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Rhode Island changed its net metering rules in April 2023. New systems get 80% of the retail rate for exported energy — not the full 1:1 you may have heard about. Here is exactly what that means for your wallet, how it stacks with REG, and why RI solar still pencils out strong in 2026.
Systems installed after April 15, 2023 receive credits at 80% of the retail rate for exported energy. With RI Energy at $0.29/kWh, that means an effective credit of $0.232/kWh. Energy you consume on-site still offsets at the full $0.29/kWh rate. Combined with the REG program ($0.2723/kWh for every kWh produced), an 8 kW system generates approximately $5,090/year in total value. Net metering is protected through 2039 — install now and your terms are locked in.
Net metering lets you send excess solar energy back to the grid and receive credits on your electric bill. Rhode Island uses a modified version where the credit rate depends on when your system was interconnected.
Your solar panels convert sunlight into electricity. It first powers your home loads — lights, HVAC, appliances. Any surplus is automatically exported to the grid through your bidirectional meter.
For post-April 2023 systems, each exported kWh earns a credit at 80% of the retail rate ($0.232/kWh with RI Energy). Pre-April 2023 systems get full 1:1 retail credits ($0.29/kWh).
Excess credits accumulate from month to month automatically. Spring and summer overproduction is banked to offset higher winter bills when your panels produce less.
At the end of the billing year (March for RI Energy), any remaining excess credits are paid out at the avoided cost rate (~$0.03-$0.05/kWh). Size your system to minimize excess at true-up.
Key Distinction: Self-Consumed vs. Exported
The 80% reduction only applies to energy you export to the grid. Energy your home consumes directly from the panels (approximately 35% of production) still offsets at the full $0.29/kWh retail rate. This means the effective blended value of your solar is higher than $0.232/kWh — it is closer to $0.25/kWh when accounting for self-consumption.
On April 15, 2023, Rhode Island reduced the net metering export credit from 100% to 80% of the retail rate for new system interconnections. Here is the before-and-after breakdown.
For an 8 kW system on RI Energy, the difference between 1:1 and 80% credits is approximately $366/year. Over 25 years, that is roughly $9,150 in reduced export credit value. However, the REG program more than compensates: it adds ~$2,642/year for 15 years. Even at 80% credits, RI solar economics remain strong.
Annual difference
-$366
REG compensates
+$2,642/yr
Net result
Still strong
Rhode Island limits net-metered systems to 125% of your annual on-site electricity consumption. This prevents massive oversizing while allowing a reasonable buffer.
Your annual electricity consumption is determined from your utility bills. A typical RI home uses 7,000-9,000 kWh/year.
Example: 8,000 kWh/year
Your solar system can produce up to 125% of that annual usage. This provides headroom for an EV, heat pump, or future load growth.
8,000 x 1.25 = 10,000 kWh max
An 8 kW system in RI produces approximately 9,700 kWh/year. That fits within the 125% cap for most homes and leaves room for growth.
8 kW system = 9,700 kWh/year
Planning Tip: Size for the Future
If you are planning to add an EV or heat pump, ask your installer to account for the future load increase when sizing your system. The 125% cap is based on your current usage, but you can request a higher cap if you can demonstrate planned electrification. This is especially important in RI where many homes are switching from oil heat to heat pumps — which can add 3,000-5,000 kWh/year of electricity demand.
Rhode Island has three electric utilities with different net metering terms. RI Energy serves approximately 95% of customers. Pascoag and Block Island are small municipal utilities that still offer full 1:1 retail credits.
| RI Energy | Pascoag | Block Island | |
|---|---|---|---|
| Avg rate/kWh | $0.29 | $0.26 | $0.35 |
| Credit rate (new) | 80% retail | 1:1 retail | 1:1 retail |
| Effective credit | $0.232/kWh | $0.26/kWh | $0.35/kWh |
| Minimum bill | $7.00 | $5.00 | $10.00 |
| True-up month | March | Annual | Annual |
| ConnectedSolutions | Yes | No | No |
| Annual value (8 kW) | $2,448 | $2,523 | $3,396 |
| Territory | ~95% of RI customers | Pascoag village (Burrillville) | Block Island (New Shoreham) |
~95% of RI customers
$0.29/kWh
$0.232/kWh
$7.00
$2,448
Formerly National Grid RI, acquired by PPL Corporation 2022
Pascoag village (Burrillville)
$0.26/kWh
$0.26/kWh
$5.00
$2,523
Municipal utility — still offers full 1:1 retail credits
Block Island (New Shoreham)
$0.35/kWh
$0.35/kWh
$10.00
$3,396
Highest rates in RI. Island utility connected via submarine cable.
