Home Solar in Rhode Island: 2026 Costs, Incentives & Savings

Solar in Rhode Island

Rhode Island homeowners pay some of the highest electricity rates in the country — 28.07 cents per kWh — and prices have climbed 28% since 2020. It’s no surprise that more people here are taking a serious look at solar panels.

As the nation’s leading solar company, Palmetto put together this guide to walk you through everything about solar installation in Rhode Island — how it works, what it costs, and what to expect from start to finish.

RHODE ISLAND by the Numbers

34th Most residential solar in the United States
14k Households have installed solar panels
4.7 Average daily peak sun hours
~$98k Rhode Island average savings over 25 years

Rhode Island Solar Panel Cost

Curious what solar actually costs in Rhode Island? We built this calculator using real installation data from homes across the state — from Providence to Warwick, Newport to Cranston. See your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost) or explore a cash purchase option. Real local data. Both paths. One simple tool.

Lease Cash Purchase
System Size
This system size is designed to offset approximately 100% of the average electricity usage for a home in Rhode Island.
Recommended System
7.38 kW
Your Monthly Payment
Estimated monthly cost with LightReach
$117/mo
As low as
$117/mo

Why Lease Solar?

Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.

• No upfront investment
• Palmetto handles all maintenance
• 90% Production Guarantee
• Comprehensive protection program included

Cost Breakdown

Your estimated investment
System Cost
$23,888
Cost Per Watt
$3.24/W
Final Cost
$23,888

Savings
Your total financial benefit

Monthly Savings
Average utility bill reduction
$224
Payback Period
Break-even point
8.0 years
25-Year Savings
$98,427

Get Your Personalized Quote

Palmetto Reviews

My experience with Palmetto Solar has been great. I especially like the customer service. I was responded within a more than reasonable timeframe when I had questions and it was explained well to me how the change from electricity to solar will affect my light bill.
Hans Saint-Eloi Cadely, Warwick, Rhode Island

Palmetto does a great job. I’ve had all my questions answered and was kept up to date on what step we were on. The installation was super easy and the installers were kind and respectful. Definitely recommend!
Nancy Lebrun, Cumberland, Rhode Island

It has not been activated as yet but I am sure it will be as great as it has all been so far. Sales personnel has been spectacular. I was a little put back by the recommendation to add to homeowners insurance as I thought any problems with the system was there affair but turns out not to be so if an act of god like fire or hurricane. But it was not prohibitive to add the cost to the insurance bill annually.
Martha Pulito, Narragansett, Rhode Island

Key Takeaways

• Rhode Island has some of the highest electricity rates in the country — making solar one of the smartest ways to reduce your monthly energy bill.
• Palmetto’s LightReach lease lets you go solar with no upfront cost — fixed monthly payments, maintenance included, and a 90% Production Guarantee.
• The average Rhode Island homeowner could save around $98,000 over 25 years by switching to solar — based on real local installation data.

Rhode Island Electricity Prices

Rhode Island has some of the highest electricity rates in the country — and they keep climbing.

In 2021, Rhode Island residents paid 22.3 cents per kWh. By 2024, that rose to 28.1 cents — nearly double the national average of 16.5 cents. That gap keeps growing.

Solar can help. By generating your own electricity, you pull less power from the grid — so your bill shrinks even as utility rates continue to rise.

Price of Energy: Rhode Island vs National Average

0¢
10¢
20¢
30¢
40¢

13.7¢
22.3¢
15.0¢
23.2¢
16.0¢
27.0¢
16.5¢
28.1¢

Rhode Island Area Utility Providers

Rhode Island has one primary electric utility: Narragansett Electric. Based on 2023 data — the most recent available — Narragansett customers paid about 27.2¢ per kWh, nearly double the national average of 16.0¢.

Rhode Island Solar Incentives

Rhode Island homeowners can explore available solar incentives in Rhode Island at the utility level to help offset the cost of going solar.

Rhode Island does not currently offer a dedicated state solar rebate program. However, homeowners may still benefit from utility-level net metering policies and property or sales tax treatment — check with your local utility for current availability.

Rhode Island Solar Irradiance

Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Rhode Island’s mix of coastal weather and four distinct seasons shapes solar output year-round. Despite cloudy winters, the Ocean State gets enough sunshine to make solar a smart, worthwhile investment.

Key Facts:

• Values shown are daily averages
• Based on 18 years of satellite data
• Click any area for detailed estimates

What Can the Average Rhode Island Solar System Power?

Summer Production (July)

45.0 kWh/day
In July, your 10 kW system could power:

• 3.6 average Rhode Island homes (15 kWh/day per home)
• or Run central AC for 18 hours AND power all other appliances
• or Fully charge 5.4 Tesla Model 3 electric vehicles

Winter Production (December)

21.4 kWh/day
In December, your 10 kW system could power:

• 2 average Rhode Island homes (15 kWh/day per home)
• or Keep your home heating system running for 15 hours
• or Fully charge 3 Tesla Model 3 electric vehicles

Annual Production

13032 kWh/year
Over a year, your 10 kW system could:

• Offset 10 tons of carbon dioxide emissions
• or Equal the environmental benefit of planting 175 trees
• or Save approximately $4,234 in electricity costs

Solar Installations in Rhode Island

Solar is spreading across Rhode Island — and we have the data to prove it. Palmetto compiled solar installation records across the entire country to build this interactive heatmap. Explore it to see just how many of your Rhode Island neighbors have already made the switch to clean energy. Click any hexagon to see the number of installations in that area!

Go Solar with LightReach — No Upfront Cost

In Rhode Island, Palmetto’s LightReach program is available through Rhode Island Energy (formerly National Grid) via a Power Purchase Agreement (PPA). With a PPA, you pay a set price per kilowatt-hour (kWh) for the electricity your panels produce — rather than a fixed monthly amount.

Frequently Asked Questions

Does Rhode Island have net metering?
Yes, Rhode Island does have some form of net metering or net billing available, though specific program details can vary by utility and may change over time.

Do solar panels increase your home value in Rhode Island?
Yes — but only if you own your solar panel system outright. Research from Zillow shows that homes with solar panels sell for approximately 4.1% more than comparable homes without them.

How much does it cost to go solar in Rhode Island?
For Rhode Island homeowners, the most accessible way to go solar is through Palmetto’s LightReach program — a lease with no upfront cost and a low fixed monthly payment starting around $117/month.

How does leasing solar work and what’s the approximate cost in Rhode Island?
With Palmetto’s LightReach program, you pay one simple monthly fee that covers everything: the solar panel system, installation, monitoring, maintenance, and a 90% Production Guarantee.

Is solar worth it financially?
For Rhode Island homeowners, solar can make strong financial sense — especially given the state’s electricity rates, which are nearly double the national average at 28.1¢/kWh.

Do solar panels work in Rhode Island’s climate?
Yes. Rhode Island averages 4.7 peak sun hours per day, which is enough to make solar a worthwhile investment.