Solar Guide
Solar in Pawtucket
Pawtucket residents are discovering how solar panels can help combat Rhode Island’s electricity prices, which have increased 28% from 2020 to 2024. With utility rates significantly above the national average, many homeowners are exploring home solar panels as a way to take control of their energy costs.
Understanding your solar options in Pawtucket means learning about local incentives, installation requirements, and how Rhode Island’s climate affects solar performance.
RHODE ISLAND by the Numbers
Key Takeaways
- Rhode Island electricity rates jumped 28% since 2020 to 28.1¢/kWh, making solar panels increasingly attractive for Pawtucket homeowners.
- Federal and state incentives can save you over $7,000 on solar installation costs through tax credits and rebates.
- Pawtucket solar systems typically pay for themselves in 5.7 years while providing 25 years of clean energy savings.
Solar Cost Calculator
Our solar cost calculator uses real installation data from Pawtucket neighborhoods including Fairlawn, Oakhill, and Darlington. Get accurate pricing estimates based on actual local projects, not generic estimates from other states.
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Pawtucket Electricity Prices
Pawtucket residents face some of the nation’s highest electricity costs, making solar installation an increasingly attractive energy solution.
Rhode Island electricity rates jumped from 22.3 cents per kWh in 2021 to 28.1 cents in 2024, significantly outpacing national averages.
Solar panel installation allows Pawtucket homeowners to generate their own electricity, reducing dependence on utility companies and volatile rate increases.
Over 25 years, solar systems can provide predictable energy costs while traditional electricity rates continue climbing, offering substantial long-term savings.
Price of Energy: Rhode Island vs National Average
Pawtucket Area Utility Providers
Pawtucket residents receive electricity from National Grid, which charged 27.2¢ per kWh in 2023—significantly higher than the national average of 16.0¢ per kWh.
Rhode Island’s electricity costs remain elevated due to the state’s reliance on imported energy and limited natural resources for power generation.
These consistently high utility rates make solar panels an attractive option for Pawtucket homeowners seeking predictable, long-term energy costs.
Pawtucket Utilities Electricity Rates
Rhode Island Solar Incentives
Pawtucket homeowners can reduce solar installation costs through various federal and state solar incentives in Rhode Island.
Rhode Island offers multiple programs including sales tax exemptions, property tax protections, upfront grants, and net metering credits for Pawtucket solar installations.
These incentives can significantly lower your initial investment and provide ongoing savings for your Pawtucket home solar system.
$7,092
Average savings in Rhode Island solar rebates
Incentive | Type | Description | Source |
---|---|---|---|
Residential Clean Energy Credit | Federal tax credit | A federal tax credit worth 30% the cost of a solar panel system in the year it’s installed | Learn More |
Renewable Energy Sales Tax Exemption | State tax exemption | Rhode Island fully exempts solar energy equipment from state sales and use tax. Homeowners do not pay the 7% state sales tax on the purchase of eligible renewable energy components, including solar PV panels/modules, inverters, mounting racks, solar thermal collectors, wind turbines, and related equipment? | Learn More |
Residential Solar Property Tax Exemption | State tax exemption | Rhode Island law protects homeowners from increased property taxes due to solar installations. In other words, the added value that a solar energy system adds to a home is exempt from local property taxation? | Learn More |
Renewable Energy Fund (REF) – Small-Scale Solar Grants | State program | The Renewable Energy Fund provides upfront grants to reduce residential solar installation costs. Your installer applies and passes savings to you. Works with net metering systems only and can combine with federal tax credits. | Learn More |
Renewable Energy Growth (REG) Program | State program | Rhode Island’s Renewable Energy Growth program pays solar system owners a fixed rate for all electricity generated over a 15-20 year contract period, providing guaranteed income instead of traditional net metering credits. Cannot be combined with REF grants. | Learn More |
Affordable Solar Access Pathways (ASAP) Program | State program | The ASAP Program is a state-supported solar lease program aimed at expanding access to solar for income-eligible households. Launched in partnership with Rhode Island’s Renewable Energy Fund and Office of Energy Resources, ASAP offers qualifying homeowners a no-money-down solar lease with built-in energy savings. The program is administered through a selected provider (PosiGen) to deliver solar installations plus energy efficiency upgrades for participants? | Learn More |
The Residential Clean Energy Credit lets people claim a tax credit worth 30% the cost of a solar panel system in the year it’s installed. The credit can only be used against taxes you owe or have already paid that year, but any excess credit can be rolled over to future years.
The credit is broadly available, though there are a few restrictions — you must own the panels and they must be on a house you live in — so be sure to consult a tax professional about your situation.
