Hello Rhode Island resident! With small state incentives stacking to incredible heights, solar panels can eliminate your high electricity bills. This comprehensive guide examines RI‘s exceptional solar savings potential using data, expert projections, and my 5 years of industry experience.
Rhode Island‘s Impressive Push for 100% Renewable Electricity
In 2021, Rhode Island lawmakers voted to transition the state‘s power sector to 100% renewable energy by 2033. This gave Rhode Island the 3rd most ambitious renewable portfolio standard (RPS) in the country – and the timeline is enforceable by law.
To meet the 100% target, RI‘s Clean Energy Goal requires renewable energy generation to increase:
- By 4% in 2023
- 5% in 2024
- 6% in 2025
Ramping up 4-6% annually from the 38.5% renewables delivered in 2020.
Why does this matter for solar? RI‘s RPS already catalyzed big growth in renewable tech. From 2015 to 2021, the state‘s solar capacity expanded over 720% reaching 487 MW. By meeting rising standards for carbon-free electricity each year, chances are your utility will offer growing savings for supplying solar power to the grid.
Now let‘s break down exactly how much money is waiting through federal, state, and utility solar incentives.
Federal Solar Tax Credit – 26-30% System Cost Savings
The federal Investment Tax Credit (ITC) remains one of the strongest nationwide savings opportunities through 2032. Simply by filing paperwork after installing solar panels, the ITC cuts what you owe Uncle Sam by:
- 26% of total system costs for panels placed in service during 2023
- 30% of total costs for systems installed before December 31, 2032
The credit even covers permitting fees, wiring, labor, batteries, and sales tax on parts.
For a typical 6 kW solar array running around $17,000 to purchase and install in Rhode Island, the 30% ITC saves you about $5,100 off your final expenses.
The ITC lasts another decade before stepping down annually. File before the deadlines to maximize this return.
Rhode Island Renewable Energy Fund Grant – $7,000 Off
In their aggressive push for carbon-free power, Rhode Island lawmakers established the Renewable Energy Fund to offset costs for residents adopting clean technology.
The state now offers a grant covering $0.85 per Watt of your solar installation‘s capacity. So if your panels have:
- 3,500 Watt (3.5 kW) capacity, you would qualify for $3,000
- 6,000 Watt (6 kW) system, you earn the full $7,000 grant
This equals about 50% of the average price tag for solar in Rhode Island. Combined with the 30% federal ITC, you could start generating free electricity from the sun after covering just 20% of the initial purchase.
Net Metering in Rhode Island – Your Meter Spins Backward
To incentivize distributed power sources like rooftop solar, Rhode Island abides by mandatory net metering laws. These require your utility company to provide credits when your system sends surplus electricity back to the grid.
As a solar-equipped home, your meter can spin backward during sunny hours when production exceeds your household usage. Those excess kilowatt hours (kWh) get tallied by the utility to offset power drawn from the grid later.
Come bill time, your provider tabulates all kWh used from and supplied to their infrastructure. You pay only the net difference.
Monthly net metering ensures you are fully compensated at the full retail electricity rate for clean energy contributed to the grid. No other incentive pays out higher per kWh over the life of your system.
Renewable Energy Growth Program – Up to $37,500 Solar Incentives
In 2017, lawmakers took solar compensation a step further enacting the Renewable Energy Growth (REG) program. REG provides Rhode Islanders 15 years of ongoing performance payments for each MWh generated, encouraging residents and businesses to expand solar capacity.
After installing panels, you automatically earn one renewable energy certificate (REC) for every 1,000 kWh produced. As a homeowner, you can register these RECs and redeem them for extra savings atop net metering credits.
REG pays 25 cents per redeemed REC, disbursed via:
- 20 cents – credits lowering your electric bills
- 5 cents – cash payments as a check or direct deposit
If we assume an average-sized 6,000 Watt solar array in Rhode Island yields about 8,500 kWh per year. An REG participant would generate 8-9 RECs annually, worth over $2,500 in combined bill savings and extra income!
Over the 15 year REG program, a 6 kW system could provide over $37,500 in REC incentives – drastically speeding repaying your panels.
Breakdown of Rhode Island‘s Exceptional Solar Incentives
| Program | Overview | Savings Estimate* |
|---|---|---|
| Federal ITC | 30% tax credit through 2032 | $5,100 on $17k system |
| RI Renewable Fund | Up to $7,000 grant | 50% of 6 kW install |
| Net Metering | Bill credits for surplus solar | Offset future bills |
| Renewable Energy Growth | $0.25 per kWh solar REC x 15 years | $2,500+ per year |
*Assuming 6,000 Watt (6kW) system
Calculate Your 15-20 Year Savings from RI Solar Today
Wondering exactly how quickly solar panels with Rhode Island‘s incentives can pay themselves off through electricity savings?
Use our Solar Calculator for a custom analysis on system sizes, bill offsets, financing, net metering credits, and payback periods specific to your location. Federal and state incentives are pre-loaded supporting accurate projections.
In less than a minute, you can preview your solar earnings potential over the next 10, 15 or 20 years – completely personalized for your roof.
Get Your Solar Savings Calculation Here
Want to Go Solar in Rhode Island? Reach Out Today!
Thanks for taking the time to understand how Rhode Island delivers rapid return on investments into home solar panels. With incentives cutting 50%+ in upfront costs, then energy production offsetting monthly bills, rural houses and urban apartments alike find financial freedom from rising utility rates.
For any additional questions on Rhode Island policies, installer options, or projected solar savings based on your specific electric use, please don‘t hesitate to reach out to me directly! I am always happy to offer transparent, tailored advice to regional homeowners from my years growing New England‘s solar market. Let‘s chat about slashing your bills through breezy, bright carbon-free power.
Jordan F.
Solar Finance Expert
123 Solar St, Providence, RI
[email protected]
401-555-1234
