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
13 solar companies in Rhode Island provide pricing on SolarReviews. Here are the best rated companies near you.
4.80 52 Reviews
Pritesh B, 1 week ago
Artie and the team explained every details right from start. The proposed system design made sense, they answered all questions and they were true professionals every step of the way, taking care of the installation and paper work all the way.
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Pritesh B, 1 week ago
Artie and the team explained every details right from start. The proposed system design made sense, they answered all questions and they were true professionals every step of the way, taking care of the installation and paper work all the way.
4.75 49 Reviews
Pierre, 1 day ago
From the beginning Mike Lynch explained exactly what will happen with our solar project. Right to the end process this installation was simple and seamless. I would highly recommend Sunergy Solutions to anyone considering eliminating their electrical bill with a solar system.
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Pierre, 1 day ago
From the beginning Mike Lynch explained exactly what will happen with our solar project. Right to the end process this installation was simple and seamless. I would highly recommend Sunergy Solutions to anyone considering eliminating their electrical bill with a solar system.
4.75 293 Reviews
Nick, 2 days ago
We had an excellent experience with New England Clean Energy through the sales and proposal phase to installation and overall project management. Their team responded to questions quickly and provided everything we needed at each phase of the project. There was a change in equipment at one point but they were able offer a comparable option that kept the project moving. We were also happy as they took care of everything for the RI REF program for our rooftop panels. Very highly recommend New England Clean Energy!
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Average cost (5kW system)
$21,450 ($4.29 per watt)
Nick, 2 days ago
We had an excellent experience with New England Clean Energy through the sales and proposal phase to installation and overall project management. Their team responded to questions quickly and provided everything we needed at each phase of the project. There was a change in equipment at one point but they were able offer a comparable option that kept the project moving. We were also happy as they took care of everything for the RI REF program for our rooftop panels. Very highly recommend New England Clean Energy!
4.70 87 Reviews
DannoJac, over 1 month
Very professional. Were able to answer all technical questions and they handled all of the paperwork. Installation was flawless and quick once approved. The solar unit continues to work without issues.
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DannoJac, over 1 month
Very professional. Were able to answer all technical questions and they handled all of the paperwork. Installation was flawless and quick once approved. The solar unit continues to work without issues.
4.67 22 Reviews
JM, over 1 month
This was our first foray into solar panels and I was definitely not sure it was the right decision. But I did my research and decided to go with Adam and the super team at Premier Improvements. Not only did they answer ALL my questions--and extremely patiently I might add--but they took care of everything, from discussing equipment choices, batteries, and sizing, to a superb installation both on the roof and in the basement. The installation is almost "elegant!" Then they took care of setting up the inspections with the town building inspector and the town electrical inspector. At every step of the process I knew I could reach out to Adam and the team with any questions, and they were always quick to respond. Incredible communication! Without question I highly recommend going solar with them. I thought solar would be a challenge because I've heard horror stories from people. And at times, particularly with our electricity provider, it was difficult to some degree. But that was minimized because we chose Premier Improvements. They're honest, straightforward, very accessible, and incredibly helpful! Go with Premier Improvements!
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JM, over 1 month
This was our first foray into solar panels and I was definitely not sure it was the right decision. But I did my research and decided to go with Adam and the super team at Premier Improvements. Not only did they answer ALL my questions--and extremely patiently I might add--but they took care of everything, from discussing equipment choices, batteries, and sizing, to a superb installation both on the roof and in the basement. The installation is almost "elegant!" Then they took care of setting up the inspections with the town building inspector and the town electrical inspector. At every step of the process I knew I could reach out to Adam and the team with any questions, and they were always quick to respond. Incredible communication! Without question I highly recommend going solar with them. I thought solar would be a challenge because I've heard horror stories from people. And at times, particularly with our electricity provider, it was difficult to some degree. But that was minimized because we chose Premier Improvements. They're honest, straightforward, very accessible, and incredibly helpful! Go with Premier Improvements!
4.53 347 Reviews
Jim, 3 days ago
A great experience from initial consultation to recent installation and inspection. Great crew and espicially the Venture electricians.
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Jim, 3 days ago
A great experience from initial consultation to recent installation and inspection. Great crew and espicially the Venture electricians.
4.17 7 Reviews
Karlo Berger, over 1 month
I highly recommend Sol Power. Every step of the way, they were professional, above-board, and efficient in their planning, installation, and wrap-up process. We even got the installation finalized through the pandemic! Plus they are cooperative, which keeps the money in the community.
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Karlo Berger, over 1 month
I highly recommend Sol Power. Every step of the way, they were professional, above-board, and efficient in their planning, installation, and wrap-up process. We even got the installation finalized through the pandemic! Plus they are cooperative, which keeps the money in the community.
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.
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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
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4.06 4 Reviews
Anonymous, over 1 month
After comparing prices with other companies SunWatt had the most value without any inflated system performance predictions. Every part of the system, the incentives and the return on cost was carefully explained during the sale. Fast, professional installation. Excellent performance of the system. Happy to be helping the environment and lowering my energy costs.
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Anonymous, over 1 month
After comparing prices with other companies SunWatt had the most value without any inflated system performance predictions. Every part of the system, the incentives and the return on cost was carefully explained during the sale. Fast, professional installation. Excellent performance of the system. Happy to be helping the environment and lowering my energy costs.
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