbines, and related equipment like inverters and mounting racks without paying Rhode Island's sales and use tax, reducing your upfront installation costs. To receive the exemption, work with your installer to ensure the equipment qualifies and that the tax exemption is applied at the point of sale.

AI-generated summary • Updated 7/12/2026

Program Details

Program ID
1237
Effective Date
7/15/2005
Last Updated
9/30/2025

Eligibility

Eligible Sectors
commercial residential
Eligible Technologies
solar water heat solar space heat solar thermal electric solar photovoltaics wind (all) geothermal heat pumps solar pool heating wind (small)

Program Summary

Certain renewable energy systems and equipment sold in Rhode Island are exempt from the state's sales and use tax. Eligible products include solar electric systems, DC-to-AC inverters that interconnect with utility power lines, solar thermal systems, manufactured mounting racks and ballast pans for solar collectors, geothermal heat pumps, and wind turbines and towers.

Contact & Resources

Contact Email
[email protected]
Additional Resources

Please verify current program details with the administering agency before making any financial decisions.

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