Solar Panels and Property Taxes in Rhode Island: What You Need to Know
As the cost of energy continues to rise, more and more Rhode Island homeowners are turning to solar panels to reduce their utility bills and help the environment. While solar panels can be a smart investment in the long run, many homeowners may be wondering how solar panel installations will affect their property taxes. In this post, we’ll explore the impact of solar panels on property taxes in Rhode Island and what you need to know.
First, it’s important to understand that the value of your property can be affected by the installation of solar panels. In Rhode Island, the value of a property is assessed based on its fair market value. When you install solar panels, it can increase the value of your home by up to 20%, according to the National Renewable Energy Laboratory. This increased value can result in higher property taxes.
However, Rhode Island offers a tax exemption for renewable energy systems, including solar panels. The state law provides that renewable energy systems installed on residential properties are exempt from any increase in property taxes for a period of 20 years. This means that even if your property value increases due to solar panel installation, your property taxes will not be affected for two decades.
It’s worth noting that the tax exemption only applies to residential properties. Commercial properties that install solar panels may still see an increase in property taxes. Additionally, it’s important to follow all local zoning and permitting regulations when installing solar panels, as failure to do so may result in fines or penalties that could impact your property taxes.
In summary, installing solar panels on your Rhode Island home can increase the value of your property, but it will not result in higher property taxes for 20 years due to the state’s tax exemption for renewable energy systems. It’s important to ensure that your installation follows all local regulations and permits to avoid any penalties or fines that could affect your property taxes.
If you’re considering installing solar panels on your home, it’s important to do your research and work with a reputable solar panel installer who can guide you through the process and ensure compliance with all regulations. With the potential cost savings and environmental benefits of solar panel installations, it can be a smart investment for many Rhode Island homeowners.
If you’re looking to have Solar Panels Installed in Rhode Island – fill out our form at www.RhodeIslandSolarPanels.com and our RI based Solar Experts will show you how much you can save by switching to solar. Once you switch, you could potentially pay hundreds less than you normally would pay to the utility company. Solar Analysis and consultations are free.
