Clean Heating & Cooling Incentives

Rebates and incentives for Rhode Islanders looking to install high-efficiency, fossil-free heating, cooling, and hot water systems are available through the utility providers. Please refer to the following links below, to be redirected to incentive information from your utility provider.

Clean Heat RI

Air source heat pumps: $1,000/ton incentive
Heat pump water heaters: $750 incentive

For more information about available incentives and applications for Clean Heat RI, please visit the Clean Heat RI website.

Federal Heat Pump Tax Credits

You can claim 30% of project costs for air-source and ground-source heat pumps.
A maximum credit amount of $2,000 available for air-source heat pumps
Effective for products purchased and installed between Jan. 1, 2023 - Dec. 31, 2032

Please visit the IRS website here for more information.

Rhode Island Energy

Air source heat pumps: $150-1,000 per ton of equipment capacity, depending on your current heating type. Please refer to Rhode Island Energy’s website for detailed incentive information.
Heat pump water heaters: up to $600 rebate. Please refer to Rhode Island Energy’s website for detailed incentive information.

Pascoag Utility District

Air source heat pumps: $350-700 rebate
Heat pump water heaters: up to $450 rebate

Information and application for both incentives can be found on PUD’s website, here.

Block Island Power Company

Air source heat pumps: $250/ton rebate
Heat pump water heaters: up to $300 rebate

Find rebate forms and incentive information on BIPC’s website, here, and contact them directly for any special offers.