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Month-by-month operating costs for heat pumps across all three RI utilities. Compare to oil, gas, and propane for 1,500-3,000 sqft homes.
$1,807/yr
RI Energy ($0.29)
$2,255/yr
Oil ($3.45/gal)
$448/yr
HP Savings vs Oil
How much does a heat pump actually cost to run each month in Rhode Island? The answer varies dramatically by season — from under $40 in May to over $300 in January. It also depends on which of RI's three utilities serves your home: Rhode Island Energy ($0.29/kWh), Pascoag Utility District ($0.26/kWh), or Block Island Power Company ($0.35/kWh).
We modeled a typical 2,000 sqft Rhode Island home with a properly sized cold-climate heat pump system, calculating month-by-month electricity consumption for heating and cooling, then comparing total annual costs against oil (the most common RI heating fuel at ~30% market share), natural gas, and propane.
No Federal Tax Credit for Heat Pumps in 2026
The Section 25C energy efficiency tax credit expired December 31, 2025. There is no federal credit for heat pump purchases in 2026. Clean Heat RI (ARPA-funded, expires Dec 2026) covers 60% of installation cost up to $11,500. RI Energy utility rebates stack on top.
Based on a properly sized cold-climate heat pump (COP 3.0 average, 2.2 at 0°F). All costs are electricity only for heating and cooling — excludes baseload appliances.
| Month | Avg Temp | kWh | RI Energy | Pascoag | Block Island | Oil | Gas | Propane |
|---|---|---|---|---|---|---|---|---|
| January | 29°F | 1,100 | $319 | $286 | $385 | $500 | $370 | $480 |
| February | 31°F | 980 | $284 | $255 | $343 | $445 | $330 | $425 |
| March | 38°F | 750 | $218 | $195 | $263 | $340 | $250 | $325 |
| April | 48°F | 360 | $104 | $94 | $126 | $160 | $120 | $155 |
| May | 58°F | 120 | $35 | $31 | $42 | — | — | — |
| June | 67°F | 230 | $67 | $60 | $81 | — | — | — |
| July | 73°F | 400 | $116 | $104 | $140 | — | — | — |
| August | 72°F | 370 | $107 | $96 | $130 | — | — | — |
| September | 64°F | 140 | $41 | $36 | $49 | — | — | — |
| October | 53°F | 240 | $70 | $62 | $84 | $110 | $85 | $105 |
| November | 43°F | 580 | $168 | $151 | $203 | $265 | $195 | $255 |
| December | 33°F | 960 | $278 | $250 | $336 | $435 | $320 | $415 |
| Annual Total | \u2014 | 6,230 | $1,807 | $1,620 | $2,182 | $2,255 | $1,670 | $2,160 |
Oil: $3.45/gallon, 85% efficiency. Gas: $1.80/therm, 92% efficiency. Propane: $3.58/gallon, 90% efficiency. Oil and gas costs shown only for heating months (they do not provide cooling).
For a 2,000 sqft RI home on RI Energy ($0.29/kWh). Heat pump provides both heating AND cooling — oil, gas, and propane provide heating only (AC costs additional).
vs Heating Oil
$448/yr
HP: $1,807 vs Heating Oil: $2,255
Oil at $3.45/gal. ~30% of RI homes still use oil.
vs Natural Gas
$-137/yr
HP: $1,807 vs Natural Gas: $1,670
Gas at $1.80/therm. Narrowest savings margin.
vs Propane
$353/yr
HP: $1,807 vs Propane: $2,160
Propane at $3.58/gal. Common in rural RI.
Important: The heat pump cost includes BOTH heating and cooling. Fossil fuel costs are heating only. If you currently use window AC units ($200-$400/year), your total fossil fuel + AC cost is even higher, making the heat pump savings greater.
$0.29/kWh
Annual HP cost: $1,807
~98% of RI
Formerly National Grid RI. Serves most of the state.
$0.26/kWh
Annual HP cost: $1,620
Pascoag village (Burrillville)
Municipal utility. Lowest residential rate in RI.
$0.35/kWh
Annual HP cost: $2,182
Block Island only
Island premium. Still saves vs delivered fuel to Block Island.
| Home Size | HP (RI Energy) | HP (Pascoag) | HP (Block Island) | Oil | Gas | Propane |
|---|---|---|---|---|---|---|
| 1,500 sqft | $1,363 | $1,222 | $1,645 | $1,940 | $1,450 | $1,800 |
| 2,000 sqft | $1,807 | $1,620 | $2,182 | $2,255 | $1,670 | $2,160 |
| 2,500 sqft | $2,260 | $2,025 | $2,728 | $2,825 | $2,113 | $2,700 |
| 3,000 sqft | $2,711 | $2,430 | $3,273 | $3,390 | $2,535 | $3,240 |
Heat pump costs include both heating and cooling. Fossil fuel costs are heating only. Cold-climate heat pump with average COP 3.0 (heating) and SEER2 18+ (cooling).
