Rhode Island Electricity Rates: What to Know

Rhode Island has some of the most expensive electricity in the country — approximately 28 to 31 cents per kilowatt-hour as of 2026, roughly 60-70% above the national average of about 18 cents. Rates have climbed approximately 40-45% since 2020, with an 8.4% jump in the most recent year alone. The average monthly bill runs about $162, above the national average despite Rhode Island households using significantly less electricity than typical — roughly 567 kWh per month versus a national average of about 900 kWh. High per-kWh rates overwhelm the consumption advantage.

The reasons are structural: 91% of Rhode Island's electricity grid runs on natural gas in a region with constrained pipeline capacity, creating brutal winter price spikes. But Rhode Island is also writing the next chapter of the American energy story. The state was home to America's first offshore wind farm (Block Island, 2016), became the first state to mandate 100% renewable electricity by 2033, and in March 2026, the 704 MW Revolution Wind project began delivering power to the New England grid. The tension between the most expensive electricity in the region and the most aggressive clean energy mandate in the country defines everything about Rhode Island's rate trajectory.

How Rhode Island's Electricity Market Works

Rhode Island is a deregulated (retail choice) state for electricity. The Utility Restructuring Act of 1996 opened the market to competition, requiring utilities to divest their generation assets. Customers can choose a competitive electricity supplier for the supply (generation) portion of their bill while Rhode Island Energy handles delivery.

The Rhode Island Public Utilities Commission (RIPUC) regulates distribution companies, approves rate cases, and oversees the competitive supplier market.

Rhode Island is part of ISO New England (ISO-NE), the regional grid operator managing wholesale electricity markets for six New England states. ISO-NE wholesale prices directly influence Rhode Island retail rates — January 2025 wholesale prices reached $135.08 per MWh, a 112% year-over-year increase.

How Your Bill Is Split

Component	What It Covers
Supply (~50%)	Cost to generate/purchase electricity — shopable via retail choice
Delivery (~50%)	Transmission + distribution — stays the same regardless of supplier

If you do not choose a competitive supplier, you remain on Last Resort Service (LRS) — the default supply rate set by RIPUC every six months (April 1 and October 1). Current LRS rates:

• Summer 2026 (Apr-Sep): 11.09 cents/kWh (supply only)
• Winter 2025-2026 (Oct-Mar): 14.77 cents/kWh (supply only)

Winter rates are roughly 33% higher than summer rates due to natural gas price seasonality. A competitive supplier may offer a fixed rate that avoids winter spikes — but compare carefully, as some offers include early termination fees or variable rates that can exceed LRS. Use the DPUC's EmpowerRI tool at ri.gov to compare.

Providence Community Electricity is a municipal aggregation program that automatically enrolls Providence residents with a competitive supplier unless they opt out. Other municipalities may pursue similar programs.

What Rhode Islanders Actually Pay

• Average residential rate: ~28-31 cents/kWh (60-70% above national average)
• Average monthly bill: ~$162 (above national average of ~$152)
• Average consumption: ~567 kWh/month (well below national ~900 kWh)

Rate Trends

Year	Approx. Residential Rate
2020	~21.5 cents/kWh
2022	~24.0 cents/kWh
2024	~26.0 cents/kWh
2026	~30-31 cents/kWh

Rates have averaged about 3.8% annual growth over the past decade, with a steeper 8.4% increase from 2025 to 2026. For context on each line item, see our guide on how to read your electric bill and spot overcharges.

Major Utilities

Rhode Island Energy (PPL Corporation)

Rhode Island Energy — legally The Narragansett Electric Company — serves over 770,000 electric and gas customers across virtually all of Rhode Island except Block Island and Pascoag. The utility is a subsidiary of PPL Corporation (NYSE: PPL), which acquired it from National Grid for $3.8 billion in May 2022.

As a condition of the acquisition, PPL agreed to a 3-year moratorium on distribution rate increases (2022-2025). That freeze has now expired, and in November 2025, Rhode Island Energy filed its first base distribution rate case in approximately 8 years, requesting $230 million over two years.

For a typical residential customer using 500 kWh per month, the proposed increase would add roughly $7.78 per month (4.83%). Gas customers would face a steeper 20.60% increase. The rate effective date, if approved, is September 2026.

