Solar power in Rhode Island has become economical due to new technological improvements and a variety of regulatory actions and financial incentives, particularly a 30% federal tax credit, available through 2016, for any size project. A typical residential installation could pay for itself in utility bill savings in 14 years, and generate a profit for the remainder of its 25 year life. Larger systems, from 10 kW to 5 MW, receive a feed-in tariff of up to 33.45¢/kWh.[1][2]
Due to the state's small size and comparatively low insolation, solar installations are limited to predominantly rooftop and megawatt scale installations. Approximately 23% of electricity used in Rhode Island could be provided from rooftop solar panels.[3]