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Commercial Solar EPC in Rhode Island

Ferrius Energy designs, builds, and maintains commercial solar and battery storage for Rhode Island businesses, nonprofits, and public entities served by Rhode Island Energy. Rhode Island owners choose between two main paths: net metering (including virtual net metering for eligible public and commercial customers), or selling output under a fixed-price tariff through the Renewable Energy Growth (REG) program, with Commerce RI's Renewable Energy Fund grants and the Section 48E federal credit layered on top.

The choice between those paths drives system size, property tax treatment, and financing, so we settle it in feasibility before any design money is spent. We work from our Saugus, Massachusetts headquarters, about an hour from Providence.

Last reviewed: September 2026. REG ceiling prices and allocations change every program year; confirm current terms with Rhode Island Energy, the RI Office of Energy Resources, and Commerce RI before committing.

Rhode Island Energy and the two compensation paths

Rhode Island Energy (formerly National Grid's Rhode Island business) is the distribution utility for nearly the entire state. It administers both the net metering tariff and the REG program, and it handles interconnection. A few small municipal utility districts run their own rules; if your site is served by one of them, the analysis below changes.

Path 1: Net metering and virtual net metering

Under R.I. Gen. Laws chapter 39-26.4, a net-metered system must be sized to on-site load, based on a three-year average of consumption. Customers receive bill credits for generation up to 125% of consumption in a billing period. Generation between 100% and 125% of consumption is credited at the utility's avoided cost rate, defined as the last-resort service charge for the rate class.

Two 2023 changes matter for new projects. Projects initiated after April 15, 2023 receive a 20% reduction in renewable net-metering credits, subject to a 275 MW capacity limit, and new systems must be sited outside core forest unless on a preferred site such as a brownfield.

Virtual net metering lets eligible customers (public entities, educational institutions, hospitals, municipalities, and commercial and industrial customers) host a system at one site and apply credits to other accounts, up to 10 MW per project site. For a school district, a hospital system, or a manufacturer with several meters, that is often the better economic structure than a single-building array.

Path 2: Renewable Energy Growth (REG)

REG pays a fixed price per kWh for the output of distributed generation under a long-term tariff. It is administered by Rhode Island Energy and planned by the ten-member Distributed Generation Contracts Board, which sets new ceiling prices and a megawatt allocation each year. It has two tiers:

  • Small-scale (25 kW DC and under). For Program Year 2026, open to residential and small C&I (rate C-06) customers on a first-come, first-served basis until March 31, 2027, with 3 MW DC of capacity. The rate is 31.55 cents/kWh on a 15-year term or 28.65 cents/kWh on a 20-year term.
  • Commercial-scale. Larger solar, wind, hydro, and anaerobic digestion projects enroll during designated two-week windows and compete against ceiling prices set for each size class. The 2026 to 2027 program year terms were set in RIPUC Docket 25-52-REG (decided at the March 27, 2026 open meeting).

Which path wins? REG tends to win where on-site load is low relative to available roof or land, because REG output is not capped at site consumption. Net metering or VNM tends to win where daytime load is high, retail rates are high, and the owner can use the 125% band. We model both on your interval data and rate class.

Grants

Commerce RI Renewable Energy Fund

The Renewable Energy Fund (REF), administered by Rhode Island Commerce, provides grants that reduce the upfront cost of commercial projects. For 2026 REF runs three Commercial Scale rounds, with application closings around May 15, July 31, and October 23, 2026, open to direct-owned, third-party-owned (PPA or lease), and carport projects. Blocks close on the application deadline or when funds run out. REF also offers an Energy Storage Adder for commercial projects that include a battery (separate addendum application) and a rolling Brownfields Solar PV program, which reported roughly $1.27 million remaining as of December 31, 2024.

Grant amounts per watt and per-project caps are set in each round's program documents, so we pull the current round's terms when we build your model. The October 2026 round is the next practical target for a project in development now; confirm current availability with Commerce RI.

Carports

REF carries a carport pathway, which helps close the cost gap between canopy structures and rooftops for retail, office, and campus parking lots. See solar carports.

Storage adder

Pairing a battery can unlock the REF storage adder and reduce demand charges on C&I rates. See commercial battery storage.

Brownfields

Brownfields are preferred sites under the 2023 siting rules and have their own REF program, which suits former industrial parcels in the Blackstone Valley and Providence metro.

Property tax treatment

Rhode Island taxes commercial renewable systems under a statewide formula rather than local assessment. Under the Office of Energy Resources regulation 300-RICR-00-00-2, the tangible tax value for commercial renewable energy systems is $5.00 per kW of AC nameplate capacity per year, in effect since January 1, 2017 and reaffirmed in 2022. A 500 kW AC system, for example, would carry about $2,500 a year in tangible tax.

