Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed
The first New England state to launch the electrification rebates — and it runs a separate state program that funds exactly the fuel switching the federal one is dropping.
Prices pulled August 16, 2026
29.46¢
per kWh, residential electricity
70% above the national average of 17.3¢. 4th most expensive of 51.
Up 32% since 2021 (7.2% a year), against 27% nationally.
$2.09
per therm, residential natural gas
$21.66 per thousand cubic feet, 2024 annual. National average $1.48/therm.
Up 34% since 2021 (7.6% a year).
Heat pump vs. gas furnace — Close call
Rhode Island's electricity-to-gas price ratio works out at 4.1-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
Rhode Island moved early. The Office of Energy Resources launched the income-eligible pathway of the electrification rebate program in September 2024, ahead of the rest of New England, with a retail pathway scheduled for 2026. The whole-home efficiency track is a separate application still awaiting federal approval to launch.
The mechanic here is a coupon, and the order matters enormously. Rhode Islanders must apply and be pre-approved before using a coupon to buy an eligible product. Buy the appliance first and you have not made an early start — you have disqualified the purchase. This is the single most common way people lose a rebate they were entitled to.
Separately, Clean Heat RI is a state program, not a federal one, and it exists specifically to move households off oil, propane and gas onto heat pumps. That is worth noticing right now: federal guidance is withdrawing support for fuel switching under the electrification rebates, while Rhode Island's own program is built around it. The funding source shifted too — the original federal recovery money has been fully allocated, and the program now draws on the state's share of the Regional Greenhouse Gas Initiative.
Clean Heat RI expects weatherization first. It serves people who have already completed weatherization work and then want to move to heat pumps for heating, cooling or hot water. That sequencing is good engineering rather than bureaucracy — sizing a heat pump to a leaky envelope means buying more machine than you need and paying to run it for twenty years — but it does mean the project is two stages, and the first one takes time.
Installers work through a Heat Pump Installer Network, and the income-eligible side has run a waitlist. Ask where you stand in the queue before you plan around a date.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Electrification rebates: income-eligible pathway live since September 2024, retail pathway scheduled for 2026. You must apply and be pre-approved before using a coupon to buy. The whole-home efficiency track is pending federal approval.
Program detailsA state program moving households off oil, propane and gas to heat pumps, now funded through the Regional Greenhouse Gas Initiative. Expects weatherization to be done first; installers come from an approved network; income-eligible applicants may face a waitlist.
Program detailsEnded. No credit for expenditures made after 31 December 2025.
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
These open with Rhode Island's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
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