The RI Renewable Energy Growth Program is a collaboration between the Rhode Island Distributed Energy Board and National Grid. This effort aims to encourage residents to use grid-connected renewable solar energy within the state. It is an incentive program that helps homeowners pay standard pricing to install residential and non-residential profitable solar arrays. The state has set a goal of adding 160 megawatts of renewable Rhode Island solar energy in the next five years.

In 2017, the small-scale REG (Renewable Energy Growth) residential program ran out of capacity due to its popularity. However, the program returned in 2018, and National Grid started accepting interconnection applications on April 1, 2018. State representatives are also currently working to continuously improve the Renewable Energy Growth Program for their residents.

How Does the Program Work?

The four steps are: apply, construct, product, and get paid. 

As the solar power systems create energy, National Grid will pay residents based on the total kilowatt hours (kWh) produced each month. Customers will get a bill credit and the system owner will receive the remaining PBI (Performance Based Incentive) in a cash payment based on Rhode Island energy consumption.

2018 Performance-Based Incentives

To encourage homeowners to install solar photovoltaic systems, the National Grid Renewable Growth Program offers performance-based incentives (PBI). There are 15 and 20-year contract incentive rates. The National Grid solar incentives RI are:

• $0.3225 per kilowatt-hour (15 year contract)
• $0.2855 per kilowatt-hour (20 year contract)

When compared to the average Rhode Island kWh rates (~$0.19/kWh), it's clear the National Grid program provides homeowners with an opportunity to reap the economic benefits of a solar system. 

Eligibility Requirements and Application 

There are several requirements that determine eligibility for the REG. The solar array system needs to be located in Rhode Island and operational within the next two years. This system also must be connected to National Grid’s system, and should be less than or equal to 25 kWh.

If a project is proposed, it cannot be broken down into two or more parts. National Grid will provide a Certificate of Eligibility for one project, but subsequent projects may be subject to different regulations.

Individuals who apply must control the the project site and residential systems need to be located at a home. The National Grid will ask for W-9s from all participants since PBIs and bill credits may count as taxable income. National Grid will also give 1099s to non-exempt payment recipients.

For those who qualify, they can apply to REG with an National Grid interconnection RI application. To be eligible for the 2018 program capacity, homeowners need to submit applications to National Grid by March 31, 2019. Your local solar installer can also help you to pull together the necessary information needed to submit the application to National Grid. 

If you think you may be a good candidate for this program, you can contact us to schedule a consultation online. You can also call (401) 421-2200 if you need assistance with the interconnection application or would like to discuss the installation process with us.

Bonus: How to Calculate Your Monthly PBI Benefit

If homeowners want to calculate their monthly PBI benefit, they need to multiply the PBI tier rate by how much solar energy (kWh) was produced in that month. Homeowners receive the total PBI value in a bill credit and cash payment.

To calculate the bill credit, multiply the solar energy in a specific month with the volume-based rates charged on the monthly utility bill. The difference between the PBI value and bill credit will equal the cash payment that National Grid provides.

Examples to further clarify this are: