Solar Incentives in Rhode Island

Rhode Island's Renewable Energy Growth Program (REG), administered by Rhode Island Energy (formerly National Grid Rhode Island), pays customer-generators a fixed per-kWh tariff for 15 years from system commissioning. Tariff rates are set annually by the RI Public Utilities Commission for each program block (Small Solar I/II, Small Solar Demonstrative, etc.). For 2026, residential systems ≤ 25 kW receive approximately $0.27–$0.32/kWh — Rhode Island has one of the most lucrative residential solar tariffs in the United States. The 15-year contract is locked at enrolment; the customer continues paying retail electricity for consumption (no offset against generation). Effectively a feed-in tariff structure with the customer simultaneously selling all generation and buying all consumption. Annual program block has limited capacity; first-come-first-served once each block opens.

Rhode Island Energy offers 1:1 retail-rate net metering for residential solar customers as an alternative to the REG tariff. Customers must choose at enrolment between net metering (offset structure) and REG (sell-all/buy-all tariff). For most residential consumers in Rhode Island, the high REG tariff rate ($0.27–$0.32/kWh) exceeds even the high retail rate, making REG the better economic choice unless the customer has unusual consumption patterns that strongly favor offset over export. Confirm with installer which structure the proposed system targets.

The Rhode Island Renewable Energy Fund (REF), administered by RI Commerce, offers cash grants for residential solar PV. The 2026 residential rate is approximately $0.85/W up to a $7,000 cap (typical 7–8 kW residential install hits the cap). Grants are paid post-installation upon submission of commissioning documentation. The grant cannot be combined with the REG tariff for the same system; customers pursuing the REG tariff route must forgo the REF grant. Customers on net metering can stack the REF grant. Annual program funding is allocated each fiscal year and exhausts well before fiscal-year end.

RI sales tax exemption under RIGL 44-18-30 applies to renewable energy equipment including solar PV modules, inverters, mounting, and battery storage. The 7% state sales tax does not apply when the installer applies the exemption certificate at point of sale. Property tax exemption under RIGL 44-3-21 excludes the assessed value added by solar PV from local property tax bills. Filed with local City/Town Assessor at installation.