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Is solar worth it in Rhode Island in 2026?

Updated Oct 28, 2026 · By No BS Clean Energy · Sources below

First published Sep 28, 2026. Revised Oct 28, 2026: every input re-checked at its source. The credit rate is re-checked each month.

On this page
  1. The short answer
  2. Run your own numbers
  3. How much power do panels make here?
  4. What changes the answer?
  5. Do I pay tax on solar?

The short answer

It can be, for a home you own with a sunny roof. An average Rhode Island home uses 6,726 kWh6,726 kWhabout 6,726 kWh a yearPower the average Rhode Island home uses in a yearWorked out from EIA's statewide totals for the 12 months through July 2026: all home electricity sold, divided by the number of homes. Recent months are early estimates.U.S. EIA, Form EIA-861M, monthly sales and revenuesales_revenue.xlsx (released Oct 23, 2026), Monthly-States, RI Residential: total sales Aug 2025 to Jul 2026 divided by average customer countVerified Oct 28, 2026 a year. A 5 kW5 kWWorked out from sourced numbers: 6,726 kWh ÷ 1,318 kWh per kW, to the nearest half kWPower the average Rhode Island home uses in a year: about 6,726 kWh a year. Verified Oct 28, 2026.Power one kW of panels makes in a year in Providence: about 1,318 kWh a year per kW. Verified Sep 28, 2026. system makes about that much. It gets a $8,250$8,250Worked out from sourced numbers: 5 kW × 1.65 per wattState grant per watt of solar: $1.65 per watt. Verified Oct 28, 2026.The most the solar grant can pay: up to $14,500. Verified Oct 28, 2026. state grant. How fast it pays back depends on your quote, your roof, and how much of the power your home uses. Run your own case below; it also shows REG side by side.

Many quotes here are bigger. The marketplace average is 11.69 kW$32,686$32,686 for an average 11.69 kW system (EnergySage, Oct 2026)EnergySage average price for an average 11.69 kW systemA marketplace average before any grant.EnergySage, Solar cost in Rhode Island (third-party marketplace)Header summary and intro paragraph (range $27,783 to $37,589). Page updated Oct 23, 2026.Verified Oct 28, 2026. A system that makes more than your home uses sends the extra to the grid at the lower wholesale price, so it pays back slower. Try both sizes below.

Run your own numbers

Starts at the Rhode Island average of 6,726 kWh6,726 kWhabout 6,726 kWh a yearPower the average Rhode Island home uses in a yearWorked out from EIA's statewide totals for the 12 months through July 2026: all home electricity sold, divided by the number of homes. Recent months are early estimates.U.S. EIA, Form EIA-861M, monthly sales and revenuesales_revenue.xlsx (released Oct 23, 2026), Monthly-States, RI Residential: total sales Aug 2025 to Jul 2026 divided by average customer countVerified Oct 28, 2026. Your bills show yours.

A full score is a south roof with no shade. The grant needs 80%80%80% TSRF or higher on the shade reportHow much sun the roof must getTSRF measures how much sun your roof gets through the year. Your installer's shade report shows it.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Eligibility checklist, question 2 (the shade report must show 80% TSRF or higher); also on the Small Scale Funding FlyerVerified Oct 28, 2026 or more. Output scales with the score, roughly.

Who owns the panels
How you get paid for power

Starts at a marketplace average of $2.80$2.80$2.80 per watt (EnergySage average, Oct 2026)Average installed price in RI (marketplace quotes)EnergySage's average across quotes on its marketplace, for systems that average 11.69 kW. Not a state number. Your price per watt depends on your system.EnergySage, Solar cost in Rhode Island (third-party marketplace)Intro paragraph, 'As of October 2026' (page updated Oct 23, 2026)Verified Oct 28, 2026. Use your quote.

Simple payback
3.2 years
($14,000 - $8,250 grant) ÷ $1,816 a year
State grant for solar
$8,250

5 kW × $1.65 per watt, capped at $14,500

Power your panels make
6,590 kWh

5 kW × 1,318 kWh

Power credited at the home rate
6,590 kWh

The smaller of what you make and what you use

Extra power sent to the grid
0 kWh

None. Your panels make less than your home uses.

