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 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% at the end of 2032.
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
12 solar companies in Rhode Island provide pricing on SolarReviews. Here are the best rated companies near you.
4.80 37 Reviews
CraZySteve - NH, 3 weeks ago
From initial Sales visitation to Completion of project, Rob and his team where great! Rob was the sales consultant I worked with. Alex and his team did a very professional install on my roof. During the install, I am glad I was home to discuss the electrical hookup portion and equipment placement on the side of the house etc. Sunergy offers top rated Tier 1 Solar Panels and highly recommends individual inverters. Rob also put the highest capacity system that would fit on my roof. I've been using the System since early June and I haven't paid a dime to EverSCAM, also due to the system size, I am building up credits for use during the winter if needed. Give Sunergy a call at a minimum and get a quote! You will probably choose them!
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CraZySteve - NH, 3 weeks ago
From initial Sales visitation to Completion of project, Rob and his team where great! Rob was the sales consultant I worked with. Alex and his team did a very professional install on my roof. During the install, I am glad I was home to discuss the electrical hookup portion and equipment placement on the side of the house etc. Sunergy offers top rated Tier 1 Solar Panels and highly recommends individual inverters. Rob also put the highest capacity system that would fit on my roof. I've been using the System since early June and I haven't paid a dime to EverSCAM, also due to the system size, I am building up credits for use during the winter if needed. Give Sunergy a call at a minimum and get a quote! You will probably choose them!
4.79 45 Reviews
South facing , over 1 month
We put in our solar panels 2 years ago and have been thrilled! Starting the process was easy - Artie gave us real answers, times and numbers without pressuring us. We looked at 2 other companies and felt like we were being sold something without clear numbers. The installation process was easy and we have loved getting zero balance electric bills almost all year!! It was a great decision and NEC Solar made it easy to implement!
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South facing , over 1 month
We put in our solar panels 2 years ago and have been thrilled! Starting the process was easy - Artie gave us real answers, times and numbers without pressuring us. We looked at 2 other companies and felt like we were being sold something without clear numbers. The installation process was easy and we have loved getting zero balance electric bills almost all year!! It was a great decision and NEC Solar made it easy to implement!
4.73 292 Reviews
Chris B, 2 weeks ago
Had all my questions answered by Todd, and smoothly moved into the phases of installing and becoming operational. The wait between inspections and "turn-on" was longer than I had hoped, but NECE had warned me of the possible delay due to local inspections and Electric Co. delays. Finally turned on and very happy with the project. Thank you Todd and NECE for providing me with a great system for my home.
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Average cost (5kW system)
$21,450 ($4.29 per watt)
Chris B, 2 weeks ago
Had all my questions answered by Todd, and smoothly moved into the phases of installing and becoming operational. The wait between inspections and "turn-on" was longer than I had hoped, but NECE had warned me of the possible delay due to local inspections and Electric Co. delays. Finally turned on and very happy with the project. Thank you Todd and NECE for providing me with a great system for my home.
4.70 87 Reviews
DannoJac, 5 days ago
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, 5 days ago
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.
4.64 19 Reviews
Yahaira , over 1 month
As a first-time home buyer I was filled with lots of emotions and deciding to go solar was made extremely easy thanks to Adam and the team at Premier Improvements. Not only did they answer ALL my questions, they took care of everything from setting up the inspection with the city inspector to removing a large pine tree. At every step of the process I knew I could reach out to Adam with any questions and he would quickly respond. Incredible communication! Without a doubt, I would highly recommend going solar with them. I thought solar would be a challenge because I've heard horror stories from people, and after doing my research I cannot be more grateful for choosing Premier Improvements. They're honest, straightforward, and incredibly helpful! In fact, I just texted Adam for clarification on next steps and he just answered. Go with Premier Improvements!!!!
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Yahaira , over 1 month
As a first-time home buyer I was filled with lots of emotions and deciding to go solar was made extremely easy thanks to Adam and the team at Premier Improvements. Not only did they answer ALL my questions, they took care of everything from setting up the inspection with the city inspector to removing a large pine tree. At every step of the process I knew I could reach out to Adam with any questions and he would quickly respond. Incredible communication! Without a doubt, I would highly recommend going solar with them. I thought solar would be a challenge because I've heard horror stories from people, and after doing my research I cannot be more grateful for choosing Premier Improvements. They're honest, straightforward, and incredibly helpful! In fact, I just texted Adam for clarification on next steps and he just answered. Go with Premier Improvements!!!!
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.
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
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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
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