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Rhode Island has the strongest state solar incentives in New England. With REG paying $0.27/kWh for 15 years, a $5,000 REF rebate, and electricity rates 48% above the national average, solar pays for itself in under 7 years — even with $0 in federal tax credits.
Average Cost
$3.06/W
$24,480 for 8 kW
Payback Period
3.3 yrs
Cash purchase
REG Income
$2,642/yr
15-year guarantee
RI Energy Rate
$0.29/kWh
48% above national avg
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 costs and payback figures on this page reflect this reality. Third-party owned systems (PPA/lease) may still benefit from Section 48/48E, which the financing company claims — not the homeowner. Compare financing options
A typical 8 kW solar system in Rhode Island costs $24,480 before incentives. After the REF rebate (-$5,000) and sales tax exemption (-$1,714), your effective upfront cost is about $17,766. The REG program then pays you $2,642/year for 15 years on top of net metering savings — driving payback to just 3.3 years.
REF Rebate
-$5,000
$0.65/W (capped)
Sales Tax Saved
-$1,714
7% exemption
REG (15 years)
+$39,636
$0.2723/kWh
Federal ITC (25D)
$0
Expired Dec 2025
Prices vary by location due to installer competition, roof types, permitting, and coastal factors. All cities are served by Rhode Island Energy at $0.29/kWh.
| City | Low ($/W) | High ($/W) | Avg 8 kW System | Notes |
|---|---|---|---|---|
| Providence | $2.75 | $3.15 | $23,600 | Capital city, metro-area pricing. Community Electricity program available. 2-3 week permitting. |
| Warwick | $2.70 | $3.10 | $23,200 | Second-largest city. Suburban homes, good roof access. Kent County — competitive installer market. |
| Newport | $2.80 | $3.20 | $24,000 | Coastal premium for salt air/corrosion-resistant equipment. Historic district restrictions in some areas. 3-4 week permitting. |
| Cranston | $2.70 | $3.10 | $23,200 | Providence metro suburban pricing. Good value with standard permitting timelines. |
| Pawtucket | $2.65 | $3.05 | $22,800 | Lower end of RI cost range. Dense urban areas may have shading considerations. |
| East Providence | $2.70 | $3.10 | $23,200 | Good mix of suburban and waterfront properties. Standard permitting. |
| South Kingstown | $2.75 | $3.15 | $23,600 | South County — larger lots, bigger systems possible. URI campus area. |
| Woonsocket | $2.65 | $3.05 | $22,800 | Northern RI, affordable pricing. Some Pascoag utility overlap in Burrillville. |
Capital city, metro-area pricing. Community Electricity program available. 2-3 week permitting.
Second-largest city. Suburban homes, good roof access. Kent County — competitive installer market.
Coastal premium for salt air/corrosion-resistant equipment. Historic district restrictions in some areas. 3-4 week permitting.
Providence metro suburban pricing. Good value with standard permitting timelines.
Lower end of RI cost range. Dense urban areas may have shading considerations.
Good mix of suburban and waterfront properties. Standard permitting.
South County — larger lots, bigger systems possible. URI campus area.
Northern RI, affordable pricing. Some Pascoag utility overlap in Burrillville.
All pricing is for turn-key installation including equipment, labor, permitting, and interconnection. Prices based on Q1 2026 market data from EnergySage and NuWatt installation records. Actual costs vary by roof, shading, equipment selection, and installer.
The average Rhode Island home needs an 8 kW system. Larger homes, EV owners, and those planning heat pumps should size up to 10-13 kW.
5 kW
12-15 panels
Small home, 1-2 bedrooms
8 kW
20-24 panels
Average RI home
10 kW
25-30 panels
Larger home or EV owner
13 kW
32-39 panels
Large home, high usage
Rhode Island has one of the strongest incentive stacks in the nation. Here is exactly how an average 8 kW system pencils out — with every dollar accounted for.
Gross System Cost (8 kW)
$3.06/W fully installed
REF Rebate ($0.65/W, max $5,000)
Sales Tax Exemption (7%)
Federal ITC (Section 25D) — Expired
$0 for homeowner cash/loan purchases
Effective Upfront Cost
After REF + sales tax savings
REG Payments ($0.2723/kWh x 15 yrs)
Net Metering Savings (80% retail)
Property Tax Exemption (20 yrs)
~1.53% effective rate saved
Total Annual Value
REG + net metering + property tax
Payback Period
3.3 Years
Then earn ~$5,465/year in income and savings for the life of the system
25-year net savings: $90,570
Adjust your system size and city to see personalized cost, incentive, and payback estimates. All calculations use current RI Energy rates and PY2026 REG ceiling prices.
