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Get a Free QuoteThe federal 25C tax credit is gone. Clean Heat RI rebates are still here — covering 60% of cost up to $11,500 (or 100% up to $18,000 for income-eligible households). NuWatt is a certified Clean Heat RI contractor and Mitsubishi Diamond installer with 450+ heat pump projects across Rhode Island.
Section 25C expired December 31, 2025. The $2,000 federal heat pump credit is gone. But Rhode Island homeowners have one of the strongest state programs in the country: Clean Heat RI — covering 60% of your entire project cost.
Section 25C — the $2,000 energy efficiency tax credit for heat pumps — expired December 31, 2025. If you install a heat pump in 2026, your federal credit is $0.
Any contractor still quoting you a federal tax credit for a heat pump is either uninformed or dishonest. Period.
Clean Heat RI is ARPA-funded through the RI Office of Energy Resources — completely separate from federal tax law. It is fully active in 2026.
Up to $11,500 standard (60% of project cost), or up to $18,000 for income-eligible households (100% of project cost). Applied at point of sale — no waiting for reimbursement.
Every NuWatt quote shows your real cost after Clean Heat RI — no phantom federal credits, no inflated "before incentive" prices designed to make the rebate look bigger.
We handle the entire Clean Heat RI application, including the required Home Energy Assessment and weatherization documentation, so your rebate is applied at point of sale on installation day.
Clean Heat RI is one of the most generous heat pump programs in New England. Here's exactly how the rebates work in 2026 — no fine print surprises.
Covers 60% of total system and installation cost for all RI Energy residential customers. Applied at point of sale. Requires Home Energy Assessment and ENERGY STAR 6.1 Cold Climate equipment.
Covers 100% of project cost including electrical upgrades for households at or below 150% of State Median Income. Includes weatherization, panel upgrades, and heat pump water heater if needed.
Stacks on top of Clean Heat RI. $1,250/ton for electric resistance replacement, $400/ton for fossil fuel replacement. Separate utility rebate — you can receive both.
Separate Clean Heat RI rebate for ENERGY STAR heat pump water heaters. RI Energy adds $800 on top. Can be combined with whole-home HP project.
Clean Heat RI is funded by the American Rescue Plan Act (ARPA). All ARPA funds must be committed by December 31, 2026. Once funds are exhausted or the deadline passes, this program ends permanently. There is no guarantee of replacement funding.
With $0 federal credits available in 2026, Clean Heat RI is the single largest incentive available to Rhode Island homeowners. We strongly recommend locking in your project while full funding remains.
We're not a general HVAC company that added heat pumps last year. We're a certified Clean Heat RI contractor and Mitsubishi Diamond installer with deep cold-climate and coastal expertise.
Full certification means your rebate is applied at point of sale — no waiting for reimbursement checks. We know the process inside and out because we helped shape it.
The highest tier of Mitsubishi partnership. Diamond status means priority equipment access, factory training, and extended warranty options unavailable to standard dealers.
We perform a full Manual J heating and cooling load calculation on every installation. No "rule of thumb" guessing — your system is precisely sized for your home, your insulation level, and RI Zone 5A coastal climate.
Our installation teams are NATE-certified, background-checked professionals trained on every brand we install. Same quality and accountability on every job.
Rhode Island's coastline means salt air exposure that corrodes outdoor units. We specify coated coils and anti-corrosion outdoor units for coastal installations — an often-overlooked detail that extends system life by 5-8 years.
Published pricing tiers, written line-item quotes, no hidden fees. We show your cost before and after Clean Heat RI — with $0 for the expired federal credit.
Oil savings of ~$2,200/yr = payback in ~4.2 years. Plus you get central AC included.
From Woonsocket to Westerly — every corner of the Ocean State. Clean Heat RI rebates available statewide.
Providence, Cranston, Warwick, Pawtucket, East Providence
RI EnergyBristol, Warren, Barrington, Tiverton, Little Compton
RI EnergyNarragansett, South Kingstown, Westerly, Charlestown, Richmond
RI EnergyNewport, Middletown, Portsmouth, Jamestown
RI EnergyWoonsocket, Cumberland, Lincoln, North Smithfield, Burrillville
RI Energy / PascoagWarwick, West Warwick, Coventry, East Greenwich
RI EnergyDon't see your town? Call (877) 772-6357. We cover all of Rhode Island for heat pump installation.
