Find out if solar panels are right for your home in Rhode Island.
In the Ocean State, the future is looking bright—literally.
Rhode Island has made significant investments in solar energy, with $1.2 billion poured into the industry. This money has been spread into projects big and small. RI currently has 721 MW of installed solar capacity which is enough power to light up over 134,000 homes. Investments have also been used to help solar businesses as well, creating 1,089 solar jobs and 26 solar companies actively contributing to the industry.
Rhode Island is emerging as a solar powerhouse. As the state aims for more sustainable energy solutions, residents have compelling reasons to go solar—from saving on electricity bills to increasing property values and reducing carbon footprints.
But, we know the investment on an individual scale can still be steep. Solar is not an easy decision. We’ll give you everything you need to know to make the decision for yourself. Stick around as we break down the costs, benefits, and everything in between.
The average price for a home solar panel system in Rhode Island is $21,660 on a 6kW system or about $3.61 per watt. Systems will vary depending on the solar installation company 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.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Rhode Island | $16,200 | $27,000 | $8,100 | $2.70 |
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For most, the ideal solar system size is the sweet spot between price and capacity. The goal is to generate enough electricity to cover your home's demand while keeping overall costs low as possible.
I.E. Get the best bang for your buck.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $13,500 | $8,785 |
| 6 kW | $16,200 | $10,542 |
| 7 kW | $18,900 | $12,299 |
| 8 kW | $21,600 | $14,056 |
| 10 kW | $27,000 | $17,570 |
Unfortunately, nothing is perfect - including solar. To avoid buyer's remorse, you should think about all the pros and cons associated with installing solar equipment on your home. Then weigh them against each other to decide if it makes sense for you.
Everyone has their own opinion on how to interpret and weigh the pros and cons against each other. Our goal is to present the most common pros and cons and let you make your own choice.
So, if you're in Rhode Island and thinking about going solar, there's a lot to like. First off, you can actually make some cash through programs like Connected Solutions. The utility pays you for tapping into your stored solar energy. Plus, the RE Growth Program gives you credits for sending your solar energy back to the grid, and it's a pretty sweet deal.
If you can’t put solar on your roof, you can still save money with community solar.
The drawbacks come when you begin to compare Rhode Island to other states throughout the country. First of all, the startup costs are one of the highest. Then, Rhode Island is not really known as the sunniest state. The state's not exactly leading the charge in solar growth, ranking 44th for the next five years. The RE Growth Program has its limits too; it's only open once a year and fills up fast.
While solar is never really a bad idea, Rhode Island is not the best state to get solar when you compare. The average payback is about 12 years. The average linespace of panels is about 20 years. With those averages, it is still a great investment, but you have to make sure your home makes the cut. Roof construction, size, and angle.
Make sure to read the fine print if you're thinking about a solar lease, so you don't get any nasty surprises. So yeah, solar's got its perks, but make sure you're cool with the trade-offs.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in Rhode Island. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Don’t forget about Solar Incentives! While there is the Federal 30% Tax Credit that came from the Inflation Reduction Act, there may be others that are statewide or local.
Check to see if you are eligible for solar incentives, they could significantly reduce the cost of solar panel installation. While some incentives are statewide, others are more local. Your city, utility, or other local company could offer hundreds or thousands of dollars in incentives to install solar systems.
This table shows the available incentives in Rhode Island. But hey, this isn't the end-all-be-all list. Check with your local utility for other potential incentives.
