There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
There are two huge factors working to boost home solar in Rhode Island: the state's Small-Scale Solar grant program and the Renewable Energy Growth Program. Combined, they mean you'll save thousands up front on a new solar system and can sell the electricity it produces for thousands more.
Solar is cheaper than ever, so the Rhode Island incentives combined with the Federal 26% tax credit for solar means a solar panel system pays itself back quickly and makes you lots of money over its 25-year warrantied life!
Learn what solar incentives are available to Rhode Island homeowners
See what Rhode Island solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or Rhode Island solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Rhode Island
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
Rhode Island has a strong net metering program that ensures you get credit for your surplus energy production -- up to 125% of your monthly consumption. Surplus is credited to you at the utilities avoided-cost rate, and may be either carried forward to the next bill or purchased by the utility, at their discretion.
After 2016, the legislature doubled the net metering limit to 10 Megawatts of total generation capacity, and also added net metering for 3rd-party-owned systems.
That’s a pretty solid law overall, but there are definitely some easy tweaks the legislature could implement to make net metering even stronger. For one, municipal and cooperative electric companies are currently exempt from the statewide net metering standards. The law should be expanded to cover all utilities.
We’d also like to see the option for bill rollovers or cash payments moved from the utility to you, so you can decide how the savings help you most.
While Rhode Island does not have a dedicated state rebate for solar panel installation, some manufacturers like LG offer their own solar rebates. These programs are usually time sensitive. For example, LG offers a $600 solar rebate on their equipment, which your installer can help you redeem over the next year.
National Grid’s Renewable Energy Growth program in Rhode Island provides an awesome incentive to go solar. You get a performance based incentive (PBI) payment which is reflected both as a credit to your monthly electric bill and as a cash payment every month.
For 2021, you can expect the PBI to be at $.25- $.29 cents per kilowatt-hour (kwh). The PBI gets split between a credit to your existing electric bill and that cash payment. Since an average 6-kW home solar system generates about 10,000 kwh annually, you can expect bill credits and payments of $2,500 annually for a term length of 15-20 years! Even though the cash portion of the PBI is taxable income (meaning you’ll get an IRS 1099 form), this program is a huge boon to you for installing solar.
Rhode Island policymakers also created a fund for those who may not be sure if they’re going to live in their homes for the next 20 years to go solar as well. If you decide not to participate in the PBI above, you can elect to take a solar grant from the Rhode Island Renewable Energy Fund instead.
For 2021, the grant amount is up to $850 per kilowatt of installed solar, up to a maximum of $7,000. On an average 6-kW system, that amounts to $5,100 upfront! This solar grant program is among the best in the nation. Way to go, Rhode Island!
Thankfully there are tax exemptions for solar power here as well. When you install a solar power system, your home goes up in value by a factor of 20 times your electricity bill savings. No one should ever be penalized for converting to renewable energy, a sentiment with which the Rhode Island legislature agrees.
That’s why they passed a property tax law ensuring that your solar power system will never be assessed at any higher value than the equivalent standard, non-renewable energy production system. That means all that increase in value you get from a solar power system over a conventional system stays with you and not with the state tax collectors.
Those shiny new solar panels are also 100% exempt from all sales and use taxes when you purchase and install them.
Showing data for:
Prices based on a 8.0kW system, after 30% federal tax credit
15 solar companies in Rhode Island provide pricing on SolarReviews. Here are the best rated companies near you.
4.91 125 Reviews
Michael McDonald, 1 week ago
Sunergy made it super smooth and easy to get solar. We had need of a large system to sustain a lot of computing, EV usage, and heatpump, so ended up drafting out a 12.75kW array. Their representative John Parlator kept in close contact through the whole process, from design to aftersale support, making sure that all of our needs are met. Very happy to have chosen Sunergy.
Read more
Michael McDonald, 1 week ago
Sunergy made it super smooth and easy to get solar. We had need of a large system to sustain a lot of computing, EV usage, and heatpump, so ended up drafting out a 12.75kW array. Their representative John Parlator kept in close contact through the whole process, from design to aftersale support, making sure that all of our needs are met. Very happy to have chosen Sunergy.
