REF vs REG: How to Choose the Right Solar Program in Rhode Island

One of the most important decisions Rhode Island homeowners make when going solar is whether to apply for the REF Grant or enroll in the REG Program. These are the two main state incentive paths for residential solar, and they cannot be combined.

Understanding how to choose the right solar program in Rhode Island before your installation begins can have a meaningful impact on your project's financial outcome.

Both programs are administered through the Rhode Island Office of Energy Resources and Rhode Island Energy. Both can meaningfully improve the economics of going solar. But they work in fundamentally different ways, serve different financial goals, and come with different eligibility requirements and timing considerations.

This guide breaks down each program so you can evaluate which path makes the most sense for your home, energy usage, and long-term goals.

What Is the Rhode Island REF Grant?

The Rhode Island Renewable Energy Fund (REF) Grant is an upfront cash incentive paid to homeowners after their solar system is installed and interconnected. It is based on system size and has a per-watt rate. It can be paired with net metering and certain battery incentive programs, making it one of the most flexible options in Rhode Island's 2026 solar incentive.

How the REF Grant Works

The REF Grant provides upfront funding based on the amount of solar you install. Current incentive levels are approximately $1.65 per watt, with a maximum grant amount of $14,500 per project. Homeowners who install battery storage may also qualify for an additional $5,000 incentive.

Grant funds are issued after the system has been installed and interconnected. Because approval must be obtained before installation begins, homeowners should work with their installer to complete the application process before construction starts.

REF Grant Requirements

• Pre-approval before installation: The application must be submitted and approved before installation begins. Installing the system before receiving official approval may result in the loss of grant eligibility.

• Minimum solar exposure threshold: The system must meet a minimum annual production standard based on site conditions. Shading, orientation, and roof orientation all factor in.

• Licensed installer: The installation must be performed by a licensed Rhode Island solar contractor.

• Interconnection with Rhode Island Energy: The system must be interconnected and activated before grant funds are issued.

REF Grant Benefits

• Immediate cost reduction: The upfront grant reduces your net system cost from day one, shortening your payback period.

• Flexibility: The REF Grant can be paired with net metering, which allows you to earn bill credits for excess production, and with the Energy Storage Rebate (ESR) program if you add battery storage.

• Battery adder: The additional $5,000 available for battery-paired systems makes the REF path particularly attractive for homeowners considering energy storage alongside solar.

• No long-term lock-in: Unlike the REG program, REF does not require a 15 or 20-year contract with Rhode Island Energy. You retain more flexibility in how you manage your system and sell your home.

For many residential projects in Rhode Island, the REF path paired with net metering offers immediate financial benefits and greater flexibility. That said, the right choice depends on your specific situation, which is why it is worth understanding the REG program in equal depth.

What Is the Rhode Island Renewable Energy Growth Program?

The Rhode Island Renewable Energy Growth Program (REG) pays homeowners a fixed rate per kilowatt-hour for the electricity their solar system produces over a 15 or 20-year contract term. Unlike the REF Grant, which delivers a one-time upfront payment, the Rhode Island Renewable Energy Growth Program delivers value gradually through ongoing production-based payments.

How the REG Program Works

Signing up for REG allows you to enter into a long-term contract with Rhode Island Energy, where they will purchase your electricity at a fixed rate per kWh your system generates. Current rates are approximately $0.3155 per kWh for eligible 15-year contracts and $0.2865 per kWh for eligible 20-year contracts. The applicable rate is determined at the time of application and is subject to change.

Your system’s production is metered separately, and payments are made on an ongoing basis. The longer the contract term, the lower the per-kWh rate, but you receive payments for a longer period. The right term length depends on your production projections and how long you expect to own the home.

REG Program Requirements

• System sizing requirements: REG projects must be sized appropriately for your home’s energy consumption. 

• Enrollment before interconnection: REG enrollment must occur before the system is interconnected with Rhode Island Energy. Timing is coordinated through your installer.

• Long-term contract commitment: Enrolling in REG means committing to a 15 or 20-year agreement. Homeowners considering REG should understand the requirements associated with transferring or terminating the agreement if the property is sold before the contract ends.

• Cannot be combined with REF or net metering: REG is a standalone program. Homeowners who enroll cannot also receive the REF Grant or participate in standard net metering.

REG Program Benefits

• Predictable long-term income: A fixed rate per kWh over 15 or 20 years provides income that is independent of electricity market fluctuations. For some homeowners, this predictability is the primary appeal.

