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.
4.88 67 Reviews
Rebecca Stanizzi, 2 weeks ago
Chris Esposito was great to work with, no awful sit-down with a novice sales person like other companies (“act today!”), all online or over phone, I provided info, they did layout and analysis quickly and with no drama. Best pricing and equipment. Install was drawn out but due to local permitting and utilities, not Sunergy. Very happy with two installations, home and nearby vacation property. Installers very good on site.
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Rebecca Stanizzi, 2 weeks ago
Chris Esposito was great to work with, no awful sit-down with a novice sales person like other companies (“act today!”), all online or over phone, I provided info, they did layout and analysis quickly and with no drama. Best pricing and equipment. Install was drawn out but due to local permitting and utilities, not Sunergy. Very happy with two installations, home and nearby vacation property. Installers very good on site.
4.80 53 Reviews
B. Gooding, over 1 month
In Feb, 2022, after researching several companies, I chose NEC to do the solar array on my Jamestown house. Engineer Artie Crocker was my contact person, who made a site visit, designed the array, and explained the system thoroughly. He was knowledgeable, patient, accessible, and always had time to take my calls, even on weekends. I had price quotes and site visits from two other RI companies (Sun Watt Solar and Newport Solar), but NEC was clearly superior in terms of price, quality of the panels, warranty, reviews, service and rebates. The project manager and installers were professional, on time and neat. In the 12 months since my 41 panels were in installed, I have had no problems and have accrued a $1,500 credit on my RI Energy bill. Because I chose "net metering" I can let the credit accrue, or I can donate energy to other RI Energy customers. I was able to give a $500 credit to a needy neighbor, which came right off her RI energy bill. I couldn't be happier with NEC and my decision to go solar. AAA+++
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B. Gooding, over 1 month
In Feb, 2022, after researching several companies, I chose NEC to do the solar array on my Jamestown house. Engineer Artie Crocker was my contact person, who made a site visit, designed the array, and explained the system thoroughly. He was knowledgeable, patient, accessible, and always had time to take my calls, even on weekends. I had price quotes and site visits from two other RI companies (Sun Watt Solar and Newport Solar), but NEC was clearly superior in terms of price, quality of the panels, warranty, reviews, service and rebates. The project manager and installers were professional, on time and neat. In the 12 months since my 41 panels were in installed, I have had no problems and have accrued a $1,500 credit on my RI Energy bill. Because I chose "net metering" I can let the credit accrue, or I can donate energy to other RI Energy customers. I was able to give a $500 credit to a needy neighbor, which came right off her RI energy bill. I couldn't be happier with NEC and my decision to go solar. AAA+++
4.75 296 Reviews
Mark, 3 weeks ago
Our first New England Clean Energy installation was so successful that we decided to do a second one to allow more production for electric cars and a switch to electric appliances. All along they have supported us with effective post installation support and guidance. Their estimates of production have been spot on. They’re a pleasure to do business with.
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Average cost (5kW system)
$21,450 ($4.29 per watt)
Mark, 3 weeks ago
Our first New England Clean Energy installation was so successful that we decided to do a second one to allow more production for electric cars and a switch to electric appliances. All along they have supported us with effective post installation support and guidance. Their estimates of production have been spot on. They’re a pleasure to do business with.
4.69 89 Reviews
Diane, 2 days ago
I can’t say enough about the service from Rooftop Power. They were very professional and courteous throughout the entire process. They tell you what to expect during each phase, and they take care of all the leg work. There was absolutely nothing I was required to do. Installation was very professional, and the solar panels were placed very neatly and uniformly on the roof. Every aspect of this company from start to finish was top-notch.
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Diane, 2 days ago
I can’t say enough about the service from Rooftop Power. They were very professional and courteous throughout the entire process. They tell you what to expect during each phase, and they take care of all the leg work. There was absolutely nothing I was required to do. Installation was very professional, and the solar panels were placed very neatly and uniformly on the roof. Every aspect of this company from start to finish was top-notch.
4.66 23 Reviews
Paul Girard, 1 day ago
Adam and his group made the process of going solar easy. From the time we started they answered all my questions anytime I had one in a timely manner to make me feel comfortable making this investment in my home to help us save money. I would recommend anyone to go with Premier Improvements they did a great job!
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Paul Girard, 1 day ago
Adam and his group made the process of going solar easy. From the time we started they answered all my questions anytime I had one in a timely manner to make me feel comfortable making this investment in my home to help us save money. I would recommend anyone to go with Premier Improvements they did a great job!
4.64 406 Reviews
Holiday Jake, 1 day ago
Venture Solar had done an excellent job
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Holiday Jake, 1 day ago
Venture Solar had done an excellent job
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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