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Typical installed cost: $11,000-$22,000 before rebates. With Clean Heat RI, your net cost can be as low as $2,000.
Before Rebates
$11K-$22K
Ducted whole-home system
Clean Heat RI Rebate
Up to $11,500
60% of project cost
Net Cost After Rebates
As low as $2,000
With stacked incentives
A whole-home heat pump system in Rhode Island typically costs $11,000-$22,000 installed before incentives. The Clean Heat RI program covers 60% of the cost (up to $11,500) for standard-income households, or 100% (up to $18,000) for income-eligible households. After stacking Clean Heat RI with RI Energy utility rebates, many homeowners pay as little as $2,000-$5,000 out of pocket. The annual operating cost savings of ~$1,410 vs oil heating means payback in roughly 1.4 years.
Installed costs vary by system type, number of zones, and whether your home has existing ductwork. All prices reflect Rhode Island market rates as of early 2026.
| System Type | Installed Cost | Best For | Net After Rebates* |
|---|---|---|---|
| Single-Zone Ductless Mini-Split | $3,500-$7,000 | Room addition, garage, bonus room | $1,400-$2,800 |
| Multi-Zone Ductless (3-5 zones) | $8,000-$18,000 | Homes without ductwork | $2,000-$7,200 |
| Ducted Central Heat Pump | $11,000-$22,000 | Homes with existing ductwork | $2,000-$10,500 |
| Hybrid (Heat Pump + Furnace) | $13,000-$25,000 | Keeping existing backup furnace | $3,000-$13,500 |
*Net cost assumes standard-income Clean Heat RI rebate (60%, max $11,500) plus RI Energy fossil fuel displacement rebate ($400/ton).
Larger homes require more heating capacity (measured in tons) and may need additional zones. A 1,200 sq ft ranch may only need 2 tons, while a 2,500 sq ft colonial may require 4-5 tons. Multi-story homes typically need more zones for even comfort.
Homes with existing ductwork in good condition can use a ducted heat pump system, which is often less expensive per zone than ductless. If ductwork needs modification or your home lacks ducts entirely, ductless mini-splits are the more practical choice.
Heat pumps require a dedicated 30-50 amp circuit. If your home has an older 100-amp panel, an upgrade to 200 amps ($1,500-$3,000) may be needed. Most homes built after 1990 with 200-amp service will not require a panel upgrade.
Each zone adds an indoor unit and additional line set installation. A single-zone system starts at $3,500, while each additional zone adds roughly $2,000-$4,000. Most RI homes benefit from 3-5 zones for balanced comfort in every room.
Clean Heat RI is Rhode Island's flagship heat pump incentive program. The rebate is applied at the point of sale by your contractor, so you never pay the full price out of pocket.
Up to $11,500
Available to all Rhode Island homeowners regardless of income. Covers 60% of total installed cost including equipment and labor.
Example: $18,000 ducted system
Rebate: $10,800 (60%)
Your cost: $7,200
Up to $18,000
For households meeting income guidelines. Covers 100% of total installed cost. Many income-eligible homeowners pay $0 out of pocket.
Example: $16,000 multi-zone system
Rebate: $16,000 (100%)
Your cost: $0
In addition to Clean Heat RI, Rhode Island Energy (formerly National Grid RI) offers per-ton rebates that stack on top. This further reduces your net cost.
| Replacement Scenario | RI Energy Rebate | Example (3-ton system) |
|---|---|---|
| Replacing Fossil Fuel Heating | $400 per ton | $1,200 |
| Replacing Electric Resistance | $1,250 per ton | $3,750 |
Use our calculator to estimate your specific net cost based on system type, size, and income eligibility.
Interactive rebate calculator coming soon. In the meantime, use the pricing tables above or contact us for a personalized quote.
