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Solar by stateSeptember 2026

Solar in Rhode Island: how the rules work

How Rhode Island credits the power solar panels send back to the grid, what homes there pay for electricity, and what to check when a home with solar is bought or sold.

Export credit
Full retail credit
About 90% of retail
Largest utility
Rhode Island Energy (PPL)
Home electricity
29.2¢/kWh
Rising ~5.3%/yr over 10 years (EIA)
Typical installed price
$2.77/W
State average quote before incentives (EnergySage)

How exported power is credited

Power sent to the grid is credited at the full retail rate (kWh for kWh), at least within each billing period.

Under R.I.G.L. 39-26.4 and RI Energy's Net Metering Provision, generation up to 100% of consumption earns a Renewable Net Metering Credit. The credit is the sum of four per-kWh charges: Last Resort Service (excluding the RES charge), distribution, transmission and transition. It omits certain per-kWh charges (efficiency, RES) and fixed charges, so it is close to but slightly below the all-in retail rate. The 0.9 share is an estimate on that basis, not a published figure. Generation between 100% and 125% of consumption earns an Excess credit at avoided cost, defined as the LRS kWh charge; generation above 125% earns nothing. Credits carry forward with an annual reconciliation. The 2023 amendments (tariff effective 2024) added a 20% credit reduction for post-Apr 15, 2023 projects, but the tariff text ties it to projects under the 275 MWac allowance in 39-26.4-3(a)(1)(vi), i.e. ground-mounted and larger projects. Sources conflict here: a third-party 2026 guide claims all post-Apr 2023 residential systems get 80% of retail; this entry follows the tariff reading that residential rooftop is not reduced. 2025 HB 5580 eased load-history sizing limits. No solar-specific residential fee was found.

What changes for a home with solar

A savings estimate that counts exported power at the full retail rate matches how exports are credited here. Where only month-end surplus earns a lower rate, homes that use most of their power themselves come closest to that estimate.

Electricity here costs about 29.2¢ per kWh (2026) and has risen about 5.3% a year over the last decade. A lease or PPA escalator above that pace makes the solar payment rise faster than utility rates have.

When a home with solar is sold in Rhode Island

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Sources

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