The utility has faced ongoing controversy. The PUC slashed Rhode Island Energy's capital spending budget in March 2025 amid customer outrage over rising bills. Attorney General Neronha accused the company of "shortchanging" bill credits owed to customers from the National Grid sale settlement. Rhode Island Energy proposed then withdrew a winter bill discount plan under regulatory scrutiny before the PUC approved alternative winter discounts.

The utility is also deploying 540,000 smart meters statewide — a modernization effort that will enable future TOU pricing and better demand management.

Block Island Utility District

The Block Island Utility District (d/b/a Block Island Power Company) serves approximately 1,600 members on Block Island (New Shoreham). It is a ratepayer-owned nonprofit utility district. Block Island was diesel-dependent until 2017, when the Block Island Wind Farm submarine cable connected the island to the mainland grid for the first time. The utility recently lobbied successfully to remove a cap that had limited net-metered power to 3% of peak load.

Pascoag Utility District

Pascoag Utility District serves western Burrillville — a small municipal utility district regulated by RIPUC that also supports retail choice.

Why Rhode Island's Electricity Is So Expensive

1. Extreme Natural Gas Dependence

91% of Rhode Island's electricity grid is powered by natural gas — one of the highest gas dependencies in the country. When natural gas prices spike, Rhode Island's rates follow immediately. New England's constrained pipeline capacity makes this worse: winter creates a "fuel-on-fuel" competition where residential heating and power generation compete for the same limited gas supply.

December 2025 natural gas prices reached $14.90 per MMBtu — up 63% from December 2024. January 2025 wholesale electricity prices hit $135.08 per MWh — a 112% year-over-year increase. This volatility flows directly into bills.

2. ISO-NE Transmission Costs

New England transmission rates are nearly $24 per MWh — more than double the average of other regional transmission organizations. These costs have grown by about $0.50 per MWh annually and are driven by aging infrastructure upgrades, grid modernization, and renewable energy interconnection. As a small state in the ISO-NE region, Rhode Island bears its share of these regional costs.

3. Distribution Rate Increases

Rhode Island Energy's first rate case in approximately 8 years proposes $230 million in new distribution revenue. The PPL acquisition's 3-year rate freeze deferred capital spending that now needs recovery. Smart meter deployment, reliability upgrades, and storm hardening all require investment.

4. Renewable Energy Transition Costs

Rhode Island's 100% renewable by 2033 mandate — the most aggressive in the country — requires significant new infrastructure. Offshore wind contracts add above-market costs in early years. Renewable Energy Standard compliance costs are passed through to ratepayers via RECs. These investments are expected to pay off long-term through reduced gas dependence, but they add near-term rate pressure.

5. Winter Price Volatility

The gap between summer and winter LRS rates tells the story: 11.09 cents versus 14.77 cents per kWh — a 33% seasonal swing just on the supply portion. Cold snaps can push wholesale prices to multiples of seasonal averages.

Solar and Renewable Energy in Rhode Island

One of the Best Solar Incentive Packages in the Country

Even after the federal tax credit's expiration, Rhode Island offers an unusually strong combination of solar incentives:

Renewable Energy Growth (REG) Program: A performance-based incentive paying approximately $0.27 per kWh for 15-20 year contract terms. This is a separate income stream from net metering — the two can be combined. The REG program has enrollment periods with limited capacity each year.

Net Metering: Available for residential solar at 80% of the retail rate for systems initiated after April 2023 (grandfathered systems receive full retail). Credits are protected through 2039. Annual production cap is 125% of consumption.

Tax Exemptions: 20-year property tax exemption on added value from solar, plus a 7% sales tax exemption on solar equipment.

Federal Tax Credit — Expired: The 30% residential ITC expired December 31, 2025. Commercial projects may still qualify for Section 48/48E credits. State-level incentives now do the heavy lifting.

Combined, REG payments ($0.27/kWh) plus net metering credits ($0.23/kWh at 80% of retail) plus tax exemptions make Rhode Island one of the strongest solar markets in the country — even without the federal credit.

Community Solar

Rhode Island established community virtual net metering in 2016. Currently 17 community solar projects operate (5 VNM + 12 CRDG projects). An expanded program (CRNM v2) with a 40 MW cap is expected to launch in 2026-2027. Community solar is a good option for renters and homeowners without suitable rooftops. Check risolarmarketplace.com for available projects.

100% Renewable by 2033

Rhode Island is the first state to require 100% renewable electricity by 2033. The mandate escalates annually (7% in 2026, rising to 9.5% in 2032, then 100% in 2033). This is connected to the Act on Climate (2021), which sets mandatory economy-wide net-zero emissions by 2050.

