What ended, in context
The 30 percent federal Residential Clean Energy Credit under Section 25D expired for property placed in service after December 31, 2025. A cash or loan purchase now receives no federal tax credit, and that is a real loss.
Section 48E, the commercial credit, survives at 30 percent for third-party owners under leases and power purchase agreements. The provider claims it, and whether any of the value reaches you depends on the rate offered.
In states such as New Hampshire, Tennessee and Utah, that expiry left essentially nothing behind. Rhode Island is different because its programmes are state and utility level rather than federal.
So the honest framing here is that the stack got thinner rather than that it collapsed, and the diligence question shifts from finding incentives to choosing between them correctly.
What Rhode Island still has
A choice between net metering with a Renewable Energy Fund grant, reported at $0.65 per watt capped at $5,000 with a $2,000 storage adder, and the Renewable Energy Growth programme selling your entire output at a contracted fixed rate.
Exemption from the 7 percent state sales tax on the equipment, which is automatic and appears as an absence from the price.
A 20-year property tax exemption under RIGL 44-3-21 requiring no separate application, which is rarer than it sounds: Maine requires a filing by April 1 and New Hampshire leaves it to each town to adopt.
And residential electricity around 31 cents per kWh, among the highest in the country, which is what makes displaced consumption so valuable here.
The lease question in a state with real programmes
Because Section 48E survives for third-party owners, leases and power purchase agreements are being promoted harder in 2026 as the remaining route to a 30 percent federal credit.
In Rhode Island that trade needs examining more carefully than in a state with no programmes of its own. Ask whether a third-party owned system would still be eligible for the Renewable Energy Fund grant, and who would receive it.
Ask the same about the Renewable Energy Growth programme: who holds the contract, who receives the tariff payments, and what reaches you.
Then ask for the side-by-side against a cash purchase with the state programmes included on your side of the ledger. In a state with genuine state-level support, giving that up to capture an indirect share of a federal credit is a trade you should see in numbers.
Costing it out across the two routes
Strike the federal residential credit from any quote showing it, since Section 25D expired for property placed in service after December 31, 2025.
Rebuild from whichever route you choose: net metering to 125 percent of on-site consumption plus the Renewable Energy Fund grant, or the Renewable Energy Growth contracted tariff.
Add the 7 percent sales tax exemption and the 20-year property tax exemption under RIGL 44-3-21, both automatic and both applying on either route.
Then add the electricity you stop buying at roughly 31 cents per kWh. Ask for both routes in writing, and confirm the grant with Rhode Island Commerce and the tariff with Rhode Island Energy.