Payback with REG instead

Same inputs, the other program

Bill credit a year
$1,816

6,590 kWh × 27.553¢

What this assumes
  • Panels make about 1,318 kWh1,318 kWh/kW/yrabout 1,318 kWh a year per kWPower one kW of panels makes in a year in ProvidenceModeled, not measured. East or west roofs and shade make less.National Laboratory of the Rockies (formerly NREL), PVWatts v8PVWatts v8 API: lat 41.824, lon -71.413, 1 kW, south-facing (180°), 25° tilt, 14% losses, NSRDB PSM V3 TMY weatherVerified Sep 28, 2026 a year for each kW on a south roof with no shade, times your sun score.
  • The price starts at $2.80$2.80$2.80 per watt (EnergySage average, Oct 2026)Average installed price in RI (marketplace quotes)EnergySage's average across quotes on its marketplace, for systems that average 11.69 kW. Not a state number. Your price per watt depends on your system.EnergySage, Solar cost in Rhode Island (third-party marketplace)Intro paragraph, 'As of October 2026' (page updated Oct 23, 2026)Verified Oct 28, 2026 per watt, a marketplace average for systems that average 11.69 kW$32,686$32,686 for an average 11.69 kW system (EnergySage, Oct 2026)EnergySage average price for an average 11.69 kW systemA marketplace average before any grant.EnergySage, Solar cost in Rhode Island (third-party marketplace)Header summary and intro paragraph (range $27,783 to $37,589). Page updated Oct 23, 2026.Verified Oct 28, 2026. Smaller jobs can price differently, so use your quote.
  • Power your home uses earns this month's home credit, 27.553¢27.553¢27.553¢ per kWh (Oct 2026, standard home rate A-16)Home solar credit per kWh, standard home rate A-16This changes when supply rates change. It shows on your bill as the renewable generation credit.RI Energy, Addendum to RIPUC Tariff No. 2095, Net Metering Credit by Rate Class, Oct 2026For the Month of October 2026. Row (21) Renewable Net Metering Credit, column A-16 (Fixed LRS): $(0.27553)Verified Oct 28, 2026 per kWh. It moves with supply rates.
  • Power beyond what your home uses earns the wholesale priceWholesale price, much lower than your retail rateWhat power beyond your own use earnsThe law changed in 2025. The utility's own table still lists this rate as to be determined.R.I. Gen. Laws § 39-26.4-2(8)§ 39-26.4-2(8), second paragraphVerified Sep 28, 2026. The utility has not posted that rate yet, so it counts as zero here.
  • The grant is $1.65$1.65$1.65 per wattState grant per watt of solarThe state can change funding levels. It gives notice one round ahead.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, 'Starting Funding Year 2026', row D.O (Direct Ownership); also Small Scale Flyer, 'Current REF Incentive Levels'Verified Oct 28, 2026 per watt, up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026, and only for systems you own with a sun score of at least 80%80%80% TSRF or higher on the shade reportHow much sun the roof must getTSRF measures how much sun your roof gets through the year. Your installer's shade report shows it.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Eligibility checklist, question 2 (the shade report must show 80% TSRF or higher); also on the Small Scale Funding FlyerVerified Oct 28, 2026. Payback counts solar only.
  • With REG, every kWh is paid at the REG rate, and there is no grant. RI Energy's documents differ on who gets REG's cash part, so this shows the full REG pay. Ask in writing who receives it.
  • It leaves out upkeep, panels slowly making less over time, and changes in power prices.

The federal credit is gone for systems finished after Dec 31, 2025Gone for systems finished after Dec 31, 2025Federal solar tax credit for homeowners (section 25D)A system counts as finished when it is installed, not when you sign or pay.IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025)Termination table row 25D; Q&A citing § 25D(e)(8)(A)Verified Sep 28, 2026, so the state grant does more of the work now.

How much power do panels make here?

In Providence, each kW of panels makes about 1,318 kWh1,318 kWh/kW/yrabout 1,318 kWh a year per kWPower one kW of panels makes in a year in ProvidenceModeled, not measured. East or west roofs and shade make less.National Laboratory of the Rockies (formerly NREL), PVWatts v8PVWatts v8 API: lat 41.824, lon -71.413, 1 kW, south-facing (180°), 25° tilt, 14% losses, NSRDB PSM V3 TMY weatherVerified Sep 28, 2026 a year on a south roof with no shade. Summer makes far more than December. Credits from sunny months can roll forwardCredits can roll to next month; balances can be cashed outDo unused credits roll over?The law lets the utility do this. It is not required to.R.I. Gen. Laws § 39-26.4-3(a)(2) and (a)(4)§ 39-26.4-3(a)(2), last sentence; (a)(4), cash-out clauseVerified Sep 28, 2026 to darker ones, which is why the estimator works by the year.

Power prices matter too. The average Rhode Island home paid 28.18¢ per kWh28.18¢28.18¢ per kWh (August 2026)Average RI home electric price, latest monthAn early estimate. It is the all-in average: supply plus delivery.U.S. EIA, Electric Power Monthly, Table 5.6.ATable 5.6.A, Rhode Island row, Residential, August 2026 (released Oct 23, 2026)Verified Oct 28, 2026 in August 2026, up from 26.53¢26.53¢26.53¢ per kWh (August 2025)Average RI home electric price, same month last yearU.S. EIA, Electric Power Monthly, Table 5.6.ATable 5.6.A, Rhode Island row, Residential, August 2025Verified Oct 28, 2026 a year before. That all-in price includes fixed charges your credit does not cover.

Power from one kW of panels, by month Providence

kWh per month
Source: PVWatts v8, National Laboratory of the Rockies. Checked Sep 28, 2026.Note: Modeled, not measured. East or west roofs and shade make less.

What changes the answer?

