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Rhode Island Electricity Rates Are Decreasing This Spring But Are Homeowners Actually Saving?

December 12, 2023 | Reading Time: 5 minutes

Rhode Island Electricity Rates Are Decreasing This Spring

Good news is coming for Rhode Island homeowners and their electric bills in Rhode Island. After historically high Rhode Island electricity rates this winter, the spring will bring a decrease in electric rates in Rhode Island.

Rhode Island energy announced that Rhode Island electric rates lowered on April 1st. For example, a single-family home that uses 500 kWh of electricity will see their monthly electricity bill decrease by about $17 from April 1st through September 30th. This will vary on your home’s usage and RI Energy rate.

Rhode Island energy rates are decreasing from 17.85¢/kWh this winter to 10.34¢/kWh this spring. When looking at the math you may be thinking that should equal bigger savings for a home that is using 500 kWh a month.

However, Rhode Island Energy is also adding back their “Customer Service” charge. The charge is used to help pay for their delivery and customer service programs. Last winter, the $6 customer service charge was removed when electric rates in RI increased. From April 1st through September 30th, Rhode Island homeowners will be paying an increased $12 a month customer service charge.

From our estimates this the range of savings that customers can expect at different electricity usage levels:

Monthly Electricity UsageWinter BillSpring BillSpring Savings Per Month*
500 kWh$145$119$17-$26
1000 kWh$290$226$34-$64
1500 kWh$436$334$51-$102

 

*Estimated savings will differ depending on actual usage rates, taxes and delivery charges

 

While this rate change is a decrease from prices this winter, when looking at the price from last year this is a 32% increase from April 2022. Last year spring electric rates in RI were 7.81¢/kWh. This has been a concerning trend for homeowners that electricity prices are continuing to rise every year.

Are Cheaper Electricity Bills Here To Stay?

The short answer is no. Rhode Island Energy is also anticipating another rise in RI electric rates next winter but do not have an exact estimate at this time.

The increases in RI electricity cost this year has been due to increased energy demands and global events like the war in Ukraine. The demand hikes have caused a rise in natural gas prices which is the main source of fossil fuels to produce electricity in New England and drives the RI electricity cost.

As natural gas demand fluctuates throughout the year and increases in the colder winter months the electricity prices in RI will continue to increase but are only adjusted twice a year in April and October.

Are Rhode Island Homeowner’s Actually Saving?

Overall here is how the decrease in electricity prices in RI are affecting homeowners this spring:

        • Electricty rate is decreasing from 17.85¢/kWh this winter to 10.34¢/kWh this spring

        • This Spring’s electricity rate is 32% higher than the electricity rate from last year. 10.34¢/kWh vs 7.81¢/kWh

        • Rhode Island Energy is adding back a $12 a month customer service charge. This charge was $0 this winter and $6 last year.

        • The electricity rate will increase again this winter.

When looking at the facts the current RI electricity rate decrease is a savings from this winter. However, electricity continues to get more expensive every year.

If you are a Rhode Island homeowner looking for an alternative to paying constantly fluctuating and rising rates then there is an option:

How Rhode Island Solar Panels Are Helping Homeowners Save:

This past year has seen a major increase in the installation of RI solar panels. With the historic spike in electricity prices in RI more homeowners are turning to solar panels in RI. Buying solar panels is one of the guaranteed ways to consistently save money on your monthly electric bills.

Solar energy in RI helps homeowners save by removing their exposure to the fluctuating electricity prices. Since solar energy is sourced from the sun a homeowner with solar no longer needs to rely on electricity created with natural gas.

Gone are the days of price changes due to the high demand of natural gas. Instead electricity is produced on your roof from the sun. So in addition to saving money, you are also saving the environment by using renewable energy.

Solar Panel Cost In RI: Purchasing Solar Panels And How You Can Lock In Long-Term Savings

There are two options when purchasing solar panels: leasing vs buying solar panels.

When leasing solar panels you often have no upfront cost and a monthly payment that typically is less than what your current electricity prices in RI. Therefore every month after you are installed you are saving money.

There is an upfront cost buying solar panels. However this upfront cost is significantly decreased by federal and Rhode Island solar incentives. Currently, the federal solar tax credit is 30% off the total cost of your solar panels.

There is not an upfront cost if customers elect to finance their panels with a $0 Down Solar Loan. Many customers choose a solar loan and then assume a financing payment that is equal to or less than their monthly electricity costs. This provides a monthly payment that does not fluctuate or increase for the life of the loan. Homewoners can always pay this off early if they want to.

There is also a RI solar rebates with net metering and grants available to homeowners. Net metering pays homeowners up to 125% of their solar production in credits for future bills. Net metering in RI limits home solar panels to 100% of customer’s electiricy usage on a 3-year average.

At Isaksen Solar, we understand the in and outs of the local laws. From our knowledge and experience we are able to go the extra mile to get the best system for your situation by quoting your home for a larger system and fighting to get you the custom solar system to support your lifestyle.

For state grants ask your Rhode Island solar company what your solar panel installation may qualify for.

How Much You Will Save With Rhode Island Solar

The best way to get an exact price and savings for Rhode Island solar is to contact solar installers in RI to get a quote. At Isaksen Solar, we understand every home and homeowner is different so we offer a free consultation to answer all your questions and see if solar makes sense for your home.

Give us a call at (508) 717-3820 or get started on your free quote.