Hey there! Have you been thinking about installing solar panels? If you live in Rhode Island, there are great reasons to go solar. Let me walk you through all the incentives so you can decide if solar power is right for your home and budget.
I‘ll also answer some common questions Rhode Islanders have around the costs, savings and financing options for solar panels.
Why Rhode Island Homeowners Are Going Solar
With some of the highest electricity rates in the continental US, Rhode Island residents pay a premium to light and power their homes. Installing solar panels allows you to take control of your energy costs while also helping the environment.
And thanks to Rhode Island‘s ambitious renewable energy goals, the state offers strong financial incentives if you generate your own power from the sun.
Rhode Island is aiming for 100% renewable electricity by 2033. With bipartisan support, programs incentivizing solar power are only growing. By kicking your electric bill to the curb, you can cash in now while also supporting the state‘s green energy future.
On top of that, recent legislation exempts solar owners from increased property taxes. So you can add value to your home without being penalized for going green.
Bottom line — the benefits are stacked in your favor as a potential solar owner in the Ocean State.
Now let‘s break down how you could save…
Federal Solar Tax Credits — Up to 30% Off
First, as a Rhode Island solar owner, you would be eligible for the federal solar investment tax credit (ITC). This cuts 26% off your total solar installation costs in 2023.
The ITC applies to everything needed for your solar array, including:
- Solar panels
- Inverter
- Racking
- Permits and fees
- Installation labor
Currently the ITC is worth 26% of your costs. But it is stepping back down — you need to act soon to earn the max value! Here is the ITC schedule:
- 2023 – 2032: 26% credit
- 2033: 22% credit
- 2034 onwards: Permanently 10%
For a typical 6 kW solar system costing $16,140 in Rhode Island, the current federal incentive saves you $4,196 right off your final price.
Pretty sweet! This clean energy stimulus also keeps the local solar industry humming along. Over 19,000 Rhode Islanders already work solar jobs today.
Rhode Island Solar Incentives — Rebates & Cash Back
On top of the federal break, Rhode Island also offers some of the strongest state-level solar incentives in the U.S.:
Up to $7,000 State Grant
The Rhode Island Renewable Energy Fund provides grants to homeowners who install solar panels:
- Small scale (<10 kW): $850 per kW installed, up to $7,000
- Medium scale (10-250 kW): Lesser of $750/kW or 30% of costs
For a typical home array of 6 kW, you would earn a $5,100 state grant after installation.
Stacked on the federal credit, we‘re looking at nearly $10,000 saved off the sticker price!
Earn Over $37,000 with Performance Payments
Rhode Island also features an innovative Renewable Energy Growth (REG) program where solar owners like you earn cash back based on how many kilowatt-hours your system produces each year.
For a 15-year contract, REG participants receive:
- $0.15 per kWh in direct CASH payments
- $0.10 per kWh as bill CREDITS from your utility
A 6 kW solar array averages around 8,200 kWh of generation per year in Rhode Island. At that rate, REG would pay you:
- $1,230 per year in cash
- $820 per year in utility credits
That‘s $2,050 back in your pocket each year, simply for generating your own power!
Over the 15 year REG contract, your 6 kW home system could earn you over $37,000 in combined cash and credits.
Cha-ching! 💰
Now, the REG program does have an overall budget, so early applications tend to do better before funds dry up. I suggest applying ASAP if you qualify.
Other Rhode Island Solar Perks
And we aren’t done yet! Rhode Island also offers:
- Net Metering – Utility bill credits when your solar panels export excess power
- 100% Property Tax Exemption on any home value increase from a solar installation
- 100% Sales Tax Exemption on equipment, materials and installation costs
Every penny saved counts!
Rhode Island Solar Incentive Summary
Let‘s add up all the potential savings for a 6 kW solar array:
- Federal tax credit: $4,196
- State grant: $5,100
- 15 years of REG payments: Over $37,000 back
- Net metering credits
- No sales tax or increased property taxes
By stacking Rhode Island’s solar incentives, you could cover nearly the entire cost of solar panels – all while slashing your electric bill!
Solar Panel Cost and Savings Examples
To give a better idea, here is what costs and savings could look like for hypothetical Rhode Islanders installing solar:
Example 1: Ashley‘s 6 kW Solar Array
- Upfront cost: $16,140
- Federal tax credit: $4,196
- State grant: $5,100
- 15-year REG earnings: $37,500
- Payback period: 6 years
With incentives, Ashley paid only $6,844 out of pocket. Earning over $2,400 per year back from REG, her system pays for itself within 6 years. Then 9+ years of pure profit from the sun’s energy!
