Rhode Island Solar Incentives and Programs

We may be the smallest state, but we're big on solar.

The Ocean State punches above its weight when it comes to solar savings. Here's every program working in your favor.

The Smallest State with Some of the Biggest Solar Savings

Rhode Island may be the smallest state by area, but it has one of the most aggressive clean energy mandates in the country — 100% renewable electricity by 2033 under the Act on Climate. That urgency translates into real dollars for homeowners. Between the REG Program, Renewable Energy Fund grants, full 1:1 net metering, and tax exemptions, Rhode Islanders have a toolkit of incentives that most states can only dream about.

And with National Grid charging 27–28 cents per kWh — roughly 65–70% above the national average — every kilowatt-hour your panels produce is worth more here than in almost any other state. The math isn't complicated: high rates plus strong incentives equals fast payback and serious long-term savings.

Federal Solar Investment Tax Credit — Built Into Your Plan

The residential solar tax credit (Section 25D) expired on December 31, 2025. That means Rhode Island homeowners can no longer claim a federal solar tax credit on their personal tax returns. But here's the good news: the savings didn't disappear — they just changed form.

Through solar leases and power purchase agreements (PPAs), the commercial Section 48 Investment Tax Credit is automatically applied by the solar provider. The result? Lower monthly payments for you, with zero tax paperwork and no refund to wait for. The federal credit savings are built right into your solar plan — every Rhode Island homeowner benefits, regardless of tax situation.

Solar Incentives and Rebates

✶Federal Solar Investment Tax Credit (Section 48 ITC)

The residential 25D credit expired at the end of 2025, but solar lease and PPA providers still qualify for the commercial Section 48 ITC. Those savings are passed directly to Rhode Island homeowners through lower monthly payments. No tax forms, no waiting for a refund — the credit is built into your plan from day one.

✶Renewable Energy Growth (REG) Program

Rhode Island's flagship solar incentive — and it's a good one. Administered by National Grid, the REG Program pays you a fixed per-kWh rate for every kilowatt-hour your solar panels generate over a 15–20 year contract. That's a guaranteed revenue stream regardless of whether the power is consumed on-site or sent to the grid. Think of it as a long-term performance bonus for going solar. The rate is locked in at enrollment, so you're protected from future changes.

✶RI Renewable Energy Fund (REF) Grants

Administered by the Rhode Island Infrastructure Bank, the REF offers upfront grants for residential solar installations — historically in the range of $0.85–$1.00 per watt. On a typical 7kW system, that can mean $5,950–$7,000 in direct grants. Funding is first-come, first-served with limited annual budgets, so moving early in the program year matters.

✶Net Metering — Full 1:1 Retail Rate Credits

Unlike Connecticut (where traditional net metering closed in 2022), Rhode Island still offers full 1:1 retail rate net metering for new solar customers. When your panels produce more electricity than you use, the excess goes to the National Grid and you get a credit at the full retail rate — currently 27–28 cents per kWh. Virtual net metering is also available, letting you apply credits across multiple accounts. There's no aggregate cap on participation.

✶100% Property Tax Exemption

Solar panels increase your home's value, but Rhode Island ensures you won't pay a penny more in property taxes for it. The statewide 100% property tax exemption means the added value from your solar system is completely exempt — in every municipality across the Ocean State.

✶7% Sales Tax Exemption on Solar Equipment

Rhode Island exempts solar equipment from the state's 7% sales tax. Panels, inverters, racking, and installation labor are all covered. On a $23,000 system, that's roughly $1,610 you're not paying at the register.

✶Green Loans Through RI Infrastructure Bank

The Rhode Island Infrastructure Bank offers low-interest Green Loans specifically for solar and clean energy projects. These loans feature favorable terms designed to make solar accessible to more homeowners, with competitive rates that beat most standard home improvement loans.

National Grid Rates: Why RI Homeowners Are Going Solar

National Grid serves roughly 97% of residential electricity customers in Rhode Island — so when we talk about electric rates here, we're really talking about one company. Their current residential rate sits around 27–28 cents per kWh (supply plus delivery), which lands Rhode Island well above the national average of about 16–17 cents. That's 65–70% more than most Americans pay.

