What the Rhode Island Renewable Energy Growth (REG) program is, and how it differs from net metering, as of August 2026
Renewable Energy Growth (REG) is Rhode Island’s fixed-price solar tariff. Instead of crediting only your exports like net metering, REG pays a set price for every kilowatt-hour your system produces across a long contract, about 15 to 20 years for small solar. For the 2026 to 2027 program year the residential Small Solar I ceiling price is 31.55 cents per kWh. You pick REG or net metering, not both.
By MySolarFY’s analysis (August 2026), a typical 6 kW Providence system models at about 7,762 kWh a year, so REG Small Solar I at 31.55 cents would pay roughly $2,450 a year on all of that output, above the roughly $2,089 a year the same home models under net metering with its reduced post-2023 export credit (a labeled estimate, not a quote).
Updated for 2026 with the Renewable Energy Growth ceiling prices recommended for the 2026 to 2027 program year, how the fixed tariff differs from net metering, who administers REG, and an original REG-versus-net-metering earnings estimate for a Providence home. The utility is Rhode Island Energy, formerly National Grid.
Most Rhode Island solar guides only explain net metering. Rhode Island actually runs a second, structurally different program, and for some homes it pays more. The Renewable Energy Growth program, or REG, is a performance tariff: you sign a long-term contract and Rhode Island Energy pays you a fixed price for all the electricity your panels make, while you keep buying your household power normally. That is a different deal from net metering, which only credits the power you export against your own bill. Because Rhode Island power averages about 29.91 cents per kWh and is among the highest in the country (EIA, as of March 2026), the choice between a fixed tariff and a bill credit is worth real money. This page explains REG, its current ceiling prices, how it compares with net metering, and how enrollment works. For the full state picture, start at our Rhode Island solar hub.
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What is the Rhode Island Renewable Energy Growth (REG) program?
REG is a fixed-price performance tariff for solar. You enroll your system in a long-term contract, and Rhode Island Energy pays you a set price for every kilowatt-hour it generates, whether you use that power on-site or export it, for the full term of the contract. In exchange, you keep buying all of your household electricity from the grid at the normal retail rate. That is the core difference from net metering, where you never enroll in a contract, you simply offset your own bill and earn a credit on the surplus you export. The Rhode Island Office of Energy Resources describes REG as the state’s tariff-based program for financing renewable energy through long-term performance payments (Rhode Island Office of Energy Resources, Renewable Energy Growth, as of August 2026).
Two features make REG worth understanding. First, it pays on all production, not just exports, so the metering math is simpler than net metering’s split between self-used and exported power. Second, the price is fixed for the life of the contract, so it does not move with your retail rate. That predictability is the appeal, and it is also the tradeoff: if Rhode Island’s already-high retail rates keep climbing, a net-metering system rides those increases while a REG contract stays locked at its original price. REG and net metering are mutually exclusive, so a given system enrolls in one program, never both. For the plain-English basics of how the meter math works under net metering, see our guide to understanding net metering, and for Rhode Island’s specific net-metering rule see our Rhode Island net metering guide.
What are the REG ceiling prices for 2026 to 2027?
For the 2026 to 2027 program year, the residential Small Solar ceiling prices recommended for approval are 31.55 cents per kWh for Small Solar I on a 15-year tariff and 28.65 cents per kWh for Small Solar II on a 20-year tariff. These come from the Distributed Generation Board’s recommendations to the Rhode Island Public Utilities Commission in docket 25-52-REG (Rhode Island Public Utilities Commission, docket 25-52-REG, as of August 2026). A “ceiling” price is the maximum the tariff pays for that class; the PUC sets these figures each program year, so they change annually. Treat the numbers below as the current-year ceiling and confirm the live figure against the program’s own tariff documents before you rely on it.
| REG class | Ceiling price | Contract term | Notes |
|---|---|---|---|
| Small Solar I | ~31.55 cents per kWh | 15 years | The typical residential class; paid on all production, fixed for the term |
| Small Solar II | ~28.65 cents per kWh | 20 years | A separate class for larger small systems; longer term, lower ceiling |
| Who sets it | The Rhode Island Public Utilities Commission sets the ceiling prices each program year (docket 25-52-REG); Rhode Island Energy administers the payments | ||
Verify before you rely on these: REG ceiling prices are set annually and are program-year specific. The 31.55 cents (Small Solar I, 15 years) and 28.65 cents (Small Solar II, 20 years) figures reflect the 2026 to 2027 recommendations in docket 25-52-REG as of August 2026. Enrollment capacity for each class is also limited and can fill, so confirm both the current ceiling price and open capacity with Rhode Island Energy and the linked PUC docket before you decide.
REG versus net metering: which pays a typical Providence home more?
