Is solar worth it in Rhode Island?
For a typical Rhode Island home in 2026, solar is worth it: about a 5-year payback and $63,893 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 5 yrs5.7 kW, paying cash
- Electricity price
- 29.3¢per kWh, U.S. 18.0¢
- Solar production
- 1,298kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical Rhode Island home
| Electricity use | 557 kWh a month (Rhode Island average) |
|---|---|
| Best-value system | 5.7 kW, producing 7,401 kWh a year (111% of use) |
| Price | $18,890 at about $3.20/W; $9,485 after state incentives |
| First-year savings | $1,911 |
| Payback | 5.0 years |
| 25-year net | $63,893 (22.3% a year return) |
| Rate increase assumed | 4.0% a year, from Rhode Island's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 29.3¢ per kWh over the last 12 months, 63% above the U.S. average (18.0¢).
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,298 kWh per kW per year (ranked #39 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in Rhode Island
Full retail net metering. Rhode Island Energy customers get net metering credits close to the retail rate (most delivery and supply charges, but not certain program charges). Production beyond annual use earns a lower 'excess' credit. Homeowners can alternatively sell all output under the Renewable Energy Growth (REG) fixed-price tariff.
Renewable net metering credit = standard offer + distribution + transmission + transition charges (excludes some non-bypassable charges like energy efficiency/RE program charges); generation beyond usage up to 125% credited as 'excess renewable net metering credit' at a lower (avoided-cost/wholesale-type) rate.
- Netting: monthly
- Unused credits: Dollar credits roll forward. Before 2025 the Excess Net Metering Credit was ~15.2 c/kWh (PUC, Mar 2025); P.L. 2025 ch. 256 amended its definition/value and RI Energy's implementing tariff is in PUC Docket 25-50-EL (oral argument Apr 27, 2026; outcome not verified).
- System size limit: 10000 kW
- Fixed charges: Standard customer charge; non-bypassable charges remain payable on net metered kWh.
- Last major change: June 27, 2025 law (H 5580/S companion) ended prior-consumption limits and changed excess credit treatment.
- Pending: PUC Docket 25-50-EL implementing 2025 law (excess credit value, 275 MW ground-mount cap, QF purchases at ISO-NE clearing price). 2026 bills (e.g., H 7269 on portable solar) status not verified.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Rhode Island Energy (Narragansett Electric) | 25¢/kWh | Near-retail credit for usage offset; REG program alternative for small solar (fixed 15/20-year PBI). |
Solar incentives in Rhode Island
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| Renewable Energy Fund Small-Scale Solar grant (Commerce RI) | rebate | $1.65/W up to $14,500 per project (sized up to ~8.8 kW-DC), plus $5,000 adder for solar+storage (per energy.ri.gov). Round opened 2026-10-16; funds limited. Eligibility: RI residential/small-scale systems via eligible installers. | active |
| Renewable Energy Growth (REG) Program | performance payment | Rhode Island Energy pays a fixed per-kWh tariff for all output for 15 or 20 years (small-scale solar class); rates set annually by PUC (not verified for 2026). Alternative to net metering. Eligibility: Small-scale solar (residential) in RI Energy territory; enrollment caps. | active |
| Sales tax exemption | sales tax exemption | Solar equipment exempt from 7% RI sales tax. Eligibility: Solar PV equipment. | active |
| Property tax exemption | property tax exemption | Residential solar is exempt from local property tax assessment. Eligibility: Residential systems. | active |
What solar costs in Rhode Island
A fair cash price is around $3.20 per watt before incentives. For the 5.7 kW system that fits a typical home, expect roughly $15,500 to $21,900; smaller systems cost more per watt.
Public installation records (LBNL Tracking the Sun and state data, 604 owned systems since 2024) show a median of $3.89/W, with the middle half between $3.45 and $5.06. These prices include loan dealer fees, which is why cash quotes are often lower.
How many homes have solar
- Homes with net-metered solar (2025)
- 19,998
- Share of homes
- 4.2%
- Residential solar capacity
- 179 MW
- Growth over the past year
- +11.5%
- New systems with a battery
- 0%
- New systems leased or PPA
- 0%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in Rhode Island
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Rhode Island Energy | 458,174 | 29.5¢ | 552 kWh/mo | Worth it |
Solar by city in Rhode Island
Protect yourself when buying
- Check the license. RI electrical contractor license (Dept. of Labor & Training) plus Contractors' Registration and Licensing Board registration; RI also offers a Renewable Energy Professional (REP) certification. Look up an installer
- Cancellation rights. Federal law gives you 3 business days to cancel most door-to-door sales over $25. How to cancel
- HOA and solar access. Solar easements allowed; limited statewide restrictions on HOA solar bans (verify).
- Community solar. Yes - community remote net metering and REG community solar.
Installers active in Rhode Island
Ranked by installations in public records, not by payment. Volume isn't quality: always check licenses and reviews.
- Solpower Energy 623 installs
- Newport Electric Construction 556 installs
- Bright Planet Solar 361 installs
- Trinity Solar 307 installs
- Sunwatt Solar 268 installs
- Rooftop Power 249 installs
- Nec Solar 226 installs
- Isaksen Solar 153 installs
- Renewable Energy Service Of New England 94 installs
- New England Clean Energy 59 installs
- Beacon Solar 50 installs
- Second Generation Energy 45 installs
- White Label Solar 38 installs
- New Port Renewable 33 installs
- OneGrid Energy 31 installs
Questions about solar in Rhode Island
Is solar worth it in Rhode Island in 2026?
For a typical Rhode Island home, solar is worth it. A 5.7 kW system costing about $9,485 after state incentives saves about $1,911 in the first year and pays back in about 5 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in Rhode Island?
A reasonable cash price is around $3.20 per watt before incentives, or roughly $15,500 to $21,900 for a 5.7 kW system. Public installation records for Rhode Island show a recent median of $3.89/W, which often includes loan dealer fees.
Does Rhode Island have net metering?
Rhode Island Energy customers get net metering credits close to the retail rate (most delivery and supply charges, but not certain program charges). Production beyond annual use earns a lower 'excess' credit. Homeowners can alternatively sell all output under the Renewable Energy Growth (REG) fixed-price tariff.
Is there a solar tax credit in Rhode Island?
The 30% federal credit for homeowners ended for systems installed after 2025. Rhode Island does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in Rhode Island?
RI electrical contractor license (Dept. of Labor & Training) plus Contractors' Registration and Licensing Board registration; RI also offers a Renewable Energy Professional (REP) certification.. Look up any installer with the state's license search at https://crb.ri.gov/.
Policy research current as of October 2026; sources include environmentamerica.org, energysage.com, programs.dsireusa.org. Electricity data: EIA, through July 2026. Found something out of date? Tell us.