Summary of Rhode Island solar incentives 2021
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!
On this page, you can:
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Learn what solar incentives are available to Rhode Island homeowners
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See what Rhode Island solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or Rhode Island solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in Rhode Island
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in Rhode Island
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.
Rhode Island solar rebates
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.
Solar performance payments
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.
Solar grant program
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!
Tax exemptions
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.
Cost of solar panels in your part of Rhode Island after all applicable solar incentives
Showing data for:
Prices based on a 8.0kW system, after 26% federal tax credit
Solar prices near you
Payback period
1.4-1.7 years
Net profit (savings less system cost)
$95,568-$116,805
Average size system installed in RI in 2021
8.0kW
Solar panel cost calculator
Best 10 solar companies in Rhode Island
14 solar companies in Rhode Island provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 53 Reviews
Latest review
Sharmila Patel, 1 week ago
We are so so very hapy with Rooftop power, they very so helpful from the very begining . Scott came to our house and explained and answered every question we had and he made it so easy for us to decide that Rooftop power is the company we are going with . The installers were quick and did a excellent job . we would definetly recomend Rooftop Power to anyone interested in solar panels. I give them 5 star ratings.
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Latest review
Sharmila Patel, 1 week ago
We are so so very hapy with Rooftop power, they very so helpful from the very begining . Scott came to our house and explained and answered every question we had and he made it so easy for us to decide that Rooftop power is the company we are going with . The installers were quick and did a excellent job . we would definetly recomend Rooftop Power to anyone interested in solar panels. I give them 5 star ratings.
4.73 288 Reviews
Latest review
Alexander Gorski, over 1 month
I began my process with New England Clean energy in July of 2020, and was finally approved for electrical use in Feb 2021. The team came in October to do the initial install, which was done without measuring the roof, and could have fit an additional solar panel. After installation we had national grid come and look at the install in November, and the way they connected the meter was wrong. After changing the way the meter was connected national grid came out again to look and there was another problem with the way they had installed the meter again in December. Then in January when national grid came again to review they had incorrectly labeled the meters. They tried to then relabel them and send a review which failed, and needed to send someone out again. Finally in Feb I was fully approved. During the struggle with National Grid New England Clean Energy didn't seem knowledgeable about the issues that were going on and what was causing National Grid not to approve this install. Between the stickers mishap I turned on and the meter to track how much usage I was losing due New England Clean Energy mistakes. I calculated it at 150ish dollars and asked New England Clean Energy to pay me that sum. They agreed to pay that sum, but it's now been two months and they've stopped all communications with me. I wouldn't hire them again nor does it appear they know how to correctly perform an install in RI.
Read more
Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
Alexander Gorski, over 1 month
I began my process with New England Clean energy in July of 2020, and was finally approved for electrical use in Feb 2021. The team came in October to do the initial install, which was done without measuring the roof, and could have fit an additional solar panel. After installation we had national grid come and look at the install in November, and the way they connected the meter was wrong. After changing the way the meter was connected national grid came out again to look and there was another problem with the way they had installed the meter again in December. Then in January when national grid came again to review they had incorrectly labeled the meters. They tried to then relabel them and send a review which failed, and needed to send someone out again. Finally in Feb I was fully approved. During the struggle with National Grid New England Clean Energy didn't seem knowledgeable about the issues that were going on and what was causing National Grid not to approve this install. Between the stickers mishap I turned on and the meter to track how much usage I was losing due New England Clean Energy mistakes. I calculated it at 150ish dollars and asked New England Clean Energy to pay me that sum. They agreed to pay that sum, but it's now been two months and they've stopped all communications with me. I wouldn't hire them again nor does it appear they know how to correctly perform an install in RI.
4.72 27 Reviews
Latest review
Jeremy Chao, over 1 month
I wasn't thinking of going solar until an unsolicited person knocked on my home door and asked if I wanted a free estimate on solar. Although I was sold on the idea, I wanted to find out any good reviews on them so I posted an ask on Facebook Needham site for reviews on good Solar vendors, and an overwhelming majority of responded that NEC Solar with Artie Crocker was by far the best Solar experience they had, so I was comfortable choosing NEC with Artie as my Solar vendor over that unsolicited salesperson who introduced me to the idea.
