Net Metering in Rhode Island

As a Rhode Island homeowner who puts solar panels on their roof, you want to make sure you get credit for all of the power your system generates.

Fortunately, Rhode Island has a net metering policy in place that credits you for the extra electricity your system produces, which is then allowed to be used as credits when your system doesn’t generate enough power. You can learn more about National Grid’s net metering program here.

National Grid’s Rates & Prices for Net Metering

National Grid customers within Rhode Island who choose to get solar panels installed are eligible to receive net metering credits when utilizing a solar panel system. Like most net metering programs, National Grid’s program allows customers to balance out the amount of energy consumed with the amount that their solar system generates. The residential rate varies and can be found on the National Grid’s website.

Why Net Metering Exists for Solar (and Wind) Systems

Solar panels (and their breezy cousins, wind turbines) don’t run on a strict 9-to-5 schedule—they only generate electricity when nature cooperates. That means you might be making more power than you need on sunny afternoons, but not quite enough on stormy nights or when your Netflix marathon outpaces the sun.

That’s where net metering comes in. Instead of wasting any excess energy your system produces when you’re not using it, net metering lets you send that extra power back out onto the grid. Later, when your panels aren’t generating enough to cover your household’s demand (say, after the sun goes down), you can draw electricity from the grid and use the credits you’ve built up—balancing your energy use over the course of your monthly bill.

This setup ensures you always have access to electricity, lets you maximize the value of your solar system by “storing” energy on the grid, and makes the math on your utility bill a whole lot friendlier.

Is There a Cap on Net Metering?

There is currently no net metering cap for National Grid’s Rhode Island customers.

What Happens with my Bill Credits?

“Net Metering Credits” which are applicable when a solar customer generates more electricity than is consumed, can be calculated by multiplying the excess kilowatt-hours (kWh) by the current rate. The credits are a dollar value applied to a customer’s account during each billing period and can be used towards other Nation Grid billing accounts.

Any credits that are not used will accrue on the customer’s account and customers should not expect to receive a check or payment for these credits as they do not expire.

What Electric Bill Charges Count Toward Net Metering Credits?

When calculating your net metering credits in Rhode Island, it’s helpful to know exactly which parts of your electric bill are included. In essence, net metering credits are based on the electricity your solar panels send back to the grid, and these credits are determined by several charge components from your bill.

Here’s what goes into the credit calculation:

• Standard Offer Service Charge: This is the main charge for your electricity usage.
• Distribution Charge: Covers the cost to deliver electricity from the grid to your home.
• Transmission Charge: This reflects the cost to move electricity across high-voltage lines.
• Transition Charge: Related to other system and regulatory costs.

All these charges are added together and multiplied by the number of excess kilowatt-hours (kWh) you’ve generated and sent to the grid for that billing period.

It’s important to note that, even if your solar system produces more than you use and you’re a “net exporter” for the month, you’re still responsible for basic customer charges and any demand-based fees listed on your bill.

For current rates and details for different rate classes, you can review the latest information directly on National Grid’s website by checking the rates for:

• Basic Residential (A-16)
• Low Income (A-60)
• Small Commercial (C-06)
• General Commercial (G-02)
• 200kW Demand (G-32)

This approach ensures you receive credit for each part of your electric bill that your solar production offsets—making every sunny day count that much more.

What Charges Am I Still Responsible For as a Net Metering Customer?

Even if your solar panels generate more electricity than you use in a given month, you’ll still see a few items on your bill that net metering credits can’t cover. These include the standard customer charge (a fixed monthly fee just for having electric service) and, if it applies to your rate plan, any demand charges (based on the highest amount of power you draw at once).

In short: no matter how much power your solar system sends back to the grid, those regular service fees—like the customer charge and demand charges—remain your responsibility each billing cycle.

What are the Size Limitations for Net Metering Systems?

To be eligible for net metering in Rhode Island, your solar system has to meet a couple of specific criteria:

• The system should be sized so it doesn’t generate more electricity than your property typically needs. In most cases, it can’t be larger than your average on-site electricity usage over the past three years.
• There’s also a maximum limit on system size, set at a total of 10 megawatts (MW) of AC generating capacity per account.

For most homeowners, this means your solar system will comfortably cover your household’s energy needs without going overboard on production. Commercial properties or larger installations just need to make sure they fall within these same guidelines.

What Types of Systems Qualify for Net Metering?

Not every energy system qualifies for Rhode Island’s net metering program, but a wide range of renewable options are eligible. Here’s a quick rundown of what’s typically allowed under state guidelines:

• Solar power: Both traditional solar panels (PV) and concentrated solar power systems
• Wind turbines: Small and large-scale options that generate electricity from Rhode Island’s breezes
• Geothermal and ocean thermal: Systems that harness the energy stored in the earth or the ocean
• Small hydropower: Facilities that make use of flowing water on a limited scale
• Biomass and waste-to-energy: As long as they meet certain state requirements for renewable resources
• Fuel cells: If running on eligible renewable energy sources

Just keep in mind, your system generally can’t be bigger than your property’s typical annual usage or exceed 10 megawatts (AC) in total capacity. That way, your set-up matches your actual needs without oversizing just for extra credits.

Finding Net Metering & Interconnection Resources

If you’re looking for the official paperwork or need step-by-step guides on connecting your solar panels to the grid, the process is straightforward. All the essential documents and resources—including applications, requirements, and interconnection guidelines—are available online through National Grid’s Interconnection Documents page. This is your go-to spot for current forms, technical requirements, and helpful references to keep your project on track.

Whether you’re just getting started or making final preparations for your rooftop solar project, be sure to review these resources carefully. The site is updated regularly with the latest policies and forms, so you’ll always have access to what you need as a Rhode Island homeowner interested in net metering.

How to Request Community Net Metering Applications

Interested in community net metering? Applicants looking to get started with a community net metering project can request more information or obtain an application directly from their local utility. When reaching out, be sure to reference your Distributed Generation (DG) work request number to help speed up the process.

For the most accurate and up-to-date information, we recommend contacting your utility provider’s distributed generation team. Additionally, many solar installation companies—like Rooftop Power—can assist you with navigating the application process and answer any questions you may have about qualification and next steps.

Which Company Should you Choose?

Are There Other Solar Incentives?

If you’re looking to learn about all of the different solar incentives and rebates Rooftop Power can offer for going solar, please check out our blog post here for more details.

National Grid offers an alternative program within Rhode Island for solar known as the “Rhode Island Renewable Energy (RE) Growth Program. This program allows customers with solar panel systems to sell their output at a fixed price under long-term tariffs. You can read about the Rhode Island Renewable Energy (RE) Growth Program in a separate blog post here.