- A typical 7 kW Providence system produces about 9,055 kWh a year (MySolarFY analysis using NREL PVWatts v8, as of July 2026), worth roughly $2,200 to $2,700 against your bill at the state’s high ~29.91 cents per kWh rate.
- Rhode Island residential power averages about 29.91 cents per kWh (EIA, as of March 2026), among the higher rates in the country, so the bill your solar offsets is a large one.
- National Grid sold its Rhode Island electric utility to PPL and it is now Rhode Island Energy, a change that closed on May 25, 2022 (National Grid, as of 2022).
- Rhode Island net metering now credits exported power at 80% of the retail rate for systems initiated after April 15, 2023, not the old one-for-one rate (RI Office of Energy Resources, as of 2026).
- The Renewable Energy Fund grant pays $0.65 per watt, capped at $5,000 per home, with a $2,000 adder for adding a battery (RI Office of Energy Resources, as of 2026).
- The 30% federal homeowner credit (Section 25D) ended for systems placed in service after December 31, 2025 (IRS, as of 2026), so most 2026 buyers cannot claim it.
If you are looking for National Grid solar in Rhode Island, start with the news that changes everything else: National Grid no longer runs Rhode Island’s electric system. It sold the utility in 2022, and your provider is now Rhode Island Energy. That matters for solar because Rhode Island gives you a real choice between two ways to be paid, and because net metering here is not the simple one-for-one deal it used to be. This page explains who your utility is now, how the two crediting paths work, the grant you can still apply for, how you connect, and how to tell whether your roof is a good fit.
So what happened to National Grid in Rhode Island?
National Grid sold its Rhode Island business, so the brand on your bill changed, not your wires. PPL Corporation bought The Narragansett Electric Company from National Grid, the deal closed on May 25, 2022, and the utility was rebranded Rhode Island Energy (National Grid, as of 2022). Rhode Island Energy now serves nearly all of Rhode Island and runs the solar programs and interconnection. National Grid still operates as a utility in Massachusetts, which is why the name is easy to confuse; if your meter is in Rhode Island, your utility is Rhode Island Energy. For how the National Grid brand still works one state over, see National Grid Massachusetts net metering.
| Detail | What to know |
|---|---|
| Your utility now | Rhode Island Energy, formerly National Grid, sold to PPL on May 25, 2022 (National Grid) |
| Service territory | Nearly all of Rhode Island |
| Rate context | Rhode Island residential power averages about 29.91 cents per kWh (EIA, March 2026), among the higher rates in the country |
| Net metering | Exports credited at 80% of retail for systems initiated after April 15, 2023 |
| Other option | The Renewable Energy Growth program, a performance tariff that pays a fixed rate for all production |
| Before you switch on | Rhode Island Energy must grant Permission to Operate (PTO) first |
How Rhode Island Energy credits your solar: net metering or REG
You pick one of two paths, and they reward different homes. Rhode Island lets a residential solar owner choose either net metering or the Renewable Energy Growth program, but not both for the same generation (DSIRE Renewable Energy Growth, as of 2026). For a full dollar-by-dollar comparison of the two paths, including the 2026 REG ceiling price and the $5,000 REF grant, see our guide to Rhode Island solar incentives. For a plain-English primer on how export credits work in general, see how net metering credits your solar exports.
| Path | How you are paid | Worth knowing |
|---|---|---|
| Net metering (plus the REF grant) | You use your own solar first, and exported power is credited at 80% of the retail rate for systems initiated after April 15, 2023 (RI OER) | Pairs with the Renewable Energy Fund grant; best for homes that use a lot of their own solar against Rhode Island’s high rates |
| Renewable Energy Growth (REG) | You are paid a fixed per-kWh rate, set by the Rhode Island PUC, for all the power your system produces under a 15-year contract (DSIRE) | A long-term fixed payment for production; the rate is set each program year, so ask your installer for the current figure |
The net-metering change is the part people miss. Older Rhode Island systems were credited one-for-one, but for systems whose projects were initiated after April 15, 2023, meaning the interconnection study was paid or a complete permit or zoning application was filed after that date, the renewable net-metering credit on exported power is reduced 20 percent, to roughly 80 percent of the near-retail credit, subject to a statewide 275 MWac cap (RI Office of Energy Resources; R.I. Gen. Laws § 39-26.4-2, as of 2026). Projects that applied on or before that date keep the full credit and are grandfathered. That still has real value against power that runs near 30 cents per kWh, and the power you use on site as it is produced offsets the full retail rate, so the reduction only applies to your surplus exports. The takeaway is to size the system to your own usage and ask an installer to compare net metering against REG for your specific roof.
What a typical Rhode Island solar system produces and offsets
Here is a first-party estimate you can hold any quote up against. According to MySolarFY’s analysis (as of July 2026), a typical 7 kW rooftop system in Providence produces about 9,055 kWh a year, modeled in NREL’s PVWatts v8 (NREL PVWatts, 2026). At Rhode Island’s residential rate of about 29.91 cents per kWh (EIA, March 2026), that output is worth roughly $2,200 to $2,700 a year against your bill, depending on how much you use on site at the full rate versus export at the 80% net-metering credit. It is an estimate, not a quote, and your roof, shading, usage, and system size all move the number.
| Estimate input | Figure (Rhode Island, 2026) |
|---|---|
| System size (typical) | 7 kW |
| Modeled annual production | About 9,055 kWh (NREL PVWatts v8, Providence) |
| Rhode Island residential rate | About 29.91 cents per kWh (EIA, March 2026) |
| Estimated annual bill offset | Roughly $2,200 to $2,700 (varies with self-use vs the 80% export credit) |
| Renewable Energy Fund grant | Up to about $4,550 on a 7 kW system ($0.65 per watt, capped at $5,000) |
| Typical installed cost, net of grant | Roughly $16,500 on a 7 kW system (assumes about $3.00 per watt before the grant) |
| Estimated simple payback | Roughly 7 years (net cost divided by the annual bill offset; a MySolarFY estimate, as of July 2026) |
What the estimate leaves out. There is no federal residential tax credit for a 2026 cash or loan purchase, because Section 25D ended after December 31, 2025, so the payback now rests on your crediting path, the Renewable Energy Fund grant, and Rhode Island’s sales and property tax exemptions. The payback estimate above assumes an installed price near $3.00 per watt and simple math that does not account for future rate increases or panel degradation, so treat it as a starting point. Ask an installer for a written production estimate and a quote that uses the current 80% net-metering credit and the open grant round, then compare it to the figures above.
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The Renewable Energy Fund grant, and how to actually get it
Rhode Island still hands out a cash grant for home solar, but you have to apply for it. The Renewable Energy Fund, administered by Rhode Island Commerce, pays a Small Scale Solar grant of $0.65 per watt, capped at $5,000 per residential project, with a flat $2,000 adder if you add battery storage (RI Office of Energy Resources, as of 2026). On a typical home system that grant runs into the low thousands of dollars and pairs with net metering.
Rhode Island incentives a homeowner can stack
Beyond the crediting path and the grant, Rhode Island adds two tax breaks. One note up front: Rhode Island has no state income tax credit for residential solar, so the value comes from the grant, the tariff, and these exemptions. For the statewide picture, see our Rhode Island solar incentives hub, and our guide to solar incentives for how these fit together.
| Incentive | What it gives you | The Rhode Island detail |
|---|---|---|
| Renewable Energy Fund grant | $0.65 per watt, capped at $5,000, plus a $2,000 battery adder (RI OER) | A competitive, round-funded grant you apply for, usually through your installer |
| Sales and use tax exemption | 100% exemption from Rhode Island sales tax on solar equipment (RI Division of Taxation) | Automatic at the point of sale under state law, no homeowner filing needed |
| Property tax exemption | The added home value from a qualifying solar system is exempt from local property tax (DSIRE) | Administered by local assessors under state law; confirm the exemption with your town |
| State income tax credit | None | Rhode Island has no personal income tax credit for residential solar |
The two tax breaks behave differently, so treat them differently. The sales tax exemption is automatic and comes off the price at purchase, while the property tax exemption is administered by your local assessor, so it is worth a quick call to your town to make sure the system’s added value is excluded (DSIRE, as of 2026). Neither is a federal benefit, and together with the grant and the crediting path they carry the payback against Rhode Island’s high rates.
How to connect solar to Rhode Island Energy
Connecting a home system follows Rhode Island Energy’s interconnection process, and the rule that matters most is that you cannot turn the system on until the utility grants Permission to Operate. The general path is:
- Interconnection and program application. You or your installer file with Rhode Island Energy before installation, choosing net metering or the REG program and including the system design and inverter data.
- Utility review. Rhode Island Energy reviews the package. Standard residential systems generally move faster than large or grid-constrained projects.
- Approval to install. You receive approval to build, but not yet to operate. Do not energize the system until the next steps are done.
- Install and inspect. The system is installed by a licensed contractor and passes your local electrical inspection.
- Meter and Permission to Operate. Rhode Island Energy sets the correct meter for your path and issues Permission to Operate. Your system only starts earning once it is approved to run.
A licensed installer normally manages this whole process, including your program election and the Renewable Energy Fund grant application.
What changed federally, and what it means for Rhode Island
The federal homeowner credit is gone, but Rhode Island’s programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Rhode Island Energy customer who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of 2026). For the full timeline, see what the end of the federal solar tax credit means in 2026. What carries the math now is the crediting path, the Renewable Energy Fund grant, and the Rhode Island tax exemptions, all set against some of the higher power rates in the country.
One federal exception remains, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner. On a leased system you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025, so do not let a sales pitch tell a 2026 cash or loan buyer otherwise.
