Rhode Island Solar Overview
Rhode Island may be the smallest state, but it punches above its weight for solar. The REF program provides a solid rebate, electricity rates are among the highest in the country, and the state is serious about hitting 100% renewable by 2033. If you are a National Grid customer in Rhode Island, the economics are similar to Massachusetts— strong net metering and real savings potential.
Rhode Island has committed to 100% renewable electricity by 2033, creating strong support for residential solar. The combination of high electricity rates, excellent net metering, and state incentives makes the Ocean State a great place to go solar.
Payback Period: 6-9 years
Electricity Rate: $0.24-$0.30/kWh
Key Program: Renewable Energy Fund (REF)
Net Metering: Full retail credit (Source: EIA Electric Power Monthly)
Rhode Island Solar Costs
Rhode Island solar costs are competitive with neighboring Massachusetts and Connecticut, with similar market dynamics in the New England region.
| System Size | Gross Cost | Monthly Bill Offset |
|---|---|---|
| 5 kW | $14,250-$16,250 | $95-$120 |
| 7 kW | $19,950-$22,750 | $130-$170 |
| 10 kW | $28,500-$32,500 | $190-$240 |
REF (Renewable Energy Fund) Program
The Rhode Island Renewable Energy Fund provides financial incentives for residential solar installations.
REF Program Details
- Incentive type: Performance-based or upfront rebate
- Typical value: $0.65-$0.85 per watt
- 7 kW system: $4,550-$5,950 incentive
- Funding: Limited; apply through participating installers
All Rhode Island Incentives
State Incentives
- REF Program: $0.65-$0.85/watt incentive
- Sales Tax Exemption: No sales tax on solar equipment
- Property Tax Exemption: Solar doesn't increase property taxes
- Renewable Energy Growth Program: Additional performance payments (if enrolled)
Federal Incentives
- Cash/Loan: No federal credit (25D expired)
- PPA/Lease: 30% federal credit (claimed by solar company)
Utility Programs
- National Grid RI: Various efficiency rebates
- ConnectedSolutions: Battery incentive program
Net Metering Rules
Rhode Island maintains strong net metering protections:
- Credit rate: Full retail rate
- System size limit: 25 kW for residential
- Credit rollover: Monthly rollover for 12 months
- Virtual net metering: Available for community solar
- Time-of-use: Optional TOU rates available
National Grid RI
National Grid is the primary utility in Rhode Island. Their net metering program provides full retail credit, making the economics straightforward—every kWh you produce offsets a kWh you would have bought at full price.
Is Solar Worth It in Rhode Island?
Yes, absolutely. Rhode Island combines high electricity rates with generous incentives and strong net metering.
Why RI Solar is a Great Investment:
- Electricity rates among highest in the country
- Full retail net metering
- REF program provides significant rebate
- Property and sales tax exemptions
- State committed to 100% renewable by 2033
- 6-9 year payback on 25-30 year asset
25-Year Savings Example (7 kW System)
| Benefit | Estimated Value |
|---|---|
| Electricity Savings | $50,000-$60,000 |
| REF Incentive | $4,500-$6,000 |
| Total Benefit | $54,500-$66,000 |
| System Cost | $20,000-$23,000 |
| Net Savings | $31,500-$46,000 |
Questions About Rhode Island Solar?
Our AI can answer questions about REF, National Grid, and RI-specific solar economics.
Ask About RI Solar