Rhode Island electric rates are among the highest in the US. But heat pumps are still 2-3x cheaper per BTU than oil or propane even at these rates — here's why.
Most of Rhode Island
Burrillville
New Shoreham
Based on typical 2,000 sq ft RI home. Heat pump at COP 3.0 (conservative for cold-climate models). Oil at $3.75/gal, 85% boiler efficiency. Actual savings vary by home insulation, usage patterns, and fuel prices.
Three ways to install a heat pump in Rhode Island. Here's how they compare on the factors that matter most in 2026.
| Factor | NuWatt (Direct) | Local HVAC Contractor | National Chain (e.g. One Hour) |
|---|---|---|---|
| Post-25C Honesty | Transparent: $0 federal credit for heat pumps in 2026 | May still quote $2,000 "federal tax credit" from expired 25C | Sales reps often reference expired 25C or vague "federal incentives" |
| Clean Heat RI Expertise | Certified Clean Heat RI contractor — handles full rebate paperwork and point-of-sale discount | Some participate, many skip Clean Heat RI due to certification requirements | Rarely enrolled in Clean Heat RI; may not know about state rebates |
| Manual J Load Calc | ACCA Manual J on every project — right-sized system guaranteed | Often uses "rule of thumb" sizing — leads to oversized systems | Varies; some use Manual J, many use square-footage estimates |
| Cold Climate Expertise | Hyper-Heat systems rated to -13°F, designed for Zone 5A coastal conditions | May install standard heat pumps that lose capacity below 5°F | Limited cold-climate experience; may default to dual-fuel |
| Installation Crews | Own W-2 employees — NATE certified, background-checked | Usually own crews (strongest advantage of local HVAC) | Subcontracted labor, varying quality and accountability |
| Pricing Transparency | Published pricing tiers, written quotes with line items | Pricing varies widely; often no published rates | Opaque pricing, high-pressure in-home sales presentations |
| Warranty & Service | 12-year compressor + 10-year parts + 2-year labor warranty | Manufacturer warranty only; labor warranty varies | Good manufacturer warranties but service via call centers |
We carry three premium brands chosen for their cold-climate and coastal performance in Rhode Island Zone 5A conditions. Every unit we install is ENERGY STAR 6.1 Cold Climate certified and Clean Heat RI eligible.
Best for: Whole-home heating in RI, oil-to-HP conversions, coastal salt air durability
Best for: Budget-conscious whole-home projects, exposed coastal locations, additions
Best for: Gas furnace replacement using existing ducts, homes with central air
Every home is different. Here are the four most common heat pump projects we complete across Rhode Island — with real costs, savings, and Clean Heat RI rebate amounts.
~38% of RI homes still heat with oil at $3.75/gal. A whole-home Mitsubishi Hyper-Heat system eliminates the oil tank, removes combustion risk, and cuts heating costs by 40-60%. Clean Heat RI covers 60% of cost (up to $11,500) applied at point of sale.
RI Energy electric rates are $0.29/kWh, but heat pumps are still 2-3x cheaper per BTU than gas at current prices. Adding 1-2 ductless heads to main living areas handles 60-80% of heating load while adding AC. Your gas furnace kicks in only during deep cold snaps.
Rhode Island's 400 miles of coastline means salt air, wind exposure, and humidity. We pair Clean Heat RI-required weatherization with cold-climate heat pumps using coated outdoor units for corrosion resistance. Income-eligible homes can get 100% covered up to $18,000.
Extending ductwork to a new addition costs $5,000-$10,000. A single ductless mini-split provides heating and cooling for the new space with zero ductwork. Clean, simple, efficient. Clean Heat RI applies even for single-zone installations.
Not sure which project fits your home? Ducted vs. Ductless Guide • Heat Pump vs. Oil • Heat Pump vs. Gas
From first call to warm home in 3-6 weeks. We handle everything — including Clean Heat RI coordination and RI Energy rebate stacking.
In-home or virtual assessment. We evaluate your current heating system, insulation, and home layout. You get a detailed proposal with Manual J calculations and real 2026 pricing — showing your cost after Clean Heat RI.
We schedule your required Home Energy Assessment. The assessor inspects your home and identifies weatherization needs. This step is required for Clean Heat RI eligibility.
Custom system design, equipment ordering, and building permit applications. We coordinate any required weatherization work from the assessment and submit your Clean Heat RI application.
