Are Solar Panels Worth It in Rhode Island?
Last updated July 1, 2026 · based on Rhode Island energy prices
In Rhode Island, where residential electricity averages about 28¢/kWh and rooftop solar yields roughly 1,300 kWh per kW per year, solar is a reasonable long-term investment, paying back in about 12.5 years.
Rhode Island solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 9,100 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,684 |
| Payback period | 12.5 years |
| 25-year net savings | +$18,656 |
Figures use Rhode Island average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for Rhode Island homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in Rhode Island carries the full upfront cost unless a state or utility incentive applies. Because Rhode Island electricity costs well above the national average, the payback case is more marginal — strongest for high electricity users, south-facing roofs, and homeowners who plan to stay long term.
Frequently asked questions
Are solar panels worth it in Rhode Island in 2026?
At Rhode Island's electricity price of 28¢/kWh, a typical 7 kW system saves about $1,684 per year and pays for itself in roughly 12.5 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in Rhode Island?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in Rhode Island?
About 1,300 kWh per year per kW installed in Rhode Island, so a 7 kW system produces roughly 9,100 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on Rhode Island average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.