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Yes — Rhode Island has 34.18¢/kWh all-in at 600 kWh for RI Energy’s October 2026 A-16 fixed-LRS benchmark, the RE Growth Small Solar I paying 31.55¢/kWh for 15 years, a $5,000 REF rebate ($0.65/W), and both 7% sales tax and 20-year property tax exemptions. RE Growth and net metering are alternative enrollment paths; this page models them separately. There is no federal residential tax credit in 2026.
RI Energy Rate
34.18¢/kWh
A-16 all-in at 600 kWh
RE Growth Small Solar I
31.55¢/kWh
15-year PY2026 term
REG-Path Payback
~6.8 yrs
Illustrative, no NM stacking
NM-Path Payback
~5.6 yrs
Illustrative REF + NM path
Federal Residential Solar Tax Credit (Section 25D) — Expired December 31, 2025
Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. All numbers on this page reflect this reality. Rhode Island's state incentives make solar worth it anyway.
Here is exactly how the numbers work for the most common residential solar system size in Rhode Island — no rounding, no optimism, no federal credit assumed.
REG payments ($0.3155/kWh × 9,600 kWh)
15-20 year guarantee
Net-metering path (27.553¢ export credit; 50% exported illustration)
Alternative to RE Growth; includes self-consumption at the variable import rate
Property tax exemption (20-year)
RI General Laws exemption
Enrollment Guard
Never add REG payments and net-metering credits for the same system and period
RE Growth Path
~6.8 yrs
REG production payments + property tax savings; no REF or net-metering stacking
REF + Net-Metering Path
~5.6 yrs
REF upfront rebate + current tariff credit + property tax savings
Illustrative only; verify your tariff, export share, eligibility, and installed price
Six reasons Rhode Island ranks among the top states for solar return on investment — even in a post-federal-credit environment.
Rhode Island Energy charges $0.30/kWh — 48% above the national average. Block Island residents pay $0.35/kWh. Every kilowatt-hour your system generates is worth more here than almost anywhere in the country.
The Renewable Energy Growth program pays a fixed rate for every kWh your system generates — separate from net metering. An 8 kW system earns $2,592/year. Enrollment opens April 1. This program is what makes RI solar exceptional.
Commerce RI's Renewable Energy Fund pays $0.65/W up to $5,000 for residential solar. Add a battery storage system and get an extra $2,000. REF does NOT stack with REG — the two are mutually exclusive per Commerce RI, so you pick one track. REF still stacks with net metering and tax exemptions.
Rhode Island exempts all solar equipment and labor from the 7% sales tax — saving $1,736 on a typical 8 kW system. Solar also does not increase your property tax assessment for 20 years under RI General Laws.
Battery demand-response value depends on current program eligibility and dispatch terms. Treat it separately from the selected solar tariff path; do not use it to imply concurrent RE Growth and net-metering value.
If you lease solar through a financing company, the company can claim the Section 48/48E commercial ITC (30%+ of system cost) for projects beginning construction before July 4, 2026. This can lower your lease payment. The homeowner does not claim the credit — the financing company does.
Rhode Island solar is compelling for most homeowners, but there are situations where the economics weaken significantly.
Section 25D expired December 31, 2025. There is no federal tax credit for cash or loan purchases. This increases the upfront cost vs. prior years. Rhode Island state incentives partially compensate, but the math is different than 2022-2025.
REG enrollment opens April 1 each year on a first-come-first-served basis with a 40 MW annual capacity cap. Not all applicants are guaranteed enrollment. If you miss a round, you wait until the next year. Confirm REG availability before signing a solar contract.
RI Energy’s October 2026 renewable net-metering credit is $0.27553/kWh. It is a tariff-specific export credit, not a percentage derived from the all-in retail rate. The official addendum still marks the excess renewable credit as to be determined.
Heavy tree shading (over 30%) significantly reduces production and extends payback. North-facing roofs produce 25-35% less than south-facing equivalents. Microinverters or power optimizers help with partial shading but add cost. A site survey is essential before committing.
Any roof older than 15 years should be replaced before solar installation. A roof replacement adds $8,000-$18,000 depending on size and material. This cost extends payback significantly. However, solar can be installed after a new roof at no extra premium.
While solar adds resale value (RI property tax exemption for 20 years), you capture the most financial benefit over a longer period. If you plan to sell within 3-4 years, the upfront payback math is tighter. REG contracts are transferable to a new owner.
No other New England state has this combination of incentives active simultaneously in 2026.