Estimate your cost, incentives, and payback with REG + REF + net metering
Federal Residential Solar Tax Credit (Section 25D) — Expired
Homeowners who buy solar with cash or a loan receive $0 in federal tax credits. Section 25D expired December 31, 2025. RI's state incentives (REG + REF) make solar still highly worthwhile.
Estimates based on Providence pricing ($2.75-$3.15/W), RI Energy $0.29/kWh rate, post-April 2023 net metering (80% retail), and REG PY2026 ceiling price ($0.2723/kWh). Actual costs vary by installer, roof, and system design. REF rebate subject to available funding.
The $2.65-$3.20/W range across RI is driven by six main factors. Understanding these helps you compare quotes and avoid overpaying.
Asphalt shingle roofs are the easiest and cheapest to install on. Slate, tile, metal, and flat roofs may cost $0.10-$0.30/W more for specialized mounting hardware. Any roof older than 15 years should be replaced before solar installation.
South-facing roofs at 25-35 degree pitch are ideal for RI. East/west-facing roofs produce 10-15% less. Tree shading is the most common issue — microinverters or power optimizers add $0.10-$0.20/W but recover most shaded production.
Homes within 1 mile of the coast in Newport, Narragansett, and Warwick Neck need salt-air-rated equipment (anodized aluminum frames, stainless fasteners). This adds $0.05-$0.15/W but prevents corrosion and premature warranty claims.
Standard RI permits cost $150-$400. Historic districts in Providence and Newport may require additional design review (2-4 extra weeks). RI Energy interconnection typically takes 2-4 weeks after installation.
Larger systems have a lower cost per watt due to fixed costs (permitting, design, mobilization) being spread across more panels. A 5 kW system averages $2.95/W while a 13 kW system drops to $2.75/W.
Standard panels (REC, Q CELLS, Canadian Solar) at $2.65-$2.90/W vs. premium panels (SunPower, Panasonic) at $3.00-$3.20/W. Premium panels offer higher efficiency and longer warranties (25-40 years) — worth it for smaller roofs.
The REG program is what makes Rhode Island solar economics exceptional. Here is how the numbers compare for an 8 kW system with and without REG enrollment.
REG enrollment is critical. The REG program adds $39,636 in guaranteed income over 15 years. Enrollment opens April 1 each year on a first-come-first-served basis with a 40 MW annual cap. Do not start your solar project without confirming REG availability. Full REG program guide
Adding battery storage to your solar system unlocks ConnectedSolutions demand response income from RI Energy — a third revenue stream on top of REG and net metering.
Summer (Jun-Sep)
$225/kW
10 kW = $2,250/yr
Winter (Dec-Mar)
$50/kW
10 kW = $500/yr
Annual CS Revenue
$2,750/yr
10 kW battery in RI Energy territory
When you add battery storage to a solar installation, the REF program provides an additional $2,000 rebate on top of the $5,000 solar rebate. Combined with ConnectedSolutions revenue of $2,750/year, battery storage often pays for itself within 4-5 years.
Tesla Powerwall 2 / Powerwall 3
Enphase IQ Battery 5P / 10T
SolarEdge Home Battery
Generac PWRcell
sonnen ecoLinx
Rhode Island has the most aggressive renewable energy target in the nation: 100% renewable electricity by 2033. That political commitment is why RI solar incentives are so generous — the state needs residential solar capacity to hit its mandate.
2033
100% Renewable Target
RI has the most aggressive clean energy mandate in the U.S. — fully renewable electricity by 2033, seven years ahead of most state targets.
$0.29
Per kWh (RI Energy)
Rhode Island's electricity rate is 48% above the national average. Every kWh your solar system offsets is worth more here than almost anywhere else.
$0.2723
Per kWh REG (15 Years)
The REG program offers the highest guaranteed production-based payment in New England. Lock in today's rate for 15 years of guaranteed income.
With Section 25D expired, financing matters more than ever. Here is how each option works in Rhode Island and who keeps the REG income.
No 25D ITC available. Full cost minus $5,000 REF rebate. Payback via REG + net metering + tax exemptions. ~6.6-year payback.
Best for: Homeowners who can afford upfront cost and want maximum long-term savings
Standard solar loans at 6-8% APR through local lenders and credit unions. No 25D ITC for homeowner. Monthly payments offset by REG + net metering. REF rebate reduces financed amount.
Best for: Homeowners who want ownership benefits without large upfront payment
Third-party owner claims Section 48 ITC (30%) + keeps REG income. Savings passed to you as below-retail rate. 20-25 year contract typical.
