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Your Complete Guide to Solar in Rhode Island

The Ocean State has sky-high electric rates and some of the strongest solar incentives in the Northeast. Find out how much you can save.

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Why Rhode Island Is a Solar Powerhouse

Rhode Island may be the smallest state in the country, but it punches well above its weight on solar. With National Grid rates hovering around 27–28 cents per kWh — roughly 65–70% above the national average — every kilowatt-hour your panels produce is worth more here than in most states. Combine that with the Renewable Energy Growth (REG) Program that locks in fixed payments for up to 20 years, and the math is hard to argue with.

The Ocean State also offers Renewable Energy Fund (REF) grants through the Rhode Island Infrastructure Bank, full 1:1 retail-rate net metering (still available here, unlike neighboring Connecticut), a 100% property tax exemption on solar value, and a 7% sales tax exemption on equipment. Rhode Island's Act on Climate mandates 100% renewable electricity by 2033 — one of the most aggressive targets in the nation — which means policy tailwinds for solar are only getting stronger.

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Frequently Asked Questions

✶What solar incentives are available in Rhode Island?+
Rhode Island offers a stacked set of incentives: the Renewable Energy Growth (REG) Program pays you a fixed rate per kWh for 15–20 years, the Renewable Energy Fund (REF) provides upfront grants through the RI Infrastructure Bank, full 1:1 net metering lets you bank credits at retail rates, and both property tax and sales tax exemptions keep your costs down. Through a solar lease or PPA, the federal Section 48 ITC savings are built into your rate — no tax paperwork required.
✶How much does solar cost in Rhode Island?+
Rhode Island solar systems typically run $3.00 to $3.40 per watt before incentives. For an average 7–9 kW system, that's roughly $21,000 to $30,000 before REG payments, REF grants, and other incentives bring the effective cost down significantly. Most homeowners go solar for $0 upfront through lease or PPA options.
✶How much can I save with solar on my National Grid bill?+
With National Grid rates at roughly 27–28 cents per kWh, Rhode Island homeowners typically see payback periods of just 6–8 years. Through a solar lease or PPA, most homeowners save 30–40% on their monthly electricity bill from day one — no upfront investment needed.
✶What is the REG Program and how does it work?+
The Renewable Energy Growth (REG) Program is Rhode Island's signature solar incentive, administered by National Grid. It pays homeowners a fixed rate for every kilowatt-hour their solar panels produce over 15–20 years — regardless of whether the power is used on-site or sent to the grid. It's essentially a guaranteed revenue stream locked in for the full contract duration.
✶Does Rhode Island still offer net metering?+
Yes — Rhode Island still offers full 1:1 retail-rate net metering for residential solar customers. That means every excess kilowatt-hour you send to the grid earns a credit at the full retail rate on your National Grid bill. Virtual net metering is also available if you want to apply credits across multiple accounts. There's no aggregate cap on participation.

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