Offshore Wind — The Pioneer

Rhode Island is the epicenter of U.S. offshore wind:

• Block Island Wind Farm (2016): America's first offshore wind farm — 5 turbines, 30 MW. Connected Block Island to the mainland grid for the first time. Proved the viability of US offshore wind.
• Revolution Wind (2026): 704 MW (65 turbines). Began delivering power March 13, 2026 — 400 MW to Rhode Island, 304 MW to Connecticut. Expected to reach full capacity in the second half of 2026.
• South Fork Wind: 132 MW, located south of Rhode Island. Achieved a 46.3% capacity factor in 2025, generating electricity 99% of all days.
• Future procurement: Governor McKee signed legislation requiring an additional 600-1,000 MW of offshore wind, which could meet roughly 30% of Rhode Island's estimated 2030 electricity demand.

Offshore wind will not immediately lower bills — early contracts are above current market rates. But over their 20+ year lifetimes, these projects diversify Rhode Island away from volatile natural gas and provide zero-fuel-cost generation that should reduce long-term rate pressure.

Strategies to Lower Your Rhode Island Electricity Bill

1. Compare Supply Options

Use the DPUC's EmpowerRI rate comparison tool (ri.gov) to compare competitive supplier rates against the current LRS rate. A fixed-rate contract can protect you from winter price spikes. If you live in Providence, check whether Providence Community Electricity offers a better rate. Switching is free.

2. Install Solar With REG + Net Metering

Rhode Island's combined REG payments ($0.27/kWh for 15-20 years) and net metering credits ($0.23/kWh, protected through 2039) make solar one of the best investments in the country. Add the sales and property tax exemptions, and payback periods remain attractive even without the federal credit. Our guide on choosing the best solar panels for your home covers the key decisions.

3. Subscribe to Community Solar

If rooftop solar is not an option, community solar lets you subscribe to a share of a local solar farm and receive bill credits. Check risolarmarketplace.com or the expanded CRNM v2 program launching in 2026-2027.

4. Apply for the A-60 Low-Income Discount

If your household income is at or below 150% of federal poverty level, the A-60 discount rate provides 25-30% off your total monthly electric bill — automatically applied to your Rhode Island Energy account.

5. Weatherize Your Home

Rhode Island allocated $44 million in federal funding for weatherization and energy efficiency. The Weatherization Assistance Program provides free air sealing, insulation, and heating system upgrades for LIHEAP-eligible households. Contact your local Community Action Agency.

6. Upgrade Appliances and Heating

At 28-31 cents per kWh, inefficient appliances cost dramatically more to run in Rhode Island than in most states. A heat pump water heater saves roughly $200+ per year at Rhode Island rates. A smart thermostat saves 10-15% on heating and cooling. The HEAR program offers rebates for qualifying heat pump appliances.

Low-Income Assistance Programs

LIHEAP

• Administered by Rhode Island Department of Human Services
• Eligibility: Household gross income at or below 60% of State Median Income
• Applications open October 1 each year for the heating season
• Helps with heating and cooling bills

A-60 Low-Income Discount Rate

• Standard discount: 25% off total monthly electric bill
• Enhanced discount: 30% off for customers qualifying via Medicaid, General Public Assistance, or Rhode Island Works
• Eligibility: Households at or below 150% of Federal Poverty Level
• Automatically applied to qualifying Rhode Island Energy bills

Weatherization Assistance Program

• Free air sealing, insulation, heating upgrades, window repair, and energy audits
• Must be approved for LIHEAP to qualify
• $44 million in federal funding allocated to Rhode Island
• Delivered by local Community Action Agencies

HEAR Program

• Rebates for heat pump clothes dryers, electric stoves, induction cooktops, and wiring upgrades
• Income-qualified focus
• Administered by the RI Office of Energy Resources

Getting Started

Contact your local Community Action Agency or call 2-1-1 for referrals.

Frequently Asked Questions

What is the average electricity rate in Rhode Island?

As of early 2026, Rhode Island's average residential electricity rate is approximately 28 to 31 cents per kWh — roughly 60-70% above the national average of about 18 cents. This makes Rhode Island one of the five most expensive states for electricity. Rates have increased roughly 40-45% since 2020.

Why is electricity so expensive in Rhode Island?