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Latest review
Jeremy Chao, over 1 month
I wasn't thinking of going solar until an unsolicited person knocked on my home door and asked if I wanted a free estimate on solar. Although I was sold on the idea, I wanted to find out any good reviews on them so I posted an ask on Facebook Needham site for reviews on good Solar vendors, and an overwhelming majority of responded that NEC Solar with Artie Crocker was by far the best Solar experience they had, so I was comfortable choosing NEC with Artie as my Solar vendor over that unsolicited salesperson who introduced me to the idea.
4.44 222 Reviews
Latest review
Ryan L., 1 week ago
The sales team talks a really big game about the system and the team that puts it on the roof. They aren't lying. Team was fantastic. Super professional team, friendly and communicative. Would recommend Venture Solar to anyone interested in Solar. From the sales, the management through the permitting, through to the installation, the team was amazing. Wendy kept me up to date on all the approvals and scheduling, the install team checked in with my (and let me bug them) constantly throughout the days of the install and also made sure everything was perfect before even thinking to call it done!
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Latest review
Ryan L., 1 week ago
The sales team talks a really big game about the system and the team that puts it on the roof. They aren't lying. Team was fantastic. Super professional team, friendly and communicative. Would recommend Venture Solar to anyone interested in Solar. From the sales, the management through the permitting, through to the installation, the team was amazing. Wendy kept me up to date on all the approvals and scheduling, the install team checked in with my (and let me bug them) constantly throughout the days of the install and also made sure everything was perfect before even thinking to call it done!
4.25 5 Reviews
Latest review
Rose & Tom Dennis, 1 week ago
Sunergy was very communicative, professional, knowledgeable and we're very happy with our new solar system.
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Latest review
Rose & Tom Dennis, 1 week ago
Sunergy was very communicative, professional, knowledgeable and we're very happy with our new solar system.
4.17 7 Reviews
Latest review
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.
Read more
Latest review
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
Latest review
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)
Latest review
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.
Latest review
Jack Breen, over 1 month
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4.06 4 Reviews
Latest review
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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Latest review
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.
3.93 2 Reviews
Latest review
Steve and Maria Kasten, over 1 month
We cannot say enough about how absolutely satisfied we are that we went solar - but even happier that we went with SunPower by Premier Improvements! This was by far the best home improvement project we have ever undertaken - no regrets, no guessing, complete confidence and satisfaction. Incredible company with passionate solar professionals who truly care about the customer. From the day Adam contacted us and worked to assess our situation, to sitting down and thoroughly explaining ever aspect of his proposal and signing the paperwork to proceed, he was very knowledgeable, incredibly honest and straightforward with absolutely no pressure. The entire installation and switch to solar was easy thanks to Adam and his partner Brian. The installation team was amazing. They kept our property clean, were extremely friendly and gave us detailed updates throughout the entire process. Installation was completed in a timely manner. We are very happy we chose Premier Improvements and would not hesitate to recommend them to anyone! We look forward to many years with the best Solar Panel System product and team around!
Read more
Latest review
Steve and Maria Kasten, over 1 month
We cannot say enough about how absolutely satisfied we are that we went solar - but even happier that we went with SunPower by Premier Improvements! This was by far the best home improvement project we have ever undertaken - no regrets, no guessing, complete confidence and satisfaction. Incredible company with passionate solar professionals who truly care about the customer. From the day Adam contacted us and worked to assess our situation, to sitting down and thoroughly explaining ever aspect of his proposal and signing the paperwork to proceed, he was very knowledgeable, incredibly honest and straightforward with absolutely no pressure. The entire installation and switch to solar was easy thanks to Adam and his partner Brian. The installation team was amazing. They kept our property clean, were extremely friendly and gave us detailed updates throughout the entire process. Installation was completed in a timely manner. We are very happy we chose Premier Improvements and would not hesitate to recommend them to anyone! We look forward to many years with the best Solar Panel System product and team around!
Solar guides for your Rhode Island city
For more information about going solar near where you live, check out the following resources:
Useful links
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