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Rhode Island has some of the most generous heat pump rebates in New England. Clean Heat RI covers 60% of your cost (up to $11,500), and income-eligible households can receive 100% coverage (up to $18,000). Plus, HEAR low-income rebates of $8,000 have been active since September 2024 — RI was the first state in New England to launch. This guide breaks down every rebate, how to stack them, and the critical ARPA deadline.
Clean Heat RI (Standard): 60% of cost, max $11,500
Clean Heat RI (Income-Eligible): 100% of cost, max $18,000
RI Energy Utility: $400/ton (fossil fuel) or $1,250/ton (electric resistance)
HEAR Low-Income: Up to $8,000 (ACTIVE since Sept 2024)
HEAR Moderate-Income: Up to $4,000 (under development)
Federal 25C: Expired December 31, 2025 — $0 available
All rebates stackable. ARPA funding deadline December 31, 2026. Rebate applied at point of sale.
The $2,000 federal 25C heat pump tax credit expired December 31, 2025 under the OBBBA. No federal tax credit for residential heat pumps in 2026. This makes state and utility rebates even more critical.
Rhode Island was the first state in New England to launch the HEAR low-income pathway in September 2024. Up to $8,000 for households at or below 80% AMI. Stackable with Clean Heat RI. The moderate-income tier ($4,000) is under development.
Clean Heat RI is funded by ARPA (American Rescue Plan Act). All funds must be obligated by December 31, 2026. Once exhausted or the deadline passes, this program ends. Apply early to secure your rebate.
Clean Heat RI offers two tiers based on household income. Both are applied at the point of sale — your approved contractor deducts the rebate directly from your invoice.
Up to $11,500 maximum
Up to $18,000 maximum
Heat Pump Water Heaters: Clean Heat RI also covers heat pump water heaters with a $2,500 rebate (included in income-eligible tier). RI Energy offers a separate $800 utility rebate for HPWH that can be stacked on top.
Rhode Island Energy (formerly National Grid RI) offers per-ton heat pump rebates that stack on top of Clean Heat RI. The amount depends on what fuel source you are replacing.
| Rebate Type | Amount | Notes |
|---|---|---|
| Replacing fossil fuel (oil, propane, gas) | $400/ton | Per ton of heat pump capacity |
| Replacing electric resistance | $1,250/ton | Per ton of heat pump capacity |
| Heat pump water heater | $800 | Flat rebate, stackable with Clean Heat RI |
Pascoag Utility District (Burrillville) and Block Island Power Company (New Shoreham) have their own per-ton rebate rates that differ from RI Energy. Pascoag offers $350/ton (fossil fuel) and $700/ton (electric resistance). Block Island offers $250/ton regardless of fuel source. Contact your utility directly for current rates. Clean Heat RI and HEAR rebates are still available to all RI residents regardless of utility.
The Home Electrification and Appliance Rebates (HEAR) program is funded by the Inflation Reduction Act. Rhode Island received $31.8 million in HEAR funding and was the first state in New England to launch the low-income pathway in September 2024.
The Clean Heat RI income-eligible tier uses 150% of State Median Income (SMI) as the threshold. If your household income is at or below these amounts, you qualify for 100% coverage up to $18,000.
| Household Size | 150% SMI Income Limit |
|---|---|
| 1 person | $124,950 |
| 2 people | $142,800 |
| 3 people | $160,650 |
| 4 people | $178,500 |
| 5 people | $196,350 |
| 6 people | $214,200 |
| 7 people | $232,050 |
| 8 people | $249,900 |
HEAR uses AMI (Area Median Income) thresholds, which vary by county and are different from the SMI thresholds above. Low-income HEAR eligibility is at or below 80% AMI. Contact the RI Office of Energy Resources or your local Community Action agency to determine your HEAR eligibility.
Use our calculator to estimate your total rebates from Clean Heat RI, RI Energy, and HEAR based on your system size, fuel source, and income level.
Typical range: $8,000 – $22,000
3 tons
ARPA Deadline: Clean Heat RI funds must be spent by December 31, 2026. Apply early — once funds are exhausted, the program ends.
Estimates based on Clean Heat RI and RI Energy 2026 program rates. Actual rebate determined at time of installation. Federal 25C tax credit expired Dec 31, 2025 — not included.
Rhode Island allows full stacking of Clean Heat RI + RI Energy + HEAR rebates. Here are three real-world scenarios showing total savings for a typical 3-ton system.
3-ton ducted system, $15,000 install cost
3-ton ducted system, $15,000 install cost
Rebates exceed cost. Low-income households can often get heat pumps at zero out-of-pocket cost.
3-ton ducted system, $16,000 install cost
Income-eligible tier covers 100% of cost. Excess utility rebates may offset panel upgrades.
Contact RI Energy or an approved contractor to schedule your no-cost Home Energy Assessment. This evaluates insulation, air sealing, and heating needs.
If the assessment identifies weatherization needs (insulation, air sealing), complete these before or alongside your heat pump installation. Income-eligible households can have this covered by the program.