How to choose a solar installer in Rhode Island
Rhode Island is a small, competitive solar market, so you have plenty of licensed installers to choose from. Rather than chasing a “best installer” list, screen any company against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- A valid Rhode Island contractor registration and electrical license for solar work.
- A clear workmanship and equipment warranty in writing.
- Real experience with Rhode Island Energy interconnection and Permission to Operate, the Renewable Energy Fund grant, and a clear recommendation on net metering versus REG for your home.
- A written production estimate and a transparent quote that uses the current 80% net-metering credit and the current grant round.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Cities we serve in Rhode Island: see what solar costs in Providence.
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Frequently asked questions
Is Rhode Island Energy the same as National Grid?
Not anymore. National Grid sold The Narragansett Electric Company, its Rhode Island electric and gas utility, to PPL Corporation, and the deal closed on May 25, 2022 (National Grid, as of 2022). The business was rebranded Rhode Island Energy and now serves nearly all of Rhode Island, including the solar programs and interconnection. National Grid still operates as a utility in Massachusetts, which is why people mix them up, but if your meter is in Rhode Island, your provider is Rhode Island Energy. Old National Grid Rhode Island solar guidance now applies to Rhode Island Energy.
How does Rhode Island net metering work in 2026?
Rhode Island Energy credits the power your panels export to the grid, but the value changed. For systems whose projects were initiated after April 15, 2023 (interconnection study paid or a complete application filed after that date), the renewable net-metering credit on exports is reduced 20 percent, to about 80 percent of the near-retail credit, subject to the statewide 275 MWac cap, rather than the old one-for-one (RI Office of Energy Resources; R.I. Gen. Laws § 39-26.4-2, as of 2026). Projects that applied on or before that date keep the full credit. The power you use on site as it is produced still offsets the full retail rate, so the reduction only applies to your surplus. Net metering pairs with the Renewable Energy Fund grant, and you also keep paying the normal monthly service charge, so a solar bill is rarely zero. Sizing the system to your own usage is how you get the most from it.
What is the Renewable Energy Growth (REG) program?
REG is Rhode Island’s alternative to net metering. Instead of crediting your exports, it pays you a fixed per-kWh rate, set by the Rhode Island Public Utilities Commission, for all the power your system produces, under a 15-year contract (DSIRE, as of 2026). You choose either net metering or REG for a given system, not both. REG can suit a home that exports most of its production, while net metering tends to suit a home that uses a lot of its own solar. The REG rate is set each program year, so ask your installer for the current residential figure before you decide.
How much is the Rhode Island Renewable Energy Fund grant?
The Renewable Energy Fund, run by Rhode Island Commerce, pays a Small Scale Solar grant of $0.65 per watt, capped at $5,000 per residential project, with a flat $2,000 adder if you add battery storage (RI Office of Energy Resources, as of 2026). On a typical home system that is a few thousand dollars toward the cost. It is a competitive, round-funded grant with set application periods during the year, not an automatic rebate, so confirm the current round is open before you count it in your savings. Your installer usually files the application for you.
What solar incentives does Rhode Island offer in 2026?
Three main ones, none of them a federal benefit. The Renewable Energy Fund grant pays $0.65 per watt up to $5,000, solar equipment is 100% exempt from Rhode Island sales tax, and the added home value from the system is exempt from local property tax (RI Office of Energy Resources, as of 2026). The sales tax exemption is automatic at purchase, while the property tax exemption is handled by your town assessor, so confirm it locally. Rhode Island does not have a state income tax credit for solar, so the value comes from the grant, your crediting path, and these exemptions.
What happened to the federal solar credit for Rhode Island buyers?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a homeowner buying with cash or a loan in 2026 cannot claim it (IRS, as of 2026). A separate commercial credit, Section 48E, can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. Rhode Island’s net metering, the REG program, the Renewable Energy Fund grant, and the tax exemptions were not affected and still carry the payback in 2026.
Do I qualify for net metering or the grant if I lease or sign a PPA?
The crediting path follows your Rhode Island Energy account, so the customer of record is enrolled whether you own, lease, or sign a PPA. The difference is who keeps the incentives: on a lease or PPA the third-party company that owns the system generally takes the Renewable Energy Fund grant and the tariff value, while your benefit is a lower or fixed power price with no up-front cost. If you want the grant and the crediting value in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the SolarFY Editorial Team. Figures were verified against the linked Rhode Island Energy, National Grid, Rhode Island Office of Energy Resources, Rhode Island Commerce, Rhode Island Division of Taxation, DSIRE, EIA, and IRS sources as of July 2026, and the production and payback estimates were computed by MySolarFY from NREL PVWatts v8 and EIA rate data under our data and methodology. Net-metering terms, the REG tariff rate, the Renewable Energy Fund grant, and electricity rates reset over time, so confirm current terms with Rhode Island Energy and the Rhode Island Office of Energy Resources before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the Renewable Energy Fund grant and the crediting value go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.