• No reliance on net metering rates: Because REG pays for all production at a fixed rate, it is not affected by changes to net metering policy or utility rate structures during the contract period.

• Stable production-based value: Because payments are tied to your system's energy production, REG can provide meaningful long-term value for homeowners whose goals align with the program.

Choosing Between Rhode Island REF vs REG Solar Programs

Choose REF if:

• You want to reduce your upfront system cost and start with a lower net investment.

• You are planning to add battery storage, since the REF grant offers an additional $5,000 for battery-paired systems.

• You want the flexibility of net metering without a long-term contract commitment.

• You are unsure how long you will remain in the home and prefer not to enter into a 15- or 20-year agreement.

• Your system qualifies for the Energy Storage Rebate (ESR) program, which can be layered with REF and net metering for additional value.

Choose REG if:

• You value long-term, predictable payments from your solar system.

• Your intention to keep the home for 15+ years means you require solar payments with enduring benefits.

• You are comfortable with a long-term contract structure and have confirmed the current REG rate makes sense for your production projections.

• You are not planning to add battery storage, since REG does not offer a battery adder.

• Rate volatility in net metering is a concern, and you prefer to lock in a fixed production rate.

It is worth noting that incentive programs, funding levels, and rate structures in Rhode Island are subject to change. The REG rate, in particular, has been subject to proposed revisions, and the rate quoted to you at the time of enrollment is the one that applies to your contract. Your installer should be up to date on available programs and help you evaluate both options based on your specific system design and energy profile.

Other Solar Incentive Programs to Know in Rhode Island

The REF and REG programs are the two primary incentive paths for residential solar, but they are not the only programs available. Several additional incentives apply depending on your system design and situation.

• Net Metering: Net metering is available to non-REG solar customers in Rhode Island. If your system generates more electricity than your home uses, the surplus is applied to your utility bill at the retail rate. These bill credits help offset your monthly Rhode Island Energy bill.

• Energy Storage Rebate (ESR) Program: For homeowners adding battery storage, Rhode Island has introduced upfront rebates of approximately $250 per kWh of capacity, up to $8,000 for most households and up to $16,000 for income-eligible homeowners. This program is available on a first-come, first-served basis and can be combined with the REF Grant path. Learn more about home battery backup.

• Connected Solutions: Rhode Island Energy’s Connected Solutions program allows battery owners to earn seasonal payments by allowing their battery to discharge during high-demand grid events. Homeowners typically earn seasonal incentive payments based on how their battery performs during utility peak demand events. This program can be layered with the REF path and the ESR rebate for homeowners adding storage.

For a complete overview of all Rhode Island solar incentives in 2026, including program details, current figures, and how they interact, see our full guide to Rhode Island solar incentives.

Not Sure Which Program Is Right for Your Home?

The REF vs REG decision is an important choice in the solar process, and the right answer depends on details specific to your home, your energy usage, and your financial goals. Program rates and funding levels also change, making it important to evaluate your options using current information.

At Newport Solar, we discuss both options with Rhode Island homeowners, verify the availability of current programs and engineer systems to fit the incentive path that makes the most sense for each project. 

If you are exploring solar in Rhode Island and want a clear, honest conversation about which program fits your situation, we are happy to help.

Frequently Asked Questions

Can I choose both the REF Grant and the REG program for my Rhode Island solar installation?

No. The REF Grant and the REG program cannot be used together. Customers in Rhode Island must decide which path to take before installation. You can combine the REF Grant with net metering, the Energy Storage Rebate, and Connected Solutions. Your installer can walk you through which option will generate the most value based on your system and energy usage.

Does the REF Grant or the REG program work better with battery storage in Rhode Island?

The REF Grant path is generally more compatible with battery storage in Rhode Island. The REF program includes an additional $5,000 grant for systems that include battery storage, and the REF path can be layered with the Energy Storage Rebate program and the Connected Solutions demand response payments. The REG program does not offer a battery adder. Homeowners considering battery storage should discuss available incentive options with their installer when comparing the REF and REG paths.

What happens to the REG program if I sell my Rhode Island home before the contract ends?

A REG contract is a long-term agreement with Rhode Island Energy, typically 15 or 20 years. If you sell your home during the contract period, the agreement may need to be transferred to the new owner or otherwise addressed, depending on the circumstances. Homeowners considering REG should discuss these requirements with their installer before enrolling.