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Multiple overlapping tariff layers are pushing panel costs up $0.10-0.25 per watt in Rhode Island. But RI has a powerful incentive stack: REG pays $0.27/kWh for 20 years and REF provides $0.65/W upfront. Here is how tariffs, FEOC rules, and state programs interact to shape the real cost of going solar.
The US solar industry faces the most complex tariff environment in its history. Four separate trade actions — each with its own legal basis, rate structure, and exemption rules — are stacking on top of each other. The combined effective tariff rate on imported solar modules from Southeast Asia, which supplies most of the US residential market, now ranges from 35% to 55%.
This is not a single tariff. It is four overlapping layers that explain why module prices have risen from $0.30-0.35/W in 2024 to $0.40-0.50/W today, with further increases projected through the second half of 2026. For Rhode Island homeowners, this translates to $0.10-0.25/W in additional system cost — a meaningful increase, but one that Rhode Island's REG program and REF rebate can substantially offset.
Imposed in 2018 on imported crystalline silicon PV cells and modules. Extended through February 2026 with escalating rates. Applies to virtually all imported modules regardless of country of origin, with the first 5 GW of cells annually exempt.
Anti-dumping and countervailing duties target Chinese-manufactured cells, including those routed through Southeast Asian countries (Cambodia, Malaysia, Thailand, Vietnam). The Commerce Department confirmed circumvention findings in 2024. The two-year moratorium expired June 2024 and these duties now fully apply.
Broad tariffs on Chinese goods including solar panels, inverters, racking, and balance-of-system equipment. Combined with AD/CVD, Chinese module imports face 50%+ effective rates, making them uneconomical for the US market.
Additional tariffs targeting solar imports from Cambodia, Vietnam, Malaysia, and Thailand — countries that supply the majority of US residential panels. These are layered on top of existing Section 201 and AD/CVD duties, phasing in through mid-2026.
Chinese-manufactured panels face 50%+ effective rates, making direct import uneconomical. Panels from Cambodia, Vietnam, Malaysia, and Thailand — which historically supplied 80%+ of the US residential market — now carry 35-50% combined tariffs. Only panels manufactured in non-tariff-affected countries (South Korea, North America, Singapore) avoid most of these layers.
Rhode Island solar costs currently average $3.00 per watt, ranging from $2.75 to $3.25 depending on system size and panel tier. Tariffs have added $0.10-0.25/W to these prices compared to 2024 levels. For a typical 11 kW system, that is $1,100 to $2,750 more than you would have paid 18 months ago from tariff escalation alone.
The tariff increase compounds a bigger loss: the federal residential tax credit (Section 25D) expired December 31, 2025. In 2024, a homeowner offset 30% of system cost with the ITC. Now that benefit is gone. However, Rhode Island has a dual advantage: the REG program pays $0.27/kWh for 20 years, and the REF rebate provides $0.65/W upfront (up to $5,000). These state programs are completely independent of federal policy and continue regardless of tariff levels.
| Cost Component | Pre-Tariff (2024) | Current (Q1 2026) | Change |
|---|---|---|---|
| Module Cost (per watt) | $0.30-0.35 | $0.40-0.50 | +$0.10-0.15 |
| Inverter + BOS | $0.55-0.65 | $0.60-0.70 | +$0.05 |
| Labor + Overhead | $0.85-1.00 | $0.90-1.05 | +$0.05 |
| Installer Margin + Soft Costs | $0.80-0.95 | $0.85-1.00 | +$0.05 |
| Total System Cost ($/W) | $2.50-2.95 | $2.75-3.25 | +$0.10-0.25 |
| System Size | Pre-Tariff (2024) | Current (Q1 2026) | Tariff Impact |
|---|---|---|---|
| 8 kW System | $21,600 | $22,000-24,000 | +$400-2,400 |
| 10 kW System | $27,000 | $27,500-30,000 | +$500-3,000 |
| 11 kW System (RI avg) | $29,700 | $30,250-33,000 | +$550-3,300 |
| 14 kW System | $37,800 | $38,500-42,000 | +$700-4,200 |
Beyond the tariffs you see in trade headlines, there is a separate policy that quietly reshapes which solar panels work for which financing paths. FEOC (Foreign Entity of Concern) rules determine whether a third-party system owner — the company behind your lease or PPA — can claim the 30% Section 48E commercial investment tax credit.
