Summary of Rhode Island solar incentives 2020
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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 2020, 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 6kW home solar system generates about 10,000 kwh annually, you can expect bill credits and payments of $2500 annually for a term length of 15-20 years! Even though the cash portion of the PBI is taxable income (meaning you’ll get a 1099), 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 2020, the grant amount is up to $850 per kilowatt of installed solar, up to a maximum of $7,000. On an average 6kW 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 2020
8.0kW
Solar panel cost calculator
Best 10 solar companies in Rhode Island
8 solar companies in Rhode Island provide pricing on SolarReviews. Here are the best rated companies near you.
4.80 33 Reviews
Latest review
Melissa Demelo, 2 weeks ago
Rooftop Power is an excellent company to go through for solar they were very informative and helped our family answering all questions and concerns at any time. The installation team were wonderful Mark and Tanner went above and beyond to make sure our roof and panels were done to perfection I highly recommend them!
Read more
Latest review
Melissa Demelo, 2 weeks ago
Rooftop Power is an excellent company to go through for solar they were very informative and helped our family answering all questions and concerns at any time. The installation team were wonderful Mark and Tanner went above and beyond to make sure our roof and panels were done to perfection I highly recommend them!
4.76 286 Reviews
Latest review
Shame123, over 1 month
Go anywhere else. In short, do your homework. This company over the last hear has become a hot mess. The people in charge of running the projects through to management have a lot to learn and are in over their head. I have spent hours and hundreds of emails chasing them down. Also I was told to pay before the project was completed and meters were set up, being told the project was completed, it was not and 2 months later I have missed the entire summer months for SMART Credits with no recourse. I used them 5 years ago, and they were great, today not even close up through to CEO. If you want to overpay, be treated like dirt, and be lied to throughout the process then yes, select these people. If you want to just work with someone who is honest, knows what they are doing and will see it through to the end, choose anyone else.
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Average cost (5kW system)
$21,450 ($4.29 per watt)
Latest review
Shame123, over 1 month
Go anywhere else. In short, do your homework. This company over the last hear has become a hot mess. The people in charge of running the projects through to management have a lot to learn and are in over their head. I have spent hours and hundreds of emails chasing them down. Also I was told to pay before the project was completed and meters were set up, being told the project was completed, it was not and 2 months later I have missed the entire summer months for SMART Credits with no recourse. I used them 5 years ago, and they were great, today not even close up through to CEO. If you want to overpay, be treated like dirt, and be lied to throughout the process then yes, select these people. If you want to just work with someone who is honest, knows what they are doing and will see it through to the end, choose anyone else.
4.56 14 Reviews
Latest review
Barret, over 1 month
Our experience with NEC Solar 100% positive. From sales to install and all permitting processes, NEC staff were available and responsive to our questions every step of the way. We would recommend working with this company if you are considering solar and looking forward to monthly savings!
Read more
Latest review
Barret, over 1 month
Our experience with NEC Solar 100% positive. From sales to install and all permitting processes, NEC staff were available and responsive to our questions every step of the way. We would recommend working with this company if you are considering solar and looking forward to monthly savings!
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.
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.
Read more
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.
3.75 1 Reviews
Latest review
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
Read more
Latest review
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
3.75 1 Reviews
Latest review
Anonymous, over 1 month
This company is ethical and has the integrity to take your solar project from the start to the finish line, while holding your hand every step of the way and ensuring you understand what is happening and how the process works. <br /><br />I was very impressed with Joe's ability to explain the benefit of solar, and his passion for protecting the environment. I have already referred 3 friends to Nuera Solar, which Nuera Solar paid me a 'referral fee' for doing so on each friend.<br /><br />If you're looking to go solar in New England, look no further than Nuera Solar
Read more
Latest review
Anonymous, over 1 month
This company is ethical and has the integrity to take your solar project from the start to the finish line, while holding your hand every step of the way and ensuring you understand what is happening and how the process works. <br /><br />I was very impressed with Joe's ability to explain the benefit of solar, and his passion for protecting the environment. I have already referred 3 friends to Nuera Solar, which Nuera Solar paid me a 'referral fee' for doing so on each friend.<br /><br />If you're looking to go solar in New England, look no further than Nuera Solar
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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