Two carve-outs can reduce that further. Renewable systems on residential and manufacturing property are exempt from local taxation. And a city or town council may elect not to assess the tangible tax on commercial systems, or specifically on net-metered systems designed only to offset on-site bills. The land itself is assessed separately. We confirm each municipality's election with the local assessor during feasibility, because it is a line item in a 20-year model.

Rhode Island also provides a statewide $50,000 exemption on tangible personal property for each taxpayer, beginning with assessments as of December 31, 2023 (R.I. Gen. Laws 44-5.3-1). How that interacts with a solar asset depends on ownership structure; your tax advisor should confirm.

Interconnection, siting, and the sectors that fit

Interconnection with Rhode Island Energy

Rhode Island Energy reviews applications under its RIPUC-approved interconnection tariff. Small rooftop systems usually move through simplified review; larger systems and VNM hosts on constrained feeders can require impact studies and upgrade cost allocations that change project economics. We request pre-application information early, design within hosting capacity where possible, and carry the application to permission to operate (PTO). The general sequence is covered in our New England interconnection guide.

Siting

Since 2023, new net-metered projects cannot be built in core forest unless on a preferred site. That pushes commercial solar toward rooftops, carports, brownfields, landfills, and already disturbed land, which is where most C&I projects in the state belong anyway. Coastal sites in Washington and Newport counties also need structural design for higher wind exposure, which we address in stamped structural calculations.

Sectors

Rhode Island's C&I base includes jewelry, textiles, marine and defense manufacturing, food processing and distribution, hospitals, universities, and a significant hospitality sector along the coast. Manufacturers get a clean property tax result, universities and hospitals can use VNM across campuses, and hotels can pair solar with storage for demand charges. Related pages: manufacturing, healthcare, schools and universities, and hotels and hospitality.

Federal Layer

Section 48E and depreciation

Rhode Island projects add the federal Section 48E investment credit: a 6% base, or 30% for projects under 1 MW AC or that meet prevailing wage and apprenticeship requirements. Under the One Big Beautiful Bill Act (enacted July 4, 2025), solar facilities that began construction on or before July 4, 2026 are not subject to the 2027 placed-in-service deadline (subject to continuity rules). Facilities beginning construction after July 4, 2026 must be placed in service by December 31, 2027. Add 5-year MACRS and 100% bonus depreciation, made permanent in 2025. A project starting now has to be scheduled so that REF awards, REG enrollment windows, and interconnection approval all land in time for a 2027 in-service date. See our federal ITC guide and financing options.

Questions

Frequently asked questions

Should my Rhode Island business use REG or net metering?

It depends on load and site. REG pays a fixed tariff for all output and is not capped at on-site consumption, which suits sites with more roof or land than load. Net metering and virtual net metering offset retail rates and suit sites with strong daytime load. We model both from your interval data before recommending one.

How large can a net-metered commercial system be in Rhode Island?

A net-metered system must be sized to on-site load based on a three-year average of consumption, with credits available up to 125% of consumption per billing period. Virtual net metering projects for eligible public and commercial customers are capped at 10 MW per project site.

What does the REG program pay in 2026?

For small-scale systems of 25 kW DC or less, Program Year 2026 pays 31.55 cents/kWh on a 15-year term or 28.65 cents/kWh on a 20-year term. Commercial-scale projects compete in enrollment windows against ceiling prices set in RIPUC Docket 25-52-REG; confirm current classes and prices with Rhode Island Energy.

How is commercial solar taxed in Rhode Island?

Commercial renewable systems carry a statewide tangible tax value of $5.00 per kW AC per year. Systems on manufacturing and residential property are exempt, and a city or town council may elect not to tax commercial or net-metered systems. Confirm your municipality's election with the local assessor.

Are Renewable Energy Fund grants still available?

Commerce RI scheduled three Commercial Scale rounds for 2026, with the last closing around October 23, 2026, plus an Energy Storage Adder and a rolling Brownfields Solar PV program. Rounds close early if funds are exhausted, so confirm availability with Commerce RI.

Sources

  • Rhode Island Office of Energy Resources, Net Metering and Virtual Net Metering Overview. energy.ri.gov
  • Rhode Island Office of Energy Resources, Renewable Energy Growth Program. energy.ri.gov
  • Rhode Island Energy, 2026 Renewable Energy Growth Program, Small-Scale Solar. rienergy.com
  • Rhode Island PUC, Docket No. 25-52-REG, REG Program Year 2026-2027. ripuc.ri.gov
  • Rhode Island Commerce, Renewable Energy Fund. commerceri.com
  • RI Department of State, Commercial Renewable Energy Systems Tangible Tax Value (300-RICR-00-00-2). rules.sos.ri.gov
  • Rhode Island General Laws 44-5.3-1, Tangible property exemption. rilegislature.gov