Cost of solar panels in Rhode Island (2024)

How much do solar panels cost in Rhode Island?

With professional installation, a typical 9-kilowatt residential solar panel system in Rhode Island costs $29,520. That price drops to $20,664 after the full federal solar investment tax credit (ITC).

This doesn’t include the cost of a solar storage battery, which sometimes costs as much as the panels. Solar batteries are a must if you want real energy independence, especially if you go off-grid. Permitting, utility fees and maintenance also add to the cost of going solar.

The size of your solar panel system is another big factor in your overall solar costs. The average size of solar systems in Rhode Island is 8.86 kW (kilowatts). Depending on your household energy usage, you might need a smaller or larger system.

Average solar panel installation cost by system size in Rhode Island

Are solar panels worth it in Rhode Island?

Overall, going solar in Rhode Island is worth it for the savings on utility bills. The state has high electricity costs, so you can save a lot over time by installing solar panels. On average, Rhode Islanders with solar panels avoid $60,631 in total utility costs over 25 years.

Many residents go solar to lower their electric bills and help the environment at the same time. “We tried to be as earth-friendly as we can be, and we're just so sick of the ridiculous prices that National Grid charges,” Nancy in Jamestown told us. Another resident, Valerie in Newport, said she loves getting $0 power bills.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

However, not everyone can completely eliminate their power bills. Your energy needs are a big factor in whether solar panels are a worthwhile investment. For instance, Leslie in Tiverton went solar to reduce their electricity costs. After the installation team arrived, however, Leslie realized they needed a second battery, and their septic system would not be on a generator backup.

We suggest using the National Renewable Energy Laboratory's PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is a free solar savings estimator powered by Google Earth imagery.

As long as your house is a good candidate for solar, it’s worth considering if you like the idea of lower monthly utility bills and more energy independence. If you also have an electric vehicle, solar panels will save you even more.

» STILL NOT SURE? Solar energy pros and cons

Solar panel installation cost factors in Rhode Island

The equipment — solar panels, inverters, mounting hardware and other electrical accessories — is typically the largest portion of your overall total costs (approximately 25% to 50%). Labor, which includes planning, preparing and connecting your system to the grid, accounts for 10% to 30%. Local permits and fees are a small part of your overall costs.

» BEST STATES FOR SOLAR: Rhode Island ranked 11th in 2024

Solar panels

Most of your solar equipment costs come down to how much you pay for solar panels. In general, monocrystalline panels are considered the best bang for your buck. Cheaper solar panels are typically polycrystalline. The difference comes down to efficiency and materials: Monocrystalline panels are made from pure, single silicon crystals; various silicon fragments melted together are used to make polycrystalline panels.

Additional solar equipment costs

Solar arrays also contain mounting equipment, wiring and other devices, such as inverters, batteries or a monitoring system.

• Solar batteries: A battery stores energy for later use. It’s a must if you want real energy independence, and they sometimes cost as much as the panels. Prices often depend on the battery’s storage capacity, life span, brand and other factors. Expect to pay between $7,000 and $18,000, though some cost $30,000 or more.
• Solar inverter: Inverters convert the electricity generated by your solar panels from direct current (DC) to alternating current (AC). Inverter costs usually range from $1,000 to $3,000.
• Monitoring system: Some companies include a solar monitoring system to track how much energy your system produces and if there are any problems. If not, you can buy a standalone system for $80 to $400.

Condition of your roof

Quality solar panels should last 25 to 30 years, and your roof needs to last just as long. If you want to ensure a seamless and cost-effective solar journey, your roof must match the system's longevity. Get your roof inspected, fixed or replaced before you go solar.

ConsumerAffairs often hears from disgruntled solar customers who felt blindsided by expensive roof repairs needed after their solar panel installation was complete. This is a frustrating and expensive process you should avoid if you can.

Labor costs

Solar equipment costs are going down, but labor costs are higher than ever in some areas. Installing solar panels yourself might initially seem cheaper because you'll save on labor costs. However, it's crucial to consider several factors for safety before going the do-it-yourself route. If not installed correctly, solar panels pose safety risks, causing roof leaks and other problems.

Other cost factors

Permits and interconnection fees, though relatively cheap, are worth mentioning. Rhode Island has streamlined the solar permitting process with a single, straightforward permit that applies to all solar panel projects across the state.

Solar panels require minimal maintenance, but potential repair or replacement of components, periodic cleaning and system monitoring can add to the lifetime cost.

» GUIDE: Solar panel installation

How to save money on solar panels in Rhode Island

There’s no way around it — solar panel installations are expensive. Here are some tips to maximize your savings on solar panels in Rhode Island:

• Compare quotes: Get quotes from at least three or four different solar companies in Rhode Island. This lets you compare different proposed equipment, pricing, financing terms and estimated energy production to find the best overall value. Don't just go with the cheapest option without vetting quality and services.
• Lower your electrical load: Before going solar, it’s smart to upgrade any old appliances. For example, replacing an old refrigerator with a more eco-friendly one reduces your electric load, which also helps lower your utility bill. If you use less electricity, you need fewer solar panels, making the whole system cheaper.
• Use incentives: CommerceRI’s Renewable Energy Fund (REF) offers a selection of grants to assist residents with the cost of their renewable energy systems. Some solar panel manufacturers offer rebates on their products. While these may not be specific to Rhode Island, they can still provide additional savings.

» MORE: Why are solar panels so expensive?

Solar incentives, tax credits and rebates in Rhode Island

The federal solar investment tax credit (ITC) is the best financial incentive for going solar in Rhode Island. The ITC credits 30% of the system’s total cost — including equipment, labor and permits — toward what you owe on federal income taxes.

The ITC drops to 26% in 2033 and 22% in 2034.

For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the credit reduces your debt to $12,000. The ITC only offsets your tax liability; you can't take advantage of it if you don’t owe taxes in the first place.

Additional solar incentives in Rhode Island include property and sales tax exemptions on solar equipment. Plus, a statewide program offers a performance-based incentive to homeowners and small business owners with properties with solar energy systems up to 25 kW.

» GREENEST STATES: Rhode Island ranked 16th in 2024

How can I pay for solar panels in Rhode Island?

Affordable financing makes the upfront costs of solar more manageable. In Rhode Island, you can also potentially lease a system or enter a power purchase agreement with lower upfront costs. However, you won’t be eligible for the federal tax credit if you do.

• Loan: A solar loan works like any other type of home improvement loan — there’s an application and approval process, and you pay it back over time (with interest) each month. In an ideal financing scenario, your system generates enough extra power to pay off the loan. Solar loan terms typically last eight to 20 years.
• Lease: Leasing solar panels is a great way to set up a system without the high upfront costs. A potential downside is that you are not eligible for the same tax incentives.
• Home equity: Using a home equity line of credit or loan to finance a solar installation can be a financially beneficial option — home equity interest rates are relatively low, and homeowners can still take advantage of the federal solar investment tax credit.

» SOLAR PANELS: Lease vs. buy

Compare solar installation companies in Rhode Island

We compared ratings and reviews, equipment options, warranties, availability and other factors to pick the top solar companies in Rhode Island.

Bottom line

Residential solar panel system costs typically fall between $10,000 and $30,000 or higher, depending on factors like the system's size, local labor rates and available incentives. Rhode Island homeowners with solar panels can typically save more than that in total avoided energy costs over the lifetime of a system.

The ConsumerAffairs Research Team has conducted extensive research to compare the costs of going solar in Rhode Island and other states.

Solar costs vs. savings: Rhode Island and nearby states