Block Island: Highest Value Net Metering in New England
Block Island Power Company charges $0.35/kWh — the highest residential rate in Rhode Island — and offers full 1:1 retail net metering. An 8 kW system there would produce approximately $3,396/year in net metering value alone. If you own property on Block Island, solar is one of the highest-ROI investments available.
Rhode Island offers virtual net metering for municipalities and Community Remote Net Metering (CRNM) for community solar subscribers. These programs extend solar access to renters, condo owners, and anyone who cannot install rooftop panels.
Available for municipalities and public entities. A city or town can install solar at one location and allocate credits to multiple municipal accounts — schools, fire stations, town hall. Credits are distributed based on percentage allocation.
Subscribe to a share of a community solar farm and receive bill credits without installing panels on your property. The CRNM program has a 275 MW cap with CRNM v2 (40 MW additional) under development.
CRNM v2: 40 MW New Cap Under Development
The RI PUC is developing CRNM v2, which will add a 40 MW cap for new community solar projects. This is expected to launch in 2026-2027 and will expand community solar options for RI residents. The original 275 MW cap is nearly fully subscribed.
How does Rhode Island net metering compare to neighboring states? Here is an honest side-by-side of the three southern New England states.
| Feature | Rhode Island | Massachusetts | Connecticut |
|---|---|---|---|
| Credit rate | 80% retail (new systems) | 1:1 retail (Class I) | Transitioning to tariff |
| Avg electric rate | $0.29/kWh | $0.28/kWh | $0.30/kWh |
| Effective credit | $0.232/kWh | $0.28/kWh | Varies (declining) |
| Annual cap | 125% of consumption | No cap | No cap |
| Incentive stacking | REG (15-year payments) | SMART ($0.03/kWh) | No equivalent program |
| Protected until | 2039 | Grandfathered | TBD |
80% retail (new systems)
$0.232/kWh
125% of consumption
REG (15-year payments)
1:1 retail (Class I)
$0.28/kWh
No cap
SMART ($0.03/kWh)
Transitioning to tariff
Varies (declining)
No cap
No equivalent program
Honest Assessment: RI vs MA Net Metering
Massachusetts has a stronger net metering policy on paper (1:1 retail, no cap). But Rhode Island compensates with the REG program, which pays $0.2723/kWh for all production for 15 years — separate from net metering. When you add REG + net metering, RI total annual value per kW is competitive with MA SMART + net metering. The 2039 protection date also provides stronger long-term certainty than MA, where DPU proceedings could alter net metering rules.
The Renewable Energy Growth (REG) program and net metering are completely separate income streams. You receive both simultaneously — this is what makes RI solar economics so strong even with the 80% net metering reduction.
15-year guaranteed contract at enrollment rate. Paid monthly by RI Energy. Rate is locked for the full 15 years.
Self-consumed solar offsets at full $0.29/kWh. Exported solar earns 80% credit ($0.232/kWh). Blended rate is higher than $0.232.
REG
~$2,642
Net Metering
~$2,448
Annual Total
~$5,090
REG and net metering are completely separate. REG pays for production. Net metering credits you for grid exports and offsets your bill for self-consumed energy.
Rhode Island law guarantees net metering terms through 2039 for systems already interconnected. This is one of the longest protection periods in the country and provides significant certainty for solar investors.
Once your system is interconnected under the current rules, those terms are locked in for the protection period. Future legislative changes to net metering will not affect your existing system.
RI law protects net metering through 2039. For a system installed in 2026, that means at least 13 years of guaranteed net metering terms — well within a typical solar payback period.
Other states (like Nevada and California) have retroactively reduced net metering rates, blindsiding solar customers. RI protection prevents this, making your ROI calculation reliable for the long term.
