Are Solar Panels Worth It in Rhode Island?

7 factors to consider before getting solar panels in Rhode Island

We’ve heard from more than 100,000 verified solar customers since 2018, including dozens in Rhode Island. A couple of things we know for sure: People like powering their homes with a reliable source of cheap, clean energy. They don’t like getting into solar contracts that don’t meet their expectations. Here’s what to consider before making the switch.

1. Solar panel installation costs

2. Your energy consumption

3. Rhode Island solar incentives

4. Net metering buyback rates

5. How long you stay in your house

6. How you pay

7. The solar company you hire

1. Solar panel installation costs

Average solar panel costs in Rhode Island are comparable to the national average. A typical residential solar panel system costs $31,523 in Rhode Island. That doesn’t include a solar battery, which can add $7,000 to $18,000 to your total system costs.

Most installers set the price according to the system’s wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In Rhode Island, the average cost per watt is $2.77.

Rhode Island’s average solar panel costs by system size

Is a solar battery worth the cost?

A solar battery can be worth it in Rhode Island if backup power matters to you or you qualify for a large rebate. Batteries can help you use more of your own solar power, but they are also expensive.

Rhode Island rebates can cover up to $8,000, or up to $16,000 for income-eligible households, which can make the math work out much better. However, funding is limited and subject to eligibility.

Still, if your main goal is simply lowering your electric bill, solar panels without a battery may be the better value.

Real-world example

Leslie in Tiverton realized they needed a second battery after the installation was complete. Otherwise, their septic system and water well wouldn’t work during a power outage and “the whole reason for going solar was to eliminate those things,” Leslie told us.

Leslie’s experience is a good reminder to other residents: Make sure you understand exactly what you’re paying for and how all the different components work together.

2. Your energy consumption

Your energy needs are a big factor in whether solar panels are a worthwhile investment.

A typical Rhode Island household needs a system with the capacity of 11.38 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.

You’ll get the most out of solar if most of your appliances are electric. One resident, Valerie in Newport, said her electric bill went from $322 to $0. “I’m very happy. I love it,” she said.

3. Rhode Island solar incentives

The 30% federal solar tax credit is gone, but Rhode Island still has several incentives that can make solar panels more affordable.

• Rhode Island’s Renewable Energy Fund can reduce the upfront cost of solar. Eligible homeowners may get $1.65 per watt, up to $14,500, plus a possible $5,000 solar-plus-storage incentive.

• The Renewable Energy Growth Program offers a performance-based incentive to homes with solar energy systems up to 25 kilowatts (kW).

• You’re exempt from sales tax when you purchase solar equipment.

• Homes with solar can get property tax exemptions for the value your solar energy system adds to your home.

It's important to note, you can’t combine this rebate with the Renewable Energy Fund’s $5,000 storage incentive for the same battery

» MORE: Solar incentives in Rhode Island

4. Net metering in Rhode Island

Rhode Island net metering gives you bill credits for extra solar power you send to the grid. However, generation beyond your electricity use can be credited at a lower wholesale-based rate.

That means sizing your system around how much electricity you actually use can help you get more value from solar.

5. How long you plan to stay in your house

It takes years for electric bill savings to make up for the initial cost — about 5.7 years on average in Rhode Island. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.

It’s true that solar panels can increase the value of your home. But they can also complicate a sale. This is especially true if you lease your system, since the buyer may need to take over the contract.

If you think you’ll move in the next couple of years, you may want to consider a home improvement project with a better return on investment, like a kitchen or bathroom remodel.

6. How you pay

It’s great if you can pay for the whole thing upfront. You own the system from day one and you don’t have to pay interest on a loan. Of course, cash isn’t always an option. That’s when loans, leases and other agreements come into play.

• Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.

• Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.

• Power purchase agreements are similar to solar leases. Instead of buying the panels, you agree to buy the electricity they produce at a set rate. The solar company owns and maintains the system, and contracts typically last 10 to 25 years.

» SOLAR PANELS: Lease vs. buy?

7. The solar company you hire

We’ve heard from dozens of solar customers in Rhode Island. In the best-case scenario, it’s easy, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.

One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.

Use the NLR’s PVWatts Calculator to estimate how much electricity a solar panel system can produce over a year on your house.

Is my house a good candidate for solar panels?

Going solar ends up being worth it for many homeowners as long as their house is a good candidate to support the panel installation. Here’s what to think about before you commit:

• How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. Rhode Island averages 3 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.

• What is the size and angle of my roof? Rhode Island (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. North-facing roofs usually produce less solar power, so you may need a larger system to meet the same energy needs.

• What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels.

• How old are my appliances? It’s smart to get your electrical loads as low as possible before going solar. That way, you can get a smaller system, which will be cheaper overall. In other words, if you have older, inefficient appliances, consider upgrading them before sizing your solar system.

Pros and cons of solar panels in Rhode Island

It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, you’ll likely be paying less than you would for traditional utility bills.

Benefits of solar panels in Rhode Island

• Cheaper energy bills: Rhode Island electricity rates are relatively high, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and often lower). It also protects you from future energy cost increases.

• Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.

• Higher home resale value: Installing solar panels can increase a home’s value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.

• More energy independence: Some homeowners pair solar with battery storage for more energy independence and backup power during outages.

Drawbacks of solar panels in Rhode Island

• Solar equipment is expensive: Solar panel prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000. Grid-tied systems need battery storage or another backup setup to keep powering a home during an outage.

• Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.

• Could make your house harder to sell: Solar panels can make a home harder to sell if they’re leased or financed, since the buyer may have to take over the agreement. Some buyers may also worry about roof repairs, maintenance or whether the system will actually save them money.

• Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it’s removed or melts off.

» MORE: Solar energy pros and cons

Find solar companies in Rhode Island

A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for Rhode Island’s top solar companies to learn more.

Rhode Island solar FAQ

Bottom line: Is going solar in Rhode Island worth it for you?

With electricity costs continuing to rise, you might find solar power is financially worth it in the long run. However, the solar market can open the door to scams, which leaves many consumers wondering who to trust with such an expensive energy investment.

Another drawback is the high upfront cost of purchasing and installing the equipment. On the bright side, once that’s paid for, solar panels can significantly reduce or even eliminate your electricity bills. For many Rhode Islanders, the long-term savings outweigh the upfront costs over time.

Solar costs vs. savings: Rhode Island and nearby states