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Rhode Island · Updated August 2026
Rhode Island solar incentives in 2026
Every solar incentive a Rhode Island homeowner can actually use in 2026, and the one decision you make once: the REG tariff or net metering plus the REF grant.
31.55¢REG tariff, fixed for 15 years — above what you currently payRanked #1 by Solar Power World · Inc. 5000 · 20,000+ installations
The numbers
What Rhode Island actually offers in 2026
| Measure | Current | Detail |
|---|---|---|
| REG tariff, Small Solar I | 31.55¢/kWh | Fixed 15 years, systems up to 15 kW. PUC Docket 25-52-REG |
| REG tariff, 15–25 kW | 28.65¢/kWh | Fixed 20 years |
| Renewable Energy Fund grant | $0.65/W | Capped at $5,000. Net-metered systems only |
| REF battery adder | $2,000 | If you add storage |
| Net metering credit | ~80% of retail | Reduced from 100% in April 2023 |
| Sales tax exemption | 7% | Full exemption on equipment |
| Property tax exemption | Statewide | RIGL 44-3-3(a)(48) |
| Federal residential credit (25D) | Ended | For systems purchased after Dec 31, 2025 |
Figures as published August 2026. Utility rates change on published schedules — check your own bill for the rate that applies to your account.
Why the number is what it is
REG or net metering plus REF. You cannot have both.
Rhode Island gives you two routes and you pick one per system.
REG — the Renewable Energy Growth tariff — pays a fixed 31.55¢ per kilowatt-hour on everything your system produces, for 15 years. That is above what Rhode Island Energy currently charges you.
Net metering plus REF credits exports at roughly 80% of retail and pays an upfront grant of $0.65 per watt, capped at $5,000, with a $2,000 adder if you add a battery.
Source: Rhode Island PUC Docket 25-52-REG, Program Year 2026–2027 compliance filing; Rhode Island Office of Energy Resources. REG ceilings reset annually.
Net metering was reduced in 2023
Rhode Island cut its net metering credit from full retail to roughly 80% of retail for new installations in April 2023. Systems interconnected before that were grandfathered.
That change is part of why REG became more competitive, and it is why the two paths now model out so closely.
The federal residential credit ended. Here is what that actually means.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy a system with cash or a loan in 2026, you cannot claim it. Any site still advertising "30% federal tax credit" for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible: the credit stays with whoever owns the equipment, and under a PPA that is not you.
We would rather tell you that plainly than let you find out at tax time.
Two ways to pay for solar, and they are very different
If you buy the system
You own the equipment, you keep any renewable energy credits, and you carry the maintenance responsibility. Installed pricing varies by roof, shading and system size.
If you use a PPA
$0 upfront. We install and own the system; you buy the power it produces at a rate set in your agreement, and you only pay for what it actually generates. The system owner carries maintenance for the life of the agreement.
The residential federal tax credit (25D) ended for systems purchased after December 31, 2025.
You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Who you would be working with
SolarAmerica
We design your system and manage the project; installation is performed by vetted licensed partners in your area.
Rhode Island questions
The things people actually ask
Why is Rhode Island's Price to Compare lower than PPL's but the all-in rate higher?
Because the two numbers measure different things. Rhode Island's supply charge is lower; its distribution charges and riders are higher. What matters to your budget is the all-in figure — your bill divided by your kilowatt-hours.
How often does this change?
Four times a year: March, June, September and December.
Can I shop for supply?
Yes. Rhode Island is deregulated, and switching suppliers changes only the supply portion of your bill.
See what your roof and Rhode Island actually add up to
About 60 seconds. No cost, no obligation, and we will tell you if solar does not make sense for your home.
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