|Incentive Type:||Property Tax Incentive|
|Eligible Efficiency Technologies:||Solar Water Heat, Solar Space Heat, Photovoltaics, Wind, Biomass, Geothermal Heat Pumps, Small Hydroelectric|
|Incentive Amount:||Varies (local option)|
Rhode Island allows cities and towns to exempt, by ordinance, renewable energy systems from property taxation. The term "renewable energy system" is not defined in the applicable statute (R.I. Gen. Laws § 44-3-21).
Note that a separate statute (R.I. Gen. Laws § 44-57-4) specifies 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 hot-water system, or energy production capacity that otherwise could be necessary to install in a building. Qualifying technologies include photovoltaic (PV) systems, solar water-heating systems and active solar space-heating systems.