Rates have climbed significantly over the past five years, with periodic spikes driven by wholesale energy cost pass-throughs. The small Pascoag Utility District serves a slice of Burrillville in the northwest corner, and Block Island Power Company covers the island — but for Providence, Warwick, Cranston, and Pawtucket, it's all National Grid, all the time. Going solar locks in a lower, predictable rate and breaks the cycle of annual increases.

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Providence Warwick Cranston Pawtucket

Frequently Asked Questions

✶What is the REG Program and how does it benefit Rhode Island homeowners?+

The Renewable Energy Growth (REG) Program is Rhode Island's signature solar incentive. Administered by National Grid, it pays you a fixed rate for every kWh your solar panels generate over a 15–20 year contract. The payment is guaranteed regardless of whether you consume the electricity or send it to the grid — it's essentially a performance bonus locked in at today's rate.

✶Can I still get a federal solar tax credit in Rhode Island?+

The residential 25D solar tax credit expired on December 31, 2025, so homeowners can no longer claim it on their tax returns. However, solar lease and PPA providers still access the commercial Section 48 ITC, and those savings are passed through to you as lower monthly payments. The federal savings are built right into your solar plan — no tax paperwork required.

✶How does net metering work in Rhode Island?+

Rhode Island offers full 1:1 retail rate net metering through National Grid. When your panels produce more electricity than you use, the excess is sent to the grid and you receive a credit at the full retail rate — around 27–28 cents per kWh. Unlike some neighboring states, RI has no aggregate cap on net metering participation, and virtual net metering lets you apply credits across multiple accounts.

✶What grants are available for solar in Rhode Island?+

The RI Renewable Energy Fund (REF), administered by the Rhode Island Infrastructure Bank, offers upfront grants for residential solar — historically $0.85–$1.00 per watt. On a 7kW system, that's roughly $5,950–$7,000 in direct grants. Funding is first-come, first-served each program year, so early applicants have the best chance of securing funds.

✶Will solar panels increase my property taxes in Rhode Island?+

No. Rhode Island provides a 100% property tax exemption on the added value from solar installations. This applies statewide, across every municipality. Your home value goes up, but your property tax bill stays the same. Combined with the 7% sales tax exemption on solar equipment, the tax benefits are substantial.

National Grid Rates Keep Climbing

Rhode Island electricity rates are already 65–70% above the national average, and they're not slowing down. Lock in a lower rate with solar before the next National Grid increase hits.

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What's Really on Your National Grid Bill?

57% of your bill is hidden fees and charges!

Delivery Charges

National Grid's delivery charges — including the customer charge and energy efficiency surcharge — make up a significant chunk of your bill beyond the supply rate.

17%

of your bill

Distribution

The cost of maintaining the poles, wires, and infrastructure that deliver power from the main lines to your Rhode Island home.

27%

of your bill

Transmission

What National Grid charges for moving electricity from power plants to local distribution networks across Rhode Island.

13%

of your bill

Actual Supply

The electricity you actually use—just 43% of what you pay.

43%

of your bill

Solar Eliminates All These Charges

When you go solar, you no longer rely on the utility company to produce electricity—and no longer have to pay their ridiculous charges. Instead, you produce your own power with a low, locked-in solar rate.

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Is Solar Really Free in Rhode Island?

Technically, no — but in practice, most Rhode Island homeowners pay less for solar than they currently pay National Grid for electricity. And switching costs nothing upfront.

You're replacing an unpredictable National Grid bill that averages 27–28 cents per kWh with a fixed solar payment that's typically 30–40% lower. Factor in the REG Program payments and net metering credits, and it's about as close to free as energy gets in the Ocean State.

Need a New Roof? Bundle and Save.

Our Roof + Solar Bundle lets Rhode Island homeowners get a new roof and solar panels installed together. Since the roof is part of the solar project, you save by bundling — and your total monthly payment is still less than what National Grid charges for electricity alone.

Learn About Roof + Solar

Ready to Take Advantage of Rhode Island Solar Incentives?

Between the REG Program, REF grants, full net metering, and tax exemptions, Rhode Island homeowners have every reason to go solar. Get a free personalized quote and see exactly how much you can save.

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