New Jersey Heat Pump Rebates
Standard households in New Jersey can receive up to $10,000 through New Jersey heat pump rebates, and income-qualified homes up to $12,000. The PSE&G Residential Building Decarbonization Rebates and the JCP&L Clean Comfort Program are two ways to claim those maximum amounts.
Find the New Jersey rebates for your ZIP code
If JavaScript is off, locate your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $10,000 PSE&G HVAC Instant Rebates Program and Residential Building Decarbonization Rebates, for customers of Public Service Elec & Gas Co
- If your household income qualifies
- $12,000 PSE&G HVAC Instant Rebates Program and Residential Building Decarbonization Rebates
- HEAR appliance rebates
- Not yet open Run by NJBPU. Official page
- HOMES whole-home rebates
- Not open yet Paid on the energy saved by a whole-home upgrade. Official page
- The federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Heat pump rebates across New Jersey
Compare the names of the programs with your electric and natural gas bills to learn which cash rebates suit your home.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| PSE&G HVAC Instant Rebates Program and Residential Building Decarbonization Rebates | Served by Public Service Elec & Gas Co | The lower of 50% of the largest system's project cost or $10,000 | The lower of 50% of the largest system's project cost or $10,000 | $750 | Lesser of $3,000 per 10,000 BTUH or 50% of the project cost | Open | Official page |
| JCP&L Clean Comfort Program (residential building decarbonization rebates) | Served by Jersey Central Power & Lt Co | The lower of 50% of project cost or $10,000 when it serves as the primary system | The lower of 50% of project cost or $10,000 when it serves as the primary system | $750 per unit | $4,000 per 10,000 Btu/h or 50% of project cost, whichever is lower, when it is the primary system | Open | Official page |
| JCP&L HVAC Equipment Rebates | Served by Jersey Central Power & Lt Co | $1,000 | $750 | None | $1,500 rebate | Open | Official page |
| Atlantic City Electric Residential Electrification Program | Served by Atlantic City Electric Co | Up to $10,000 or 50% of project costs | Up to $10,000 or 50% of project costs | None | Lesser of $3,000 per 10,000 BTUh, or 50% of project costs | Open | Official page |
| Atlantic City Electric HVAC Efficiency Program | Served by Atlantic City Electric Co | $2,000 (a limited-time offer, April 1, 2026 through June 30, 2027) | $750 | $750 | New Geothermal will continue to be $10,000 (half of project cost, not to exceed $10,000) | Open | Official page |
| Rockland Electric Clean Heat Program (Orange & Rockland, operating in New Jersey) | Served by Rockland Electric Co | 50% of project cost, up to $10,000 | 50% of project cost, up to $10,000 | $750 per unit, limit of two per project | None | Open | Official page |
| New Jersey Natural Gas SAVEGREEN rebates for Hybrid Heat and HVAC | New Jersey Natural Gas customers | Heat pump rebates up to $1,000 | None | None | None | Open | Official page |
Claiming Your NJ Heat Pump Rebate Step by Step
Rules are set by your electric or gas utility, and a missed pre-installation step can cost you the money.
- Your installer must come from the approved network, since PSE&G, Atlantic City Electric, and Rockland Electric all require a participating contractor. So hire one first.
- Have your installer work out the heating load your home needs, and photograph the old furnace or boiler clearly before it is removed.
- Before work starts, have a PSE&G contractor sign you up for interest-free on-bill repayment, because PSE&G takes the instant discounts off your invoice.
- File the post-installation forms on time if your utility pays once the job is done. JCP&L Clean Comfort and New Jersey Natural Gas SAVEGREEN set a 120-day deadline, but Atlantic City Electric gives you 90 days.
Do Households with Lower Incomes Qualify for Bigger Rebates?
Right now, utility payouts are higher for households that earn no more than 400% of the Federal Poverty Guidelines. Living in an eligible census tract or getting aid through the Universal Service Fund also makes you eligible.
- Full fossil-fuel replacement brings PSE&G and JCP&L payments of 60% of project costs, capped at $12,000, while dual-fuel systems earn $6,000.
- If your unit requires a new electrical panel, PSE&G, JCP&L, and Atlantic City Electric will pay up to $4,000.
- PSE&G, Atlantic City Electric, and New Jersey Natural Gas each add $300 per qualifying unit through their standard equipment programs.
HEAR and HOMES, the federal Inflation Reduction Act Home Energy Rebates, are not available in New Jersey. Regulators for the state expect Comfort Partners heat pumps in early 2027 and the multifamily pathway during the third quarter of 2026. Those upcoming federal funds should not be expected for projects already underway.
Rules for New Jersey Heat Pump Rebates and Free Weatherization
Utility fuel territories and cold winters both affect your eligibility for the largest cash incentives. Your main savings now come from utility programs, since the federal 25C tax credit no longer applies to installations after 31 December 2025.
To qualify for a full-replacement payout, your cold-climate model must heat at five degrees Fahrenheit and cover 100% of the heating load. Decommissioning is also required, meaning you remove or disable the old furnace or boiler, and you get up to $2,000 back. Effective October 1, 2026, JCP&L no longer pays rebates for partial-load units added next to a fossil system in a home without any existing heat pump. Look at both utility bills, since PSE&G offers are open to Butler Electric households that get their gas from PSE&G.
Free air sealing is available to lower-income families through Comfort Partners or the Weatherization Assistance Program, with a limit of $66,000 for four-person households.
Common Questions About New Jersey Heat Pump Rebates
In 2026, what heat pump rebates exist in New Jersey for extra equipment?
Extra equipment put in through June 30, 2027 also earns utility payments on top of the main conversion payouts. Ductwork modifications bring up to $2,000 from PSE&G, JCP&L, and Rockland Electric, and each additional cold-climate unit also earns up to $2,000. Swapping a fossil-fuel water heater for an electric heat pump water heater also earns you $750.
Can I still get a heat pump rebate in New Jersey while keeping my gas furnace?
Yes, dual-fuel programs cover a new heat pump matched with an existing furnace, with integrated controls doing the automatic fuel switching. For a cold-climate dual-fuel setup, PSE&G and Rockland Electric will pay up to $5,000, and the control unit can add up to $1,500. New Jersey Natural Gas SAVEGREEN offers $2,000 at most for one zone and up to $4,000 for two zones.
How do I cover the rest of the cost of putting a heat pump in my house?
Every big utility in New Jersey offers financing at zero-percent interest so you can spread out what rebates leave unpaid. For building decarbonization, PSE&G provides on-bill repayment up to $50,000 across 84 or 120 months and never runs a credit check. Only 12 months of on-time payments are required by PSE&G. Loans of up to $25,000 come from JCP&L, Rockland Electric, and New Jersey Natural Gas.
When I replace an electric furnace or an older heat pump, can New Jersey give me a rebate?
Yes, rebates from standard utility equipment programs are paid even without a fossil-fuel heater to remove. A cold-climate model earns $2,000 from Atlantic City Electric through June 30, 2027, and new geothermal systems earn up to $10,000. JCP&L gives $1,000 for a cold-climate unit, and PSE&G deducts $600 from your contractor invoice.
Get quotes from New Jersey installers with rebates already deducted
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.