Get a Free QuoteAt current Rhode Island energy rates, a heat pump delivers significant annual savings compared to oil heating. After Clean Heat RI rebates, the payback period is remarkably short.
| Cost Category | Oil Boiler | Heat Pump | Annual Savings |
|---|---|---|---|
| Annual Heating Cost | $2,650/yr | $1,240/yr | $1,410/yr |
| Fuel/Energy Rate | $3.45/gal oil | $0.28/kWh electricity | - |
| Annual Maintenance | $200-$400 | $75-$150 | $125-$250 |
| Equipment Lifespan | 15-20 years | 18-25 years | - |
Net Cost After Rebates
~$2,000
With maximum rebate stacking
Annual Savings vs Oil
~$1,410
Heating + cooling + maintenance
Payback Period
~1.4 Years
After Clean Heat RI + RI Energy
The federal Section 25C energy efficiency tax credit expired on December 31, 2025. There is no federal tax credit available for residential heat pump purchases in 2026. However, Clean Heat RI and RI Energy rebates remain active and provide even greater savings than the old 25C credit did.
Clean Heat RI is funded with federal ARPA dollars that must be committed by December 31, 2026. Once these funds are exhausted or the deadline passes, current rebate levels of up to $11,500 (or $18,000 income-eligible) may not be renewed. If you are considering a heat pump, acting before the ARPA deadline ensures you lock in the maximum rebate amount.
A typical whole-home heat pump system in Rhode Island costs $11,000-$22,000 before rebates. After Clean Heat RI rebates (up to $11,500 standard or $18,000 income-eligible), your net cost can be as low as $2,000-$10,500.
Clean Heat RI covers 60% of total project cost up to $11,500 for standard-income households. Income-eligible households receive 100% coverage up to $18,000. Projects must use ENERGY STAR 6.1 Cold Climate certified equipment.
Yes. RI Energy offers an additional $400/ton for replacing fossil fuel systems or $1,250/ton for replacing electric resistance heating. These stack on top of Clean Heat RI rebates, further reducing your out-of-pocket cost.
No. The federal Section 25C energy efficiency tax credit expired on December 31, 2025. There is no federal tax credit available for residential heat pump purchases in 2026. Clean Heat RI and RI Energy rebates are your primary incentives.
Clean Heat RI is funded through ARPA (American Rescue Plan Act) dollars that must be committed by December 31, 2026. Once funds are exhausted or the deadline passes, these rebate levels may not be renewed at the same amounts.
After Clean Heat RI rebates, the average payback period is approximately 1.4 years when replacing oil heating. With a net cost around $2,000 and annual savings of ~$1,410 vs oil, most homeowners recover their investment within 2 heating seasons.
A typical heat pump installation includes the indoor and outdoor equipment, refrigerant line sets, electrical wiring, condensate drainage, a smart thermostat, permits, and labor. Costs may increase if you need electrical panel upgrades, ductwork modifications, or additional zones.
Yes. A single-zone ductless mini-split costs $3,500-$7,000, while a multi-zone system serving 3-5 areas costs $8,000-$18,000. More zones provide better comfort control but increase equipment and installation costs.
Hybrid systems ($13,000-$25,000) pair a heat pump with a backup furnace. In Rhode Island, modern cold-climate heat pumps perform well to -13°F, so a hybrid is rarely necessary. A standalone heat pump is typically the better investment unless you have a very new furnace you want to keep.
Yes. Options include the Rhode Island Infrastructure Bank (RIIB) financing at low rates, RI Energy on-bill financing, HEAT loans through participating lenders, and standard home improvement loans. Some programs offer 0% APR for qualifying households.
Do heat pumps work in Rhode Island winters? See model comparisons and performance data for RI's coastal climate.
Complete guide to Clean Heat RI, RI Energy rebates, HEAR, and all available incentives for heat pump installation.
Detailed cost comparison of heat pumps versus oil heating at current Rhode Island fuel prices.
How to find a Clean Heat RI registered contractor, what to look for, and red flags to avoid.
Clean Heat RI rebates are available now through December 31, 2026. Lock in up to $11,500 in rebates before ARPA funds run out.