If a panel is manufactured by or contains critical components from an entity controlled by China, Russia, Iran, or North Korea, it is FEOC-non-compliant. The financing company cannot claim the 48E ITC on that system. Without the 30% credit, the company must recover their full investment from your monthly payments — meaning significantly higher lease/PPA rates.
For cash and loan buyers, FEOC is not directly relevant. You can choose any panel tier, including the most affordable options from non-FEOC-compliant manufacturers. But for lease, PPA, or NuWatt Propel customers, FEOC compliance is a hard requirement. Rhode Island homeowners using a lease/PPA can still benefit from the REG program, creating a powerful combination of production income and reduced monthly payments.
Eligible for Section 48E ITC in lease/PPA deals. Lower tariff exposure.
Fine for cash/loan purchases. Cannot qualify for 48E ITC in lease/PPA.
The Section 48E commercial ITC requires projects to begin construction before July 4, 2026. After that date, third-party system owners (lease/PPA companies) lose access to the 30% tax credit — regardless of panel FEOC status. This means lease/PPA pricing will increase significantly after this deadline. If you are considering third-party financing in Rhode Island, the window is closing.
Not all panels are affected equally by tariffs. Country of origin, manufacturing supply chain, and FEOC compliance all determine your real cost and financing options. Here is how NuWatt's three panel tiers compare.
Cash or loan buyers seeking lowest upfront cost
Lease/PPA, Propel financing, or anyone wanting FEOC assurance
Premium installations, max efficiency, roof-space constrained
For cash/loan buyers, Hyundai 440W saves ~$770 on an 11 kW system compared to Silfab. With REG paying $0.27/kWh for 20 years, even the premium REC 460W tier pays for itself within 9 years. For lease/PPA buyers, Silfab is the most cost-effective FEOC option — the 48E ITC more than offsets the base price difference. REC 460W (+$0.19/W) is worth considering only when roof space is limited and you need maximum watts per square foot.
Tariffs and FEOC rules affect each financing path differently. Your choice of financing determines which panels you can use, how much of the tariff burden you absorb directly, and whether the Section 48E ITC is accessible. In Rhode Island, cash and loan buyers can also collect REG payments directly.
You cannot control tariff policy, but you can control your timing, panel selection, and incentive strategy. These five actions reduce the tariff hit on your solar investment in Rhode Island.
If you are considering a lease, PPA, or Propel financing, begin construction before July 4, 2026. After that date, the third-party system owner loses access to the 30% Section 48E ITC, which means higher monthly payments for you.
Cash and loan buyers can save with Hyundai 440W panels (-$0.07/W). Lease/PPA customers must use FEOC-compliant panels (Silfab or REC) but benefit from the 48E ITC pass-through. Match your panel tier to your financing method.
Rhode Island REG (Renewable Energy Growth) pays $0.27/kWh guaranteed for 15-20 years. The REF (Renewable Energy Fund) rebate adds $0.65/W up to $5,000. For an 11 kW system, REG pays $3,564/year ($71,280 over 20 years) and REF provides up to $5,000 upfront. Combined, these two programs alone recover the full system cost — including tariff increases — within 7-8 years.
RI Energy ConnectedSolutions pays $225/kW for summer demand response. A 13.5 kWh battery earns $800-1,200/year in DR payments while providing backup power. The $2,000 REF battery adder stacks on top of the solar rebate.
NuWatt pre-purchased Hyundai 440W and Silfab 440W panels before the latest tariff increases. While warehouse stock lasts, your system price reflects pre-tariff module costs. Once depleted, replacements carry the full tariff burden.
Rhode Island has one of the strongest incentive stacks in New England, anchored by the REG program and REF rebate. Combined with sales and property tax exemptions, these programs more than offset the tariff impact for most homeowners.
Renewable Energy Growth program provides fixed per-kWh payments for all solar production. Annual April 1 enrollment window. Production-based — unaffected by panel cost or tariffs.