Who owns the panels

Only owners get the state grant. You must own the home and the system. Leases and PPAs don't qualify.You must own the home and the system. Leases and PPAs don't qualify.Who can get the grantYou must also own the property, and it must be in Rhode Island.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 6Verified Oct 28, 2026 The grant pays $1.65$1.65$1.65 per wattState grant per watt of solarThe state can change funding levels. It gives notice one round ahead.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, 'Starting Funding Year 2026', row D.O (Direct Ownership); also Small Scale Flyer, 'Current REF Incentive Levels'Verified Oct 28, 2026 per watt, up to $14,500$14,500The most the solar grant can payThe grant is paid to your installer, who takes it off your contract price.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project Funding table, Max column: '$14,500/project'Verified Oct 28, 2026.

Your roof

East or west roofs and shade make less power than the numbers above. A shade report from the installer tells you what yours will do.

Net metering or REG

With net metering, a rooftop on your own meter keeps the full creditNo. The 20% cut is for remote ground-mount projects, not rooftops on your own meter.Does the 20% credit cut hit a new home rooftop system?The law ties the cut to a cap on remote ground-mount projects, and systems on a home's own meter are left out of that cap. The utility's September home credit shows no reduced rate.R.I. Gen. Laws § 39-26.4-2(22) and § 39-26.4-3(a)(1)(vi); RI Energy Net Metering Provision RIPUC No. 2279 §3.3 and §4.33§ 39-26.4-3(a)(1)(vi), last sentence, exception (A); § 39-26.4-2(22) 20% sentenceVerified Sep 28, 2026. REG pays 31.55¢31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 per kWh for 15 years31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 on systems up to 15 kW31.55¢31.55¢ per kWh for 15 yearsREG pay rate: systems up to 15 kW, 15-year termFor the program year April 2026 to March 2027. Your rate is locked in for the full term once you enroll.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Schedule 2, 'Small-Scale Solar I (>0-15 kW DC)', page 12Verified Sep 28, 2026 instead, but it replaces net meteringREG replaces net metering. You get one or the other.Does REG work with net metering?A system already on net metering can't join REG. Ask in writing who receives REG's cash part; RI Energy's documents differ on it.RI Energy, RE Growth Program Tariff for Residential Customers, RIPUC No. 2151-M (effective 4/1/2026)Sheets 6-7, project segmentation paragraphVerified Sep 28, 2026 and you can't also take the grantPick one. REF and REG can't be combined.Can you use the grant and REG together?RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Things to know, bullet 1Verified Oct 28, 2026.

The price you pay

A marketplace average for Rhode Island is $2.80 per watt$2.80$2.80 per watt (EnergySage average, Oct 2026)Average installed price in RI (marketplace quotes)EnergySage's average across quotes on its marketplace, for systems that average 11.69 kW. Not a state number. Your price per watt depends on your system.EnergySage, Solar cost in Rhode Island (third-party marketplace)Intro paragraph, 'As of October 2026' (page updated Oct 23, 2026)Verified Oct 28, 2026 before any grant. Get more than one quote.

Do I pay tax on solar?

Sales tax: No RI sales tax on panels, inverters or rackingNo RI sales tax on panels, inverters or rackingRI sales tax on solar equipmentThe law does not list batteries.R.I. Gen. Laws § 44-18-30(57), Renewable energy products§ 44-18-30(57)Verified Sep 28, 2026. The law does not list batteries.

Property tax: each town decides by ordinanceUp to your townProperty tax on solarAsk your town hall whether your town has an ordinance.R.I. Gen. Laws § 44-3-21§ 44-3-21 (full text, one sentence)Verified Sep 28, 2026. Ask your town hall whether yours has one.

Sources

  1. U.S. EIA, Electric Power Monthly, Table 5.6.A. Read Oct 28, 2026.
  2. National Laboratory of the Rockies (formerly NREL), PVWatts v8. Read Sep 28, 2026.
  3. RI Energy, Addendum to RIPUC Tariff No. 2095, Net Metering Credit by Rate Class, Oct 2026. Read Oct 28, 2026.
  4. R.I. Gen. Laws § 39-26.4-3. Read Sep 28, 2026.
  5. EnergySage, Solar cost in Rhode Island (third-party marketplace). Read Oct 28, 2026.
  6. RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26). Read Oct 28, 2026.
  7. RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026). Read Sep 28, 2026.
  8. RI Energy, RE Growth Program Tariff for Residential Customers, RIPUC No. 2151-M (effective 4/1/2026). Read Sep 28, 2026.
  9. IRS, FAQs for modification of sections 25C, 25D ... under Public Law 119-21 (FS-2025-05, Aug 21, 2025). Read Sep 28, 2026.
  10. R.I. Gen. Laws § 44-18-30. Read Sep 28, 2026.
  11. R.I. Gen. Laws § 44-3-21. Read Sep 28, 2026.
  12. U.S. EIA, Form EIA-861M, monthly sales and revenue. Read Oct 28, 2026.
  13. R.I. Gen. Laws § 39-26.4-2. Read Sep 28, 2026.