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Rhode Island Solar Calculator

Rhode Island has the strongest solar incentive package of any US state — enter your RI Energy bill to see REG $0.27/kWh tariff + REF rebate + 20-yr property tax exempt + 7% sales tax exempt + ConnectedSolutions battery stacked together.

Your Rhode Island solar inputs
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kW
Rhode Island solar estimate
20 × 400W panels (8 kW system)
Monthly usage800 kWh/mo
Annual production (RI 4.3 PSH)10,045 kWh/yr
Annual revenue/savings (REG @ $0.27/kWh)$2,712/yr
Gross system cost$24,800
Federal ITC (30%)-$7,440
RI REF rebate ($0.65/W, max $5K)-$5,000
Sales tax exemption (7%)-$1,736
Net cost after all incentives$10,624
Property tax exemption (20-yr est.)$6,448
Payback period3.9 yrs
25-year savings$67,802
Rhode Island has the strongest incentive package of any US state: 30% federal ITC + REG $0.27/kWh tariff (15-20yr) + REF rebate $0.65/W (up to $5K + $2K battery) + 7% sales tax exempt + 20-year property tax exempt + ConnectedSolutions $225/kW. REG program capacity is limited — confirm availability with your installer.
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Rhode Island has the strongest solar incentive package of any US state

No state in the US combines more solar incentives than Rhode Island. The full RI stack: 30% federal ITC + REG program ($0.27/kWh for all production, 15-20 year contract) + REF rebate ($0.65/W up to $5,000, plus $2,000 for battery) + 7% sales tax exemption + 20-year property tax exemption + ConnectedSolutions battery incentive ($225/kW). The REG program alone pays $0.27/kWh for every kilowatt-hour your system produces — higher than RI Energy's retail rate — making RI solar economically outstanding.

REG vs standard net metering — which to choose?

The Renewable Energy Growth (REG) program pays a fixed $0.27/kWh tariff for all solar production under a 15-20 year contract. This is higher than RI Energy's ~$0.24/kWh retail rate. Under REG, the utility buys all your production and you purchase all your consumption — it functions like a feed-in tariff. REG capacity is limited and enrollment operates by lottery/waitlist. If REG is unavailable, RI's standard net metering credits exports at 80% of retail rate — still good, but REG is significantly better for most homeowners.

REF rebate and battery incentives

The Rhode Island Renewable Energy Fund (REF) pays $0.65/W rebate up to $5,000 for residential solar installations. Add $2,000 more for battery storage. The ConnectedSolutions program adds $225/kW of battery capacity. A 5 kW battery (e.g., Tesla Powerwall) qualifies for approximately $1,125 in ConnectedSolutions incentives. Combined battery incentives (ITC + REF + ConnectedSolutions) can total over $7,000 — making RI one of the most battery-friendly states in the country.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.3 PSH × 365 × 0.80 efficiency ÷ 1000 REG Annual Revenue = Annual Production × $0.27/kWh (15-20 yr contract) OR: Annual Savings = Self-consumed × $0.24 + Exported × ($0.24 × 0.80) (net metering) Gross Cost = System kW × 1000 × $3.10/W + Battery ($12,000 if added) ITC Credit = Gross Cost × 30% REF Rebate = min(System kW × 1000 × $0.65, $5,000) REF Battery Rebate = $2,000 (if battery added) ConnectedSolutions = $225 × Battery kW capacity (if battery added) Sales Tax Saving = Solar Hardware Cost × 7% Net Cost = Gross Cost − ITC − REF − ConnectedSolutions − Sales Tax Payback = Net Cost ÷ Annual Revenue/Savings Property Tax Exemption = System Value × ~1.3% RI avg × 20 years

Rhode Island averages 4.3 peak sun hours — Providence (4.3 PSH), Warwick, and Cranston all similar. RI's $3.10/W installation cost reflects the dense Providence metro market with many established installers. The REG program's $0.27/kWh rate combined with RI's strong incentive stack means RI solar can achieve payback in 6-8 years for REG participants — among the fastest in the northeastern US.