Renewable Energy Fund rebate from Commerce RI. Upfront payment based on system size. Plus $2,000 battery adder. Directly reduces out-of-pocket cost.
Post-April 2023 systems receive 80% retail credits (grandfathered systems keep 1:1). Alternative to REG — choose one or the other. 125% annual cap.
Solar equipment, installation, and batteries exempt from RI 7% sales tax. On a $33,000 system, that saves approximately $2,310.
Solar panels do not increase your assessed property value for 20 years in Rhode Island. Saves approximately $500-700/year in avoided tax increases.
RI Energy demand response program for battery owners. Earn $800-1,200/year for allowing grid dispatch during peak events. Requires battery enrollment.
With REG payments alone, the tariff increase of $1,100-2,750 is absorbed within approximately 4-9 months of additional REG income. Over 20 years, an 11 kW system in RI generates $71,280 in REG payments plus $5,000 REF rebate — more than double the system cost. Adding the REF battery adder and ConnectedSolutions further improves the economics. Rhode Island's incentive stack makes tariff impact nearly negligible in long-term returns.
Understanding the timeline helps you decide when to act. The REG enrollment window, pre-tariff inventory, and the Section 48E deadline are the most time-sensitive factors for RI homeowners.
Two-year pause on Southeast Asian anti-dumping duties ended. Full duties now apply to panels from Cambodia, Vietnam, Malaysia, Thailand.
Federal residential solar tax credit dropped to $0. RI homeowners no longer receive any federal tax benefit for cash/loan solar purchases.
Safeguard tariff extended. Additional executive action tariffs on Southeast Asian panels beginning to take effect.
Pre-tariff inventory still available from some installers. REG enrollment open (April 1 annual window). Best window for locking pricing before further tariff increases.
The Renewable Energy Growth program opens its annual enrollment period. New systems approved during this window lock in the $0.27/kWh rate for 15-20 years. Capacity may be limited.
Last day to begin construction and qualify for 30% commercial ITC on lease/PPA deals. After this date, third-party financing costs increase significantly.
New executive action tariffs fully phased in. Pre-tariff inventory expected to be depleted. Projected RI pricing: $3.10-3.45/W.
Tariffs are adding approximately $0.10-0.25 per watt to solar panel costs in Rhode Island. For a typical 11 kW system, that translates to $1,100-2,750 in additional cost. The impact comes from multiple overlapping tariff layers: Section 201 safeguard tariffs (14.75%), AD/CVD anti-dumping duties (15-250% on specific manufacturers), Section 301 China tariffs (25%), and new Southeast Asian duties (14-25%). The total effective rate on imported modules ranges from approximately 35-55% depending on country of origin.
FEOC stands for Foreign Entity of Concern. Under current rules, solar panels manufactured by or containing critical components from entities controlled by China, Russia, Iran, or North Korea are considered FEOC-non-compliant. This matters because third-party system owners (lease/PPA companies) can only claim the 30% Section 48E commercial ITC if the panels are FEOC-compliant. For RI homeowners choosing a lease or PPA, using FEOC-compliant panels like Silfab (made in North America) or REC means lower monthly payments because the financing company can claim the tax credit. The FEOC requirement for 48E eligibility applies to projects beginning construction before July 4, 2026.
Rhode Island has two powerful state incentives that directly offset tariff increases. The REG (Renewable Energy Growth) program pays $0.27/kWh for every kilowatt-hour your system produces, guaranteed for 15-20 years. For an 11 kW system producing approximately 13,200 kWh per year, that is about $3,564 annually or $71,280 over the full 20-year term. The REF (Renewable Energy Fund) rebate provides $0.65/W upfront, capped at $5,000, plus a $2,000 battery adder. Together, REG and REF can recover the entire system cost within 7-8 years. Both programs are unaffected by tariffs because REG is production-based and REF is a fixed per-watt rebate.
The data favors acting sooner. There is no indication tariffs will decrease under the current administration, and multiple tariff layers are still phasing in through mid-2026. Waiting means: (1) higher module prices as pre-tariff inventory depletes, (2) potential REG block closures or rate adjustments at the April 1 annual enrollment, (3) missing the July 4, 2026 Section 48E deadline for lease/PPA deals, and (4) continued electricity bills at $0.29/kWh. The federal residential ITC (Section 25D) expired December 31, 2025 with no scheduled return, so there is no upcoming incentive to wait for.
