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Get a Free QuoteRhode Island changed its net metering rules in April 2023. New systems get the current tariff-specific renewable credit 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.
Governor McKee signed HB-5580on June 27, 2025, which prohibits Rhode Island Energy from denying or delaying net metering interconnection based on a customer's historical electricity consumption. Previously, RI Energy could reject applications for systems sized above a customer's prior 12-month usage — penalizing new homeowners, renovators, and those adding EVs or heat pumps. Under HB-5580, the 125% annual production cap still applies, but the utility can no longer use consumption history as a gate to block the application itself.
What this means for you: If you are adding solar to a home you recently purchased, recently electrified your heating, or plan to add an EV, you can now size your system for your expected future consumption without RI Energy rejecting your net metering application. This is especially important for whole-home electrification projects pairing solar + heat pumps + EV chargers.
RI Energy’s October 2026 tariff publishes a renewable net-metering credit of $0.27553/kWh. Energy consumed on-site avoids the current variable import charge of $0.32303/kWh; the monthly customer charge is not avoidable. RE Growth is an alternative enrollment path, so its production payments are not added to net-metering credits in this model.
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 the current tariff-specific renewable credit ($0.27553/kWh with RI Energy). Pre-April 2023 systems get full 1:1 retail credits ($0.30/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
Exported energy receives the published tariff credit. Energy your home consumes directly from the panels (approximately 35% of production in this illustration) avoids the variable import charge. Fixed monthly charges remain on the bill.
On April 15, 2023, Rhode Island reduced the net metering export credit from 100% to the current tariff-specific renewable credit 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 tariff-specific credits is approximately $300/year. Over 25 years, that is roughly $7,500 in reduced export credit value. However, the REG program more than compensates: it adds ~$3,062/year for 15 years. Even at tariff-specific credits, RI solar economics remain strong.
Annual difference
-$300
REG compensates
+$3,062/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) | tariff-specific renewable credit | 1:1 retail | 1:1 retail |
| Effective credit | $0.27553/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) | $2,835 | $2,523 | $3,396 |
| Territory | ~95% of RI customers | Pascoag village (Burrillville) | Block Island (New Shoreham) |
~95% of RI customers
$0.29/kWh
$0.27553/kWh
$7.00
$2,835
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 | tariff-specific renewable credit (new systems) | 1:1 retail (Class I) | Transitioning to tariff |
| Rep utility rate | $0.34/kWh (Rhode Island Energy) | $0.38/kWh (Eversource Eastern MA) | $0.25/kWh (Eversource CT) |
| Effective credit | $0.27553/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 |
tariff-specific renewable credit (new systems)
$0.27553/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 RE Growth tariff and net metering are alternative Rhode Island Energy enrollment paths. Compare each path using its own effective date and rules; do not add their values for the same system and period.
Rhode Island Energy’s current program materials describe projects as enrolling in either RE Growth or Net Metering. The values below are alternatives for comparison, not simultaneous revenue streams.
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 tariff-specific credit ($0.27553/kWh). Blended rate is higher than $0.27553.
A proposal must identify the selected enrollment path and model only that path. Ask Rhode Island Energy to confirm eligibility and the applicable tariff before relying on a savings projection.
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 tariff-specific credit rate could be reduced further in future rate proceedings. The REG PY2026 ceiling price ($0.3155/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
$205
per month (RI Energy)
After Solar (8 kW)
$7
minimum bill + fees
Monthly Savings
$198
$2,835 annually (NM only)
Alternative RE Growth path: A qualifying 1–15 kW project enrolled for Program Year 2026 uses the 31.55¢/kWh performance-based incentive for 15 years. Do not add that production payment to the net-metering savings shown above for the same system and period.
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 eligible Rhode Island Energy residential systems, the October 1, 2026 renewable net-metering credit is $0.27553/kWh. Self-consumed energy avoids applicable variable import charges; fixed charges remain. Grandfathering and municipal-utility terms depend on interconnection date and the governing tariff and must be verified separately.
For post-April 15, 2023 interconnections, use the current tariff-specific renewable credit rather than a fixed percentage of the all-in retail rate. Self-consumption avoids applicable variable import charges, while fixed charges remain. Verify grandfathering from the interconnection date and tariff.
No. Rhode Island Energy describes eligible projects as enrolling in either RE Growth or Net Metering. Model the two compensation paths separately and do not add REG production payments to net-metering export credits for the same system and period.
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.
$0.3155/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.
Compare the current net-metering tariff with the separate RE Growth path, then verify tax treatment and project eligibility before relying on a savings estimate.
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