Rhode Island's grid runs on 91% natural gas in a region with constrained pipeline capacity, creating severe winter price volatility. ISO-NE transmission costs are more than double other regional averages. Grid modernization and the transition to 100% renewable by 2033 add near-term costs. All of these pressures converge on a small state with limited in-state generation.

Can I choose my electricity supplier?

Yes. Rhode Island has retail choice. You can shop for a competitive supplier while Rhode Island Energy delivers your power. Compare rates at the DPUC's EmpowerRI tool (ri.gov). If you live in Providence, you may be automatically enrolled in Providence Community Electricity. Be cautious of variable-rate plans and early termination fees.

Is solar worth it in Rhode Island?

Rhode Island has one of the best solar incentive packages in the country. The REG program pays approximately $0.27 per kWh for 15-20 years. Net metering provides 80% retail rate credits protected through 2039. Solar equipment is exempt from sales tax (7%) and property tax (20-year exemption). The federal 30% credit expired December 31, 2025, but state incentives partially compensate. At 28-31 cents per kWh, each solar kWh offsets an unusually expensive purchase.

How will offshore wind affect my bill?

Revolution Wind (704 MW) began delivering 400 MW to Rhode Island in March 2026. In the near term, offshore wind contracts may add slightly above-market costs. In the long term, offshore wind diversifies away from volatile natural gas and provides zero-fuel-cost generation. Additional procurement of 600-1,000 MW is planned. Block Island Wind Farm (30 MW) has operated reliably since 2016.

What help is available if I cannot pay my bill?

The A-60 discount rate provides 25-30% off your total electric bill for households at or below 150% of FPL. LIHEAP helps with heating costs for households at or below 60% of State Median Income. The Weatherization Assistance Program provides free home improvements. Rhode Island Energy hosts customer assistance expos statewide. Contact your local Community Action Agency or call 2-1-1.

Your Rhode Island Electricity Action Plan

This week:

1. Check your bill for your current supply rate — are you on Last Resort Service or a competitive supplier? Compare against alternatives at the DPUC's EmpowerRI tool.
2. Note the seasonal rate change: summer LRS (11.09 cents) is significantly cheaper than winter (14.77 cents). Plan accordingly.
3. If you live in Providence, verify whether you are enrolled in Providence Community Electricity and compare the rate.

This month:

4. If income-eligible, apply for the A-60 discount (25-30% off your total bill) and LIHEAP.
5. Contact a Community Action Agency about free weatherization services.
6. Check NHSaves and Rhode Island Energy rebate programs for appliance and efficiency upgrades.

This year:

7. Get solar quotes. Rhode Island's REG program ($0.27/kWh for 15-20 years) + net metering (80% retail through 2039) + tax exemptions make this one of the best solar markets in the country — even without the federal credit.
8. If rooftop solar is not an option, look into community solar subscriptions.
9. Replace your water heater with a heat pump water heater — at 28-31 cents per kWh, the savings are substantial.
10. Install a smart thermostat.

If you are struggling right now:

11. Apply for the A-60 discount — 25-30% off your total bill.
12. Contact LIHEAP through DHS for heating assistance.
13. Call 2-1-1 for local referrals.
14. Contact Rhode Island Energy about payment arrangements before disconnection.

For the long term:

15. Watch the Rhode Island Energy rate case. The $230 million request, if approved, takes effect September 2026.
16. Follow Revolution Wind's ramp to full capacity. As offshore wind comes online, it begins to diversify Rhode Island away from the natural gas dependence that drives rate volatility.
17. Monitor the legislative tension between the 100% renewable mandate and affordability concerns. Bills to freeze net metering and repeal REG signal growing political friction.
18. Every efficiency improvement and solar kWh compounds in value as rates rise. At 28-31 cents, Rhode Island ratepayers get more dollar value from conservation and self-generation than residents of almost any other state.

Rhode Island's electricity story is a collision between the most expensive power in the region and the most ambitious clean energy mandate in the country. The state that pioneered American offshore wind is now racing to reach 100% renewable by 2033 while its residents pay 60-70% above the national average for electricity. The transition — offshore wind, community solar, efficiency — will eventually reduce dependence on volatile natural gas. But the near-term costs are real, and for Rhode Islanders paying bills today, the tools available — retail choice, solar with strong state incentives, the A-60 discount, weatherization — are the practical path to managing costs that are already high and still climbing.