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Get a Free QuoteRhode Island Energy's Rate A-16 TOU offers a $0.17/kWh peak-to-off-peak spread. Stack that with ConnectedSolutions at $225/kW and a 10 kWh battery can generate over $3,000/year in revenue. With Section 25D dead, this dual revenue stream is how RI batteries pay for themselves in under 4 years.
$0.17
TOU Spread (A-16)
$225/kW
ConnectedSolutions
$3,000+
Annual Battery Revenue
$0 ITC
25D Expired
Yes, if you are an RI Energy customer. Rhode Island Energy is the only RI utility offering both TOU rates (Rate A-16) and ConnectedSolutions demand response. A 10 kWh battery on Rate A-16 earns ~$550/year in TOU arbitrage plus ~$2,750/year from ConnectedSolutions = $3,300/year total revenue. At $10,000-$14,000 installed cost minus the $2,000 REF battery adder, payback is 2.5-3.6 years. Pascoag and Block Island customers do not have TOU rates or ConnectedSolutions, so batteries are backup-only (though Block Island's $0.35/kWh rate makes self-consumption extremely valuable).
The federal residential solar tax credit (Section 25D) expired December 31, 2025. Rhode Island homeowners now pay full price for solar and batteries with no federal tax break. The battery value equation has fundamentally shifted from tax savings to revenue generation.
While homeowners get $0 in federal tax credits, third-party financing companies can still claim the Section 48/48E commercial ITC (30%) on projects beginning construction before July 4, 2026. This makes PPA and lease agreements attractive because the financing company passes their ITC savings to you as a lower electricity rate. Battery-inclusive PPAs are emerging as a cost-effective option for RI homeowners who want to avoid upfront costs while still participating in ConnectedSolutions.
Rate A-16 is Rhode Island Energy's voluntary time-of-use rate for residential customers. You must opt in by contacting RI Energy. Here is exactly how the rate structure works and when to charge vs. discharge your battery.
Peak Rate
$0.35/kWh
1 PM - 7 PM weekdays
Off-Peak Rate
$0.18/kWh
All other hours + weekends/holidays
Spread
$0.17/kWh
Your battery earns this per kWh shifted
Peak Rate
$0.30-$0.32/kWh
7-11 AM & 5-9 PM weekdays
Off-Peak Rate
$0.18/kWh
All other hours + weekends/holidays
Spread
$0.12-$0.14/kWh
Lower spread, but dual morning/evening peaks
ConnectedSolutions is Rhode Island Energy's demand response program. It pays you to discharge your battery during grid peak events. At $225/kW for summer, this is the single biggest battery revenue source in Rhode Island and one of the highest rates in the country.
$225
per kW (Summer)
June - September
$50
per kW (Winter)
December - March
$2,750
Annual (10 kW battery)
$2,250 summer + $500 winter
During a ConnectedSolutions summer event (typically 2-7 PM), your battery discharges to the grid. This overlaps perfectly with Rate A-16 peak hours (1-7 PM). You earn the ConnectedSolutions payment and avoid buying peak-rate electricity. On event days, your battery is working double duty: earning DR revenue while also saving you peak TOU charges. This overlap is what makes RI one of the best battery markets in New England.
The real power of an RI battery is stacking multiple revenue streams. Here is a realistic breakdown for a 10 kWh battery enrolled in both Rate A-16 and ConnectedSolutions.
The Renewable Energy Growth (REG) program pays $0.2723/kWh for every kWh your solar system produces, locked for 15 years. When you add a battery, you unlock ConnectedSolutions revenue without affecting your REG payments.
Solar produces electricity
Your panels generate kWh throughout the day
REG pays $0.2723/kWh on ALL production
Regardless of whether you consume, export, or store the energy. REG is production-based.
Battery charges from solar or grid off-peak
Excess solar charges battery, or grid charges at $0.18/kWh off-peak
Battery dispatches for ConnectedSolutions OR TOU peak
Earns $225/kW from DR events + avoids $0.35/kWh peak rate
REG (15 yr)
$2,639/yr
ConnectedSolutions
$2,750/yr
TOU Arbitrage
~$497/yr
Net Metering
~$1,800/yr
Total: ~$7,686/year from an 8 kW solar + 10 kWh battery system
The Rhode Island Renewable Energy Fund (REF) offers a $2,000 battery adder on top of the standard solar rebate. This is one of the few remaining state-level battery incentives in New England.
Grant round timing: REF opens 3 rounds per year (spring, summer, fall). Apply before installation begins. Typical timeline: apply March-April for spring round, receive conditional approval, install system, then receive rebate check within 6-8 weeks of interconnection proof. Full REF rebate guide
RI's coastal climate adds hurricane backup value to any battery investment. Here is how different battery sizes perform for TOU arbitrage, ConnectedSolutions, and storm resilience.