FEOC-compliant panels manufactured in North America, like Silfab panels made in Ontario, Canada and Bellingham, WA, face significantly lower tariff exposure. They are not subject to AD/CVD duties, Section 301 China tariffs, or the new Southeast Asian duties. They may still face some Section 201 tariff on imported cells, but the overall tariff burden is much lower than Southeast Asian alternatives. This is why FEOC-compliant panels, while slightly higher in base price, offer better long-term value and are required for lease/PPA financing that accesses the 48E ITC.
Cash buyers have the most flexibility since FEOC compliance is not required for a direct purchase. The Hyundai 440W is the most affordable option at -$0.07/W below the base price, offering solid performance with a 25-year warranty. For homeowners who want higher efficiency or future-proofing, the Silfab 440W (base price, 30-year warranty, FEOC-compliant) or REC 460W (+$0.19/W, highest efficiency at 22.3%) are worth considering. The Hyundai saves roughly $770 on an 11 kW system compared to Silfab. With REG paying $0.27/kWh for 20 years, even the premium panel tier pays for itself within 8-9 years.
REG and net metering are mutually exclusive — you choose one or the other. REG pays a fixed $0.27/kWh for all production for 15-20 years, regardless of what you consume or export. Net metering credits excess solar at 80% of retail (about $0.23/kWh for post-April 2023 systems), but you also avoid the full retail rate on self-consumed electricity. For most RI homeowners, REG provides higher total value because it pays the guaranteed rate on every kWh produced, not just the excess. However, high self-consumption households with significant daytime usage may prefer net metering. REG enrollment has an annual April 1 window with limited capacity.
Yes. With a lease or PPA, the financing company owns the system and absorbs the equipment cost, including tariff impact. Your payment is fixed upfront and does not change based on module pricing. Additionally, the financing company can claim the 30% Section 48E commercial ITC for projects beginning construction before July 4, 2026, which lowers the cost they need to recover from your payments. However, the panels must be FEOC-compliant (Silfab or REC), which are slightly more expensive at the base level. After July 4, 2026, lease/PPA pricing will likely increase because the 48E ITC becomes unavailable.
After July 4, 2026, the Section 48E commercial ITC is no longer available for new solar projects. This directly impacts lease and PPA pricing because the third-party system owner can no longer claim the 30% tax credit. Without that credit, the financing company must recover their full investment from your monthly payments, which means higher lease/PPA rates. For cash and loan buyers, the FEOC deadline is less relevant since the residential ITC (Section 25D) already expired December 31, 2025. However, tariffs are expected to continue increasing, so waiting past this date still means higher module costs.
Rhode Island Energy charges approximately $0.29/kWh, among the highest rates in the country. Pascoag Utility is slightly lower at $0.26/kWh, while Block Island Power averages $0.35/kWh. These high rates mean solar panels offset expensive electricity, improving payback even with tariff-inflated costs. An 11 kW system producing 13,200 kWh/year offsets $3,828 in annual electricity costs at RI Energy rates. If enrolled in REG, the system earns $3,564/year. At either rate, the tariff increase of $1,100-2,750 adds less than one year to the payback period. RI electric rates have been climbing steadily, further strengthening the solar value proposition.
All costs, incentives, and utility data for Rhode Island.
Read guideCurrent pricing by system size and panel tier.
Read guideHow third-party financing works with tariffs and FEOC.
Read guide$0.27/kWh guaranteed 15-20 years — enrollment details.
Read guideHow commercial ITC benefits flow to lease/PPA customers.
Read guideWhich financing path works best with tariffs and no ITC.
Read guidePre-tariff inventory is limited. REG enrollment opens April 1. The FEOC deadline for lease/PPA deals is July 4, 2026. With REG paying $0.27/kWh for 20 years, every month of delay costs you $300+ in foregone production income. Start your custom design now and lock your price.
Free custom design. No commitment. Price locked at signing.