Accurate estimation of energy deposition is important in core physics and severe accident analyses for design optimizations. In this study, a new energy deposition treatment is implemented in the Reactor Monte Carlo (RMC) code, offering multiple modes with varying levels of fidelity and computational requirements. The most precise mode is utilized in coupling simulations between RMC and the subchannel thermal-hydraulic analysis code SUBCHAN, incorporating an explicit moderator heating fraction in the coupling interface. The new treatment is verified against references from MCNP, Serpent, and OpenMC for three light water reactor (LWR) assembly cases, and great agreement is achieved. Energy deposition in different materials and components is emphasized in Kilowatt Reactor Using Stirling TechnologY (KRUSTY) modeling, and the results obtained using different modes are compared. The RMC-SUBCHAN coupling calculations for the three LWR assembly cases, employing the most accurate model, reveal a maximum increase of 94.6 K in the control rod centerline temperature, with a normalized energy deposition of 35.9% in the control rod regions. In the assembly case with gadolinium (Gd) burnable poison, a temperature increase of 7.3 K is observed in the Gd rod centerline, while the coolant outlet temperature decreases by 1.6 K due to the reduced explicit moderator heating fraction of 2.1%, compared to the constant 2.6% in the previous coupling scheme.