See how much it will cost to install solar panels for your home in Rhode Island
Our estimates used by
Solar power in Rhode Island
Last fact-checked on January 19, 2023, by Catherine Lane
Rhode Island has some of the best incentives in the nation when it comes to installing solar. The state offers a very generous performance-based incentive that is equal to $0.2845 per kilowatt hour produced and an upfront rebate of $0.90 per watt installed that can help reduce installation costs.
Add in the state’s high electric rates, net metering law, and the 26% federal tax credit and you have a recipe for great savings on a solar system for your Rhode Island home.
Compare solar quotes from the top solar companies in Rhode Island
Rhode Island solar power facts
$2.83 watt
Average cost: 5kW solar power system
?4 Years 5 Months
Average payback time
$102,853
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
39¢ kWh
If you don't get solar
?11,239 kWh
Annual power production
Cash flow graph based on cash purchase of a 9.63kW system
This 9.63kW system would offset 100% of your energy usage if your typical monthly bill in Rhode Island is $207, however, your situation may vary so try our solar calculator to get a result tailored to you.
4
Solar companies in Rhode Island that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in Rhode Island
Average total cost of solar panel installation in Rhode Island
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $6,237 | $6,736 |
| 4kw | $8,120 | $8,770 |
| 5kw | $9,905 | $10,697 |
| 6kw | $11,634 | $12,565 |
| 7kw | $13,230 | $14,288 |
| 8kw | $14,728 | $15,906 |
| 9kw | $16,191 | $17,486 |
| 10kw | $17,500 | $18,900 |
How much do solar panels cost in Rhode Island?
$2.83 per watt
Cash purchased solar system
Before 26% solar tax credit
$4.30 per watt
Financed solar system
Before 26% solar tax credit
$17.7¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in Rhode Island?
The advantages of installing solar panels in Rhode Island include both the state-based incentives and the federal tax credit. Also, Rhode Island has some of the highest electric utility rates in the nation, thereby making the overall return on investment for residential solar panels in Rhode Island outstanding.
The disadvantage of installing solar panels for your home in Rhode Island is that there is less overall sun exposure in the state per year, so a solar system produces less here than it would in a state such as Arizona. In addition to that, Rhode Island’s net metering policy does not require utilities to credit you for excess generation at the full retail rate, meaning your excess energy will be credited at a slightly lower price.
However, the state incentives more than make up for these shortcomings. Rhode Island homeowners will be kicking themselves if they don’t install solar panels while these generous incentives are around.
Enter your details to calculate the potential costs and savings you can expect when installing solar panels for your home.
Best solar companies in Rhode Island
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Compare solar quotes from the top solar companies in Rhode Island
How much electricity will solar panels produce in Rhode Island
Solar panels produce different amounts of energy in different locations.
Around the Providence area solar panels installed on a south-facing 31-degree pitch roof will typically produce:
1,168kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in Rhode Island?
Net metering in Rhode Island
Solar, by its nature, generates the most power during the middle of the day when most people are at work or school and little power is being used in the home. The net metering policy in Rhode Island mandates that for every surplus kilowatt hour (kWh) generated by solar (like the excess energy your system creates during the day), utilities must provide a credit to you that is equal to the avoided cost rate of electricity.
The avoided cost rate in Rhode Island is equal to the sum of a utility’s standard-offer service charge, distribution charge, transmission charge, and transition charge. This ends up being less than the full retail value of one kWh of electricity.
Tax exemptions
Rhode Island offers two tax exemptions for solar systems: a sales tax exemption and a property tax exemption.
Under the property tax exemption for renewable energy resources, 100% of the assessed value of a solar system is exempt from the homeowner’s property taxes.
The sales and use tax exemption prevents the addition of sales and use tax to equipment associated with a solar energy system.
Rhode Island Renewable Energy Fund
The Rhode Island Renewable Energy Fund is a grant program that can potentially cover 25% to 30% of your total solar system installation costs. You can also receive $0.90 per watt of solar that you install, up to $7,000.
Renewable Energy Growth Program
Perhaps the best incentive in Rhode Island is the Renewable Energy Growth Program for National Grid customers. The goal of the program is to promote the installation of renewable energy systems. When you install solar, you can receive a rebate of $0.2845 per kWh of energy your system produces, after a credit is applied to your bill for the amount of energy you produced. If you recieve a Rhode Island Renewable Energy Fund grant, you cannot take advantage of the Renewable Energy Growth program.
For example, if your solar system generated 200 kWh of power, you would have a performance-based incentive total of $56.90. Let’s say your home used a total of 300 kWh of power, at a rate of 19 cents per kWh - your total bill would be $57. You would receive a bill credit that is equal to the amount your solar system produced (200 kWh), times the rate of electricity (19 cents) - in this case the bill credit would be $38. That $38 is deducted from your total electric bill, meaning you would only have to pay $19. Then, to find the total incentive you will receive, you subtract the amount of your bill credit ($38) from your performance-based incentive total ($56.90). In this scenario, you would receive an incentive of $18.90.
Rhode Island Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in Rhode Island, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in Rhode Island using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in Rhode Island
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in Rhode Island or Providence ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this Rhode Island solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in Rhode Island
Check out all of the ways energy providers of Rhode Island can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Rhode Island Renewable Energy Fund (RIREF) Small Scale Solar Grants | State | Rebate Program |
| Property Tax Exemption | State | Property Tax Incentive |
| Sales and Use Tax Exemption | State | Sales Tax Incentive |
| Net Metering | State | Net Metering |
| Renewable Energy Fund (REF) Small-Scale Program Energy Storage Adder | Utility | Battery Rebate |
| National Grid Renewable Energy Growth Program - $0.2965/kWh value if opt to take instead of REF grant | Utility | Performance-Based Incentive |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
