Does Rhode Island Have Community Solar Laws?

Rhode Island has one of the most comprehensive policy frameworks for community solar in the United States. The state formally legalized community solar development through the Renewable Energy Growth (REG) Program, first enacted in 2014 and later expanded under Title 39-26.4 of the Rhode Island General Laws. This legislation empowers residents, renters, businesses, and non-profits to subscribe to community solar projects and receive credits on their utility bills for energy generated by shared solar arrays.

The Rhode Island Public Utilities Commission (PUC) and the Office of Energy Resources (OER) administer the program, with day-to-day implementation by National Grid, the state’s primary investor-owned utility. These agencies collectively oversee project approvals, billing mechanisms, and consumer protections.

The REG Program was designed to encourage renewable-energy development by offering long-term tariffs for solar producers and simplified participation for subscribers. Under these rules, a community solar project (legally termed a “shared solar facility”) can generate up to 10 megawatts (MW) of electricity. Each project must have multiple subscribers, including at least one residential solar customer, who receive credit based on the proportion of energy their share produces.

Rhode Island’s community solar regulations also include explicit provisions for low- and moderate-income (LMI) participation. The state requires developers to reserve a portion of their capacity, typically at least 20%, for low-income subscribers, offering them reduced rates and simplified enrollment procedures. To support this requirement, the OER provides technical assistance and works with local non-profits to reach qualifying households.

Additionally, the state’s Distributed Generation Board reviews project proposals, ensures equitable geographic distribution of new installations, and coordinates with the PUC to monitor compliance. This oversight has helped create a stable and transparent market for community solar energy, benefitting both developers and subscribers.

What Is Community Solar?

Community solar allows multiple households, renters, or organizations to share the output of a single solar array instead of installing residential solar systems individually. The electricity generated by the shared installation flows into the local utility grid, and subscribers receive credits on their electric bills for their share of the energy produced.

This approach expands access to clean energy beyond property owners, making renewable electricity available to renters, condominium residents, small businesses, and non-profits.

Community solar farms are especially valuable for Rhode Island residents who:

• Rent their homes or live in apartment buildings
• Have shaded or aging roofs unsuitable for residential solar panels
• Prefer not to handle installation or maintenance
• Want to reduce electricity costs and support local renewable energy.

By subscribing to a community solar project, participants benefit from predictable energy costs, no-installation convenience, and shared environmental benefits without the need to own equipment or property.

While residential solar installations offer direct ownership and tax-credit eligibility, community solar projects have unique advantages:

• No installation required: Participants avoid the cost and hassle of equipment installation
• Low or no upfront cost: Most Rhode Island projects offer flexible monthly subscriptions
• Portability: Subscriptions can move with residents within the same utility territory
• Accessibility: Renters and homeowners alike can join
• Collective environmental impact: A single community solar project can offset thousands of tons of carbon emissions annually

This shared model aligns with Rhode Island’s commitment to equitable renewable-energy access and environmental responsibility.

Why Community Solar?

Rhode Island’s adoption of community solar was driven by its goal of transitioning to a carbon-free electric grid and making renewable energy affordable for everyone. The state’s small size, dense population, and limited rooftop space make shared solar installations especially practical.

The benefits of community solar extend beyond individual households to include environmental, financial, and social impacts. Every kilowatt-hour produced by community solar farms displaces fossil-fuel-generated electricity, reducing greenhouse-gas emissions and improving air quality.

Economically, Rhode Island residents pay some of the highest retail electricity rates in New England, around 25 to 27 cents per kilowatt-hour (kWh). Community solar provides immediate relief by offering energy credits that can lower bills by 10–20%, depending on the project and subscription size.

Subscribers typically see these savings automatically applied as credits to their monthly bills through National Grid’s virtual net metering system. Businesses and municipalities also benefit from predictable long-term electricity costs, helping them stabilize budgets and meet sustainability goals.

Socially, Rhode Island’s community solar legislation includes targeted measures to address energy inequity. The low-income carve-out in the REG Program ensures that disadvantaged households can access the same savings opportunities as higher-income residents. Developers are incentivized to design projects specifically for these communities, often with zero-upfront-cost enrollment and guaranteed discounts.

Through its combination of strong policy design and community focus, Rhode Island has built one of the most inclusive and cost-effective shared-solar markets in the country.