Rhode Island’s Renewable Energy Sales Tax Exemption eliminates the state’s 7% sales tax on specific renewable energy equipment and components. This means when you purchase qualifying solar panels, inverters, mounting equipment, wind turbines, geothermal heat pumps, and other approved renewable energy products, you won’t pay the standard Rhode Island sales tax on these items.
The exemption applies to a comprehensive list of renewable energy equipment including solar photovoltaic panels, solar thermal collectors, DC to AC inverters, manufactured mounting racks for solar installations, monitoring and control equipment (when specified by manufacturers), geothermal heat pumps, wind turbines and their mounting towers, and solar storage tanks for hot water systems. The savings amount depends on your system size – for example, on a $20,000 solar system, you would save $1,400 in sales tax.
To qualify, the equipment must be on the state’s approved list and meet specific requirements. Some items like monitoring equipment must be specified or supplied by the manufacturer, and certain components like standard hot water tanks don’t qualify unless they’re part of a complete solar system. There are no application deadlines since this is an automatic exemption applied at the point of purchase, and it remains in effect indefinitely unless changed by state legislation. Homeowners should ensure their installer or retailer applies this exemption correctly at purchase, as it represents immediate savings that reduce your upfront solar investment costs.
Rhode Island’s Residential Solar Property Tax Exemption is a state tax benefit that protects homeowners from paying additional property taxes on the increased value that solar panels add to their home. When you install a solar energy system, it typically increases your property’s assessed value, but this exemption ensures you won’t pay higher property taxes because of that increase.
While the provided legal text doesn’t contain specific details about the solar exemption amount or eligibility requirements, this type of exemption typically applies to residential solar installations and covers the full added value of the solar system. To qualify, homeowners generally need to have solar equipment installed on their primary residence and may need to apply for the exemption with their local tax assessor. Since property tax exemption rules can vary by municipality and change over time, it’s important to check with your local tax assessor’s office for current requirements, application procedures, and any deadlines for claiming this benefit.
The Renewable Energy Fund (REF) Small-Scale Solar Grants program is a state-funded incentive that provides direct cash grants to Rhode Island homeowners who install solar panels through the net metering program. This grant is designed to help reduce the upfront cost of going solar by providing money that goes directly to your solar installer after your system is installed and passes a quality inspection.
The program offers $0.65 per watt of solar capacity installed, with a maximum grant of $5,000 per customer. If you’re adding battery storage to your solar system, you can receive an additional flat $2,000 energy storage bonus. Your solar installer will handle the application process on your behalf, and the grant money is paid directly to them after your system is complete and inspected.
To qualify, you must be a Rhode Island homeowner choosing the net metering option for your solar system (you cannot combine this grant with the REG program). The grant is only available for net-metered systems installed on your property. Since this is a popular program with limited annual funding, it’s important to work with your installer early and ensure your contract includes a cancellation clause in case the program becomes fully subscribed before your application is processed.
The Renewable Energy Growth (REG) Program is Rhode Island’s alternative solar incentive that allows homeowners to sell their solar energy production directly to Rhode Island Energy under a long-term contract. Instead of traditional net metering, participants sign a 20-year agreement with fixed electricity prices and receive Production-Based Incentive (PBI) payments for the energy their solar system generates. You receive bill credits up to your monthly electricity charges, and any excess generation is paid to you through direct deposit.
This program is mutually exclusive with net metering – you must choose one or the other for the lifetime of your solar system. To be eligible, you must be a Rhode Island Energy customer, and the program covers solar, wind, small-scale hydropower, and anaerobic digestion systems. The REG program cannot be combined with grants from the Renewable Energy Fund (REF), but it can be paired with the 30% Federal Investment Tax Credit. The program is administered by Rhode Island Energy, and specific pricing details vary based on current program rates and system size.
The Affordable Solar Access Pathways (ASAP) Program is a Rhode Island state initiative that helps qualifying homeowners in environmental justice areas access rooftop solar through an innovative solar lease program. Administered by the Renewable Energy Fund and Rhode Island Office of Energy Resources, this program partners with PosiGen to provide solar installations with no minimum credit score or income requirements.
The program offers discounted solar lease pricing that guarantees first-year savings on energy costs, with expected savings continuing throughout the 25-year lease term. Participants also receive free home energy audits and efficiency upgrades at no extra charge. PosiGen provides complete system maintenance, warranty support, and performance guarantees for the full 25 years, meaning homeowners don’t have to worry about repairs or system performance issues.
To qualify, you must live in a 1-4 unit home located in a designated Environmental Justice Focus Area or census tract eligible for federal solar programs, with household income at or below 80% of the state median income. Your roof must be in good condition to meet performance requirements. The program is available to homeowners on both standard residential utility rates and low-income utility rates, making solar accessible regardless of your current electricity plan.
