Office of Energy Resources Announces New $11.5 Million Heat Pump Program for Small Multifamily Buildings

Published on Monday, November 02, 2026

New incentives will support heat pump installations in two- to four-unit residential buildings for low- and moderate-income households

PROVIDENCE, R.I. – The Office of Energy Resources (OER) today announced a new $11.5 million heat pump program, which will support small multifamily households. The program will reduce the cost of energy-efficient heating and cooling systems in eligible low- and moderate-income buildings statewide.

The Rhode Island Small Multifamily Heat Pump Pilot will provide financial incentives to eligible low- and moderate-income households in residential buildings with two to four attached units. The pilot aims to reduce upfront installation costs while expanding equitable access to clean energy technologies. It is funded through the Accelerator's grant and pilot program, which provides $90 million for local and statewide projects that address barriers to residential heat pump adoption among low- and moderate-income households and communities. State pilots, including Rhode Island’s, are long-term, large-scale projects designed to overcome systemic barriers to residential heat pump adoption. The Accelerator is funding one or two multiyear pilots in each coalition state.

“Making home improvements more affordable and accessible is important to Rhode Island families,” said Gov. Dan McKee. “This program will help residents in smaller multifamily buildings make needed heating and cooling upgrades by easing the upfront cost of installation and making their homes more comfortable.”

“This is one hundred percent federal funding that I was proud to help enact to help insulate more Rhode Islanders against high energy costs. Today, all Rhode Islanders are facing higher energy bills, especially those who rely on heating oil, which is far more expensive than last year. This investment will help start to take the sting out of those higher costs for many households,” said U.S. Senator Jack Reed.

“Getting more heat pumps in homes is a win-win for consumers and the environment,” said U.S. Senator Sheldon Whitehouse. “Thanks to this pilot program, Rhode Islanders can save money on their energy bills while doing their part to fight climate change.”

“Rhode Islanders should not have to choose between heating their homes and putting food on the table this winter,” said Congressman Seth Magaziner. “We have a responsibility to bring down energy costs, and I am pleased to celebrate this $11.5 million to help Rhode Island households install more affordable heating and cooling systems to lower monthly utility bills for working people.”

“With energy costs rising and winter coming soon, we need to invest in programs that help Rhode Islanders afford to heat their homes,” said Congressman Gabe Amo. “This $11.5 million federal investment will help lower-income Rhode Islanders access efficient heating and cooling while keeping more money in their pockets.”

“Retrofitting smaller multifamily properties presents practical challenges, including coordinating heat pump installations among multiple households and completing necessary weatherization improvements,” said Acting Office of Energy Resources Commissioner Chris Kearns. “By delivering targeted heat pump incentives through Clean Heat RI, we can help address those barriers, support an important sector of the state’s clean energy economy, and advance emission reduction objectives.”

Program Eligibility and Incentives

The program will provide incentives to income-eligible residents of residential buildings with two to four attached units. Incentives are based on household income and eligibility requirements:

• Low-income households (0%–80% of area median income): 100% of eligible heat pump system and installation costs covered, up to $16,000 per housing unit.
• Moderate-income households (81%–150% of area median income): 60% of eligible heat pump system and installation costs covered, up to $16,000 per housing unit.
• Moderate-income Aquidneck Island gas customers: 100% of eligible heat pump system and installation costs covered, up to $16,000 per housing unit.
• Moderate-income Narragansett tribal members: 100% of eligible heat pump system and installation costs covered, up to $16,000 per housing unit.
• To maximize energy savings, efficiency, and home comfort, participating households must meet program weatherization requirements before receiving incentives. Rental properties will also require landlord approval before heat pump systems can be installed.

Heat pumps provide energy-efficient heating and cooling through a single electric system, helping households reduce their reliance on fossil fuel heating equipment while improving year-round home comfort.

The program will be administered through OER's existing Clean Heat Rhode Island program, which provides incentives to help residents transition from fossil fuel heating systems to energy-efficient electric heat pumps. For additional information about the program, visit https://cleanheatri.com/small-multifamily-heat-pump-pilot/.

 About the New England Heat Pump Accelerator

The New England Heat Pump Accelerator works with distributors, contractors, participating state entities, program administrators, and community organizations to bring efficient, affordable heating and cooling to the region. Through December 2029, the program will expand and accelerate heat pump adoption in homes across Rhode Island, Connecticut, Maine, Massachusetts, and New Hampshire through market growth driven by local innovation and educational connections. This program is collaboratively led by the Connecticut Department of Energy and Environmental Protection in partnership with the Rhode Island Office of Energy Resources, the Massachusetts Department of Energy Resources, the Maine Department of Energy Resources with the Efficiency Maine Trust, and the New Hampshire Department of Environmental Services. Program administration is led by VEIC in coordination with an experienced multistate team of implementers. For more information, visit www.NEHPA.org.