Gas and Electric Water Heating Rebates
Rhode Island EnergyLearn about qualifying equipment and rebates
Rhode Island EnergyGas water heaters
Take advantage of rebates of up to $600 on qualifying on-demand and storage water heaters.
Combination gas heating and water heating units
One solution for all your space and water heating needs. Save up to $1,000 for qualifying units.
Electric heat pump water heaters
Save with rebates of up to $600 for qualifying electric heat pump water heaters.
Choose the right time to upgrade
Avoid the uncertainties of an aging water heater. Now is a great time to check the age and health of your current equipment. Use this chart to see if it's time for you to switch to the savings, comfort, and peace of mind of a high-efficiency model.
| Types of water heaters | Average effective unit life span (years) |
| Heat pump water heater | 10 |
| Storage water heater (gas) | 15 |
| On-demand water heater | 20 |
Limited time rebate: save money with a heat pump water heater
You may qualify for a rebate when you upgrade to a heat pump water heater, making this energy-saving technology even more affordable. The heat pump water heater must replace an existing electric water heater or be installed for the first time in a newly constructed home. This special offer is not available for replacement of oil, propane, or gas water heating units. To learn more, please call 1-844-615-8315.
| Electric Heat Pump Water Heater Rebate | Enhanced Rebate (for installation from 9/1/25 - 10/15/25) |
Regular Rebate (for installations from 10/16/25 - 12/31/25 and 1/1/25 -8/31/25) |
| 55 gallons or less and Uniform Energy Factor (UEF) of 3.3 or more | $800 rebate* | $600 rebate |
| Greater than 55 gallons and Uniform Energy Factor (UEF) of 2.2 or more | $300 rebate* | $150 rebate |
*Rebate form must be postmarked or submitted online by 1/15/26.
The heat pump water heater must replace an existing electric water heater or be installed for the first time in a newly constructed home. This special offer is not available for replacement of oil, propane, or gas water heating units. To learn more, please call 1-844-615-8315.
In addition to up to $800 in rebates from Rhode Island Energy, you can also take advantage of federal tax credits of 30% of the project cost up to $2,000 to save even more on your heat pump water heater.
Heat pump water heaters use electricity to move heat instead of creating it, making them up to three times more efficient than standard electric models. They draw warmth from the surrounding air and transfer it into a storage tank of hot water. For best performance, install these systems in basements or utility rooms with plenty of clearance, since they lose efficiency in small, enclosed areas.
Note: This information does not represent tax or legal advice. Please consult your tax advisor for further details.