Our own NATE-certified crews install outdoor unit(s), indoor heads or ducted air handler, refrigerant lines, condensate drains, and electrical connections. Coastal installations get corrosion-resistant units.
System testing, homeowner training, thermostat setup. Your Clean Heat RI rebate is applied at point of sale — you only pay the net cost. We also submit RI Energy utility rebate for additional savings.
Pair your heat pump with solar panels and eliminate both your oil bill and your electric bill. NuWatt is one of the few RI contractors that installs both — one crew, one project manager, one warranty.
Honest answers about heat pump installation in Rhode Island — including what's changed for 2026.
Yes. NuWatt Energy holds Rhode Island HVAC and electrical licenses, is a certified Clean Heat RI contractor, a Mitsubishi Diamond Contractor, and NATE-certified. We have completed over 450 heat pump installations across Rhode Island.
No. The Section 25C energy efficiency tax credit expired on December 31, 2025. There is $0 federal credit available for heat pump purchases in 2026. Any contractor quoting you a $2,000 federal tax credit is referencing an expired program. However, Clean Heat RI rebates covering 60% of cost (up to $11,500) are still very much active and are not affected by the federal expiration.
Clean Heat RI covers 60% of total system and installation cost, capped at $11,500 for standard residential customers. Income-eligible households (at or below 150% of State Median Income) can receive 100% coverage up to $18,000, including electrical upgrades. The rebate is applied at point of sale — no waiting for reimbursement. You can also stack RI Energy utility rebates ($400-$1,250/ton) on top of Clean Heat RI.
Mitsubishi Hyper-Heat is our primary recommendation for Rhode Island. Its hyper-heating technology maintains 100% rated capacity at 5°F and continues operating down to -13°F — well below the 0°F to -5°F design temperatures across Rhode Island (Zone 5A). Fujitsu Halcyon XLTH is also excellent, especially for exposed coastal areas, with operation down to -15°F.
A single-zone ductless mini-split costs $3,500-$7,000 installed. A multi-zone whole-home system (3-5 indoor units) costs $18,000-$25,000 before rebates. After Clean Heat RI (60% up to $11,500) plus RI Energy utility rebates ($400-$1,250/ton), a whole-home system typically costs $5,000-$14,000 out of pocket. Oil-to-HP conversions see the fastest payback at 3-5 years.
Manual J is the ACCA-standard method for calculating your home's exact heating and cooling load. It accounts for insulation, window type, orientation, air leakage, and local climate data. Without Manual J, installers guess using "square footage rules" that typically result in oversized systems — which short-cycle, waste energy, and fail to dehumidify properly. Rhode Island's coastal humidity makes proper sizing especially critical. NuWatt performs Manual J on every project.
Yes. Modern cold-climate heat pumps like the Mitsubishi Hyper-Heat operate efficiently down to -13°F. Rhode Island design temperatures range from 0°F (Providence) to -5°F (inland areas), well within the operating range. A properly sized whole-home system can fully replace oil heating. We recommend keeping the oil system as emergency backup during the first winter for peace of mind.
A single-zone ductless mini-split installs in 1 day. A multi-zone whole-home system takes 2-4 days depending on the number of indoor units and whether electrical panel upgrades are needed. From signed contract to installation, lead time is typically 2-4 weeks (longer during peak season). NuWatt handles all permitting and Clean Heat RI paperwork.
Clean Heat RI is funded by ARPA (American Rescue Plan Act). All ARPA funds must be spent by December 31, 2026. Once funds are exhausted or the deadline passes, this program ends. We strongly recommend acting in 2026 while full funding is available. The rebate is applied at point of sale, so there is no waiting for reimbursement.
NuWatt installs heat pumps across all of Rhode Island including Providence Metro, East Bay, South County, Newport County, Northern RI, and Kent County. We serve RI Energy territory (most of the state) as well as Pascoag Utility District in Burrillville. Clean Heat RI rebates are available statewide regardless of which utility serves your home.
Get an honest 2026 quote from a certified Clean Heat RI contractor — no expired tax credit promises, no high-pressure sales. Just real numbers, Manual J sizing, and your full Clean Heat RI rebate applied at point of sale.
Or explore: RI HP Costs • Cold-Climate Guide • Clean Heat RI Rebates • Choosing an Installer