| Name | State | Category | Type |
|---|---|---|---|
| Rhode Island Solar Easement Laws | RI | Regulatory Policy | Solar/Wind Access Policy |
| Residential Solar Energy Property Tax Reduction | RI | Financial Incentive | Property Tax Incentive |
| Renewable Energy Sales Tax Refund | RI | Financial Incentive | Sales Tax Incentive |
| Residential Renewable Energy Tax Credit (Personal) | RI | Financial Incentive | Personal Tax Credit |
| Net Metering | RI | Regulatory Policy | Net Metering |
| Renewable Energy Professional Certificate | RI | Regulatory Policy | Solar/Wind Contractor Licensing |
| Rhode Island Renewable Energy Fund (RIREF) | RI | Regulatory Policy | Public Benefits Fund |
| People's Power & Light - Renewable Energy Certificate Incentive | RI | Financial Incentive | Performance-Based Incentive |
| Small Customer Incentive Program for Green Power Marketers | RI | Financial Incentive | Industry Recruitment/Support |
| Renewable Generation Supply Incentive | RI | Financial Incentive | Performance-Based Incentive |
There are hundreds of solar companies in Rhode Island. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
Rhode Island Representative, Jennifer Boylan, is pushing for a new law that would make solar panels a requirement for new construction. This would apply to single-family homes, multi-family residences, commercial buildings up to 10 stories, and new parking lots over 16,000 square feet would need solar carports. As of October 2023, we don’t have a resolution on this proposal.
The goal of the law would be to try to fulfill at least 80% of a building's yearly electricity consumption with solar. There are exemptions for impractical designs and affordable housing. Of course, if you can’t fit enough panels on your roof then you won’t be required to install them.
We have seen this type of regulation in California and Massachusetts before.
But there are pros and cons to this type of enforcement. Here is what some are saying:
The first argument is the added cost to a new home. Saying it could add $8,000 to $10,000 to the total. The average price for a 6kW solar system in Rhode Island is about $21,660, so these estimated costs could be low.
The counterpoint is the long-term investment. While no one likes higher upfront costs, the energy savings and payback look good. On average, the payback could be 8 years. Most panels sustain a good efficiency for 20 years, and could continue to produce electricity long after.
Also, what happened to choice? Shouldn’t home owners have the option to have solar or not?
So, it's a hot topic, and Boylan sees this as just the start of a longer conversation.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in Rhode Island decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in Rhode Island can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in Rhode Island is $21,660 for a 6kW system or about or about $3.61 per watt.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
One of the great perks of solar panels is their low maintenance. However, to ensure they keep producing clean, green power, a few key maintenance steps are recommended.
Another benefit of solar panels is their longevity. Most come with a 25 to 30-year performance warranty which spans their Effected Useful Life (EUL). While the EUL is supposed to give you an estimate of how long the equipment will last, solar panels often continue to produce power long past this timeframe, just not as effectively as they used to. However, with anything, it's crucial to delve into the fine print to understand precisely what's covered.
The inverter is a critical component that converts direct current (DC) from your panels into alternating current (AC) for your home. Inside the inverter are electro-magnetic parts that move quickly and often. Because they have these moving parts, inverters have a shorter lifespan than the panels themselves. Know ahead of time that you will have to replace the inverters at least once during the lifespan of your panels. This should be factored into your long-term cost considerations.
Great question! Some homeowner's insurance policies may cover solar panels, but it's wise to double-check. You might need to add a separate rider or explore different insurance providers to ensure everything is adequately protected.
While solar panels seem straightforward with no moving parts, taking on a DIY installation might not be the best choice for most homeowners. The primary challenges lie in the intricate electrical work. Mistakes can not only damage the expensive system but also pose safety risks, especially if you're not an electrician. Before attempting a DIY project, consider getting a professional quote. You might be surprised to discover that labor costs are a relatively small part of the overall expense.
When it comes to selecting the right solar panels for your home, you'll typically encounter two main types: Monocrystalline and Polycrystalline. Each has its pros and cons, making the choice a bit of a balancing act.
Keep in mind that due to the efficiency difference, you may need a few more poly-panels to match the output of mono-panels. Additionally, various factors such as your roof's weight capacity, area, angle, orientation, and budget should influence your decision. To make an informed choice, it's best to consult a professional solar installer who can assess these factors and provide a tailored recommendation for your specific situation.
Instead of making a blind choice, consult with a solar installer who can assess various factors like your budget, location, and energy requirements. They can provide a tailored recommendation, ensuring you get the most efficient panels for your specific situation.
