Rhode Island Market Overview

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Updated February 2025

*rates change over time, reference market resources for up to date info

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Solar in Rhode Island

Fast Facts

• 1,111 MW total solar installed (enough to power 206,000 homes)
• 13,000+ completed installs
• Established market, high TPO market, ~40 AHJs
• 12.6% of state's electricity from solar

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Data as of January, 2025 source: SEIA

Source: SEIA

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Rhode Island Market

One major Investor Owned Utility (IOU)

• Rhode Island Energy
• Bought by PPL in May 2022
• Now called Rhode Island Energy
• Two small Utility Districts
• Not available for sales in Alchemy
• Block Island Power (serves a single island)
• Pascoag Utility District (NW corner of RI)

Palmetto Coverage

• National Grid RI, now Rhode Island Energy
• Serviceable market of ~400,000 resi customers
• Capture 98% of residential customers in RI
• Population centers in/ around Providence, along coast
• LightReach PPA is available

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Electric Rates

• 4th highest avg elec. rates (2021)
• Deregulated, competitive supply market - Supply contract breakage not required

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Policy Landscape

• First State to commit to 100% RE by 2033 (Passed July ‘22)
• Limited policy risk, largely supportive legislature & Commission

Source: https://www.brown.edu/academics/spatial-structures-in-social-sciences/sites/s4/files/RI_PopDensity.pdf

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Incentive Overview

Solar Property Tax Exemption - R.I. Statutes §44-3-3 (a) (48-49)

• Rhode Island exempts any increase to the value of homes from solar on property taxes
• Can be interpreted differently by jurisdiction. Homeowner should check with their local assessor's office

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Solar Sales Tax Exemption - R.I.G.L § 44-18-30

• 100% sales tax exemption for the purchase of rooftop solar installed on primary residence in the commonwealth
• Current sales tax: 7.0%

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RE Growth/ Feed-In-Tariff (FIT)

NOT offered by Palmetto or LightReach

• All production sent to grid at fixed price/ kWh
• Production rate locked in for 15 years
• Annual capacity and FIT rate reset annually for new participants
• Not compatible with net metering
• Additional info here

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RE Fund - NOT offered by Palmetto or LightReach

• Upfront rebate Program offered 2-4 times per year
• Rebates are first come, typically subscribed within 10-15 mins
• Additional info here

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RI Solar Incentives

• Solar Property Tax Exemption
• Solar Sales Tax Exemption
• RE Growth/ FIT (not supported by Palmetto)
• RE Fund (not supported by Palmetto)
• Federal Investment Tax Credit (ITC)

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Feed In Tariff - not offered in Alchemy or LightReach

Alternative Names

• Buy All Sell All or Value of Solar Tariff

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Definition

• All PV Production is credited at a specified rate
• All consumption (whether from PV or the grid) is charged the retail rate
• A utility owned PV production meter required to measure
• Uncommon policy in the U.S.

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Difference from NEM

• Self-consumption does not avoid purchasing at the retail rate
• No Netting
• Battery storage adds no savings value to a FIT model

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Examples

• Large commercial solar farms are often FIT contracts with utilities
• Austin Energy - All production is valued 9.7 cents/kWh
• All consumption is charged the retail rate of ~10 cents depending on tier
• National Grid, RI - offers 1:1 NEM (~20 cent retail rate) or a FIT (~30 cent/kWh for 15 years)

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Taxes

• FIT programs may apply the credits to electric bills or may be paid as a check
• Checks are typically taxable income when over $600 for the year

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Rhode Island Electric Rates

*cannot be offset by excess NEM credits

**price for customer supplied by Rhode Island Energy. Supply rate typically decreases each 4/1 and increases each 10/1

Historical Supply Rates

Delivery Rates

EmpowerRI helps customers to select an electricity supplier

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Net Metering & System Sizing

NEM Structure

• 1-to-1 Net Metering structure available to residential customers up to 36.25 kW DC
• Systems cannot exceed 100% of homeowner’s average use over past 36 months
• Any net excess credits on a monthly basis roll over to following billing period
• Not credited charges on monthly excess (~3.4/kWh):
• Energy Efficiency
• Renewable Energy
• Credits rollover indefinitely
• Customers may request a cash out at the lower Last Resort Service supply rate

System Sizing

• Max size: 36 kW DC
• Offset restriction: 100% of previous 36 month avg usage
• Customers with less than 36 months of usage history we can prorate
• Customers with less than 12 month of usage history or new construction require a load calc sheet to be submitted

• System Size Considerations
• Lower irradiance due to northern lat (southern roof exposure ideal)
• Electric- only homes less common, many leverage gas for heating purposes
• Generally, less expansive roof planes

Supplier

Fixed Charges

Changes in October & April

No credits

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• Rhode Island Energy website (formerly National Grid RI)
• Rhode Island Energy NEM Credit Historical Values
• Current Supply Rates (LRS)

Additional Resources

Appendix extra slides

“Solar Buyback Types” aka How is solar generation valued?

These are general terms used in Palmetto’s market resources to summarize a utility's net metering policy. As distributed solar becomes more common, utilities are shifting from true 1-to-1 net metering, and net metering is now a general term. The Solar Buyback Types below specify the detailed credit structure.

• 1:1 Net Metering – Production and consumption are netted 1-to-1 at the retail rate. Excess solar production rolls over month to month, as a kWh or monetary credit, for 12 months until an annual true-up where remaining credits are either cashed out at a low avoided cost rate, expired, or carried forward to the next year. Examples: PA, NJ, MD, IL

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• Net Billing (Export Credit) - All exports to the grid are credited a specified rate that is less than the retail rate (less than the rate the utility charges you). All imports from the grid are charged the retail rate. Exports are usually measured instantaneously but could be every 15 minutes or hourly depending on the utility. Solar production self-consumed immediately in the home or stored in a battery avoids purchasing at the retail rate. ‘Inflow/outflow tariff’ is another term for this structure. Examples: Arizona, Georgia

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• Monthly Net Metering – Each month, production exported to the utility grid is netted on a 1:1 basis against total monthly consumption. Any net excess production above what was consumed that month will carry forward to the next month at a credit value less than the retail rate. In other words, all production used in a monthly billing cycle avoids purchasing at the retail rate, but net excess rolls over to the next month at less than retail. Typically, PV systems with 100% usage offsets create excess monthly credits in spring+fall months, but summer+winter production is often utilized. Examples: El Paso NM, Xcel NM, Nevada

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• Buy All, Sell All - All production generated, even if consumed immediately in the home, is credited a specified rate sometimes called the Value of Solar. All consumption whether from the grid or the PV system is charged the retail rate. Utilities must have solar production meters to measure this type. It is very uncommon in the U.S., but often called a ‘Feed-In-Tariff’ in other countries. Example: Austin Energy