Heat Pump Pricing Index

Rhode Island Heat Pump Rebates

Stackable incentives available to Rhode Island homeowners installing a qualifying heat pump in 2026.

Standard income$7,0002 programs accepting applications
Income-qualified ≤80% AMI+$11,500Stacks on top — HEEHRA / HEAR / state IRA programs
Last verified:

Rebate data is re-verified against primary sources every two months.

What's available in Rhode Island

Rhode Island has one of the most generous heat pump incentive stacks in the country, but the state-funded Clean Heat RI program has been income-targeted since its July 21, 2025 relaunch: only households below 150% of State Median Income that currently heat with oil, propane or natural gas qualify, with incentives covering 60% of project cost up to $11,500 for space heating plus a flat $2,500 for a heat pump water heater (lifetime per-property cap $18,000). The standard-income tier of the original ARPA-funded program has been retired and funding now comes from Regional Greenhouse Gas Initiative (RGGI) revenues. Rhode Island Energy, the dominant electric and gas utility, pays $1,500 per ton for heat pumps replacing electric baseboard (participating contractor required) or up to $625 per ton for oil, propane or gas conversions, plus up to $600 for a heat pump water heater; as of Jan 1, 2026 equipment must meet ENERGY STAR 6.1 cold-climate criteria and R-410A systems no longer qualify. Rhode Island's federal IRA HEAR program is open (income-eligible pathway since Sept 17, 2024; a moderate-income Retail Pathway pilot since May 4, 2026 in Pawtucket and East Bay/Aquidneck towns) but it covers only heat pump clothes dryers, electric cooking, wiring and electrical panels, not heat pumps or heat pump water heaters. Clean Heat RI and RI Energy rebates stack. Smaller utilities Clear River Electric & Water District ($350-$700 ASHP, up to $450 HPWH) and Block Island Utility District ($250/ton ASHP, up to $300 HPWH) cover their own territories.

Rhode Island state + utility (open)
$7,000
2 programs accepting applications
Rhode Island income-qualified (open)
$11,500
1 program accepting applications (incl. HEEHRA where active)

HEEHRA in Rhode Island

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Rhode Island is finalizing program rules.

How heat pump rebates work in Rhode Island

Rhode Island has one of the most generous and well-coordinated heat pump incentive landscapes in the country, but as of the July 21, 2025 relaunch the state-funded Clean Heat RI program is now income-targeted: only households below 150% of State Median Income qualify, with rebates covering 60% of eligible project cost up to $11,500 (lifetime per-property cap $18,000 across space heating, HPWH, and future installs). The standard-income tier that existed under the original ARPA-funded program (2022-2025) has been retired; funding has transitioned from ARPA to Regional Greenhouse Gas Initiative (RGGI) revenues. Rhode Island Energy (formerly National Grid Rhode Island), the dominant electric and gas utility, layers per-ton ASHP rebates of $1,500 per ton for electric-baseboard homes or up to $625 per ton for oil, propane and gas conversions, plus a $2,500 Clean Heat RI HPWH rebate stackable with RI Energy's $600 HPWH rebate. RI was the first New England state to launch the federal IRA-funded HEAR low-income pathway on September 17, 2024, but RI's HEAR covers only heat pump clothes dryers, electric cooking, wiring and electrical panels (up to $4,000 for a panel, $2,500 for wiring), not heat pumps or heat pump water heaters. Clean Heat RI and RI Energy rebates fully stack.

Rhode Island rebate programs

Clean Heat RI Whole-Home Heat Pump (Standard Income)

$11,500
rebateClosed· 2026-09-07

CLOSED: standard-income tier was discontinued when Clean Heat RI relaunched on July 21, 2025 as the income-targeted 'Low to Moderate Clean Heat Program' funded by RGGI (after the ARPA $25M was fully allocated across 4,114 projects). Per cleanheatri.com homeowner eligibility table, all current Clean Heat RI participants must have household income below 150% of State Median Income; there is no longer a separate standard-income tier.

Source: energy.ri.govVerified

Clean Heat RI Whole-Home Heat Pump (Income-Eligible)

$11,500
rebateIncome-qualified ≤150% AMI

Covers 60% of eligible heat pump project cost up to $11,500 per address (air-source, air-to-water or geothermal) for RI households below 150% of State Median Income ($124,950 for 1 person up to $178,500 for 4 in 2026); the home must currently heat with oil, propane or natural gas. Lifetime per-property cap is $18,000 across space heating + heat pump water heater + future installs combined. Pre-installation weatherization is required (home built on/after Jan 1, 2000, OR all weatherization recs completed, OR Home Energy Assessment shows <$1,000 in recommended work). R-410A equipment no longer qualifies as of Jan 1, 2026. Funded by RGGI revenues after the $25M ARPA allocation was exhausted; the original ARPA-era Income Eligible tier continues only through a waitlist.

