Rhode Island Solar Panels

Rhode Island’s Renewable Energy Fund (REF) Small Scale Solar Grant, administered by the RI Commerce Corporation, provides homeowners with a cash grant of $0.65 per watt, capped at $5,000, to help offset the upfront cost of a new solar installation. If you also install a battery storage system at the same time as your solar panels, you can receive an additional $2,000 Energy Storage Adder — regardless of how many batteries are added. Grant rounds are offered in spring, summer, and fall each year on a first-come, first-served basis, and you must apply before installation begins.

To be eligible, you must own the property in Rhode Island where the system is being installed, and the site must meet a minimum Total Solar Resource Fraction (TSRF) of 80%, verified through a shade analysis conducted by your installer. Your installer will apply for the grant on your behalf. After installation is complete and final documentation (inspection certificate, interconnection agreement, and invoices) is submitted, payment is typically processed within 6–8 weeks, with a total timeline of 6–12 months from application to check.

Important: The REF grant is only available for net-metered systems and cannot be combined with the Renewable Energy Growth (REG) Program. However, it can be stacked with the state sales tax exemption, property tax exemption, and net metering credits. Homeowners must choose between REF + Net Metering or the REG Program — not both.

The Renewable Energy Growth (REG) Program, administered by Rhode Island Energy, allows homeowners with solar systems up to 25 kW DC to sell their electricity generation to the grid at a fixed, guaranteed price for the duration of their contract. The 2026 ceiling rates are $0.3385/kWh or $0.3235/kWh depending on project size and contract term (15 or 20 years). Once your contract is signed, the rate is locked in for the entire term — providing long-term, predictable income from your solar system. The program opens on April 1st each year and is available on a first-come, first-served basis until fully subscribed.

To qualify for the Small-Scale REG program, your solar array must be 25 kW DC or smaller, located in Rhode Island, connected to the Rhode Island Energy distribution system, and sized to produce no more electricity than your historic or estimated annual usage. The system must be operational within 24 months of application. Payments are made as bill credits up to the amount owed, with any excess generation paid out as a direct deposit.

Important: The REG Program cannot be combined with the REF Small Scale Solar Grant. Homeowners must choose one or the other. The REG program is separate from net metering — REG pays for all production, while net metering credits you for grid exports and offsets self-consumed energy. Pending legislation in Rhode Island has proposed repealing the REG program; homeowners should verify the program’s current status with the Rhode Island Office of Energy Resources before applying.

Rhode Island’s Net Metering Program allows homeowners with solar panels connected to the grid to earn bill credits for excess electricity they send to the utility. For systems installed after April 15, 2023, Rhode Island Energy (which serves approximately 95% of RI customers) credits exported energy at 80% of the retail rate — currently approximately $0.232/kWh. Net excess generation credits are capped at 125% of your annual utility usage. Rhode Island law protects net metering terms through 2039, giving homeowners at least 13 years of guaranteed program access for a system installed in 2026.

Customers of the two municipal utilities — Pascoag Utility District and Block Island Power Company — receive full 1:1 retail rate credits for exported energy, though these programs are capped at 3% and 10% of peak load, respectively. Block Island Power’s high rate of $0.35/kWh makes net metering especially valuable for customers in that service territory.

Net metering can be combined with the REF Small Scale Solar Grant and state tax exemptions, but it operates under a separate framework from the REG Program. Homeowners who enroll in the REG Program are not eligible for standard net metering credits on the same system. Virtual Net Metering (VNM) is also available for eligible entities such as municipalities, public schools, non-profits, and hospitals that cannot install on-site solar.

Rhode Island’s Solar Sales Tax Exemption waives the state’s 7% sales tax on all solar photovoltaic equipment and installation labor. Qualifying equipment includes solar panels, inverters, racking, wiring, solar batteries, and even electric vehicle (EV) chargers installed as part of a solar project. This exemption is applied automatically at the point of sale — no application or paperwork is required from the homeowner.

The financial savings can be significant. On a typical residential solar system, the exemption can save homeowners over $1,900, and over $2,900 if a battery storage system is also included. Because the exemption applies to labor as well as equipment, the full installed cost of the system benefits from the tax relief.

This exemption is available to all Rhode Island homeowners installing solar and/or battery storage systems and can be stacked with other state incentives such as the REF grant, the REG program, net metering credits, and the property tax exemption. There are no income limits or application deadlines — the benefit applies to every qualifying solar installation in the state.

Rhode Island’s Solar Property Tax Exemption ensures that homeowners who install solar panels will not see their property tax bill increase as a result of the added value that solar brings to their home. Even though solar installations typically increase a home’s market value, the assessed value used for property tax purposes excludes the value of the solar energy system entirely. This exemption applies to both primary and secondary residences across Rhode Island.

Over the lifetime of a solar system, this exemption can represent substantial savings. On average, Rhode Island homeowners save over $7,200 in property taxes thanks to this exemption. The benefit is ongoing for as long as the solar system remains on the property, making it one of the most valuable long-term incentives available to RI solar owners.

No special application is required to claim this exemption — it is applied automatically when your property is assessed. This incentive can be freely combined with the REF grant, REG program, net metering credits, and the sales tax exemption, making it a seamless addition to any solar incentive strategy.

The ConnectedSolutions Battery Demand Response Program, administered by Rhode Island Energy, compensates homeowners with battery storage systems for allowing the utility to draw on their stored energy during periods of peak grid demand. Participants earn $225 per average kW performed each summer. Events occur between June and September, from 3:00 PM to 8:00 PM, with a maximum of 60 events per summer and no single event lasting longer than 3 hours. The program has received regulatory approval for the 2024–2026 period.

Popular batteries such as the Tesla Powerwall and Enphase IQ 10 are eligible for the program. Homeowners can lock in their incentive rate for the first five summers of enrollment, providing predictable earnings. Importantly, customers can participate in both the ConnectedSolutions Battery Program and the ConnectedSolutions Solar Program simultaneously, and doing so will not reduce the incentives earned in either program.

Low-income customers on the A-60 rate are also eligible for a 0% interest financing loan for the cost of a battery system, with no down payment required and a $25,000 lifetime cap per account. This program can be combined with the REF Energy Storage Adder ($2,000) for homeowners installing solar and battery together, maximizing the financial return on a battery investment.

The Affordable Solar Access Pathways (ASAP) Program, administered by the Rhode Island Office of Energy Resources (OER) and the Renewable Energy Fund, was designed to provide qualifying low-income households in environmental justice communities with access to affordable rooftop solar through an innovative solar lease. The program targets households with incomes at or below 80% of the Rhode Island median income — for example, up to $35,674 for a single person or $68,605 for a family of four. Eligible geographic areas include parts of Woonsocket, Central Falls, Pawtucket, Providence, Cranston, West Warwick, East Providence, Warren, Middletown, and Newport.

Important Notice: The ASAP program is currently paused and not accepting new applications. The OER and the Renewable Energy Fund are reviewing next steps, including whether to identify a new program vendor to continue administering the program. Interested homeowners should monitor the official program page for updates on when the program may reopen.

When active, the program also offered eligible participants access to a zero-interest HEAT loan of up to $25,000 for the installation of a battery storage system. Rhode Island remains committed to expanding solar access for low-income residents, and updates will be posted to the official program page as they become available.