Is Solar Worth It in Rhode Island in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for Rhode Island homeowners — without the federal ITC.
Cost Per Watt
$3.50
installed
Electricity Rate
$0.160
per kWh
Payback (No ITC)
18.1 yr
current reality
Payback (With 30% ITC)
12.7 yr
hypothetical
25-Year ROI
38%
return on investment
Incentive Breakdown — Rhode Island
Available incentives for a typical 7kW residential solar system in Rhode Island
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneRhode Island does not offer a state tax credit for solar installations.
SREC Market
Not AvailableRhode Island transitioned from SREC to the Renewable Energy Growth (REG) program.
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Key Incentives: Property tax exemption for solar; Sales tax exemption on solar equipment.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in Rhode Island
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC
- $0
- Net Cost
- $24,500
- Annual Savings
- $1,354/yr
- Payback Period
- 18.1 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC (30%)
- -$7,350
- Net Cost
- $17,150
- Annual Savings
- $1,354/yr
- Payback Period
- 12.7 years
Impact: Without the federal ITC, Rhode Island homeowners face a 5.4-year longer payback period — paying $7,350 more out of pocket.
Net Metering Policy — Rhode Island
How Rhode Island compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
Rhode Island offers full retail net metering for systems up to 10 MW under PUC rules.
Cost Per Watt Benchmark — Rhode Island
Rhode Island Average
$3.50/W
National Average
$3.05/W
Typical 7kW System
$24,500
Rhode Island's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in Rhode Island breaks even in 18.1 years. With the former 30% ITC, payback would drop to 12.7 years.
Without Federal ITC
18.1
years to break even
With Former 30% ITC
12.7
years to break even
Production Details
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