Source: cleanheatri.comVerified

Rhode Island Energy Air-Source Heat Pump Rebate

$4,500
rebate

Per-ton utility rebate paid by Rhode Island Energy: an Enhanced Rebate of $1,500 per ton if your home is currently heated with electric baseboard (must use a participating contractor), or a Standard Rebate of up to $625 per ton if you heat with natural gas, oil, propane or other electric equipment. Amount shown is the enhanced-tier max for a 3-ton install (3 x $1,500 = $4,500); a 3-ton oil or gas conversion gets up to $1,875. Effective Jan 1, 2026 equipment must meet ENERGY STAR 6.1 cold-climate criteria and R-410A systems no longer qualify. Stacks with Clean Heat RI.

Source: rienergy.comVerified

Clean Heat RI Heat Pump Water Heater

$2,500
rebate

Flat $2,500 Clean Heat RI incentive per heat pump water heater, for households below 150% of State Median Income (the whole Clean Heat RI program is income-gated since the July 21, 2025 relaunch) whose existing water heater runs on natural gas, propane or oil. Counts toward the $18,000 lifetime per-property cap but is separate from the $11,500 space-heating cap. Stackable with the Rhode Island Energy up-to-$600 HPWH rebate for combined savings of up to $3,100.

Source: cleanheatri.comVerified

3 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: oil-to-heat-pump conversion in Providence

Khalil owns a 1,650 sq ft home in Providence served by Rhode Island Energy, currently heated by a 24-year-old oil-fired boiler. He gets quotes for a 3-ton ducted air-source heat pump installed with new ductwork (since the existing home is hydronic), full displacement of oil, and NEEP cold-climate certified equipment. Installed cost including ductwork: $25,800. Because the install replaces oil heat (not electric baseboard), he qualifies for Rhode Island Energy's Standard Rebate of up to $625/ton x 3 tons = $1,875; the $1,500/ton Enhanced Rebate is reserved for electric-baseboard homes. His household income is approximately 78% of RI State Median Income — below the 150% threshold for Clean Heat RI's relaunch tier. Clean Heat RI covers 60% of eligible project cost up to $11,500 — 60% of $25,800 = $15,480, capped at $11,500. RI's HEAR program does not cover heat pumps, though as a LIHEAP-eligible household Khalil could get HEAR to pay for a panel upgrade (up to $4,000) or wiring (up to $2,500) if the electrical work is needed. Combined heat pump stack: $1,875 RI Energy + $11,500 Clean Heat RI = $13,375 against $25,800 installed. Net out-of-pocket: $12,425. Pre-installation weatherization is required for Clean Heat RI (home built on/after January 1, 2000, OR all weatherization recs completed, OR Home Energy Assessment showing <$1,000 in recommended work) — Khalil's 1958 home requires the Home Energy Assessment first.

Choosing a contractor in Rhode Island

Rhode Island licenses HVAC contractors through the Department of Business Regulation (RI Contractors Registration and Licensing Board). Verify at dbr.ri.gov before signing. Clean Heat RI requires a participating contractor; the participating contractor lookup is at cleanheatri.com. The pre-installation weatherization requirement is verified through the Home Energy Assessment — the Assessment-conducting auditor must be BPI-certified. Rhode Island Energy's per-ton ASHP rebate processes through a separate utility application alongside the Clean Heat RI rebate. Confirm with the contractor that both applications will be filed at install.

Common pitfalls for Rhode Island homeowners

  • Skipping the pre-installation weatherization for Clean Heat RI. Clean Heat RI requires pre-installation weatherization, met by one of three paths: home built on/after January 1, 2000, OR all weatherization recommendations completed, OR Home Energy Assessment showing less than $1,000 in recommended work. A homeowner who installs a heat pump in a 1958 home without addressing the weatherization requirement will have the rebate denied. Schedule the Home Energy Assessment early in the project timeline.
  • Counting on the closed standard-income Clean Heat RI tier. The standard-income Clean Heat RI tier (open to households above 150% SMI) was retired when the program relaunched on July 21, 2025. Several aggregator sites still cite the $11,500 figure as available to all incomes. As of 2026, only households below 150% SMI qualify. Above 150% SMI, your RI incentive stack is limited to RI Energy's per-ton rebate ($1,500/ton for electric-baseboard homes, up to $625/ton for fossil conversions); the federal §25D geothermal credit was repealed at the end of 2025.

Estimate your net cost

Used to determine HEEHRA eligibility (under 80% area median income).

Average installed cost
$12,500
Incentives offset 56% of the install$7,000
  • Rhode Island Energy Air-Source Heat Pump Rebate$4,500
  • Clean Heat RI Heat Pump Water Heater$2,500

Estimated out-of-pocket$5,500

Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.

Independent — not affiliated with installers, manufacturers, or utilities.MethodologyNot tax adviceReport a correction

How to claim each rebate

  1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
  2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
  3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
  4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

If you can't afford a replacement in Rhode Island

Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:

  • Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
  • LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Rhode Island LIHEAP contacts.
  • USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
  • Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Rhode Island currently have funds.

Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.

FAQ

Clean Heat RI's $18,000 lifetime per-property cap applies across space heating, heat pump water heater, and any future installs at the same property. A homeowner who claims $11,500 for a heat pump install in 2026 has $6,500 remaining for a future HPWH or additional install. The cap follows the property, not the homeowner — a future owner inherits the remaining cap balance.