The "Solar Cost Reduction Act" aims to modernize the permitting process for residential solar energy systems in Rhode Island by establishing a statewide smart solar permitting platform. This platform will enable contractors and other qualified parties to submit permit applications electronically at any time, perform automated code compliance checks, and issue permits instantly for applications that meet safety and building codes.

The act requires municipalities to allow applications for residential solar energy systems or other eligible small-scale solar energy systems to be submitted and permits issued instantly through the statewide smart solar permitting platform or an equivalent automated platform within twelve months of the act's effective date. It also prohibits municipalities from requiring additional manual plan reviews for permits issued through the platform.

Additionally, the act introduces provisions for remote virtual inspections for certain building permits related to solar installations, which municipalities must offer to homeowners by July 1, 2027. Remote inspections will primarily be conducted through the submission of recorded photographs and videos, with municipalities required to keep digital records of these inspections.

The act mandates that the Rhode Island office of energy resources establish and maintain a centralized online repository of municipal ordinances, regulations, and local requirements applicable to the permitting and installation of solar energy systems. Furthermore, jurisdictions are required to provide annual reports to the office of energy resources confirming compliance with the act and detailing the number of inspections conducted remotely and in person, as well as the failure rates of each inspection.

Overall, the legislation seeks to streamline the permitting process, enhance efficiency, and promote the adoption of solar energy in the state.