To install an extension into the database, the easiest way I found was to open a database console using the 'rails db' command and then create it directly. I have seen mention of doing this in a Rails migration but this did not work for me.
Note that an extension is installed in a specific database, rather than being added to all databases.
The command to list the installed extensions is '\dx'
$ rails db psql (9.2.1) Type "help" for help. tabs_development=# \dx List of installed extensions Name | Version | Schema | Description ---------+---------+------------+------------------------------ plpgsql | 1.0 | pg_catalog | PL/pgSQL procedural language (1 row) tabs_development=# create extension unaccent; CREATE EXTENSION tabs_development=# \dx List of installed extensions Name | Version | Schema | Description ----------+---------+------------+--------------------------------------------- plpgsql | 1.0 | pg_catalog | PL/pgSQL procedural language unaccent | 1.0 | public | text search dictionary that removes accents (2 rows)