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Key Points
The cost of solar panels in Rhode Island varies based on your system size, location, installer, and other factors.
Residents can save on solar installation costs with various solar incentives and programs, both federal and local.
SaveOnEnergy offers a range of resources to help you learn about solar and choose your system in Rhode Island.
Solar power in Rhode Island
As in many states, solar energy production in Rhode Island has increased dramatically in recent years. While it may not be among the top producers of solar energy in the nation, more than 11% of the state’s electricity comes from solar power, according to the Solar Energy Industries Association (SEIA). There are currently enough solar panels in Rhode Island to power over 120,000 homes, and that number continues to rise.
If you live in Rhode Island, you could save money and reduce your home’s environmental footprint by installing solar panels on your home. It does represent a significant upfront cost — likely $15,000 or more — but you can save big in the long run. Keep reading to learn the cost of going solar, the benefits you’ll gain, and how to decide if solar panels are right for you.
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Rhode Island solar panel cost
The cost of solar panels in Rhode Island depends on a variety of factors, including the brand and type of solar panels you choose, the size of your system, local installation and permitting costs, and more.Solar installations are customizable — you can control some of your costs based on your preferences.
Solar panel costs are measured in watts. According to data from Find Energy, the average cost and size of a residential solar panel system in Rhode Island are $4.07 per watt and 6 kilowatts (kW), respectively. The total average system cost is $24,420.
Federal and state solar incentives and rebate programs can help you recover your total net cost sooner. Here’s how Rhode Island’s solar costs compare to U.S. averages.
Price Per Watt
System Size (kW)
Number of panels
Cost
Rhode Island
$4.07
6 kW
15–20
$24,420
U.S.
$3.67
8.6 kW
22–29
$31,558
How does Rhode Island solar save you money?
These costs may seem steep initially, but it’s important to consider how much Rhode Island solar can save you in the long run. After you factor in the 30% federal tax credit, which we’ll explain more below, the typical Rhode Island solar system costs about $17,094. Let’s see how long it would take you to recoup that cost and start earning a return on your investment.
The typical Rhode Island homeowner pays around $157.48 per month for electricity, and solar could potentially offset that cost entirely. With a large enough solar array and sufficient sunlight, it would only take about nine years to earn back the cost of your solar panels. Since solar arrays can last 25 years or more, you’d be left with many years to earn a significant return on your solar system through electricity savings.
System size
Estimated price in Rhode Island
Number of solar panels*
4 kW
$16,280
10–13
6 kW
$24,420
15–20
8 kW
$32,560
20–27
10 kW
$40,700
25–33
12 kW
$48,840
30–40
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The best Rhode Island solar panel incentives or rebates
The upfront cost of solar panels can seem overwhelming, but there are ways to lower that overall investment. The federal government and the state of Rhode Island provide solar financial incentives to help lower these costs.
The federal solar tax credit allows homeowners to recover 30% of their solar panel purchase. This Residential Clean Energy Credit will decrease to 26% in 2033, 22% in 2034, and expire in 2035 unless extended.
Besides that, a number of solar incentives exist in the state to help residents save on the cost of solar panels in Rhode Island. Here are some of the best solar incentives in the state.
Program
Description
Net metering
Net metering in Rhode Island allows customers to sell excess solar power back to their utility company in exchange for credits on their electricity bill.
Property tax exemption
Solar panels can increase a home’s value by as much as $15,000. In Rhode Island, you don’t have to pay property taxes on any property value increases due to solar panels.
Sales tax exemption
Rhode Island residents do not have to pay sales tax on solar panel purchases and installations for their homes.
If you install solar panels on your primary or secondary residence, you can get a 30% federal tax credit on your next tax return.
Solar incentives in Providence
Like others throughout the state, Providence residents can access Rhode Island solar incentives. Locals can receive grants and loans for small-scale projects through the Renewable Energy Fund (REF) or tap into SRECs over 20 years through the Renewable Energy Growth (REG) program.
To be eligible for a grant or loan through the REF, you must establish a net-metered system. Residents are eligible for up to $0.65 per watt and $5,000 per small-scale system.
You can also get up to $2,000 for installing a solar battery. Application must be made through your installer, and the funds will go directly toward that company to offset your costs.
Participants in the REG program must sign a 20-year contract to establish a fixed rate for payments over that time. You must be a customer of RI Energy and cannot be part of the REF program. Projects may be subject to inspection.
Why choose Rhode Island solar power?
There are a few key advantages to going solar in Rhode Island, including reducing your energy costs, establishing energy independence, and helping the environment.
