Rhode Island Solar Incentives & Net Metering (2026)
Written by Aditya Patil · Last updated 2026-09-24
Going solar in Rhode Island offers strong state-level support, including substantial grants, feed-in tariffs, and battery rebates. While net metering rules shifted slightly in 2023, the state remains highly favorable for renewable energy investments given its relatively high electricity rates.
$142
Avg. monthly bill
29.23¢/kWh
Avg. electric rate
4.3 kW
Est. typical system
to offset avg use
0%
State sales tax
Fully exempt
Rhode Island solar programs & incentives
Rhode Island residents essentially choose between two distinct incentive paths: traditional net metering paired with the Renewable Energy Fund (REF) grant, or a fixed feed-in tariff under the Renewable Energy Growth (REG) program.
| Program | Amount / Benefit | Status |
|---|---|---|
| Renewable Energy Fund (REF) Small-Scale Solar Program | $1.65 per watt up to a maximum grant of $14,500 per project for residential systems. A flat $5,000 bonus is also available if an eligible energy storage component is installed concurrently. | open |
| Renewable Energy Growth (REG) Program | Performance-based incentive (feed-in tariff) locked in for a 15- or 20-year term. For the 2026 Program Year, the residential rate is 31.55¢ per kWh for systems 1-15 kW DC (15-year term) and 28.65¢ per kWh for systems 15-25 kW DC (20-year term). | open |
| Energy Storage Rebate (ESR) Program | For Tier 1 systems (≤25 kW AC): $250 per kWh of nameplate capacity up to $8,000 (or $500 per kWh up to $16,000 for income-eligible customers). | open |
| Local Property Tax Exemption for Renewable Energy Systems | 100% exemption from local property taxes for the added value of the renewable energy system. | open |
| Renewable Energy Products Sales and Use Tax Exemption | 100% exemption from Rhode Island's 7% state sales tax on eligible renewable energy equipment. | open |
Net metering and the REG alternative
If you choose to own your system outright and net meter, any excess energy you push back to the grid earns credits. For systems initiated on or after April 15, 2023, these credits are valued at approximately 80% of the full retail electricity rate (a 20% haircut). Credits roll over month-to-month, and any remaining balance at the end of the 12-month billing cycle is cashed out at the lower wholesale energy rate.
Alternatively, the Renewable Energy Growth (REG) program functions as a feed-in tariff. Instead of offsetting your own usage directly, you sell all the electricity your panels generate—plus the Renewable Energy Certificates (RECs)—directly to Rhode Island Energy at a locked-in rate for 15 or 20 years. For 2026, the 15-year residential rate is 31.55¢ per kWh for systems up to 15 kW DC. You cannot participate in both REG and net metering.
| Policy Type | Net Billing / Net Metering |
| System Size Limit | Typically 125% of annual consumption, up to 10 MW |
| Export Rate (New Systems) | ~80% of retail rate (20% reduction from retail) |
| Effective Date for Reduction | Applications on or after April 15, 2023 |
| Rollover & Cash Out | Credits roll over monthly; excess at year-end cashed out at wholesale rate |
Battery rebates & VPPs
Adding a battery to your solar project can qualify you for significant extra funding, though you must carefully choose which incentive to claim.
Energy Storage Rebate (ESR) Program
An upfront rebate program for residential battery systems up to 25 kW AC, paying $250/kWh (up to $8,000) or $500/kWh for income-eligible customers (up to $16,000). Must pair with the ConnectedSolutions program.
REF Energy Storage Adder
A flat $5,000 bonus grant available through the Renewable Energy Fund when installing a qualifying battery alongside a new small-scale solar PV system. Cannot be combined with the state ESR program.
Virtual Power Plant (VPP) Programs
ConnectedSolutions (Rhode Island Energy)
A demand response program that rewards customers for allowing Rhode Island Energy to draw power from their home batteries during peak grid demand periods (summer season, June 1–Sept 30). Residential customers earn a performance-based incentive of $225 per average kW discharged per season.
Electric rates by utility
| Utility | Residential rate | Customers |
|---|---|---|
| The Narragansett Electric Co | 28.26¢/kWh | 332,540 |
| NextEra Energy Services, LLC | 11.63¢/kWh | 85,764 |
| SmartEnergy Holdings, LLC | 16.21¢/kWh | 8,190 |
Residential rate and customer counts are sourced from EIA data.
Estimate your own numbers
Every home is different. Use our solar calculator to get a customized estimate based on your exact energy usage.
Frequently Asked Questions
Can I get both the REF grant and participate in the REG program?
No. The Renewable Energy Fund (REF) provides an upfront grant for net-metered systems, while the Renewable Energy Growth (REG) program is a performance-based feed-in tariff where you sell all generation to the utility. You must choose one or the other, and you cannot combine REG with traditional net metering.
How does the 2023 net metering change affect new solar installations?
For systems interconnected after April 15, 2023, the renewable net-metering credit is reduced by 20% compared to the full retail rate. This means excess generation is credited at roughly 80% of the retail electricity rate rather than 1:1. Older systems are grandfathered.
Are solar panels exempt from taxes in Rhode Island?
Yes. Rhode Island offers a 100% exemption from the 7% state sales tax for eligible renewable energy equipment, as well as a 100% exemption from local property taxes on the added value of the system.
Data sources
Last updated 2026-09-24
- U.S. Energy Information Administration — Electricity Data Browser — accessed 2026-09-24
- NREL PVWatts — accessed 2026-09-24
- NREL Solar Resource Data — accessed 2026-09-24
- LBNL Tracking the Sun (public data file, host-owned residential systems) — accessed 2026-09-24
Written by Aditya Patil