Select a contractor from the Clean Heat RI approved list. They must handle the rebate paperwork and apply the discount at point of sale.
Your contractor will perform a Manual J load calculation to properly size the system. Get a detailed quote showing the Clean Heat RI rebate deducted.
Your contractor installs the system and submits the rebate application. The Clean Heat RI rebate is applied at point of sale — you pay the net cost, not the full amount.
If income-eligible, apply for HEAR through the RI Office of Energy Resources. RI Energy utility rebates are typically processed through your contractor or a separate application.
Clean Heat RI is a state-funded rebate program that covers 60% of your heat pump system and installation cost, up to a maximum of $11,500 for standard-income households. Income-eligible households (at or below 150% of State Median Income) can receive 100% coverage up to $18,000. The rebate is applied at the point of sale — you do not have to pay upfront and wait for reimbursement. The program is funded by ARPA and expires December 31, 2026.
No. The federal Section 25C Energy Efficient Home Improvement Credit expired on December 31, 2025 under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. There is no federal tax credit for residential heat pump purchases in 2026. Clean Heat RI, HEAR rebates, and RI Energy utility rebates are now the only incentives available.
HEAR (Home Efficiency Rebates, also called the Home Electrification and Appliance Rebates) is a federal program funded by the Inflation Reduction Act. Rhode Island was the first state in New England to launch the low-income pathway in September 2024. Low-income households (at or below 80% AMI) can receive up to $8,000 for heat pumps. The moderate-income pathway ($4,000) is under development. HEAR rebates can be stacked with Clean Heat RI and RI Energy utility rebates.
Yes. Rhode Island allows stacking of Clean Heat RI, RI Energy utility rebates ($400/ton from fossil fuel, $1,250/ton from electric resistance), and HEAR federal rebates. A low-income household replacing oil heat with a 3-ton system could potentially receive $11,500 (Clean Heat RI) + $1,200 (RI Energy) + $8,000 (HEAR) = $20,700 in total rebates, potentially covering the entire cost of installation.
The income-eligible tier is for households at or below 150% of State Median Income (SMI). For 2026, the thresholds are: 1-person household $124,950, 2-person $142,800, 3-person $160,650, 4-person $178,500. Income-eligible households receive 100% coverage up to $18,000 including electrical panel upgrades and weatherization.
Clean Heat RI is funded by ARPA (American Rescue Plan Act) and all funds must be obligated by December 31, 2026. However, the program could end earlier if funds are exhausted before the deadline. We recommend applying as soon as possible to secure your rebate.
Equipment must be ENERGY STAR 6.1 Cold Climate certified. This includes ductless mini-splits, ducted heat pumps, and hybrid systems from brands like Mitsubishi Hyper-Heat, Fujitsu Halcyon XLTH, LG Red Series, Daikin, Carrier Greenspeed, and Bosch IDS 2.0. Your Clean Heat RI approved contractor can confirm which models qualify.
Yes. Clean Heat RI requires a Home Energy Assessment and weatherization documentation before the heat pump installation. This assessment evaluates your home's insulation, air sealing, and overall efficiency to ensure the heat pump system is properly sized and your home is ready for it. The assessment is typically provided at no cost through the program.
RI Energy (formerly National Grid RI) offers per-ton rebates that stack on top of Clean Heat RI. If you are replacing fossil fuel heating (oil, propane, gas), you receive $400/ton. If replacing electric resistance heating, you receive $1,250/ton. Heat pump water heaters qualify for a separate $800 rebate. These are in addition to your Clean Heat RI rebate.
Pascoag Utility District and Block Island Power Company customers are still eligible for Clean Heat RI and HEAR rebates, but their utility-specific per-ton rebates differ from RI Energy. Pascoag offers $350/ton (fossil fuel) and $700/ton (electric resistance). Block Island offers $250/ton regardless of fuel source. Contact your utility for current rates.
Clean Heat RI rebates are applied at the point of sale, meaning the rebate is deducted from your installation cost before you pay. You do not have to pay the full amount upfront and wait for reimbursement. Your approved contractor handles the rebate application and applies the discount directly to your invoice.
HEAR uses Area Median Income (AMI) thresholds, which vary by county. Low-income (up to 80% AMI) qualifies for up to $8,000 — this pathway is active in RI since September 2024. Moderate-income (80-150% AMI) qualifies for up to $4,000 — this pathway is under development. Contact your local Community Action agency or the RI Office of Energy Resources to check your eligibility.
Full pricing breakdown after rebates.
Performance in RI coastal winters.
Oil at $3.45/gal vs heat pump savings.
Propane at $3.58/gal comparison.
Clean Heat RI contractor checklist.
Check if you qualify for 100% coverage.
ARPA funding ends December 31, 2026 — and funds may run out sooner. NuWatt Energy helps Rhode Island homeowners navigate Clean Heat RI, HEAR, and utility rebates to maximize savings on heat pump installations.