Here is an original SolarFY comparison for a typical 6 kW Providence home. The point is not a single winner; it is that the two programs pay in different ways, and the fixed REG tariff can beat the reduced net-metering export credit for a home that exports a lot of its power. Treat this as an illustration, not a quote.
| Measure (6 kW system, Providence) | Renewable Energy Growth (REG) | Net metering |
|---|---|---|
| Modeled annual production | ~7,762 kWh | ~7,762 kWh |
| How you are paid | A fixed 31.55 cents per kWh on all production (Small Solar I) | Full retail (~29.91 cents) on power you use, ~80 percent of near-retail (~23.9 cents) on post-2023 exports |
| Modeled first-year solar benefit | ~$2,450 per year | ~$2,089 per year |
| How long the rate holds | Fixed for the 15-year contract term | Ongoing while you own the system, and it rises if retail rates climb |
| Best when | You want a predictable, above-retail fixed payment and you export a lot | You self-consume most of your solar and want to hedge rising retail rates |
For this modeled 6 kW Providence home (August 2026), REG Small Solar I pays about $2,450 in year one versus about $2,089 under net metering, roughly $360 more, though net metering has no term limit while REG is locked for 15 years (a labeled SolarFY estimate, not a quote).
How we calculated this (inputs and assumptions): production uses NREL PVWatts v8 modeled for Providence ZIP 02903, where a 6 kW system models at about 7,762 kWh per year (our data and methodology). The REG figure multiplies that production by the 2026 to 2027 Small Solar I ceiling of 31.55 cents per kWh (RI PUC docket 25-52-REG, as of August 2026), which comes to about $2,450 a year for 15 years. The net-metering figure models a right-sized system that self-consumes about half its output at Rhode Island’s 29.91 cents per kWh retail rate (EIA, as of March 2026) and exports the other half at the reduced post-April-2023 credit of about 23.9 cents per kWh (Rhode Island Office of Energy Resources, as of August 2026), which comes to about $2,089 a year. By MySolarFY’s analysis (August 2026), REG pays this export-heavy Providence profile roughly $360 a year more in year one, because its 31.55-cent fixed tariff sits above both the retail rate and the reduced export credit. But net metering has no term limit and rises with future retail rates, while REG is locked for 15 years, so a home that self-consumes most of its power, or expects steep rate increases, can come out ahead on net metering over the long run. As a labeled illustration, net metering’s blended value here is about 26.9 cents per kWh in year one (roughly 90 percent of the 29.91-cent retail rate), so if Rhode Island’s retail rate climbs about 2 to 3 percent a year, that blended value would pass REG’s locked 31.55 cents somewhere around year 5 to 8 and stay higher for the rest of the system’s 25-plus-year life, while REG’s payments stop when its 15-year term ends. In other words, REG’s edge is front-loaded and certain, and net metering’s edge is later and depends on rates rising. Your actual number depends on roof, shading, usage, system size, and how much you export versus self-consume, and REG payments may be taxable income; we do not provide tax advice. Run your own address through the eligibility check, compare the wider picture on our Rhode Island solar incentives guide, and see the local price picture on our Rhode Island solar cost guide.
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How do you enroll in REG, and who administers it?
Rhode Island Energy administers REG enrollment. You do not sign up at the state; you apply through the utility, and for most residential Small Solar projects an installer handles the REG application and interconnection paperwork as part of the project. Enrollment runs by program year with a capacity allocation for each class, so a class can fill before the year ends, which is why timing and confirming open capacity matter. Rhode Island Energy is the same company most Rhode Islanders knew as National Grid; PPL Corporation bought the Rhode Island business in 2022 and rebranded it Rhode Island Energy, so an older National Grid account is now a Rhode Island Energy account. For the utility-specific details on rates and interconnection, see our Rhode Island Energy (National Grid) solar guide.
Two state bodies shape the program. The Rhode Island Office of Energy Resources (OER) stewards REG policy and publishes the program overview (energy.ri.gov, as of August 2026). The Rhode Island Public Utilities Commission (PUC) approves the tariffs and sets the annual ceiling prices, including the 2026 to 2027 figures in docket 25-52-REG. Because REG is a binding long-term contract, read the tariff terms and confirm the price and term for your class before you enroll, and compare it against what net metering would pay your specific home. For a city-level view of production and rates, see our Providence solar guide.
What happened to the 30 percent federal solar tax credit?
It ended. The federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Rhode Island homeowner who buys and installs solar in 2026 cannot claim that 30 percent federal credit (IRS Residential Clean Energy Credit, as of January 1, 2026). That is the single biggest thing outdated solar pages still get wrong, and it raises the stakes on choosing the right Rhode Island program, because the state tariff and net-metering value now do more of the work.
