Rhode Island Rebates

Rhode Island homeowners may be able to use Clean Heat RI, Rhode Island Energy rebates, and other utility incentives to reduce the cost of installing a high-efficiency heat pump. Clean Heat RI currently offers 60% of eligible heat pump system and installation costs, capped at $11,500 for space heating systems.

Not necessarily. Clean Heat RI serves residents who currently heat with oil, propane, or natural gas and want to transition to heat pumps after completing weatherization work on their home. There is a standard tier open to most homeowners and a separate income-eligible tier. 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.

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. Your primary incentives are now RI Energy ($600 for water heaters) and Clean Heat RI — both are direct rebates, not tax credits, and are unaffected by the federal expiration.

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. For 2026 installations, only systems listed on the active RI Energy Qualified Product List will be eligible for heat pump incentives, and 2026 heat pumps must use A2L refrigerants.

The HEAR (Home Electrification and Appliance Rebate) low-income pathway offers up to $8,000 for households at or below 80% AMI. Rhode Island was the first state in New England to launch this pathway, in September 2024. It is stackable with Clean Heat RI. The moderate-income HEAR pathway is expected to launch in late 2025.

Yes. Clean Heat RI offers a flat $2,500 incentive for qualifying heat pump water heaters. The heat pump water heater incentive is separate from the space heating system cap and may be combined with a qualifying heat pump installation, subject to the total property cap.

In most cases, the homeowner must submit the rebate application directly. However, Prime Heating & Cooling can help make the process easier by providing the required documentation, including detailed invoices, equipment information, and any contractor forms needed for the program. This page will also guide you to the correct rebate resources for Rhode Island, Massachusetts, and Connecticut.