2026
Install today
2028
Year 2
2031
REG year 5
2035
Year 9
2039
NM protected
2041
REG ends (yr 15)
Why Lock In Now?
The current 80% credit rate could be reduced further in future rate proceedings. The REG PY2026 ceiling price ($0.2723/kWh) may also decline in PY2027. Systems interconnected under today's rules lock in today's terms. The longer you wait, the less favorable your locked-in terms may be.
Real breakdown for a typical Rhode Island home with RI Energy service and an 8 kW solar system under current (post-April 2023) net metering rules.
Before Solar
$245
per month (RI Energy)
After Solar (8 kW)
$41
minimum bill + fees
Monthly Savings
$204
$2,448 annually (NM only)
Plus REG income: In addition to the net metering savings shown above, you also receive approximately $220/month ($2,642/year) from the REG program. This is a separate check from RI Energy — it does not appear on your electric bill. Total combined monthly value: approximately $424/month.
Important: The federal residential solar tax credit (Section 25D) expired December 31, 2025. There are $0 in federal tax credits for homeowner cash or loan solar purchases in 2026. However, systems installed through third-party financing (PPA/lease) may still benefit from the Section 48/48E commercial ITC claimed by the system owner. RI state incentives (REG, REF, net metering, tax exemptions) are unaffected.
Answers to the most common questions about net metering in Rhode Island.
For systems installed after April 15, 2023, Rhode Island Energy credits excess solar at 80% of the retail rate. With the current average rate of $0.29/kWh, that means an effective credit of approximately $0.232/kWh. Self-consumed solar (used on-site) still offsets at the full retail rate. Systems installed before April 15, 2023 keep their 1:1 full retail rate credits (grandfathered). The two municipal utilities — Pascoag and Block Island Power — still offer 1:1 retail credits.
On April 15, 2023, Rhode Island reduced the export credit rate from 100% (1:1 retail) to 80% of the retail rate for new interconnections. This 20% reduction applies only to the excess energy you send back to the grid — energy you consume on-site still offsets at the full retail rate. Systems already interconnected before April 15, 2023 are grandfathered and continue receiving full 1:1 credits. The change aimed to balance grid costs as solar adoption increased.
Yes. The REG (Renewable Energy Growth) program and net metering are completely separate income streams. REG pays you for every kWh your system produces, regardless of whether you use the energy or export it. Net metering credits you for excess energy sent to the grid. For an 8 kW system, this stacking produces approximately $2,641/year from REG plus approximately $2,430/year from net metering savings — a combined value of about $5,071/year.
Yes. Rhode Island law protects net metering through 2039 for systems already interconnected. If you install solar today and interconnect under the current rules, your net metering terms are locked in for the duration of the protection period, even if the legislature changes the rules for new systems in the future. This grandfathering provision provides long-term certainty for your solar investment.
Excess net metering credits roll over from month to month throughout the billing year. At the end of the billing year (March for RI Energy), any remaining excess credits are paid out at the avoided cost rate, which is substantially lower than the retail rate — typically $0.03-$0.05/kWh. For this reason, you should size your system to roughly match your annual consumption (the 125% cap helps prevent major oversizing). The avoided cost payout makes sense only as a safety valve, not a strategy.
Yes. Net metering is a Rhode Island state policy completely independent of the federal tax credit. The Section 25D residential solar tax credit expired December 31, 2025 — there are $0 in federal tax credits for homeowner cash or loan purchases. However, RI net metering, the REG program, the REF rebate, and all state tax exemptions remain fully active. Systems installed through third-party financing (PPA/lease) may still benefit from the Section 48 commercial ITC claimed by the system owner.
Explore our comprehensive Rhode Island solar and energy guides.
Complete overview of solar in Rhode Island — costs, incentives, payback timelines.
Updated pricing data, installer comparisons, and financing options post-ITC.
$0.2723/kWh for 15 years. How to enroll, rate history, and stacking strategies.
Subscribe to community solar — ideal for renters, condos, and shaded roofs.
7% sales tax exemption, 20-year property tax exemption, and more.
Personalized solar estimate for your Rhode Island home.
With REG stacking, state tax exemptions, and net metering protected through 2039, Rhode Island solar delivers strong returns even without the federal tax credit. Get your personalized estimate today.
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