Best for: Homeowners who want immediate savings with no upfront cost or maintenance
Third-party claims Section 48 ITC + REG income. Fixed monthly payment (may escalate 1-3%/yr). 20-25 year contract. REG payments go to system owner, not lessee.
Best for: Homeowners who want predictable monthly costs with no maintenance responsibility
From first contact to system activation, here is what to expect in Rhode Island.
1-2 weeks
Roof assessment, shade analysis, system design with engineering stamps.
During grant round
Apply during an open REF grant round (spring/summer/fall) through Commerce RI.
1-3 weeks
Local building permit. Historic areas in Providence/Newport may add 2-4 weeks.
1-3 days
Physical panel and inverter installation. Most residential jobs take 1-2 days.
2-4 weeks
RI Energy interconnection + inspection. Submit REG enrollment once system is live.
Total timeline: Most RI solar installations take 6-10 weeks from signed contract to system activation. The REF grant round timing is the main variable — plan around the next open round for fastest processing. NuWatt handles all permitting, utility coordination, REF application, and REG enrollment.
Solar panels in Rhode Island cost an average of $3.06 per watt installed in 2026. For a typical 8 kW system, that is approximately $24,480 before incentives. After the $5,000 REF rebate and 7% sales tax exemption ($1,714 saved), the effective upfront cost drops to about $17,766. There is no federal tax credit for homeowners in 2026 — Section 25D expired December 31, 2025.
Yes, and Rhode Island is one of the best states for solar even without the federal credit. The REG program pays $0.27/kWh for every kWh your system generates for 15 years — that is about $2,639 per year for an 8 kW system. Combined with net metering savings ($2,523/yr), the REF rebate ($5,000), sales tax exemption ($1,714), and property tax exemption ($362/yr for 20 years), solar pays for itself in roughly 6.6 years and saves over $85,000 over 25 years.
The Renewable Energy Growth (REG) program is Rhode Island's signature solar incentive. It pays a guaranteed fixed rate of $0.2723/kWh for every kilowatt-hour your system generates for 15 years (residential systems up to 25 kW). This is SEPARATE from net metering — you get both. For an 8 kW system producing 9,700 kWh/year, REG pays approximately $2,639 annually or $39,585 over the full 15-year term. Enrollment opens April 1 each year on a first-come-first-served basis.
The Rhode Island Renewable Energy Fund (REF) offers a rebate of $0.65 per watt for residential solar systems up to 25 kW, capped at $5,000. If you add a battery, there is an additional $2,000 adder. REF grants are awarded in rounds (spring, summer, fall) through Commerce RI. You must apply before installation begins. The REF rebate stacks with REG payments and net metering credits.
Rhode Island net metering credits you for excess solar electricity sent to the grid. Systems installed after April 15, 2023 receive credits at 80% of the retail rate (about $0.232/kWh based on the $0.29/kWh RI Energy rate). Excess credits roll over monthly, and the annual cap is 125% of your on-site consumption. Pre-April 2023 systems are grandfathered at the full retail rate. Net metering stacks with REG payments for dual income streams.
The average solar payback period in Rhode Island is approximately 6.6 years for a cash-purchased 8 kW system. This accounts for the REG program ($2,639/yr), net metering savings ($2,523/yr), REF rebate ($5,000 upfront), sales tax exemption ($1,714 saved), and property tax exemption ($362/yr). After payback, you earn roughly $5,524 per year in combined income and savings for the life of the system.
See exactly what solar costs for your home, your roof, and your city. We will calculate your REG income, REF rebate eligibility, net metering savings, and true payback period.
Everything you need to know about going solar in Rhode Island — incentives, utilities, timelines.
Read moreHow to enroll in RI's Renewable Energy Growth program and lock in $0.27/kWh for 15 years.
Read moreStep-by-step guide to the $5,000 REF solar rebate + $2,000 battery adder from Commerce RI.
Read more80% retail credit post-April 2023, 125% cap, and how net metering stacks with REG payments.
Read more7% sales tax exemption and 20-year property tax exemption — combined value of $8,900+.
Read moreCompare financing paths in a post-ITC world. Who keeps REG income? Who claims Section 48?
Read moreEarn $2,750/year from demand response with RI Energy. Qualified batteries and enrollment.
Read moreCentral hub for all Rhode Island solar content — costs, incentives, programs, and city guides.
Read morePricing: EnergySage Solar Marketplace (January 2026), NuWatt Energy Rhode Island installations.
Utility rates: RI Energy residential tariff schedule (R-1), effective January 2026.
REG program: Rhode Island Public Utilities Commission, PY2026 ceiling prices.
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.