Rhode Island Heat Pump Rebates
Through the Clean Heat Rhode Island Low-to-Moderate Income Heat Pump Incentive, Rhode Island heat pump rebates go as high as $11,500. Rhode Island Energy also offers standard utility rebates of $625 to $1,500 per ton for homes that qualify.
Find the Rhode Island rebates for your ZIP code
If JavaScript is off, you can find your state in the table of programs.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $700 Clear River Electric & Water District Heat Pump Rebates, open to customers of Pascoag Utility District
- If your household income qualifies
- $11,500 Clean Heat Rhode Island Low-to-Moderate Income Heat Pump Incentive
- HEAR appliance rebates
- Open in part Run by OER. Official page
- HOMES whole-home rebates
- Partly open Paid on the energy saved by a whole-home upgrade. Official page
- 25C federal tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Rebates for heat pumps in Rhode Island
Check each program against your electric utility and household income to learn which rebates suit your home.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Rhode Island Energy High-Efficiency Electric Heat Pump Rebates | Served by The Narragansett Electric Co | $1,500 per ton | $1,500 per ton | Rebates of up to $625 | Open | Official page |
| Clean Heat Rhode Island Low-to-Moderate Income Heat Pump Incentive | Everyone in the state | None | Income-qualified: covers 60% of eligible project costs, capped at $11,500 per address | Flat Incentive: $2,500 per system (income-qualified) | Open | Official page |
| Clear River Electric & Water District Heat Pump Rebates | Served by Pascoag Utility District | None | $350-700 rebate | Up to $450 rebate | Open | Official page |
| Block Island Utility District Heat Pump Rebates | Served by Block Island Utility District | None | $250/ton rebate | Up to $300 rebate | Open | Official page |
Steps to Claim Rhode Island Heat Pump Rebates
Most homeowners go through Rhode Island Energy, whose rebate for central or mini-split heat pumps reaches $625 per ton. One standard way to rate a heat pump is by the ton, which reflects its heating and cooling output. An enhanced rebate worth $1,500 per ton is available to homeowners who switch away from electric baseboard heat. Do these steps in this order so your rebate is not lost:
- To claim the $1,500 per-ton rebate for electric baseboard, have EnergyWise confirm your home weatherization before any work starts.
- For the enhanced rebate, hire a contractor who participates with Rhode Island Energy; any installer with a state refrigeration license works for the standard tier.
- Choose equipment from the qualified list rated cold-climate ENERGY STAR 6.1, because units running R-410A refrigerant lost eligibility on January 1, 2026.
- Applications go online or by mail after the install. Heat pump water heaters qualify for up to $625 when installed by December 31, 2026.
Grants Based on Income and Federal Home Energy Rebates
Clean Heat Rhode Island accepts households whose earnings are under 150% of state median income ($178,500 for four people). The earnings at the midpoint for a family your size are known as state median income. This grant covers 60% of project costs, to a maximum of $11,500, if you switch from oil, propane, or natural gas. A flat $2,500 goes to heat pump water heaters, and it counts toward the $18,000 lifetime cap for each address. Fill out the eligibility survey, confirm your income, and pick a contractor from the Heat Pump Installer Network of Clean Heat Rhode Island.
Money from the federal Home Electrification and Appliance Rebate does not go to space heating; instead, it pays up to $4,000 toward panels and $2,500 toward wiring. Households with moderate incomes receive 50% of costs. Those with low incomes below 80% of area median income can receive as much as 100%. Separately, the Home Owner Managing Energy Savings program started September 23, 2026 and covers only low-income buildings with at least five units.
Weatherization at No Cost, Plus Rhode Island Rules
Before either major rebate program will pay for a new heat pump, weatherization must be in place. Weatherization involves sealing up drafts and adding insulation, which keeps the heat you pay for inside your rooms. A free Rhode Island Energy assessment covers air sealing at no cost, plus insulation discounts of 50% to 100%, with a limit of $10,000. The Weatherization Assistance Program is also open to renters and owners who receive heating assistance, through a local Community Action Program agency.
Roughly half of Rhode Island homes use natural gas, while three in ten rely on heating oil or other petroleum products. State heat pump funding is driven by the 2021 Act on Climate, which requires emissions to fall 45% by 2030. The utility rebates are smaller for customers of Clear River and Block Island utilities, but they can still use Clean Heat Rhode Island. Lastly, the federal 25C tax credit has ended. Under Public Law 119-21, it no longer applies to equipment put in service after December 31, 2025.
Common Questions About Rhode Island Heat Pump Rebates
Besides the rebate itself, what does Rhode Island Energy offer for heat pumps?
Rhode Island Energy also offers loans at 0% interest, up to $25,000, for heat pumps replacing electric heat, on top of its per-ton cash rebates. A distributor discount of $650 per unit from the New England Heat Pump Accelerator may also come through your installer. Grants from Clean Heat Rhode Island can be combined with standard utility rebates on one installation.
Are any federal tax credits available for heat pumps in 2026?
Heat pumps put in during 2026 have no federal tax credit. The One, Big, Beautiful Bill cut these credits short, as Internal Revenue Service Fact Sheet FS-2025-05, dated August 21, 2025, confirms. For installations in 2026, only rebates from state and electric utility programs can be claimed by homeowners.
Will energy rebates in Rhode Island be offered in 2026?
Yes, in 2026 the state and utility rebates continue, with funding and rules updated. Clean Heat Rhode Island paid for 4,114 heat pump projects totaling $20.9 million before, and Regional Greenhouse Gas Initiative funds now support it. Installations must happen on or after July 21, 2025 to qualify, and homes built between 2024 and 2026 do not count.
How do the 2026 retail appliance pilot and municipal utility rebates work?
If your power comes from a municipal utility, file your application on that utility's site. For heat pumps, Clear River Electric and Water District pays $350 to $700; heat pump water heaters can earn up to $450. At Block Island Utility District, the rate is $250 per ton, and water heaters earn as much as $300. A retail pilot began May 4, 2026 in Pawtucket and East Bay towns, covering electric-to-electric clothes dryers and stoves.
Get Rhode Island installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.