Coastal properties should prioritize larger batteries for hurricane season (June-November)
| Size | TOU Arbitrage | ConnectedSolutions | Total Revenue | Backup | Cost | Payback |
|---|---|---|---|---|---|---|
| 5 kWh Budget-conscious, small homes | $240-$310/yr | $1,125 summer + $250 winter | $1,615-$1,685/yr | 4-6 hours essential loads | $6,000-$8,000 | 4-5 years |
| 10 kWh Most RI homes (recommended) | $480-$620/yr | $2,250 summer + $500 winter | $3,230-$3,370/yr | 8-12 hours essential loads | $10,000-$14,000 | 3-4.5 years |
| 13.5 kWh Larger homes, hurricane preparedness | $650-$840/yr | $3,038 summer + $675 winter | $4,363-$4,553/yr | 12-18 hours whole-home | $12,000-$16,000 | 2.8-3.7 years |
| 20 kWh Coastal properties, max revenue | $960-$1,240/yr | $4,500 summer + $1,000 winter | $6,460-$6,740/yr | 18-24+ hours whole-home | $18,000-$24,000 | 2.8-3.7 years |
Recommendation: A 10 kWh battery is the sweet spot for most Rhode Island homes. It covers the full 6-hour TOU peak window, maximizes ConnectedSolutions revenue, and provides meaningful hurricane backup. Coastal homes in Newport, Narragansett, or Westerly should consider 13.5+ kWh for extended storm resilience.
TOU arbitrage value varies by season. Summer months have the highest spread ($0.17/kWh) while winter spreads are lower but still meaningful. Based on a 10 kWh battery at 85% round-trip efficiency on Rate A-16.
| Month | Season | Peak Rate | Off-Peak | Spread | Monthly Savings |
|---|---|---|---|---|---|
| January | Winter | $0.32 | $0.18 | $0.14 | $36 |
| February | Winter | $0.32 | $0.18 | $0.14 | $34 |
| March | Shoulder | $0.30 | $0.18 | $0.12 | $33 |
| April | Shoulder | $0.30 | $0.18 | $0.12 | $32 |
| May | Summer | $0.33 | $0.18 | $0.15 | $47 |
| June | Summer | $0.35 | $0.18 | $0.17 | $55 |
| July | Summer | $0.35 | $0.18 | $0.17 | $57 |
| August | Summer | $0.35 | $0.18 | $0.17 | $55 |
| September | Summer | $0.33 | $0.18 | $0.15 | $47 |
| October | Shoulder | $0.30 | $0.18 | $0.12 | $33 |
| November | Shoulder | $0.30 | $0.18 | $0.12 | $32 |
| December | Winter | $0.32 | $0.18 | $0.14 | $36 |
| Annual TOU Arbitrage Total | $497 | ||||
* Estimates based on 10 kWh battery, 85% round-trip efficiency, weekday-only peak shifting. Actual savings depend on consumption pattern and grid charging behavior.
Rhode Island has three electric utilities with dramatically different battery economics. Only RI Energy offers TOU rates and ConnectedSolutions.
~95% of RI customers | ~500K customers
Avg Rate
$0.29/kWh
TOU Spread
$0.17/kWh
ConnectedSolutions
$225/kW
Total Battery Rev
$2,730-$3,370
Best battery market in RI. TOU arbitrage PLUS ConnectedSolutions creates a dual revenue stream that no other NE utility matches.
Village of Pascoag (Burrillville) | ~4,700 customers
Avg Rate
$0.26/kWh
TOU Spread
No TOU
ConnectedSolutions
Not available
Total Battery Rev
$0 (backup only)
Small municipal utility. No TOU rate, no ConnectedSolutions. Battery is backup-only. Net metering is 1:1 retail.
Block Island (New Shoreham) | ~1,100 customers
Avg Rate
$0.35/kWh
TOU Spread
No TOU
ConnectedSolutions
Not available
Total Battery Rev
$0 (high self-consumption value)
Highest rates in NE at $0.35/kWh. No TOU, but extreme self-consumption value. Battery maximizes solar use at the highest rate in the region. Hurricane backup is critical on an island.
Connecting a battery system to the RI Energy grid requires a standard interconnection application. Here is the step-by-step process for residential battery + solar systems.
Your installer submits the application to RI Energy with system design, single-line diagram, battery specs, and inverter certification. Processing fee: $50-$100.
RI Energy reviews system design for grid compatibility. Systems under 25 kW typically qualify for simplified review. Larger systems require a study.
Approval letter issued with any required upgrades. RI Energy schedules a smart meter installation (bi-directional metering for net metering + TOU tracking).
Installer completes solar + battery installation. Local building inspector signs off. Installer submits proof of inspection to RI Energy.
RI Energy grants PTO, typically 2-4 weeks after inspection. System goes live. Enroll in Rate A-16 TOU and ConnectedSolutions.
Timeline: Total time from application to PTO is typically 4-8 weeks for residential systems. RI Energy has been faster than most NE utilities. Battery-only systems (no solar) can also interconnect for ConnectedSolutions participation.
Answers to the most common questions about battery storage, TOU rates, and ConnectedSolutions in Rhode Island.
Deep dive into the demand response program, qualifying batteries, and enrollment.
$0.65/W solar rebate + $2,000 battery adder. Grant round timing and application tips.
$0.2723/kWh guaranteed for 15 years. How REG stacks with batteries and net metering.
Compare which program combination maximizes your RI solar ROI.
$2.65-$3.20/W average. City-by-city pricing and payback analysis.
80% retail credits (post-April 2023). How net metering works with batteries.
Compare financing options. TPO can claim Section 48 ITC through July 2026.
How RI solar still pays for itself without the federal ITC.
Rhode Island Energy customers have one of the best battery economics in the country. Between Rate A-16 TOU arbitrage, ConnectedSolutions, and the REF battery adder, your battery can pay for itself in under 4 years. Get a free quote and see your projected savings.
Licensed in Rhode Island. Free, no-obligation solar + battery assessment.