Rhode Island’s Net Metering program allows homeowners with solar panels to receive credit for the excess electricity they generate and send back to the grid. Under this program, your solar system’s monthly production is netted against your monthly electricity consumption on a 1:1 basis, meaning you receive full retail rate credit for most of the solar energy you export to the grid.
The financial benefit works like this: when your solar panels produce more electricity than you use in a month, the excess energy is credited to your account at nearly the full retail electricity rate. The only small reduction is for renewable energy and energy efficiency charges, which amount to approximately 2.2 to 2.5 cents per kWh. These credits roll over from month to month indefinitely as dollar credits on your utility bill. As of February 2024, customers also have the option to cash out their excess credits at a lower rate or transfer them to another account they own with the same utility company.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with Rhode Island incentives.
Get a Free QuotePawtucket Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Pawtucket’s coastal location and seasonal weather patterns create unique solar conditions. Despite New England’s cloudy reputation, proper system design maximizes year-round energy production here.
Solar Production in Pawtucket by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Installations in Pawtucket
We’ve mapped every solar installation across America to show you something exciting: your Pawtucket neighbors are embracing clean energy! Explore this interactive map to discover which communities have made the switch to solar.
Leasing Solar Panels
In Pawtucket, Rhode Island, Palmetto offers Power Purchase Agreements (PPA) for residents served by Rhode Island Energy under their Net Metering program. With a PPA, you pay for the actual power your solar system generates at a fixed rate per kilowatt-hour rather than a monthly lease payment, meaning your solar costs vary seasonally with production.
This arrangement offers significant advantages over purchasing a system outright. You avoid the large upfront investment typically required for solar installation, while Palmetto handles all system maintenance, repairs, and performance monitoring throughout the agreement term. This means no unexpected repair costs or system performance worries on your part.
Additionally, PPA customers benefit from immediate energy savings without the complexity of financing decisions or maintenance responsibilities. Our LightReach program makes solar accessible to more Pawtucket homeowners by removing traditional barriers to clean energy adoption.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong financial sense in Pawtucket due to Rhode Island’s high electricity rates of 28.1¢/kWh and excellent solar incentives. With rates jumping 28% since 2020, solar panels provide predictable energy costs and protection from future rate increases.
Pawtucket homeowners typically see solar systems pay for themselves in 5.7 years while generating $97,000 in savings over 25 years. Combined with federal tax credits and state incentives totaling around $7,000, solar offers compelling long-term value for most homes.
Yes, Pawtucket residents have access to net metering through Rhode Island Energy’s 1:1 net metering program. Each month, your solar system’s excess electricity exports are credited against your total consumption at nearly the full retail rate.
Monthly net excess production rolls over indefinitely as dollar credits on your utility bill. As of February 2024, customers can also request cash payments for excess credits or transfer them to other accounts they own with Rhode Island Energy.
Yes, solar panels typically increase home value in Pawtucket based on national research and Rhode Island’s strong solar market. A Zillow study shows solar panels increase home value by 4.1% on average across the United States.
In Pawtucket’s market, where electricity costs 28.1¢/kWh and solar systems generate substantial long-term savings, buyers often view solar installations as valuable assets that reduce ongoing energy expenses and provide predictable utility costs.
Solar installation costs in Pawtucket range from $12,949 to $24,208 after the 30% federal tax credit, depending on your home size and energy needs. A typical medium-sized home needs a 7.29 kW system costing $16,549 after incentives.
Rhode Island offers additional savings through sales tax exemptions and state grants, bringing total incentive savings to approximately $7,000. Most Pawtucket homeowners see their solar investment pay for itself in 5.7 years through electricity bill reductions.
Yes, solar is financially worth it in Pawtucket due to Rhode Island’s high electricity rates of 28.1¢/kWh and strong solar incentives. With electricity costs rising 28% since 2020, solar panels provide protection from future rate increases while generating immediate savings.
Most Pawtucket homeowners see their solar investment pay for itself in 5.7 years, then enjoy $97,000 in total savings over 25 years. Combined with federal tax credits and state incentives totaling around $7,000, solar offers compelling long-term financial benefits for most homes.
We’re proud to serve Pawtucket homeowners as a national solar company with deep local expertise. Since 2020, we’ve completed 512 installations across Rhode Island, building strong relationships with local contractors and understanding the unique needs of New England homes.
We offer some of the industry’s best financing options and work with a trusted network of certified installers who understand Rhode Island’s building codes, permitting requirements, and weather conditions. Our comprehensive approach combines national resources with local knowledge to deliver reliable solar solutions for Pawtucket residents.