Example 2: Devon’s 8 kW System
- Upfront cost: $21,520
- Federal credit: $5,595
- State grant: $6,800
- 15-year REG earnings: $50,000
- Payback period: 7.8 years
Devon paid just $9,125 upfront and pockets over $3,000 per year going forward.
Example 3: Pat‘s 4 kW Array
- Upfront cost: $10,760
- Federal credit: $2,798
- State grant: $3,400
- 15-year REG earnings: $25,000
- Payback period: 5.2 years
With a smaller roof, Pat still saved big on electricity costs. Payment under 6 years means over a decade of passive power profits!
As you can see, Rhode Islanders stand to save thousands off the cost of solar panels thanks to generous incentives. Within 5-8 years, your system earns back the initial payment. Then it‘s gravy from there with net metering income and zero electric bills!
Electricity Bill Savings from Solar
Since we just referenced it, exactly how much can you save on your current electric payments by switching to solar in Rhode Island?
Based on your system size, annual utility bill savings look like:
| System Size | Avg. Yearly Generation | Est. Bill Savings |
|---|---|---|
| 4 kW | 6,760 kWh | $1,100 |
| 6 kW | 8,200 kWh | $1,330 |
| 8 kW | 9,640 kWh | $1,560 |
| 10 kW | 11,900 kWh | $1,930 |
With high electricity rates around $0.16 per kWh, solar offsets a substantial chunk of your power costs.
Combine that with cash incentives like the $0.25 per kWh from REG payments, and solar becomes a value machine for your home.
No wonder Rhode Island is pushing for 100% renewable electricity sources!
Emerging Storage Incentives
As an add-on to solar incentives, Rhode Island now offers rebates if adding energy storage to your system.
Storage comes in the form of home batteries, helping you save more of your self-generated solar energy for use when the sun goes down.
By pairing solar panels with batteries, you can take advantage of new “Solar Plus” storage rebates:
- $850 per battery storage unit added to an existing solar array
- $1,250 per battery paired to a new solar installation
So if you install a 10 kWh Tesla Powerwall battery at the same time as solar panels, you would earn an extra $1,250 off the $11,700 cost.
Batteries are still an investment, but getting cheaper each year. And rebates plus federal incentives make them more accessible.
Electric Vehicles Support Renewable Goals
As another green perk, Rhode Island offers incentives on electric vehicles (EVs) to align with the state’s carbon-free objectives.
Policies include:
- State EV incentive of $1,500 back for qualifying new electric car purchases before 2025
- No state sales tax on EV purchases
- Support for public charging infrastructure
So by going solar, driving electric and charging smartly, you can transform your household into a clean energy machine!
Solar Financing Options in Rhode Island
If you aren’t able to purchase solar panels outright to maximize incentives, solar loans and leases are allowed in Rhode Island.
With a solar loan, you simply finance the array like other home improvements. Options often range from 10-20 years with interest rates between 3%-8%.
The benefit over leasing? You own the asset, allowing you to qualify for federal + state solar incentives that maximize savings. Weigh the numbers to see if a loan or lease makes more sense over the long haul.
And if your own roof just won’t cut it, shared community solar farms are another way to participate.
Answering Your Rhode Island Solar Questions
Solar incentives aside, what other questions might Rhode Islanders have around the sun and savings?
Here I‘ll tackle some topics that often come up:
How much do solar panels cost to install in RI?
For a typical home solar array between 4-8 kW, installed costs range from $10,760 to $21,520 before rebates and credits in today‘s market. Price varies based on factors like your roof plane, selected equipment, permitting needs etc. Get a custom quote from local installers.
How long does a solar payback take in Rhode Island?
With strong incentives bringing down upfront costs, then ongoing savings to recoup your investment – solar power earns back your payment through electricity savings within 5-8 years typically.
What happens after 15 years of REG payments?
The REG program pays out performance-based incentives over a 15 year term. After that contract ends, your solar panels will continue generating free power for your home offsetting electric bills. Plus programs like net metering utility credits can provide ongoing savings.
How often do I need to replace solar panels?
Today‘s solar panels come with 20-30 year manufacturer warranties. And they can keep producing over decades if cared for properly! Inverters may need replacement after 10-15 years.
Will I have power during blackouts?
Solar panels require grid connection to operate. But if adding battery storage, you can use stored sunlight during grid outages for backup resilience!
What are the best solar companies in RI?
Reputable national providers like Tesla, SunPower and Sunrun operate locally. And quality regional firms like Newport Solar exist too. I suggest comparing 4-5 quotes to find the right fit.
Hope this give you a great overview of how Rhode Island is welcoming homeowners to participate in meeting aggressive clean power targets! You stand to earn thousands while securing low, stable energy rates.
Reach out with any other questions! Ready to crunch the solar numbers for your property?
