Own or lease solar in Rhode Island: what changes

What changes?

If you own solar, the panels are yours. If you lease or sign a PPA, a solar company owns them, and you pay that company. One big change in Rhode Island is 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 Which one fits you depends on the price and the contract, so compare both for the same roof.

Who owns the panels?

When you buy, you own the system, however you pay for it. With a lease or a PPA, the company owns it and you pay the company to use it.

Who gets the state grant?

Only owners. 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 For a system you own, 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. The grant is paid to your installer and comes off your contract price.The grant is paid to your installer and comes off your contract price.How the grant money movesAsk to see the grant amount and what you owe after it on your contract.RI Commerce, Renewable Energy Fund, Small-Scale Request for Projects (rev. 4/6/26)Project application requirements: an executed turnkey contract, contingent on REF funding, showing total cost, the REF grant amount and the net owedVerified Oct 28, 2026

A lease or PPA gets nothing from this program. Owners still have to meet the other rules, like a sunny enough roof. The grant guide lists them.

Does the federal credit matter?

Not for this choice. The federal tax credit for homeowners 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. A homeowner can't claim it whether they buy or lease, so it doesn't favor either one.

What about REG and net metering?

If you own, you pick how the power pays you: net metering with the REF grant, or REG instead. REF and REG can't be combinedPick 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. REG pays for each kWh your panels make, and 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.

With a lease or PPA, ask the company whether the system will use net metering or REG, and who gets the credits or the pay. Under REG, part comes as a bill credit and the rest in cash, and RI Energy's own documents differ on who gets the cashYou get a bill credit for power you use, and the rest is paid in cash. RI Energy's rules say the cash goes to you as the customer, but its flyer says the applicant, so get it in writing.Who gets REG's cash paymentIf an installer files for you, ask in writing who receives the cash part before you sign.RI Energy, RE Growth Solicitation and Enrollment Process Rules for Small-Scale Solar (effective 4/1/2026)Section 1 overview: 'the remainder of the PBI payment will be paid to the customer' (residential). The 2026 one-pager says 'the applicant will be paid the remaining Performance-Based Incentive'.Verified Sep 28, 2026.

Own or lease, your RI Energy bill does not go away. Solar credits don't cover fixed monthly chargesCredited at the supply and delivery parts of your rate. Fixed monthly charges stay.What your solar credit coversFixed monthly charges on your bill are not covered by credits.R.I. Gen. Laws § 39-26.4-2(22)§ 39-26.4-2(22)(i)-(iv), 'Renewable net-metering credit'Verified Sep 28, 2026.

What to ask before you sign

Get every answer in writing.

If you buy

• Does the contract show the full price, the grant, and what I owe after the grant?
• What does the shade report say about my roof?
• Will the system use net metering or REG, and who files for it?
• What do the warranties cover, and for how long?

If you lease or sign a PPA

• What do I pay each month, or for each kWh?
• Does that price go up over time, and by how much?
• How long does the contract last, and what happens at the end?
• What happens if I sell my home?
• Who fixes the system if it breaks, and who pays for that?
• Can I buy the system before the contract ends, and how is that price set?

Either way, ask to see the company's state registration. Anyone selling solar here must register with the state every year.Anyone selling solar here must register with the state every year.Must solar sellers register with the state?Sales reps also need a criminal background check.R.I. Gen. Laws § 5-93-4(a); RI DBR Solar Retailers page§ 5-93-4(a); DBR page quotes it and links Bulletin 25-01 ('Required Registration Must Be Completed By August 1, 2025')Verified Sep 28, 2026

How do I compare them?

Have a lease or PPA price in hand? The estimator on Is solar worth it in Rhode Island has a lease or PPA setting. Enter what you would pay, and it shows how much of your bill credit is left after you pay the company. Switch it to owning to see the same roof with the grant.

Quick answers

Does a lease or PPA get the state grant?

No. Only systems you own qualify.

Who owns the panels with a PPA?

The solar company does. You pay it for the power the panels make.

Does the federal tax credit favor buying?

No. The home credit is gone for systems finished after Dec 31, 2025, so it doesn't favor either one.

Will I still get an electric bill?

Yes. Own or lease, solar credits don't cover fixed monthly charges.