ODDS & ENDS Our News Letter
The price for electricity in Rhode Island is about 22.5 cents per kWh in 2023, which is expensive when compared to some other states.
Is Going Solar in Rhode Island Smart?
You bet it is. The average payback period is about 8 years in this state. When compared to the national average of 12, it’s clear Rhode Island is a great place to go solar.
Available Solar Programs in Rhode Island
Currently, you can choose one of two options. Consider the following:
The Renewable Energy Growth (REG) Program
The Renewable Energy Growth (REG) Program is administered by Rhode Island Energy, supports the development of distributed generation projects in Rhode Island. Eligible technologies include wind, solar, small-scale hydropower, and anaerobic digestion. The program enables customers to sell their generation output under long-term tariffs at fixed prices. Each year the program is revised with new ceiling prices and a megawatt allocation plan. The Distributed Generation Contracts Board, a ten-member board, oversees the REG program and is responsible for developing and recommending the annual program plan. Depending on project size and contract term (15 or 20 years), National Grid will pay from 27.55– 31.05¢ per kilowatt-hour for solar generation, including the value of bill credits.
CommerceRI’s Renewable Energy Fund (REF)
CommerceRI’s Renewable Energy Fund (REF) exists to help expand the role of renewable energy throughout Rhode Island, so the state and its citizens can reap the full benefits of cost-effective renewable energy from diverse sources.
REF provides grants for renewable energy projects that have the potential to produce electricity in a cleaner, more sustainable manner, while stimulating job growth in the green technology and energy sectors. Using funds from the “system benefit charge” on electric bills and alternative compliance payments received from retail electricity providers, CommerceRI funds renewable energy projects in Small Scale solar, Commercial Scale, and Community Renewables.
- How much is the incentive? Funding for each project is based on the rated DC capacity (kW system size) per project. Our current funding for residential solar is $.65/watt, with a maximum at $5,000.00. We also provide an Energy Storage Adder grant that is a flat rate of $2,000.00 per project. The solar installation company will discount the grant amount from your total project cost. For example, say your project size is 4.2kW. (4.2kW x $.65/watt) x $1,000= $2,730.00 Your grant amount would be $2,730.00.
- What are the requirements for a residential project? Residential requirements include owning the property you wish to install on, the property must be located in RI, and must have good access to sunlight. Your solar installer will conduct a shade analysis of the property to see if you are eligible for the grant, you will pass with a TSRF of 80% or above.
REF Battery Storage Rebate-In addition to the rebate for solar panels, the REF program offers a new incentive of $2,000 for adding battery storage to your solar system.
Rhode Island is One of the Best States to Go Solar
Bottom Line Rhode Island is one of the best states to go solar. If you have an unshaded south facing roof that is in good shape, it is likely that it will be profitable to install solar panels. In fact, under these conditions the payback could be as short as 4 to 5 years.
Remember: Regardless of which option you choose you may be eligible for the federal tax credit which provides a credit of up to 30% of your total solar system cost.
Want to Learn More About Going Solar or Adding Solar Panels to Your Home in Rhode Island?
If you’d like more information on how you can minimize energy consumption and maximize savings while making your home more comfortable all year round, then contact Energy Geeks, we can provide solar advisory services. Our mission is to provide the most comprehensive and efficient solutions to reduce energy use in your home.