The residential 25D credit ended after December 31, 2025, but one narrow federal exception remains, and it does not put cash in a homeowner’s pocket. A separate commercial credit, Section 48E, can apply to third-party-owned systems, meaning a solar lease or power purchase agreement, where the company that owns the equipment claims the credit, not you, though it may pass some of that value through as a lower monthly payment. MySolarFY does not provide tax advice; confirm your own situation with a tax professional. For the full picture of what changed federally, see our explainer on the federal solar tax credit.
Frequently asked questions about the Rhode Island REG program
What is the Rhode Island Renewable Energy Growth (REG) program? REG is Rhode Island’s fixed-price solar tariff. You enroll your system in a long-term contract, about 15 to 20 years for small solar, and Rhode Island Energy pays you a set price for every kilowatt-hour your system produces, whether you use it or export it, while you keep buying your household power at the normal retail rate. It is an alternative to net metering, and the two are mutually exclusive. (Source: Rhode Island Office of Energy Resources, as of August 2026.)
What is the REG tariff rate for 2026 to 2027? For the 2026 to 2027 program year, the residential Small Solar ceiling prices recommended for approval are about 31.55 cents per kWh for Small Solar I on a 15-year tariff and about 28.65 cents per kWh for Small Solar II on a 20-year tariff. Ceiling prices are set each program year by the Rhode Island Public Utilities Commission, so confirm the current figure against the program’s tariff documents before you rely on it. (Source: RI Public Utilities Commission, docket 25-52-REG, as of August 2026.)
Is REG or net metering better in Rhode Island? They are mutually exclusive, so you pick one. REG pays a fixed price per kWh on all your production for a set term, which can beat net metering for a home that exports much of its power, since the 31.55-cent Small Solar I ceiling sits above the reduced post-2023 export credit. Net metering has no term limit and rises with retail rates, so a home that self-consumes most of its solar, or expects steep rate increases, can do better on net metering. Run both before you choose. (Sources: RI Office of Energy Resources; RI PUC docket 25-52-REG, as of August 2026.)
Who administers the REG program? Rhode Island Energy, the utility formerly known as National Grid until PPL bought and rebranded it in 2022, administers REG enrollment and pays the tariff. The Rhode Island Office of Energy Resources stewards the policy, and the Rhode Island Public Utilities Commission approves the tariffs and sets the annual ceiling prices. Most residential applications are handled by your installer as part of the project. (Source: Rhode Island Office of Energy Resources, as of August 2026.)
Can you use REG and net metering at the same time? No. A given system enrolls in either REG or net metering, not both. REG pays a fixed tariff on all production under a contract; net metering credits your exports against your bill with no contract. Because they are mutually exclusive, the choice is a one-time decision for the system, so it is worth modeling both against your own usage before you enroll. (Source: Rhode Island Office of Energy Resources, as of August 2026.)
Is the 30 percent federal solar tax credit gone for Rhode Island in 2026? Yes for homeowners. The federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, so a Rhode Island homeowner installing solar in 2026 cannot claim that 30 percent federal credit. A separate commercial credit (Section 48E) can apply to third-party-owned lease or PPA systems, but the company that owns the equipment claims it, not the homeowner. MySolarFY does not provide tax advice; confirm your situation with a tax professional. (Source: IRS Residential Clean Energy Credit, as of January 1, 2026.)
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Written and reviewed by the SolarFY Editor, our in-house solar research desk (see our data and methodology), in August 2026. Figures were verified against the linked Rhode Island Office of Energy Resources, Rhode Island Public Utilities Commission (docket 25-52-REG), IRS, EIA, and NREL PVWatts sources as of August 2026. REG ceiling prices, net-metering credit rules, and retail rates are set by the state, the Rhode Island Public Utilities Commission, and the utility and are reviewed each program year, so confirm current figures with the linked primary sources and Rhode Island Energy before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about how MySolarFY works.
Disclaimer: MySolarFY is a free matching service, not a solar installer, financing company, tax advisor, or government program, and does not provide tax, legal, or financial advice. REG ceiling prices, net-metering figures, and retail rates change frequently and by program year; each is cited with its source and an “as of” date, so confirm current values with the linked primary sources, Rhode Island Energy, and a tax professional before you decide. REG payments may be taxable income. “No up-front cost” refers to qualifying lease or power purchase agreement financing where available and subject to eligibility; 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 tax benefits and incentives generally go to the company that owns the system, not the homeowner. Solar panels are not free and monthly payments apply. Homeowners do not get the federal residential credit (Section 25D) that ended after December 31, 2025. Related reading: our Rhode Island solar hub, Rhode Island net metering guide, and Rhode Island solar incentives guide.
