New Jersey Heat Pump Rebates
Stackable incentives available to New Jersey homeowners installing a qualifying heat pump in 2026.
What's available in New Jersey
New Jersey has one of the strongest heat pump incentive landscapes in the country in 2026, organized as a two-layer stack. The statewide NJ Whole Home Energy Efficiency Program — administered through the utilities under NJBPU oversight — pays up to $7,500 based on percent of modeled energy savings, and each of the four major electric utilities (PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric/RECO) layers its own equipment rebate of $900–$1,400 on top. Because the utility programs are territory-specific (homeowners qualify for exactly one), the realistic max stack for any single household is the statewide $7,500 plus their local utility rebate, working out to roughly $8,400–$8,900 before financing. NJCEP transitioned active HVAC rebate administration to the utilities effective July 2021, so the utility program is the practical entry point. The federal §25C tax credit expired December 31, 2025 under the OBBBA and is unavailable in 2026, but state and utility rebates are unaffected. NJ has not yet broadly launched its HEEHRA/HER income-qualified federal program as of early 2026, though BPU received over $185M in DOE funding to implement it; LMI adders within existing utility programs ($200–$300 per measure) are the main income-qualified vehicle currently active. New Jersey Natural Gas SAVEGREEN also offers gas-customer heat pump rebates of $500–$1,000 but program details warrant verification at application time. NJ's federal HEAR (income-qualified) program appears to have begun opening in phases in 2026 but its homeowner-facing launch status should be confirmed on the live NJCEP portal before relying on it.
HEEHRA in New Jersey
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. New Jersey is finalizing program rules.
How heat pump rebates work in New Jersey
New Jersey has one of the strongest heat pump incentive landscapes in the country in 2026, organized as a two-layer stack. The statewide program (renamed NJ Whole Home Energy Solutions, administered through the utilities under NJBPU oversight) pays up to $7,500 based on percent of modeled energy savings ($2,000 base at 5% modeled savings, rising to $7,500 at 33%), and each of the four major electric utilities layers its own equipment rebate on top: PSE&G's instant ASHP rebate is $300–$600 (with full-electrification conversions handled under a separate Building Decarbonization track worth up to $10,000); JCP&L pays up to $1,000; Atlantic City Electric runs an April–December 2026 promotion lifting its cold-climate heat pump rebate to $2,000; and Rockland Electric/RECO pays up to $1,400. Because the utility programs are territory-specific (homeowners qualify for exactly one), the realistic max stack for any single household is the statewide $7,500 plus their local utility rebate. NJ's HEEHRA/HEAR income-qualified federal program appears to have begun opening in phases in 2026 (BPU received over $185M in DOE funding); confirm its status on the live NJCEP portal before relying on it. New Jersey Natural Gas SAVEGREEN also offers gas-customer heat pump rebates of $500-$1,000.
New Jersey rebate programs
NJ Whole Home Energy Solutions
$7,500Statewide whole-home rebate (program renamed "Whole Home Energy Solutions") of up to $7,500 scaled by total energy savings — about $2,000 at 5% modeled savings and rising to $7,500 at 33%. Administered through the four electric utilities under NJBPU oversight; stackable with utility heat pump equipment rebates and pairs with up to $25,000 in 0% on-bill financing.
PSE&G HVAC Instant Rebates — Heat Pump
$600PSE&G electric customers only. Instant point-of-sale air-source heat pump rebate of $300 (Tier 1) / $450 (Tier 2) / $600 (cold-climate). Full electrification conversions are handled under PSE&G's separate Building Decarbonization track, which pays the lesser of $10,000 or 50% of cost ($12,000 / 60% for LMI households) for a full-displacement cold-climate heat pump.
JCP&L Energy Efficient Products — Heat Pump
$1,000Jersey Central Power & Light electric customers only. Tiered: $500 (Tier 1, SEER2 15.2+/HSPF2 7.8+), $750 (Tier 2, SEER2 17.1+), and $1,000 for cold-climate heat pumps; ductless mini-splits earn $750 per outdoor unit and heat pump water heaters $500–$750.
Atlantic City Electric HVAC Efficiency Program
$2,000Atlantic City Electric customers only. A limited-time promotion (April 1 – December 31, 2026) raises the cold-climate heat pump rebate to $2,000 (base air-source $500–$750); heat pump water heaters $400–$700; LMI customers add $200–$300 per qualified measure. Geothermal up to $10,000 / 50%. Apply within 90 days of installation.
Rockland Electric (RECO) Clean Heat Program
$1,400Rockland Electric customers only (northern Bergen and Passaic counties). Up to $1,400 in rebates for ENERGY STAR air-source, ground-source, and heat pump water heater installations through Participating Contractors; pairs with 0% APR financing of $2,500–$25,000 on the post-rebate balance.
5 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: whole-home install in Newark
Devon owns a 1,950 sq ft home in Newark served by PSE&G. His 26-year-old gas furnace and AC are end-of-life. He gets quotes for a 3-ton ducted cold-climate air-source heat pump (16 SEER2 / 9 HSPF2) installed for $13,800, modeled to achieve roughly 25% whole-home energy savings vs. the old gas system. Because the install qualifies under the statewide NJ Whole Home Energy Solutions program at 25% modeled savings, he receives roughly $6,000 (sliding scale between $2,000 at 5% and $7,500 at 33%). On top, as a PSE&G electric customer, he qualifies for PSE&G's instant point-of-sale cold-climate ASHP rebate at $600. The federal §25C credit is gone. Combined stack: about $6,600 against $13,800. Net out-of-pocket: roughly $7,200. If Devon instead pursued a full-electrification conversion, PSE&G's separate Building Decarbonization track (lesser of $10,000 or 50% of cost) could push his rebate much higher; he uses PSE&G's 0% on-bill repayment to finance the balance.
Choosing a contractor in New Jersey
New Jersey licenses HVAC contractors through the Division of Consumer Affairs Master Plumber and HVAC Contractor licenses. Verify at njconsumeraffairs.gov before signing. NJ Whole Home Energy Efficiency Program rebates require a BPI-certified contractor to perform the modeled-energy-savings calculation; the modeled savings determine the rebate amount on the sliding scale. PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric each have their own approved contractor lists for the utility equipment rebate layer — confirm enrollment per utility. The PSE&G rebate is a point-of-sale instant rebate processed by the contractor at install.
Common pitfalls for New Jersey homeowners
- Stacking two utility equipment rebates. Each NJ electric customer is served by exactly one utility (PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric). The four utility equipment rebates are mutually exclusive by territory — a homeowner cannot stack PSE&G and JCP&L rebates because they don't serve the same address. The statewide NJ Whole Home program is the rebate that stacks across utilities; the utility layer is one-per-household.
- Skipping the BPI-certified energy modeling. The NJ Whole Home Energy Efficiency Program rebate is determined by modeled energy savings, computed by a BPI-certified contractor using approved software (HEAT3D, REM/Rate, or equivalent). Without the modeling, the rebate defaults to the minimum tier. A contractor who can't or won't model the savings is not equipped to file the Whole Home rebate — find a BPI-certified contractor for this layer.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- NJ Whole Home Energy Solutions−$7,500
- Atlantic City Electric HVAC Efficiency Program−$2,000
- PSE&G HVAC Instant Rebates — Heat Pumpexcluded — pick one: JCP&L Energy Efficient Products — Heat Pump wins
- JCP&L Energy Efficient Products — Heat Pumpexcluded — pick one: Atlantic City Electric HVAC Efficiency Program wins
- Rockland Electric (RECO) Clean Heat Programexcluded — pick one: Atlantic City Electric HVAC Efficiency Program wins
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.