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Rhode Island has two main solar incentives — the REF rebate ($0.65/W upfront) and the REG program ($0.27/kWh for 15 years). They stack together, but understanding how each works changes your payback by thousands.
$5,000
REF Rebate
max upfront
$0.27/kWh
REG Rate
15 years locked
80%
Net Metering
retail credit
$0
Fed ITC
expired 2025
Yes — REF and REG stack. The REF (Renewable Energy Fund) gives you an upfront rebate of $0.65/W (max $5,000) to reduce your installation cost. The REG (Renewable Energy Growth) program pays you $0.2723/kWh for every kilowatt-hour your system produces for 15 years. They are administered by different agencies (Commerce RI vs Rhode Island Energy) and are independent programs. Most homeowners should apply for both. The question is whether to choose REG or standard net metering as your compensation mechanism — use our calculator below to compare.
Rhode Island offers two distinct state solar incentives. They work differently, are run by different agencies, and can be combined. Here's what each does.
Administered by Commerce RI
The REF is a one-time upfront rebate that reduces your installation cost. It pays $0.65 per watt, capped at $5,000 for residential systems. For a typical 8 kW system, that's the full $5,000 cap (8,000W × $0.65 = $5,200, capped).
If you add a battery, there's an additional $2,000 battery adder. So a solar + battery system can receive up to $7,000 in REF funds.
Administered by Rhode Island Energy
The REG is a performance-based incentive that pays you a fixed rate per kilowatt-hour for every unit of electricity your solar system produces. The 2026 residential rate is $0.2723/kWh, locked for 15 years at enrollment.
During the REG term, the REG tariff replaces net metering as your compensation mechanism. After the 15-year term, you revert to standard net metering.
REF reduces your upfront cost; REG provides guaranteed income for 15 years. Both programs can be used together.
These programs solve different problems. REF lowers your cost; REG guarantees your income. Here's how they compare on every dimension that matters.
| Feature | REF (Rebate) | REG (Production) |
|---|---|---|
| Full Name | Renewable Energy Fund | Renewable Energy Growth |
| Administered By | Commerce RI | Rhode Island Energy |
| Payment Type | One-time upfront rebate | Per-kWh production payments |
| Amount | $0.65/W (max $5,000) | $0.2723/kWh (PY2026) |
| Duration | Instant (at interconnection) | 15 years (residential) |
| Battery Bonus | $2,000 adder | No battery bonus |
| Enrollment | Open year-round (first-come) | Annual April window |
| Capacity Limit | Budget-limited ($5.8M/yr) | MW cap per program year |
| Stacks With | REG, net metering, tax exemptions | REF, net metering (after term), tax exemptions |
| Impact on Net Metering | None — NM continues normally | Replaces NM during 15-year term |
| Best For | Reducing upfront cost | Maximizing long-term income |
Both paths include the REF upfront rebate. The real question is your compensation mechanism: REG's fixed $0.27/kWh for 15 years, or standard net metering at 80% retail for 25 years? Adjust your system size and utility below to see the 25-year comparison.
Compare your 25-year returns under each RI incentive path
Net metering wins by $5,900 over 25 years
With Rhode Island Energy's high rate of $0.29/kWh and 3% annual increases, net metering's rising value eventually overtakes REG's fixed $0.27/kWh rate.
REF stacks with both paths — you get the $5,000 upfront rebate either way.
Year 1 Income
$2,642/yr
Payback
7.4 years
25-Year Total
$88,364
Year 1 Income
$2,448/yr
Payback
8.0 years
25-Year Total
$94,264
Assumes 3% annual utility rate escalation. REG rate is fixed at enrollment.
REG annual income is constant ($0.2723/kWh). Net metering rises with utility rates.
The Bottom Line
REF ($0.65/W upfront rebate) stacks with both paths — it reduces your Day 1 cost by $5,000 regardless of which compensation you choose.
REG ($0.27/kWh for 15 years) gives you predictable, bankable income. It's especially valuable if you finance with a loan because lenders can underwrite the guaranteed cash flow.
Net metering (80% retail) has no enrollment cap, benefits from rate increases, and is always available. If utility rates rise faster than 3%/year, net metering improves relative to REG.
Estimates based on RI averages (1,213 kWh/kW annual production). Actual values depend on system design, shading, and orientation. REG rate locked at enrollment for 15 years (residential). Net metering at 80% retail (post-April 2023 systems). Rate escalation assumed at 3%/year. Federal ITC (Section 25D) expired Dec 31, 2025. REF and REG are administered by different agencies and stack independently.
The most common confusion: "If I get REG, do I lose REF?" No. Here's the stack order and timeline for a typical 8 kW system.
Day 0: Installation
System installed and interconnected. Cost: ~$24,480 for 8 kW.
Week 2: REF Rebate Applied
Commerce RI processes REF rebate: $5,000 returned. Your net cost drops to ~$19,480. If battery installed, add $2,000.
Month 1: First REG Payment
Rhode Island Energy begins paying $0.2723/kWh for all production. ~$220/month in summer, ~$100/month in winter.
Years 1-15: REG Income
Fixed $2,643/year in REG payments. Total over 15 years: ~$39,645. Rate never changes regardless of utility rate.
Year 16: Revert to Net Metering
REG term ends. System automatically switches to standard net metering at 80% retail rate. By Year 16, utility rates will likely be ~$0.43/kWh (at 3% inflation), making net metering very valuable.
Years 16-25: Net Metering
Net metering at elevated future rates. Combined with the REF rebate and 15 years of REG, your total 25-year return exceeds $75,000 on a ~$24,500 system.
The "best" path depends on your utility, financing, and whether you can get into REG before capacity fills. Here are the most common situations.
You can afford the full cost, so the REF rebate is nice but not critical. REG's guaranteed $2,643/yr for 15 years ($39,645 total) far exceeds what net metering alone provides in the same period.
REG's predictable income helps offset loan payments from Day 1. Lenders also view REG enrollment favorably because the cash flow is guaranteed and contractual.
If you can't get into REG (capacity filled, missed April deadline), net metering + REF is still a strong path. With RI Energy at $0.29/kWh and rising, your returns grow annually.
At $0.35/kWh (highest in RI), net metering value exceeds the fixed REG rate of $0.27/kWh from Year 1 — and it only grows. REG would actually lower your annual income.
The $2,000 REF battery adder only comes through the REF program. ConnectedSolutions ($225/kW summer DR) works with both paths. Apply for REF regardless of your compensation choice.
The federal residential solar ITC (Section 25D) expired December 31, 2025.
Without the federal ITC, Rhode Island's state programs are the primary financial drivers for going solar. A properly stacked REF + REG combination can still deliver 8-10 year payback despite the loss of the 30% credit.
The application processes are separate. Your installer typically handles both, but here's what to know.
REF Rebate Deep Dive
Complete guide to applying for the $5,000 REF rebate
REG Program Guide
$0.27/kWh guaranteed rate — enrollment, eligibility, stacking
All RI Solar Incentives
Every active (and dead) incentive in one place
RI Net Metering Guide
80% retail credit, caps, and how it works in 2026
RI Solar Cost Guide
What solar really costs in Rhode Island in 2026
Cash vs Loan vs Lease
Which financing makes sense with no federal ITC
RI Tax Exemptions
Sales tax + property tax exemptions for solar
ConnectedSolutions
$225/kW summer demand response for battery owners
Solar Without ITC
Why solar still works without the 30% federal credit
Get a free solar quote from a certified RI installer. We'll help you navigate both programs and maximize your 25-year return.