We may be the smallest state, but Rhode Island boasts some of the biggest solar saving in the US.
How are Rhode Islanders saving 35-55% and owning their power?
1. Energy Rates
The #1 reason having solar panels in RI makes so much sense is because of the extremely high electricity costs.
RI has the fourth most expensive electricity rate in the US.
Electricity is charged by the kilowatt hour (kWh) and in Rhode Island National Grid charges residential customers an unbelievable $.228 kWH. In comparison, most states are lower than $.10 kWh. National Grid also raises their rates 1-2 times each year, and in the last 7 years have increased their rates by 48%.
2. Federal Tax Credit
In 2021/2022 The federal government will take care of 26% of the total cost of your solar system through the ITC tax credit. This incredible tax credit makes it a no-brainer to have solar panels in RI.
The system must be placed in service during the tax year you will be claiming and the credit can be claimed over more than one year if needed. Professional installation by a licensed solar company in RI is recommended.
The Rhode Island Renewable Energy Growth (REG) Program is a state funded green energy program that pays homeowners a premium for ALL the green electricity their solar system creates. In 2021, this program pays out 28.8 cents per kWh for all the electricity your home generates. In comparison, National Grid charges 22.8 cents per kWh. These credits show up on your electric bill and are sent in the form of a check from National Grid. When working with any solar companies in RI, be sure they enroll your home into REG.
For example: The average RI home uses approximately 9000 kWh of electricity per year. This electricity would be generated by your solar system and tracked. Through the REG Program, National Grid would credit you 28.8 cents per kWh for the electricity your home created, while only charging you 22.8 cents. This would result in a monthly check from National Grid for $45.00, and a bill for $0 for your electricity.
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