Governor McKee and Rhode Island Office of Energy Resources Announce $10 Million for Next Round of Clean Heat RI Program to Support Moderate- and Low-Income Households

Published on Thursday, July 24, 2025

PROVIDENCE, RI – Governor Dan McKee and the Rhode Island Office of Energy Resources (OER) today announced $10 million in new funding for Clean Heat RI, the state’s flagship heat pump incentive program. This next phase will prioritize support for moderate- and low-income households, helping more Rhode Islanders save on costs by transitioning to clean, energy-efficient electric cooling and heating.

Funded through proceeds from the Regional Greenhouse Gas Initiative (RGGI), this round of incentives will support the installation of air-source heat pumps, heat pump water heaters, and necessary electrical upgrades. Eligible low-income households can continue to receive up to 100% of project costs, while moderate-income households—defined as earning up to 150% of the state’s Area Median Income (AMI)—are newly eligible if they currently heat with oil, propane, or natural gas.

“Since launching Clean Heat RI in September 2023, many households in Rhode Island have updated their long-term heat and cooling needs while saving on energy costs,” said Governor Dan McKee. “The expansion of Clean Heat RI will help more families modernize their energy systems while advancing the state’s clean energy economy.”

“Clean Heat RI has already helped thousands of Rhode Islanders access efficient heating and cooling technologies,” said Acting Office of Energy Resources Commissioner Chris Kearns. “This next round of funding ensures we can continue expanding access to households across the state, particularly for vulnerable income eligible households, and advance our Act on Climate objectives.”

All applicants must complete a Home Energy Assessment with and provide documentation of completed weatherization upgrades to qualify for cost-saving incentives. Here is the link to the free Home Energy Assessment:

Clean Heat RI is administered by Abode Energy Management on behalf of OER. Program guidelines, application instructions, and income eligibility thresholds are available at CleanHeatRI.com.

Summary of New Incentives:

Moderate-Income Incentives

Available to households earning up to 150% of Area Median Income (State AMI). Income verification will be verified via iVerify via the application’s website
Project cost covered up to 60%
Upgrading from heating with oil, propane or natural gas
Seek to install air-source heat pumps for space heating, cooling or domestic hot water
Have completed required weatherization measures as recommended through a Home Energy Assessment

Low-Income Incentives

Applicants from the existing program waitlist will be served first

100% of project costs covered (including electrical upgrades).
Upgrading from heating with oil, propane or natural gas.
Seek to install air-source heat pumps for space heating, cooling or domestic hot water.
Have completed required weatherization measures through as recommended through a Home Energy Assessment via the Weatherization Assistance Program (WAP).

Background:

Clean Heat RI launched in September 2023 with $25 million in American Rescue Plan Act federal funding. The original program supported residential, low-income, small business, and nonprofit installations.

As of June 30, 2025:

Standard residential incentives: $10.4 million distributed, 3,740 households served
Commercial/nonprofit incentives: $3.9 million distributed, 186 projects completed
Low-income incentives: $5.4 million distributed, 158 households served (additional low-income projects will continue through early 2026)

To apply or learn more, visit www.CleanHeatRI.com.