Example

Maria — Providence RI Energy customer with REG

Maria is in Providence on RI Energy paying $192/month at $0.24/kWh. She enrolls in REG and installs an 8 kW system with battery.

Monthly bill$192 (RI Energy, $0.24/kWh)
System8 kW + battery
REG enrollment$0.27/kWh, 20-year contract

Result

Annual production~9,542 kWh/yr
REG annual revenue (@$0.27)~$2,576/yr
Gross system cost (8kW + battery)~$36,800
Federal ITC (30%)-$11,040
REF rebate ($0.65/W, max $5K)-$5,000
REF battery rebate-$2,000
ConnectedSolutions (~5kW battery)-$1,125
Sales tax exemption (7%)-$1,736
Net cost after all incentives~$15,899
Payback period~6.2 years
25-year savings~$64,400

Maria's comprehensive RI incentive stack reduces her net cost from $36,800 to approximately $15,900 — a reduction of over 57%. Her REG-powered annual revenue of $2,576 gives a 6-year payback. Over 20 years of the REG contract she receives over $51,520 in solar revenue. The 20-year property tax exemption saves thousands more. Rhode Island's incentive package is unmatched — no other US state combines this many layers of incentive, making RI solar compelling even compared to sunnier southern states.

FAQ

Rhode Island's Renewable Energy Growth program is a feed-in tariff that pays a fixed rate for all solar production. Residential customers receive $0.27/kWh for every kWh their system produces, under a 15-20 year contract. Unlike net metering, under REG you sell all production to the utility and purchase all consumption at the retail rate — the program functions as a separate solar income stream. REG payments are indexed and adjust over time. REG capacity is limited by annual program caps — enrollment opens periodically and spots fill quickly. Contact RI Energy or a RI-certified solar installer to check current REG availability and enrollment windows.
The Rhode Island Renewable Energy Fund (REF), administered by the RI Office of Energy Resources, provides upfront rebates for residential solar installations: $0.65/W for solar, up to $5,000, plus $2,000 for battery storage added with solar. On an 8 kW system, the full $5,000 REF rebate applies (8,000W × $0.65 = $5,200, capped at $5,000). The rebate is paid after installation and inspection. REF funding is appropriated annually — confirm availability with your installer. The REF rebate stacks with the federal ITC, REG, sales tax exemption, and property tax exemption.
Rhode Island law exempts the full value of solar energy systems from local property taxes for 20 years from the date of installation. At RI's ~1.3% average effective property tax rate, a $24,800 solar installation (8 kW at $3.10/W) saves approximately $322/year in property taxes — totaling approximately $6,440 over the 20-year exemption period. Apply through your local tax assessor's office after installation. The exemption covers panels, inverters, mounting, wiring, and battery storage systems. After 20 years, the assessed value includes the solar system.
ConnectedSolutions is a demand response program run by RI Energy (and Eversource in southern NE) that pays battery owners to dispatch stored energy during peak demand events. In Rhode Island, residential participants receive approximately $225/kW of battery capacity in seasonal incentive payments. A Tesla Powerwall (13.5 kWh / 5 kW) qualifies for approximately $1,125/year. Enrollment allows RI Energy to briefly draw from your battery (typically 1-3 hours) during summer peak demand periods, usually afternoons in July and August. The program is generally low-impact for homeowners and provides meaningful annual income on top of solar savings.
Rhode Island's exceptional solar incentive stack reflects the state's aggressive clean energy policy goals and high electricity costs. RI has a Renewable Energy Standard requiring utilities to source increasing percentages of power from renewables. High electricity rates ($0.24/kWh) create political pressure to help residents offset energy costs. RI's small geographic size limits in-state utility-scale renewable development, making distributed solar particularly important for meeting state energy goals. The combination of REG, REF, and ConnectedSolutions reflects years of iterative policy design to maximize residential solar adoption — RI has been a national leader in distributed solar program design.

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