Energy efficiency means using less energy to achieve the same – or better – results. Unlike conservation, which often requires doing less, efficiency allows us to light our homes, stay warm in winter, cool in summer, and power appliances while using less energy. It helps keep our spaces comfortable, healthy, and affordable – and plays a critical role in addressing climate change. Energy efficiency is also different from renewable energy – like solar and wind power – which generate electricity from sustainable energy resources.

Rhode Island Energy, the primary gas and electric utility, administers a wide array of programs that help lower monthly energy bills in homes and businesses using three main tools:

1. Expert Help – Energy advisors provide no-cost home energy assessments and customized recommendations. They help you understand where your energy goes and what upgrades make the most sense.
2. Rebates and Incentives – Rebates and incentives lower the upfront cost of upgrades like insulation, heat pumps, lighting, or appliances.
3. Financing Options – Low-interest loans and on-bill repayment plans help make larger projects possible, from weatherization to full building retrofits.

These programs have significant oversight and must pass cost-effectiveness tests. Learn more at: https://www.rienergy.com/site/ways-to-save/ways-to-save-energy

Rhode Island law requires Rhode Island Energy to pursue energy efficiency whenever it costs less to save energy than to produce or buy it. This principle, called least cost procurement, makes sure customers always get the lowest-cost energy option. 

By prioritizing savings first, Rhode Islanders spend less overall and avoid costly new infrastructure. The effects of energy efficiency in the last decade now cumulatively account for approximately 20% of Rhode Island’s electricity needs. The state’s consistent investments in energy efficiency have resulted in Rhode Islanders paying half as much for its energy supply than they otherwise would have.

Energy efficiency doesn’t just save money – it creates jobs and keeps energy dollars local. Efficiency upgrades support local contractors, electricians, engineers, and building professionals. Lower energy bills give residents and businesses more money to spend on other things, boosting the local economy. In 2024, energy efficiency programs in Rhode Island supported 740 full-time equivalent jobs and 789 local companies, added $259 million to the gross state product, and resulted in $448 million in total benefits to Rhode Islanders. Learn more at: https://eec.ri.gov/data-and-publications/

Even when efficiency upgrades make financial sense, most people face real-world barriers:

• It’s hard to tell where energy is being wasted.
• People don’t always know which upgrades will actually save money.
• Finding contractors and managing projects can take time and effort.
• Upfront costs can be prohibitive without rebates or incentives.

Energy efficiency programs exist to address these barriers, offering no-cost energy assessments, expert assistance, and financial support to make upgrades more practical and affordable.

Energy efficiency is the most cost-effective way to reduce energy use and address climate change. The funds that enable the implementation of the state’s efficiency programs are collected from ratepayers via the Systems Benefit Charge (SBC) on electric and gas bills. Thorough and careful evaluation, planning, and oversight ensure the funds support cost-effective energy efficiency that is less than the cost of supply, as required by the Least Cost Procurement law. Sustained and robust funding is critical to ensure all Rhode Islanders continue to benefit from strong efficiency programs for years to come.

It might seem that way, but in reality the efficiency charge helps lower your total costs. Energy efficiency is the cheapest energy resource available. It costs less to save energy than to buy it. Every $1 invested in energy efficiency returns more than $2 in benefits to Rhode Islanders, including lower bills, local jobs, and cleaner air. In other words, the small charge on your bill funds programs that reduce what we all pay over time.

The American Council for an Energy-Efficient Economy (ACEEE) recently completed a study that estimated the impacts of weatherization on home energy bills. It found that homes that were weatherized saved an average of $372 annually on their utility bills (ACEEE, 2025).

Energy efficiency is a shared benefit – everyone saves when we all use less energy. When efficiency programs lower the state’s total demand for power:

• Electricity prices stay lower for everyone.
• The grid is more reliable and less expensive to maintain.
• Fewer costly power plants and transmission lines are needed.

Even if you’ve already upgraded your home or business or don’t do any upgrades, you still benefit from lower system-wide costs driven by your neighbors’ efficiency improvements. By reducing the state’s demand for power, we drive down the average price and those savings are passed on to all electric customers. The average residential customer in Rhode Island only pays about $6 per month towards energy efficiency programs (Rhode Island Energy, 2025).

That used to be true – utilities once earned more by selling more. But in 2010, Rhode Island changed that model through a policy called decoupling (R.I.G.L § 39-1-27.7.1). Decoupling separates a utility’s profits from the amount of energy it sells. Instead, Rhode Island Energy earns revenue based on maintaining the power grid and helping customers save energy, not for selling more of it.

Rhode Island also offers performance incentives, where Rhode Island Energy can earn a additional revenue if it helps customers save more energy than expected, it. This ensures energy efficiency is a core part of the utility’s mission, by:

• Making energy efficiency a source of earnings rather than just a pass-through expense.
• Putting energy savings on par with other utility investments, like new infrastructure.
• Rewarding measurable success in cutting energy waste and costs for Rhode Islanders.

Together, decoupling and performance incentives make it possible – and profitable – for the utility to be a full partner in helping customers save energy and money.

Using less energy means burning fewer fossil fuels. Energy efficiency is one of Rhode Island’s most effective climate solutions because it directly reduces carbon emissions while improving comfort, affordability, and reliability. As the state transitions to clean energy and electrified heating, efficiency ensures that every kilowatt-hour goes further.