New Report Finds Rhode Island’s Electric Rates Overcharge Many Heat Pump Customers

September 1, 2026 (Providence, RI) — Rhode Island is encouraging more families to install energy-efficient heat pumps because they can lower energy bills, improve air quality and reduce climate pollution. Yet many households that make the switch aren’t seeing as much savings as they should because the state’s electric rates charge them more than it costs the utility to serve them.

A new independent analysis by Switchbox, commissioned by Environmental Defense Fund, Conservation Law Foundation, Green Energy Consumers Alliance, Acadia Center, and Sierra Club finds that Rhode Island’s current electric rates systematically overcharge many households that use heat pumps. The report, Heat Pump Rates in Rhode Island: Analysis of Fair Rates for Heat Pump Customers, shows those households often pay more than they should while effectively subsidizing an outdated fossil fuel heating system. The report recommends a dedicated heat pump rate that better reflects the actual cost of serving heat pump customers, helping more households save money while making heat pumps more accessible.

“Rhode Island’s 2025 Climate Action Strategy underscores the need for a dramatic increase in heat pump adoption,” said Emily Koo, Senior Policy Advocate & Rhode Island Program Director at Acadia Center. “An equitable electric rate for heat pump customers is foundational to transforming the way that we heat our buildings and support affordability.”

To read the full press release from Conservation Law Foundation, click here.