Adding solar panels and switching rate plans can lower your National Grid Rhode Island electric bill
Updated: October 22, 2020Installing solar panels can help reduce your National RI bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
Are solar panels worth it for National Grid Rhode Island customers?
Absolutely. With National Grid’s Renewable Energy Growth program, available solar grants, and sales and property tax exemptions, home solar panels make a lot of sense! National Grid’s net metering rate also allows you to get credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate as retail rates, unless you produce more than you consume over the course of a month.
Does National Grid Rhode Island offer net metering credits for exported solar power?
No, National Grid Rhode Island does not offer full 1 for 1 net metering. This means that when you export surplus power from your solar panels, you will be paid less by the utility than what you are charged to buy the equivalent amount of power from the grid.
The amount you are paid by the utility is known as a feed-in tariff. In the case of National Grid Rhode Island, this feed-in rate is $0.15 per kWh.
You'll be credited at retail rates up to when generation outstrips usage, then you'll receive a lower "avoided cost rate", which is calculated monthly and credited to your next bill.
What incentives, tax credits, and rebates are available to National RI customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a National RI customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$7,121 |
|
Property Tax Exemption
(State)
100% of assessed value of solar system is exempt from homeowner's property taxes |
Varies |
|
Sales and Use Tax Exemption
(State)
State law prevents the addition of sales and use tax on solar equipment. |
Varies |
|
Net Metering
(State)
Excess generation is required to be credited at avoided cost rate. Utilities can purchase the credits or credit on the bill. |
Varies |
|
Rhode Island Renewable Energy Fund (RIREF) Small Scale Solar Grants
(State)
$.65/W up to 7.69-kW or $5,000 for 2022. You may not claim both the Small Scale grant and the RE Growth Program. |
Varies |
|
Renewable Energy Fund (REF) Small-Scale Program Energy Storage Adder
(State)
Upfront rebate awarded to qualifying systems paired with energy storage. |
Varies |
| TOTAL | -$7,121 |
*Based on 10.18 kW system, average installation cost $23,735
How much does installing solar panels save the average National Grid Rhode Island residential customer?
If you input the details for a National RI customer with a power bill of $200 per month into the best online solar panels calculator, it tells you that you need a 10.18 kW solar system that will produce 14,226 kWh per year and that this system will return the owner a $52,454 profit after repaying the cost of the system.
The solar savings possible for you as a National RI customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical National RI customer with a $200 per month electric bill prior to solar and who installs a 10.18 kW solar system.
How much do residential solar panels cost for National RI customers?
Solar prices near you
Net profit (savings less system cost)
$36,041-$44,050
Payback period
6.6-8.1 years
Recommended size for the selected utility bill
8.2kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 10.18 kW |
|
Annual Power Generation 14,226 kWh |
|
Pay-back time (assuming Cash purchase) 6.3 Years |
|
Internal Rate of Return (IRR) on Investment 13.4% |
|
Gross cost $23,735 |
|
Total Upfront Incentives and Rebates -$11,668 |
|
Net Cost of System after rebates and incentives $12,069 |
|
Total Cost of Utility Power Avoided over 25 years $64,523 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of National Grid Rhode Island customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a National Grid Rhode Island customer installing a 10.18 kW solar system on their property:
A solar system generating 14,226 kWh per year will save you money AND make the world a nicer place
Saves you
$2,098
on average per year
Reduces CO2 emissions
7.04
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,578 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for National Grid Rhode Island customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.33 per watt or $12,069 for a standard 10.18 kW solar system after the customer claims the 30% federal solar tax credit.