Gas and Electric Water Heating Rebates
Rhode Island EnergyLet the savings, comfort, and efficiency flow
Upgrade your home with high-efficiency water heating equipment and you may qualify for a rebate from Rhode Island Energy. Learn about eligible rebates, download an application, or apply online. To qualify, eligible equipment must be installed by a licensed contractor or plumber between January 1, 2026 and December 31, 2026.

Learn about qualifying equipment and rebates
Rhode Island Energy
Gas water heaters
Take advantage of rebates of up to $600 on qualifying gas on-demand tankless and storage water heaters. High-efficiency gas water heating solutions save energy and money while benefiting the environment. There are two types of gas water heaters: on-demand and storage. On-demand, or tankless, water heaters pass cold water by a heat source, like a gas burner, when a tap is turned on. Storage water heaters hold a tank full of water that is kept hot at all times.

Combination gas heating and water heating units
Save up to $950 on a combined condensing boiler and on-demand water heating unit. The all-in-one design eliminates the need for separate appliances, saving space. When you turn on a hot water tap, the combi boiler prioritizes heating that water instantly. When space heating is needed, it switches to circulating heated water through your home's heating system.

Electric heat pump water heaters
Save with rebates of up to $625 for qualifying electric heat pump water heaters. These units run up to four times more efficiently than standard electric resistance water heaters, moving heat from the surrounding air into a storage tank instead of generating it directly. For best performance, install these systems in basements or utility rooms with plenty of clearance. Download our heat pump water heaters informational sheet (pdf) to learn more about 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 |
Operate your water heater more efficiently
- Make sure you’re using the right size water heater. If the system is too small, your water is constantly being heated and the system is overworked. Your contractor or plumber can let you know the right size water heater for your home.
- Drain sediment from your water heater tank. Sediment build-up shortens the life of your water heater and reduces its efficiency. Consult your owner’s manual for more information.
- Lower your water heater’s temperature to 120 degrees. For every ten degrees lowered, you can expect to save up to 5% on energy costs.