Rhode Island solar panels: The complete guide in 2026
Data updated Jan 23, 2026
Interested in going solar? You'll need to install a 10.67 kW solar panel system to cover the average electric bill in Rhode Island, which will cost you about $32,419.
Cost for an average system in Rhode Island
| Cash price | $32,419 |
| 25-year savings | Payback period | Electricity offset |
|---|---|---|
| $106,263 | 9 Years | 94% |
Some states, towns, and utility companies offer incentives that can help lower the cost of solar.
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Going solar in Rhode Island
The smallest state in the nation fosters some of the biggest solar savings for its residents. Rhode Island’s solid incentives, coupled with the sky-high electricity prices, make solar panels a good investment for pretty much anyone in the Ocean State.
Factor in local incentives and Rhode Islanders can cut the cost of solar by thousands of dollars, speeding up their payback periods and increasing the value of their investments.
Here's what you need to know about going solar in Rhode Island.
Cost
How much do solar panels cost in Rhode Island?
Solar panels will save you a lot of money over time, but the upfront costs aren't cheap. The average Rhode Island homeowner needs a 10.67 kW solar panel system to cover their electricity needs, which comes out to $32,419 before incentives. Prices range from $27,556 to $37,282, but Rhode Island also has some great local incentives.
While this may sound high, it will pay off in Rhode Island. That's why over 15,000 Rhode Island homeowners have used EnergySage to receive and compare quotes for solar installations. You can expect to earn back your initial solar investment through electricity savings in about 9.17 years, while most systems last at least 25 years. You'll often see this number referenced as your solar payback period.
There are a few ways to finance your solar panel system so you don't have to provide all that money upfront.
Cash purchase: You'll own the system and pay for it up front. This provides the best long-term savings.
Solar lease or power purchase agreement (PPA): A third-party company owns your system and either leases you the solar panels (solar lease) or allows you to purchase the electricity they generate (PPA). These typically deliver immediate savings and can make a lot of sense if you’re looking to keep your capital flexible. Just make sure to choose an offering with low annual escalators to ensure it will continue to provide long-term savings.
Solar loan: This allows you to retain ownership of your system while owing little to no money upfront. Solar loans aren't all created equal. If you have access to subsidized clean energy loans through local incentive programs, that's usually your best bet. A home equity loan or a personal loan are often your next best options—private solar loans typically come with higher interest rates or upfront fees.
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Incentives
What are the best solar rebates and incentives in Rhode Island?
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 |
Rhode Island solar sales tax exemption | 7% of your system’s cost | You don't need to pay any sales tax on new solar panel systems in Rhode Island |
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. |
Is net metering available in Rhode Island?
In some states, you'll earn bill credits from your utility company when your solar panel system generates excess electricity and sends it to the grid. This incentive is known as net metering—basically a solar buyback program—and 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.
All major utilities in Rhode Island offer their own net metering program, so make sure to cash in on it while it's still available. Learn more about net metering in Rhode Island or get program details below:
Equipment
Equipment quality
Solar panels continue to get more efficient, meaning they produce more power per square foot. In 2025, the most popular solar panels can produce about 450 watts of electricity in full sunlight—you’ll want panels with at least that much power output to get the most out of your installation.
It’s also important to choose a solar inverter setup that works for your roof’s layout.
And if you plan to install a solar battery, pick one that can easily integrate with that inverter.
While premium equipment can result in sticker shock, it typically saves you more money in the in the long run: The highest-quality panels degrade at a slower rate and maintain more of their power output for longer, and the best warranty terms often guarantee up to 40 years of coverage in case you need repairs or replacements.
Companies
Who are the best solar installers in Rhode Island?
We pre-screen all of the solar companies on EnergySage to ensure they'll provide you with a high-quality installation. We then rate them based on their results, reputation, and responsiveness. Here are the highest-rated EnergySage installers in Rhode Island:
Ready to start looking for a solar installer?
Here are some of the most popular ones near you:
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resources
Top solar resources for Rhode Island
- Rhode Island Solar Loan Providers
Search through our list of top loan providers to finance your solar panel system.
- Community Solar farms in Rhode Island
Can't install solar on your roof? Check out local solar farms to save money.
- Rhode Island Office of Energy Resources
Learn about RI solar programs from the state government.
- RI Public Utilities Commission
Read more about how utility companies work in RI.
- Rhode Island Electricity Profile (EIA)
Learn about RI energy production and prices.
- RI State Solar Factsheet (SEIA)
See quick stats about how much solar energy has grown in RI.
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