Lower energy costs
Installing solar panels on your home can drastically reduce your energy costs. When you have a solar array, you can use the energy your system produces as your primary energy source instead of relying on the traditional electricity grid. Solar panels will also increase the value of your home, which is money in your pocket if you decide to sell.
Establish energy independence
Another benefit of solar panels is the opportunity to establish energy independence, meaning you’re not fully reliant on the traditional electricity grid to power your home. When you’re energy independent, you can use the excess energy stored in your solar batteries to power your home when energy demand is high or when there’s a local power outage.
Go green
Solar power is a renewable resource that does not emit harmful greenhouse gasses. Traditional power sources like coal or gas emit greenhouse gasses such as carbon dioxide, which contribute to global warming. By choosing to power your home with solar panels, you can greatly reduce your carbon footprint.
Should I buy or lease my solar panels?
The most cost-effective way to invest in solar power is to buy solar panels for your home. When you buy solar panels, you can take advantage of the federal and state tax incentives, which aren’t available when you sign a PPA or lease your panels. You’ll also enjoy the greatest long-term energy savings.
However, purchasing solar panels is not always an option for everyone. Solar panel leases and power purchase agreements (PPAs) have helped to make solar power more accessible. You can also access solar benefits through community solar programs. The following table explains some of the perks and downsides of each solar option.
Payment method
Benefits
Drawbacks
Cash purchase
Largest long-term savings, full solar panel ownership and solar incentive eligibility, increases home value by $15,000, reduces energy bills
Easy to subscribe, receive green energy with no maintenance or other responsibilities
No ownership or incentive, less long-term savings
Rhode Island solar panel companies
There is no shortage of competing solar panel companies in Rhode Island, meaning you won’t have a problem finding an installer to help you build your custom solar panel system. If you’re considering installing solar panels on your home, use the solar resources from SaveOnEnergy to get familiar with the solar industry and find solar quotes from local installers.
Solar installer
Year founded
Financing options
Warranty terms
2010
Cash purchase, solar loan, lease, or PPA
Minimum 12-year product warranty and 25-year performance guarantee
2018
Cash purchase or solar loan
30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
1985
Cash purchase, solar loan, or lease
25-year full system warranty
What to look for in a solar contractor
Finding a reputable solar company is an important part of the planning process. When you start comparing solar installers, make sure they are fully licensed and insured, not to mention equipped with solar industry certifications.
It’s also a good idea to read about their products and check our guides to see if they use high-quality solar equipment. Make sure they offer solid warranty coverage and options for financing your system. Finally, be sure to read reviews and ask for references so you can hear directly from those who have experience working with that contractor.
Beware of free solar panels in Rhode Island scam
If you’re considering solar panels in Rhode Island, there’s a good chance you’ve come across some questionable offers. Solar panels can save you money in the long run, and incentives can drastically reduce the cost, but you still have to invest a significant amount of money. Ads for free solar panels in Rhode Island are likely nothing more than a scam to try to get your personal information.
Important solar installation factors to consider
Installing solar panels on your home can help you reduce your energy costs and your home’s environmental footprint. But they aren’t right for everyone, and there are a few things to consider before installing solar panels:
Your home’s roof: The Department of Energy states that solar panels are best for south-facing roofs in good condition with slopes between 15 and 40 degrees.
The amount of sunlight you get: For solar panels to operate efficiently, they need to be installed in an area that gets a great deal of sun. If your roof is heavily shaded or you don’t get a lot of sunshine, you may want to look at otherrenewable energy options.
HOA or community rules: If you have a homeowners association, you may be restricted by the size of solar panels you can have or may need approval to install them.
The average cost of solar panels in Rhode Island is $24,420. But that price can be reduced through tax credits and incentives from the federal and state governments.
Solar power in Rhode Island is a worthwhile investment, and solar energy has become an important source of power in the state. However, you’ll want to consider your location, energy use habits, and budget before deciding to install solar panels in Rhode Island.
The amount you can save with solar panels depends on how much energy your solar panels generate and your energy usage habits. Rhode Island residents currently pay an average electricity bill of $157.48 per month, meaning you could expect to save around $1,890 per year.
With many great competing solar installers to choose from, you’ll want to do your homework before you make a selection. SaveOnEnergy also has resources to help you find the right solar installer for your needs.
Solar power is a renewable resource, meaning it never runs out. It’s also a green energy source — it doesn’t emit harmful greenhouse gasses into the atmosphere and can help reduce your carbon footprint.