Are There Community Solar Projects in Rhode Island?

Rhode Island’s community solar market has expanded steadily since the REG Program launched. As of 2025, there are more than 60 operational or approved community solar farms across the state, totaling over 250 MW of installed capacity. These projects serve tens of thousands of residents, small businesses, and non-profits.

Active and Upcoming Projects

Some of the leading community solar projects in Rhode Island include:

• Kingstown Solar Farm (North Kingstown): A 5-MW installation serving both residential and commercial subscribers through the REG tariff program
• East Providence Community Solar Project: Operated by Nexamp, this project allows renters and homeowners to subscribe for up to 100% of their annual usage
• Coventry Solar Garden: Developed under the Shared Solar Facility model, this site provides low-income households with a guaranteed 20% savings rate
• Richmond Solar Project: A rural installation contributing to local grid stability and offering open subscriptions to nearby towns
• Portsmouth Solar Cooperative: A community-led project demonstrating how municipal partnerships can expand community solar energy participation

Many of these community solar farms were developed through partnerships between private companies and local governments, ensuring balanced participation and long-term project viability.

Any National Grid customer in Rhode Island can participate in a community solar project. Enrollment typically involves three simple steps:

• Select a project: Residents can view active projects listed by National Grid or developers like Nexamp and Clearway Community Solar
• Sign a subscription agreement: The contract specifies the subscriber’s share of energy and credit terms
• Receive bill credits: Monthly energy credits automatically appear on utility bills, reducing overall electricity costs

There is no requirement for home ownership or roof suitability, and most subscription contracts are flexible or transferable. Many programs allow cancellation without penalty after a short notice period.

How Does Community Solar Work in Rhode Island?

To understand how community solar works, it helps to look at the technical and financial process behind it. A community solar project is typically a ground-mounted array built on open land or industrial rooftops. The electricity generated by this array is fed directly into the local utility’s distribution grid.

As the solar farm produces power, National Grid measures the total output and allocates energy credits to each subscriber based on their subscription size. Those credits then appear on subscribers’ monthly bills, reducing the amount owed for electricity consumed from the grid.

This arrangement operates under Rhode Island’s Virtual Net Metering (VNM) policy, which ensures that subscribers receive full retail-rate credits for their share of solar production. Subscribers continue receiving power from the utility, but their total bill is reduced by the credits earned through their community solar participation.

Developers of community solar projects benefit from several incentives that ultimately make participation more affordable for customers:

• Federal Investment Tax Credit (ITC): Developers can claim a 30% tax credit on project costs, reducing expenses and lowering subscriber pricing
• Renewable Energy Growth Tariff: Offers predictable, long-term compensation for generated electricity
• Renewable Energy Certificates (RECs): Each megawatt-hour of solar generation earns RECs that can be sold to utilities, providing additional revenue to support low-cost subscriptions

These mechanisms keep Rhode Island’s community solar market financially stable and consumer-friendly while advancing the state’s renewable-energy targets.

How Much Does Community Solar Cost in Rhode Island?

The community solar cost in Rhode Island depends on project type, subscription plan, and energy consumption level. Most programs use a pay-as-you-go model, in which subscribers pay only for the electricity produced by their share at a rate below National Grid’s retail price.

As of 2025, Rhode Island’s average retail electricity rate is around $0.26 per kWh, while community solar subscribers typically pay between $0.21 and $0.23 per kWh. This translates to average savings of 10 – 20% per month for most participants.

Some programs offer fixed-discount or flat-rate options that guarantee consistent savings regardless of usage fluctuations. Below is an approximate breakdown of community solar cost and expected savings for different household types:

These prices include system operation, maintenance, and administrative services. Subscribers do not own the panels but receive full economic and environmental benefits proportional to their energy share.

For low-income customers, state-supported programs ensure additional discounts and zero-upfront-cost enrollment. Projects participating in the REG Program’s low-income carve-out must guarantee at least 20% annual savings for qualifying households.

Rhode Island’s community solar farms provide an equitable and sustainable way for residents to benefit from clean energy, save money, and support statewide renewable goals, all without installing solar panels on their own properties. Through clear policies and inclusive access, Rhode Island has become a model for how community solar energy can thrive in small, densely populated states.