At National Refrigeration, we’re committed to helping Rhode Island homeowners install high-quality, energy-efficient HVAC and water heating systems while maximizing savings. One of the best ways to reduce costs is by taking advantage of rebates and incentives, which can significantly lower the upfront investment and provide long-term energy savings.
This guide covers the available rebates, incentives, and financing options in Rhode Island, along with how to apply so you can start saving today.
Rebates and incentives can change due to funding availability and policy updates. For example, the Clean Heat Residential Incentive Program stopped accepting new applications as of January 15, 2025. However, most other rebates are still available through the end of 2025—but they are expected to decrease annually. If you’re considering an upgrade, now is the time to lock in the best savings before they diminish.
Is it the right time to upgrade your HVAC system or water heater?
If you are debating whether to replace your aging system, consider the hidden costs of keeping it:
✔ Higher Utility Bills: Older systems consume more energy, leading to increased monthly expenses.
✔ Reduced Comfort: Temperature inconsistencies and declining performance can make your home less comfortable.
✔ Frequent Repairs: As your system ages, repair costs can quickly add up—often making replacement the smarter financial choice.
Upgrading to a high-efficiency HVAC system or water heater reduces energy use, lowers your environmental impact, improves comfort, and saves you money over time.
What rebates are available in Rhode Island?
Rhode Island offers rebates through utility companies and state programs like Clean Heat Rhode Island and Rhode Island Energy. Here is a breakdown of available incentives:
Air Source Heat Pumps
Air source heat pumps are an energy-efficient way to heat and cool your home. Rebates include:
- Rhode Island Energy: $150–$1,000 per ton of equipment capacity, depending on your current heating type.
- Pascoag Utility District: $350–$700 rebate based on system specifications.
- Block Island Power Company: $250 per ton rebate.
Ground Source (Geothermal) Heat Pumps
Geothermal heat pumps offer even greater efficiency by utilizing the earth’s stable temperature. Currently, there is a $1,250 rebate per ton for ENERGY STAR-certified systems.
Water Heaters
- High-Efficiency Electric Heat Pump Water Heater: Rebates up to $600 are available for ENERGY STAR-certified equipment that replaces an existing electric water heater or is installed in new construction.
- Split-System Heat Pump Water Heater: Rebates up to $1,500 for ENERGY STAR-certified water heaters with UEF 2.20.
- Combination Condensing Boiler and On-Demand Water Heater Unit: A $1,400 rebate is available for high-efficiency condensing boilers combined with on-demand water heating.
- On-Demand and Storage Water Heaters: Rebates up to $600 are available for high-efficiency natural gas water heaters.
Furnaces and Boilers
For those who are not ready to switch to heat pumps, rebates are available for high-efficiency furnaces and boilers. Through Rhode Island Energy, you can receive up to $800 for boilers and $600 for furnaces in rebates.
Who is eligible to take advantage of these rebates?
Most Rhode Island homeowners can qualify, though some incentives are income-based. Key eligibility requirements include:
- Efficiency Standards: Equipment must meet specific SEER (Seasonal Energy Efficiency Ratio) or HSPF (Heating Seasonal Performance Factor) ratings or, in some cases, be ENERGY STAR-certified
- Licensed Contractor Installation: Most programs require installation by a certified contractor in the Clean Heat Rhode Island Installer Network.
What tax credits are available?
In addition to state rebates, federal tax credits can further reduce costs. Homeowners can claim 30% of project costs for air-source or ground-source heat pumps, up to $2,000. Tax credits are valid for installations completed between January 1, 2023, and December 31, 2032.
How do I apply to these programs?
Applying for rebates and incentives is straightforward but requires careful documentation:
- Consult a Contractor: Choosing to get help from a licensed contractor who understands Rhode Island’s rebate programs can streamline the process and minimize errors, ensuring you successfully apply for and receive funds.
- Choose Eligible Equipment: Ensure the system you’re considering meets efficiency requirements.
- Submit Documentation: Fill out the necessary forms provided by your utility company or the Clean Heat RI program.
- Post-Installation Verification: Some programs require quality assurance checks after installation.
With the right planning, you can upgrade to a high-efficiency HVAC system or water heater at a fraction of the cost. Rebates, incentives, and tax credits make now the best time to invest in your home’s energy efficiency.
Please note- we do our best to keep our web pages up-to-date with the latest rebates and incentive programs, they are subject to change and the information on this page may become out-of-date. We verify rebate offerings when a job is contracted and make you aware of any time-sensitive information.
If you are looking for expert advice about your HVAC options in New England, contact the National Refrigeration team, and we will find the right solution for you.
Whether you need 24-7 emergency service or advice on improving your everyday air quality and comfort—at home and work—call us at 401-737-2000 or email us.