Winter: Set Back Wisely
Heat pumps work best at steady temps. Set back only 2-3°F at night (not 10°F like a furnace). Large setbacks force costly electric resistance backup.
Summer: Use Dehumidification
RI humidity from Narragansett Bay increases cooling load. Modern heat pumps with dry mode dehumidify more efficiently than running full AC.
Shoulder Seasons: Let It Coast
April, May, September, October are ultra-cheap months ($35-$104). Open windows on mild days and let the heat pump coast.
Insulate & Air Seal First
RI's old housing stock (many pre-1950) leaks heat. Insulation + air sealing can reduce heating costs 20-30%. Clean Heat RI requires weatherization documentation.
Pair With Solar
At $0.29/kWh, offsetting heat pump electricity with solar saves more in RI than almost any other state. A 3-4 kW solar add-on can cover your heat pump's annual consumption.
Use Time-of-Use If Available
RI Energy is exploring TOU rates. If available, pre-heat/pre-cool during off-peak hours to shift load to cheaper electricity periods.
Monthly costs modeled using: Providence weather data (NOAA 30-year averages), cold-climate heat pump with average COP 3.0 (heating) and SEER2 18 (cooling), COP 2.2 below 10°F, heat loss coefficient of 500 BTU/hr/°F for 2,000 sqft (medium insulation typical of RI housing stock), RI Energy ($0.29/kWh), Pascoag ($0.26/kWh), and Block Island Power ($0.35/kWh) 2026 rates. Oil at $3.45/gallon (EIA NE average Jan 2026), gas at $1.80/therm, propane at $3.58/gallon. Fossil fuel efficiencies: oil 85%, gas 92%, propane 90%. Heating degree days and cooling degree days from NOAA Providence.
A heat pump in Rhode Island costs approximately $35-$319 per month depending on the season and your utility. For a typical 2,000 sqft home on RI Energy ($0.29/kWh): January (peak winter) costs ~$319/month, July (peak summer) costs ~$116/month, and shoulder months (May, September) cost $35-$41/month. Annual total is approximately $1,807 for RI Energy customers, $1,620 for Pascoag, and $2,182 for Block Island.
Yes, significantly. A heat pump costs approximately $1,807/year for a 2,000 sqft RI home (RI Energy rate) compared to $2,255/year for heating oil at $3.45/gallon. That is a savings of about $448/year on heating alone. The heat pump also provides air conditioning, which oil furnaces cannot. Including eliminated AC window unit costs ($200-$400/year), total annual savings are $650-$850. Oil is very common in RI — about 30% of homes still heat with oil.
RI Energy ($0.29/kWh) serves ~98% of the state. Pascoag Utility District ($0.26/kWh) serves the village of Pascoag in Burrillville — their customers save about $187/year on heat pump operating costs vs RI Energy customers. Block Island Power Company ($0.35/kWh) has the highest rate — their customers pay about $375/year more. Block Island homeowners still save significantly vs delivered fuel costs on the island.
May and September are the cheapest months at approximately $35-$41/month on RI Energy. These shoulder months require minimal heating or cooling — the heat pump barely runs. The most expensive month is January at approximately $319/month when the system runs almost continuously for heating.
In peak winter months (December-February), a heat pump for a 2,000 sqft RI home adds approximately $278-$319/month to your electric bill on RI Energy rates. However, this replaces your entire heating fuel cost. If you were spending $400-$500/month on oil in winter, your net savings are $80-$220/month even in the coldest months. Spring and fall heating months add only $70-$218/month.
Yes. A heat pump costs approximately $1,807/year vs propane at approximately $2,160/year for a 2,000 sqft RI home — a savings of about $353/year. Propane at $3.58/gallon is the most expensive common heating fuel in RI. With Clean Heat RI rebates covering 60% of heat pump installation cost, the payback on switching from propane is typically 4-6 years.
Yes. Modern cold-climate heat pumps (ENERGY STAR 6.1 rated) operate efficiently to -13 to -15°F. Rhode Island's coastal climate is milder than inland New England — Providence averages 29°F in January, rarely dropping below 5°F. The heat pump operates at COP 2.2-2.5 even on the coldest RI days, meaning it produces 2.2-2.5 BTU of heat for every BTU of electricity consumed. That is still more efficient than any fossil fuel system.