Make the best decision about investing in solar power in Rhode IslandSee your solar options
The average price for a home solar panel system in Rhode Island is $13,500 or about $2.70 per watt. Systems will vary depending on the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
The average payback period for solar panels in Rhode Island is around 1.5 years years. Your payback period will depend on the cost of your system and the amount of power it generates. The more energy your system generates the faster it will pay for itself.
Everyone has their own method for determining if solar is “worth it”. If your objective is to leverage solar to eliminate or reduce your electric bill you have different expectations of someone who is more interested in reducing their carbon footprint.
To help you determine the best option for you you can use this solar calculator that will weigh different solar options and other renewable energy options.
Solar has roughly 20 times less carbon output than coal-powered energy sources. After three years of use, solar systems are completely carbon neutral and remain so for the duration of their lifespan.
In short, if you want to reduce your carbon footprint going solar is a great option.
When you have your own solar system you are putting energy back into the grid. Your utility rewards you by crediting back the value of the energy you put into the grid. For example, if your system generates 2,500 kWh in a month and you use 2,500 kWh in that month you would have a $0 electric bill.
In most cases, if your system generates more energy than you use the credits will roll over to the next month.
With the right solar system, you could potentially have a self-sufficient power system for your home. This means you don’t have to rely on the grid for energy. If the grid has an outage you could still power your home with your solar system.
Those who are trying to become energy independent often pair their solar system with a battery. This allows you to store electricity and use it when you need it.
Renewable Energy Growth Program
National Grid, the largest utility in Rhode Island, offers a performance based incentive called the Renewable Energy Growth program that pays credits towards your electric bill and cash payments. This program is paying $.23-$.29 per kilowatt-hour (kwh) of solar energy you produce. This program is has contract terms of 15-20 years and since you receive cash payments you will have to file a 1099. Even though you have to pay taxes on the payments your receive, this program drastically reduces your solar system's payoff period and makes solar much more cost-effective.
Rhode Island has one of, if not the best, solar incentives in the United States. Rhode Island offers a solar grant of $850 per kilowatt of installed solar with a max of $7,000. So a 5kW system would get a $$4,250 rebate. For more information visit the Rhode Island Renewable Energy Fund website.You cannot pair this rebate offer with the above Renewable Energy Growth program from national grid, but if you're not planning on staying put for the next 20 years this program is great.
Like every other state, new solar panel systems in Rhode Island are eligible to receive the federal solar tax credit of 26%. This credit is applied on your annual income tax credit.
There are many options when it comes time to purchase our solar panels. You can finance, lease, or pay the entire cost upfront. The right choice will depend on your financial situation and the costs of your system and other factors. Our solar calculator will help you weigh your options. You can find more information on leasing vs buying solar panels here.