Rhode Island solar rebates and incentives: 2026 guide
The average Rhode Island solar shopper will save big with local incentives.
Updated Jan 6, 2026
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Solar panels might seem expensive, but if you live in Rhode Island, you're in luck. Your state offers some of the most generous solar incentives in the country, helping thousands of homeowners shrink their upfront costs while locking in decades of lower electricity bills. There are multiple ways to bring down the price of going solar—and start saving sooner than you might think.
Even better? The long-term savings from reduced electricity costs typically outweigh your upfront investment. Here's how to take advantage of Rhode Island's solar incentives.
Incentives help bring solar's price tag down considerably in Rhode Island. Here are the major ones to know about:
| Incentive | Average savings in Rhode Island | Description |
|---|---|---|
Renewable Energy Growth (REG) Program | $0.27/kWh | Compensates you for your solar generation for the first 15 to 20 years of generation |
Renewable Energy Fund (REF) Small Scale Solar Grants | $0.65/W | Grant offered to new solar installations up to $5,000 per project |
In addition to the great rebates and incentives above, Rhode Island also offers tax exemptions for solar panel systems. The solar sales tax exemption ensures that you won't have to pay a sales tax on your system, while the solar property tax exemption means you don't need to pay a higher property tax for adding solar panels to your house.
Tax exemption | Description |
|---|---|
| Rhode Island solar sales tax exemption | You don't need to pay any sales tax on new solar panel systems in Rhode Island, saving at least 7% of your system costs. |
| Rhode Island solar property tax exemption | If you use solar energy as a source of power, you won't need to pay a property tax for 20 years on the value your solar panels add to your property. |
If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in Rhode Island. With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels.
Under Rhode Island’s net metering program, you’ll earn credits at the retail rate of electricity for each kWh of electricity your system produces up to 100% of your monthly utility electricity demand. If you send more electricity to the grid than you demand, you’ll be credited based on the avoided cost rate for your excess generation. Net excess generation credits are limited to 125% of your utility usage.
Learn more about these net metering programs:
In addition to solar incentives, Rhode Island also offers some great battery incentive programs to bring down the price of energy storage. The Connected Solutions Program is a demand response program that compensates you for allowing RI Energy to access your battery during times of peak energy demand. From June through September, your battery may be called between 3:00 PM and 8:00 PM, but no more than 60 times per summer and for no longer than 3 hours per event. In exchange for your stored electricity, you’ll earn $400 per kW performed.
From June through September, your battery may be called between 3:00 PM and 8:00 PM, but no more than 60 times per summer and for no longer than 3 hours per event. In exchange for your stored electricity, you’ll earn $225 per kW performed each summer. Several popular batteries qualify for the program, such as the Enphase IQ 10 and the Tesla Powerwall.
Rhode Island’s Small Scale Solar Grant program includes an energy storage adder, which is an additional credit you can earn for installing an energy storage system with your solar panels. The Energy Storage Adder can increase your credit amount by $2,000.
If you're looking for solar installers in Rhode Island, here are some popular suggestions:
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Is solar worth it in Rhode Island?
Solar panels are often worth it in Rhode Island due to the state's sunny skies. If you pay for your system with cash, you'll save about $99,199 over 25 years (the warranty term of most solar panels) on electricity costs with a 10.9 kW system in Rhode Island based on real solar quote data from our Marketplace.
Can you get solar panels for free in Rhode Island?
Unfortunately, you can't get free solar panels in Rhode Island, though incentives can dramatically lower the price you pay. But, if you sign a solar lease or PPA, you can go solar with no upfront payment and start saving right away—you just won’t officially own your system, which will limit your access to any available incentives.
How much does it cost to install solar in Rhode Island?
As of January 2026, the average solar panel cost in Rhode Island is $2.93. If you install a 10.9 kW system it will cost you between $27,101 to $36,667, with an average cost of $31,884.
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