Solar Panels in Rhode Island
The Ocean State -- Highest Electricity Rates in New England
$1,500/yr
Avg. Annual Savings
4.2 peak hrs/day
Peak Sun Hours
9–12 years
Payback Period
$13,000–$20,000
Avg. System Cost
Overview
Is Solar Worth It in Rhode Island?
Rhode Island may be the smallest state in the country, but it has one of the strongest cases for going solar. With electricity rates consistently above $0.24 per kWh -- among the highest in New England -- homeowners who install solar panels see some of the fastest payback periods in the region.
Rhode Island's net metering policy allows homeowners to sell excess solar energy back to the grid at the full retail rate, making solar a genuinely compelling financial investment. Combined with state and local incentives (note: the federal 30% ITC expired Dec 31, 2025) and the state's Renewable Energy Fund rebate program, the upfront cost of going solar has never been more manageable for Ocean State homeowners.
Benefits
Why Go Solar in Rhode Island
Reduce Your Electric Bill
Rhode Island homeowners save an average of $1,500/yr after going solar.
State & Local Incentives
Rhode Island offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
Rhode Island Solar Incentives & Tax Credits
Rhode Island Net Metering
Net MeteringRhode Island offers full retail-rate net metering, meaning you receive credit for every kilowatt-hour your solar panels send to the grid. Credits roll over monthly and can offset future bills.
Federal Solar Tax Credit (Expired)
Tax CreditThe 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Not available for 2026 purchases. Solar leases/PPAs may still benefit through commercial credits.
Rhode Island Renewable Energy Fund (REF)
RebateThe Rhode Island Commerce Corporation administers the Renewable Energy Fund, which provides rebates and grants to residential solar customers. Funding availability varies by year.
Property Tax Exemption
Tax ExemptionSolar energy systems are exempt from Rhode Island property tax assessments. Installing solar will not increase your annual property tax bill, even though it adds value to your home.
Sales Tax Exemption
Tax ExemptionRhode Island exempts solar energy equipment from the state's 7% sales tax. This saves homeowners hundreds of dollars on the purchase of panels, inverters, and related equipment.
What Changed in 2026 for Rhode Island Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for Rhode Island homeowners and what options remain.
Federal ITC Gone — REF Rebate and Net Metering Remain
The 30% federal residential solar tax credit expired December 31, 2025. Rhode Island's Renewable Energy Fund (REF) rebate program — administered by the Rhode Island Commerce Corporation — continues to offer up to $0.85/watt for residential solar installations. Funding is limited and allocated on a first-come, first-served basis each program year; homeowners should apply early. Rhode Island Energy (formerly National Grid RI) continues to offer full retail-rate net metering.
Rhode Island Energy: Retail Net Metering at $0.24+/kWh
Rhode Island Energy (the state's primary utility, rebranded from National Grid RI in 2022) credits excess solar generation at the full retail rate — currently $0.24+/kWh, among the highest in New England. Credits roll over monthly. Rhode Island's high electricity rates mean every kWh your panels produce is worth more here than in most other states, which partially offsets the loss of the federal ITC.
Sales and Property Tax Exemptions Intact
Rhode Island continues to exempt solar equipment from the 7% state sales tax and from property tax assessment increases. Combined with the REF rebate and retail net metering, Rhode Island remains a strong solar market in 2026 despite the ITC expiration. Most homeowners see a payback period of 9–12 years — competitive with sunnier southern states due to the state's high electricity rates.
Common Questions
Rhode Island Solar FAQ
Local Solar Companies
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