Thinking about making the switch to clean energy for your home or business? If you live in Rhode Island, there is some excellent news. The Rhode Island Commerce Corporation offers a powerful program called the Renewable Energy Fund (REF) that is designed to help local property owners drastically lower the upfront cost of installing solar panels.
At Onegrid, we are dedicated to helping our customers navigate the transition to sustainable energy. Here is everything you need to know about how the REF works, the massive new incentives available, and how you can take advantage of them.
What is the Renewable Energy Fund (REF)?
The REF is a state-level grant program created to support the growth of renewable energy throughout Rhode Island. It helps fund small scale residential, commercial scale, and even brownfield solar projects.
Unlike programs that pay you back slowly over time, the REF acts as a direct rebate that reduces the initial purchase and installation cost of a net metered solar system. This means you do not have to wait years to see the financial benefits of your investment.
Massive Upfront Savings: The 2026 Numbers
The financial incentives for the small scale program are incredibly strong. If you choose a direct ownership structure for your solar project, the REF offers substantial upfront savings:
- Solar System Rebate: You can receive $1.65 per watt for systems up to 8.8 kW, capping out at a maximum of $14,500 per project. This can cover anywhere from 20% to 35% of your total solar installation costs.
- Energy Storage Adder: If you want to protect your property from power outages, the REF now features a dedicated incentive for battery backups. You can receive a flat $5,000 grant for adding qualifying energy storage when paired with your new solar system.
By combining the solar rebate and the battery adder, you could secure up to $19,500 in direct state funding to offset your project costs.
A Seamless Process for Property Owners
One of the best features of the REF is how easy it is for the customer. You do not have to navigate complex state application paperwork alone. When you partner with a registered solar installer like Onegrid, we handle the entire process on your behalf.
Here is how the journey looks:
- System Design: We design a custom solar system and battery storage setup tailored to your property.
- Application Submission: We apply for the REF grant before your project begins.
Important Note: You must receive conditional approval from the state before any installation work starts. Beginning construction early will disqualify your project.
- Approval and Installation: Once RI Commerce reviews and approves the application, an official grant agreement secures your funding. We then install your system and connect it to the grid.
- Final Inspection and Payout: After a successful completion inspection, the state pays the grant directly to us. This funds the upfront discount we already passed along to you on your invoice.
Navigating Commercial vs. Residential Tax Credits
While the state-level REF grants are highly accessible for residential direct-ownership projects, it is important to clarify federal incentives. The federal Residential Clean Energy Credit (Section 25D)—which previously offered a 30% tax credit for homeowners—has expired for new residential projects placed in service. However, federal tax credits do still exist for commercial projects and certain structured commercial energy profiles.
Because the tax landscape shifts depending on whether your project is commercial or residential, our team evaluates every project individually to ensure you are maximizing your local state grants while staying compliant with federal guidelines.
Important Funding Timelines
The REF operates in specific application rounds throughout the year, and funds are allocated on a first-come, first-served basis. Because these funding blocks can fill up quickly, early planning is essential.
Ready to Power Your Property with Onegrid?
It is important to note that the REF grant cannot be combined with Rhode Island Energy’s Renewable Energy Growth (REG) program, which uses a performance-based incentive model instead of an upfront grant. When you sit down with the Onegrid team, we will look at your property, your energy usage, and the latest 2026 program rules to help you determine which path will save you the most money.
Let us help you take advantage of Rhode Island’s clean energy incentives. Contact Onegrid today for a free consultation and see how much you can save with the Renewable Energy Fund.