Global Solar Project

Solar by state › Rhode Island

Home solar in Rhode Island

Rhode Island has some of the highest power prices in the country (about 28 cents/kWh), and homeowners can pick either net metering plus a state grant of $1.65/W (up to $14,500) or a 15-year REG contract that pays for every kWh.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

28.2¢average home price per kWh (EIA, August 2026)
Strong case for solarVery high electric rates, net metering for home systems, a state grant or a long-term REG payment, and no sales tax or property tax on home solar.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options

Net metering Net metering available

Rhode Island Energy credits the power you send back against your usage at the sum of the supply (last resort), distribution, transmission and transition per-kWh charges, which is most of the retail rate. Fixed customer charges still apply. For home systems of 25 kW or less, output above 100% of your use earns an 'excess' credit at the lower wholesale (ISO-New England) price, and systems this size are not limited by your past usage. The 2026 budget changes were aimed at large ground-mounted remote projects, not rooftop systems. Source

  • 2025-06-27: latest amendment to the net metering law in the posted statute (P.L. 2025, ch. 256/269)

Solar credits (SRECs) Limited

There is no SREC market for homes. Instead, the Renewable Energy Growth (REG) program pays a fixed price per kWh for all the power your system makes, under a long contract, instead of net metering. For the 2026-2027 program year the DG Board recommended 31.55 cents/kWh for 15 years (systems up to 15 kW DC) and 28.65 cents/kWh for 20 years (over 15 to 25 kW DC), with only 3 MW set aside for small solar. REG and the REF grant cannot be combined. Source

Rebates and incentives

Renewable Energy Fund (REF) Small-Scale Solar grant (Commerce RI)

$1.65 per watt, up to $14,500 per project (8.8 kW max funded); +$5,000 for a battery

Homeowners and micro businesses that own the system and use net metering; shade score (TSRF) 80% or more

open grant Source

Renewable Energy Growth (REG) Small Solar I and II

Recommended 31.55 cents/kWh for 15 years (up to 15 kW) or 28.65 cents/kWh for 20 years (15-25 kW), 2026-2027 program year

Rhode Island Energy customers with systems up to 25 kW DC; first come, first served; not with REF grant or net metering

open performance payment Source

Taxes

Property tax: Exempt: renewable energy systems used in homes and placed in service after 12-31-2015 are exempt from local property tax (RIGL 44-3-3(a)(48)).
Sales tax: Exempt: solar panels and other listed renewable energy products are exempt from the 7% sales tax (RIGL 44-18-30(57)). Source

Solar laws

  • Net metering law, RIGL 39-26.4 (2025). Sets how net metering credits work. Home systems of 25 kW or less are not limited by past usage; output over 100% of use earns credits at the wholesale price. Source
  • Solar easements, RIGL 34-40 (). Lets owners sign written solar easements to protect sunlight. Rhode Island has no law stopping HOAs from banning solar (bills in 2019 and 2023 did not pass). Source
  • Residential Solar Energy Disclosure and Homeowners Bill of Rights Act (2022). Requires solar sellers to give clear disclosures and gives buyers cancellation and lien protections. Source

Community solar

Limited: Rhode Island has community remote net metering, where subscribers get bill credits from a shared project, but capacity is small.

Timeline

  1. Home renewable energy systems placed in service after 2015 made exempt from property tax
  2. Residential Solar Homeowners Bill of Rights Act passes
  3. Latest net metering law amendments take effect
  4. DG Board recommends 2026-2027 REG small solar prices (31.55 / 28.65 cents/kWh)
  5. Federal 30% homeowner tax credit (25D) ends
  6. 2026-2027 REG program year starts (unverified)
  7. Commerce RI REF small-scale grant flyer revised: $1.65/W, $14,500 max

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options