31.55¢/kWh × 15 years
~$45,435 total
Details$0.65/W up to $5,000
+$2,000 battery adder
Detailstariff-specific renewable credit rate
$2,873/yr for 8 kW
Details7% off all equipment/labor
$1,736 saved on 8 kW
Details20-year exemption
$362/yr average
Details$225/kW summer
$2,250/yr for 10 kWh battery
Details$0 for homeowners
Expired Dec 31, 2025
DetailsFinancing method dramatically affects who captures the REG income and REF rebate — the two most valuable RI-specific incentives.
| Cash Purchase | Solar Loan | Lease / PPA | |
|---|---|---|---|
| Upfront Cost | $23,064 before any eligible REF | $0-$500 | $0 |
| You Own System | Yes | Yes | No |
| REG Income Kept By | You, only on RE Growth path | You, only on RE Growth path | Financing company |
| REF Rebate | Only on eligible REF path | Only on eligible REF path | Financing company |
| Section 48 ITC | Not applicable | Not applicable | Financing company claims |
| Best For | Max lifetime savings | No upfront, own system | No upfront, no ownership desired |
Bottom line: For most RI homeowners, cash purchase or a solar loan delivers the best 25-year economics because you keep benefits under the selected RE Growth or eligible REF plus net-metering path. A lease or PPA may make sense if you cannot qualify for financing or want absolutely no upfront cost. See full financing comparison
Your electric rate determines how much net metering saves. All RI utilities qualify for REG, REF, and the state tax exemptions.
RI Energy
$0.29/kWh
Most of Rhode Island
48% above national average
Pascoag Utility District
$0.26/kWh
Burrillville area
Municipal utility, lower rate
Block Island Power
$0.35/kWh
Block Island only
Island grid premium — best NM value
$0 down. Fixed payments. Ownership option after year 5. No dealer fees. No prepayment penalty.
Solar can be worthwhile in Rhode Island, but the result is project-specific. Compare the PY2026 RE Growth tariff with a separate eligible REF-plus-net-metering path, then verify installed cost, production, load shape, financing, and tax treatment. Do not rely on a projection that combines those paths.
There is no defensible statewide payback without a project design and selected tariff path. A quote should model RE Growth separately from net metering, disclose the tariff effective date, and verify REF eligibility before calculating payback.
No. Section 25D — the 30% residential solar tax credit for homeowners — expired on December 31, 2025 and was repealed by the One Big Beautiful Budget Act signed July 4, 2025. Homeowners purchasing solar with cash or a loan receive $0 in federal tax credits. Third-party owned systems (PPA/lease) may allow the financing company to claim the commercial Section 48/48E credit for projects beginning construction before July 4, 2026.
The PY2026 RE Growth Small-Scale Solar I ceiling price is 31.55¢/kWh for a 15-year term; Small-Scale Solar II is 28.65¢/kWh for 20 years. Rhode Island Energy requires either RE Growth or Net Metering enrollment, so their values cannot be added for the same years. Verify the awarded tariff and current enrollment calendar.
Rhode Island has RE Growth, net metering, REF grants, tax provisions, and battery programs, but they are not one universal stack. RE Growth is an alternative to net metering, and Commerce RI prohibits pairing REF with RE Growth. Verify each program for the project.
Ownership and lease economics depend on contract terms and the selected RI tariff path. An owned project may use RE Growth, or eligible REF plus net metering, but cannot count all three. A third-party owner may retain tariff and federal benefits; compare the written proposals line by line.
Rhode Island Energy's ConnectedSolutions demand response program pays $225 per kilowatt of battery capacity per summer season. A 10 kWh battery typically earns $2,250/year in summer demand response payments, plus a smaller winter payment. Adding battery storage also qualifies for the $2,000 REF battery adder rebate. Combined, battery storage in RI can pay for itself in 4-5 years on top of the solar investment.
Block Island has an electricity rate of approximately $0.35/kWh due to its island grid — making solar economics even stronger there. Pascoag Utility District (in the Burrillville area) charges approximately $0.26/kWh. Most of Rhode Island is served by RI Energy at $0.30/kWh. All locations qualify for REG, REF, and the state tax exemptions.
Get a personalized estimate comparing RE Growth with eligible REF plus net-metering scenarios and exact payback period for your address.
How to enroll in the 31.55¢/kWh guaranteed payment program before April 1.
Read more$5,000 rebate + $2,000 battery adder — how to apply through Commerce RI.
Read moreCity-by-city pricing from $2.65-$3.20/W. Providence, Newport, Warwick and more.
Read moreWho keeps REG income? Who claims Section 48? Full financing comparison.
Read more7% sales tax + 20-year property tax exemption — combined $8,900+ in savings.
Read moreEarn $225/kW from RI Energy demand response. Qualified batteries and enrollment.
Read morePricing: NuWatt Energy RI installations, EnergySage Marketplace Q1 2026.
RI Energy rate: RI Energy residential tariff R-1, January 2026.
REG program: RI Public Utilities Commission, PY2026 ceiling price filings.
REF rebate: Rhode Island Commerce Corporation, Renewable Energy Fund grant program.
Tax exemptions: RI General Laws — property tax (20-year) and sales tax (7%) exemptions.
ConnectedSolutions: RI Energy demand response program, 2026 incentive rates.