4.83 74 Reviews
Larry M., over 1 month
We had three companies bid on our ground mounted solar array project. NEC had the best quality panels and inverters as well as the most detailed 3D imaging of our site to ensure our future production. The project was completed on time and as quoted. It was a truly turnkey experience with almost no need for our involvement except for deciding the final height above the ground. NEC took care of all of the permitting with our town and contacted Eversource for the right to apply for net metering. We were constantly informed of the progress of each permit. The mounting frame took one and half days to erect despite encountering ledge on all seven mounting points. This required the use of a rock drill. Great care was taken to prevent damage to my lawn while transporting the drill to the site. The remainder of the array, trenching and wiring was completed in four days. After the trench and wiring was inspected the soil was replaced with great care. The array is now operational, and we are pleased to see we now exporting energy to the grid as well as covering the needs of our home. We are very happy we chose NEC as our installer. The project manager, Nick and his crew were a pleasure to work with and they were very respectful of our property. Thank you, NEC!
Read more
Larry M., over 1 month
We had three companies bid on our ground mounted solar array project. NEC had the best quality panels and inverters as well as the most detailed 3D imaging of our site to ensure our future production. The project was completed on time and as quoted. It was a truly turnkey experience with almost no need for our involvement except for deciding the final height above the ground. NEC took care of all of the permitting with our town and contacted Eversource for the right to apply for net metering. We were constantly informed of the progress of each permit. The mounting frame took one and half days to erect despite encountering ledge on all seven mounting points. This required the use of a rock drill. Great care was taken to prevent damage to my lawn while transporting the drill to the site. The remainder of the array, trenching and wiring was completed in four days. After the trench and wiring was inspected the soil was replaced with great care. The array is now operational, and we are pleased to see we now exporting energy to the grid as well as covering the needs of our home. We are very happy we chose NEC as our installer. The project manager, Nick and his crew were a pleasure to work with and they were very respectful of our property. Thank you, NEC!
4.80 319 Reviews
Andrew, over 1 month
The process of getting the 26 panel system installed was super easy. New England answered all of my question and explained the whole process very well. All the guys that did the installation were friendly and courteous. The electrical work was very neatly done and looks professional. I would recommend this company over any of the other solar companies out there. Now I just have to have the electric company come and switch my meter. At that point I can watch the dial go backwards on a nice sunny day.
Read more
Average cost (5kW system)
$21,450 ($4.29 per watt)
Andrew, over 1 month
The process of getting the 26 panel system installed was super easy. New England answered all of my question and explained the whole process very well. All the guys that did the installation were friendly and courteous. The electrical work was very neatly done and looks professional. I would recommend this company over any of the other solar companies out there. Now I just have to have the electric company come and switch my meter. At that point I can watch the dial go backwards on a nice sunny day.
4.69 613 Reviews
Kevin E, 2 weeks ago
call was clear and covered all my concerns
Read more
Kevin E, 2 weeks ago
call was clear and covered all my concerns
4.67 91 Reviews
Tom, over 1 month
Very skeptical at first probably like everyone else. The sales team with Dylan, answered all my questions from the actual solar panels and equipment to the service and warranty I would expect. He was outstanding knowledgeable and readily available for my many calls. As for the team the electricians Ray and Jarret went the extra mile for panel placement, conduit hidden very well wiring in the attic on a hot day. Both extremely knowledgeable for many more questions. The roofers Jason and Juan were neat did a fantastic job and I am pleased with the appearance. 6 hours installed perfectly. Unfortunately the slowest process waiting for RI Energy to change out my meter. I would highly recommend RTP over anyone else. They truly are a team.
Read more
Tom, over 1 month
Very skeptical at first probably like everyone else. The sales team with Dylan, answered all my questions from the actual solar panels and equipment to the service and warranty I would expect. He was outstanding knowledgeable and readily available for my many calls. As for the team the electricians Ray and Jarret went the extra mile for panel placement, conduit hidden very well wiring in the attic on a hot day. Both extremely knowledgeable for many more questions. The roofers Jason and Juan were neat did a fantastic job and I am pleased with the appearance. 6 hours installed perfectly. Unfortunately the slowest process waiting for RI Energy to change out my meter. I would highly recommend RTP over anyone else. They truly are a team.
4.17 9 Reviews
Michael Grossman, 1 week ago
These folks are wonderfully responsive and they get a thumbs up from me for sure. They are competent and their prices are fair.
