Is Solar Worth It in Rhode Island?

Are solar panels worth it in Rhode Island?

Yes, for most homes with a good roof. Rhode Island pays some of the highest electric prices in the country, and solar saves the most where power costs the most. When your panels make a kilowatt-hour, that's a kilowatt-hour you don't buy from Rhode Island Energy at today's price, or at whatever the price climbs to next year.

The math usually works from the first month. A solar payment is usually less than the electric bill it replaces, and you have several ways to start with $0 down. On top of that, Rhode Island adds a grant for homeowners who buy their system, net metering that credits your panels' power at close to full value, and no sales tax on the equipment.

We're headquartered in Pawtucket, so these are the bills, roofs and programs we see every week. This article sticks to Rhode Island. For the bigger picture across New England, see our guide to solar cost and savings.

How much do Rhode Islanders pay for electricity?

A lot, and more every year. Rhode Island electric rates jumped 50% in the last five years. The most recent federal numbers show how far above the rest of the country that puts you: in July 2026, Rhode Island homes paid an average of 28.29 cents per kilowatt-hour, while the national average was 18.31 cents, according to the U.S. Energy Information Administration.

The price of the power itself is only part of it. About 48% of a Rhode Island bill is fees and charges, such as the customer charge and the energy efficiency program charge. That's why it matters which parts of the bill solar credits, which we cover below.

If you want to know why prices keep rising, our article on what's happening with electricity prices in Rhode Island walks through the causes. The short version: the forces pushing rates up aren't going away, which is why a fixed solar payment looks better each year you have it.

How much does solar save in Rhode Island?

Across Evergreen Solar's Rhode Island customers, average savings are about $1,240 a year. Savings start on day one: on average, homeowners pay about 15% less in the first month than they did before solar, because the solar payment plus the small remaining utility bill comes in under the old bill.

That gap tends to widen. Your loan, lease or PPA payment is set when you sign, while the utility's rates keep moving. Every rate increase you don't pay on the power your panels make adds to your savings without you doing anything.

Net metering is what turns your panels' power into bill savings. Under Rhode Island law, the power your system makes, up to 100% of what you use, is credited at the supply, distribution, transmission and transition charges per kilowatt-hour, which is most of the per-kWh price on your bill. Power above your usage earns a lower wholesale credit, so a well-designed system is sized to what your home actually uses. Credits can carry forward, and the law provides for a cash-out after an annual reconciliation. Our guide to how net metering works explains the credits on your bill.

Before you commit, our Day One Savings Guarantee checks the numbers. We compare your solar quote with your average electric bill, and if the quote isn't lower, we'll contact you and offer to cancel your consultation, so your time isn't wasted. It covers solar-only projects and isn't a guarantee of production; the full terms are on our terms and conditions page.

What incentives make solar pay off in Rhode Island?

Rhode Island's main incentive for owners is a grant, not a tax credit. The Renewable Energy Fund, run by Rhode Island Commerce, pays $1.65 per watt in its 2026 rounds for home solar you own, up to $14,500 per project, plus a flat $5,000 when a battery goes in with the panels. Your installer applies for you, and the grant has to be approved before installation starts.

Timing matters. As of October 2026, the last of the 2026 rounds closes about October 16, 2026, and funding goes first come, first served, so rounds can close early. Rhode Island Commerce hadn't announced 2027 rounds or grant levels as of October 15, 2026. If you're planning a system now, ask your installer about the next round before you sign. Our Rhode Island solar grant guide covers who qualifies and how the application works.

Two more things help every system. Solar panels, inverters, racking and monitoring equipment are exempt from Rhode Island sales tax. And net metering, covered above, applies whether you own or lease. Rhode Island doesn't offer a state income tax credit for home solar right now. Our Rhode Island solar incentives page has the full list.

What is the best way to pay for solar in Rhode Island?

It depends on whether you want to own the system and how much you want to put down. Evergreen Solar offers cash, loans, leases, power purchase agreements (PPAs) and prepaid PPAs, and three of those can start with $0 down.

With a lease or PPA, you get a discounted rate because the system qualifies for the 30% federal credit, which is often a better deal than buying. The company that owns the panels claims that credit and passes the value to you through your price. One Rhode Island note: the extra federal bonus for energy communities doesn't apply here, because the current federal list includes no Rhode Island areas on land.

If you pay cash or take a loan, the federal homeowner tax credit ended for systems installed after December 31, 2025. In its place, owners can apply for the state grant when a round is open, and they keep every net metering credit. Our guide to how to pay for solar compares all five options side by side.

When is solar not worth it in Rhode Island?

Solar isn't the right call for every house. It's a weaker fit when:

• Your roof is heavily shaded. Tall trees that block the sun for most of the day cut production, and the state grant requires a site with at least 80% sun exposure.
• You use very little electricity. A small bill leaves less to save, and net metering pays a lower credit for power above your usage.
• Your roof faces mostly north. Panels on north-facing slopes make noticeably less power in New England.

An older roof is a different story. It doesn't rule solar out, but you should replace it before the panels go on, since removing and reinstalling them later adds cost. Our solar + roof program includes a new roof with your solar installation at a genuinely reduced price, with a 50-year roof warranty, and the total package often costs less than your current electric bill. Our roof + solar package guide explains how it works.

Frequently asked questions