Read more
Michael Grossman, 1 week ago
These folks are wonderfully responsive and they get a thumbs up from me for sure. They are competent and their prices are fair.
4.08 141 Reviews
Brian Bernard, over 1 month
The sales process was great. They were very attentive and offered the best deal on the best equipment. Then.. After signing the deal, they stopped returning e-mails and phone calls. It took them 6 months to get the materials delivered. Then it took 2 weeks before installation started. And the meter was installed incorrectly. They corrected that quickly as I was still holding the final 10% progress payment and their sales team was back to calling and e-mailing every other day. 4 years in, one of the micro-invertors stopped working. For 4 weeks, no one at RGS responded to my calls; e-mails; or web-chats. I initiated the replacement part request with the manufacturer and the next day RGS e-mailed me back to say a replacement part had been ordered and should be arriving in 2-4 weeks. I got the part in 4 weeks, notified RGS, and, again, they went silent on me. 4 weeks after that, I got an e-mail from RGS with a workorder stating that I would have to pay $350 plus additional costs for them to complete the work under warranty. That is where we stand now. If I had to do it again, I would go with a company that had positive reviews after the sales process. That is when you are going to need them they most. Good luck with your solar projects.
Read more
Average cost (5kW system)
$23,400 ($4.68 per watt)
Brian Bernard, over 1 month
The sales process was great. They were very attentive and offered the best deal on the best equipment. Then.. After signing the deal, they stopped returning e-mails and phone calls. It took them 6 months to get the materials delivered. Then it took 2 weeks before installation started. And the meter was installed incorrectly. They corrected that quickly as I was still holding the final 10% progress payment and their sales team was back to calling and e-mailing every other day. 4 years in, one of the micro-invertors stopped working. For 4 weeks, no one at RGS responded to my calls; e-mails; or web-chats. I initiated the replacement part request with the manufacturer and the next day RGS e-mailed me back to say a replacement part had been ordered and should be arriving in 2-4 weeks. I got the part in 4 weeks, notified RGS, and, again, they went silent on me. 4 weeks after that, I got an e-mail from RGS with a workorder stating that I would have to pay $350 plus additional costs for them to complete the work under warranty. That is where we stand now. If I had to do it again, I would go with a company that had positive reviews after the sales process. That is when you are going to need them they most. Good luck with your solar projects.
Jack Breen, over 1 month
<br />
3.75 1 Reviews
Jesse K., over 1 month
We have had our system now for nearly 5 years. Everyone we worked with at Newport Solar was very friendly, knowledgeable and professional. They made sure we fully understood all of our options and the pros\cons of each. We felt like they truly cared and were not at all sales-y or pushy. The system has functioned flawlessly since installation and their return on investment estimates have been pretty much spot on so far. If we were to move and solar made sense, we would not hesitate to work with Newport Solar again.
Read more
Jesse K., over 1 month
We have had our system now for nearly 5 years. Everyone we worked with at Newport Solar was very friendly, knowledgeable and professional. They made sure we fully understood all of our options and the pros\cons of each. We felt like they truly cared and were not at all sales-y or pushy. The system has functioned flawlessly since installation and their return on investment estimates have been pretty much spot on so far. If we were to move and solar made sense, we would not hesitate to work with Newport Solar again.
3.75 1 Reviews
Anonymous, over 1 month
Working with Greenside Energy was an unbelievable experience. We got a half dozen proposals from installers before we pulled the trigger. Greenside didn't just sell us a solar system but educated us about all the componets like the inverters, power optimizers, snd solar panels. They set us up with an amazing web based monitoring portal so we are able to track our power production in real time. After The install was complete they used their quad copter to take an aerial photo of our system which we have hung up in our office! I would highly recommend giving them a call.<br /><br />West Main Self Storage Team
Read more
Anonymous, over 1 month
Working with Greenside Energy was an unbelievable experience. We got a half dozen proposals from installers before we pulled the trigger. Greenside didn't just sell us a solar system but educated us about all the componets like the inverters, power optimizers, snd solar panels. They set us up with an amazing web based monitoring portal so we are able to track our power production in real time. After The install was complete they used their quad copter to take an aerial photo of our system which we have hung up in our office! I would highly recommend giving them a call.<br /><br />West Main Self Storage Team
For more information about going solar near where you live, check out the following resources: