Public Service Electric and Gas customers, New Jersey · Instant discount

PSE&G Residential Building Decarbonization

Run by PSE&G (Public Service Electric and Gas)

PSE&G electric customers who own a 1-4 unit home can get large instant rebates for switching from gas, oil or propane heat to a heat pump: up to $10,000 ($12,000 for low- to moderate-income households) for a full cold climate heat pump conversion, plus rebates for ground source heat pumps, heat pump water heaters, decommissioning, ducts and electrical upgrades.

Open Checked Oct 25, 2026

Amounts

How much you get

Instant rebates through a participating contractor. The amount depends on which of these fits your install.

What you installYou get
Gas or delivered fuel customerClean Heat full displacement (ccASHP)50%
Low- to moderate-income customerClean Heat full displacement (ccASHP)60%
Gas or delivered fuel customerDual Heat (ccASHP with existing fossil system)50%
Low- to moderate-income customerDual Heat (ccASHP with existing fossil system)60%
Gas or delivered fuel customerHybrid Heat partial displacement (ASHP or ccASHP)30%
Low- to moderate-income customerHybrid Heat partial displacement (ASHP or ccASHP)40%
EachAdditional ccASHP needed to meet the heat load (Clean Heat or Dual Heat)$2,000
Up to two per homeIntegrated control unit (Dual Heat or Hybrid Heat)N/A
Decommissioning work (Clean Heat or ground source)N/A
Re-ducting if specified by Manual D (Clean Heat or ground source)N/A
Gas customer, per 10,000 BTUHGround source heat pump$3,000
Delivered fuel customer, per 10,000 BTUHGround source heat pump$4,000
Low- to moderate-income extra, per 10,000 BTUHGround source heat pump$1,000
Heat pump water heater replacing a fossil fuel water heater$750
Per 240V circuit (limit four)Electrical circuitN/A
Electrical panel replacement$300
Low- to moderate-income customerElectrical panel replacementN/A
Low- to moderate-income customerElectrical wiringN/A

Eligibility

Do I qualify?

You need to meet all 6 of these.

  • Current PSE&G residential electric customer, or a Butler Electric customer who receives PSE&G residential gas service.

  • You must own the home where the installation takes place.

  • Single-family or attached home with one to four units. New construction and commercial properties are not eligible.

  • Work must be done by a participating HVAC Instant Rebates or Whole Home Energy Solutions contractor authorized for building decarbonization projects.

    What to doChoose a PSE&G participating contractor authorized for building decarbonization, or ask your contractor to apply through the PSE&G Trade Ally Portal. Get a quote from a contractor

  • For Clean Heat and ground source projects, the old fossil fuel heating system must be removed or disabled and a decommissioning form submitted; Dual Heat and Hybrid Heat projects need integrated controls.

  • The higher low- to moderate-income rebates apply to households at or below 400% of the Federal Poverty Guidelines, in a low- or moderate-income census tract, in an Overburdened Community, or enrolled in a safety-net program (such as LIHEAP, SNAP, SSI, TANF, USF or NJ SHARES).

Equipment

What equipment counts

The program sets these minimums.

  • NEEP Listed Ductless ccASHP SEER2 > 15 HSPF2 > 8.5 COP > 1.75 at 5°F.

  • NEEP Listed Ducted ccASHP SEER2 > 14.3 HSPF2 > 7.7 COP > 1.75 at 5°F.

  • Total combined equipment capacity of the ccASHPs must be sized to meet a minimum of 100% of the Manual J Heat Load. Manual S must be submitted.

  • SEER2 ≥ 15.2 EER2 ≥ 11.7 HSPF2 ≥ 7.8.

  • EER ≥ 21.1 COP ≥ 4.1.

  • EER ≥ 17.1 COP ≥ 3.6.

  • UEF ≥ 2.2 integrated at 120V; UEF ≥ 3.3 integrated at 240V.

Applying

How to apply

Your contractor applies for you.

  1. Choose a participating contractor authorized for building decarbonization.
  2. The contractor sizes the system (Manual J and Manual S) and confirms which offering fits your home.
  3. The heat pump is installed and the instant rebate is taken off your invoice.

    Clean Heat and ground source projects need a decommissioning form for the old system.

Forms and instructionsPSE&G HVAC Instant Rebates Program, Residential Building Decarbonization rebates

Questions about applying1-855-846-2895 or PSEGHomeEnergy@icf.com

Stacking

Use it with

Can be done through the HVAC Instant Rebates Program or Whole Home Energy Solutions, and financed with up to $50,000 of interest-free on-bill repayment for decarbonization measures.

  • Public Service Electric and Gas customers, New Jersey

    PSE&G HVAC Instant Rebates Program

    Up to $1,050

    PSE&G homeowners get an instant rebate on their contractor's invoice for high-efficiency central AC, heat pumps, gas furnaces, boilers, water heaters and smart thermostats installed by a participating contractor, from $60 to $1,050 per measure, plus $300 more per measure for income-qualified households.

    Checked Oct 25, 2026

  • Public Service Electric and Gas customers, New Jersey

    PSE&G Whole Home Energy Solutions

    Up to $7,500 back

    PSE&G homeowners in 1-4 unit homes can hire a BPI-certified participating contractor for an in-depth home energy assessment and then get rebates of up to $7,500 on insulation, air sealing, ductwork, HVAC and other upgrades, with up to $25,000 of interest-free on-bill repayment.

    Checked Oct 25, 2026

  • Public Service Electric and Gas customers, New Jersey

    PSE&G On-Bill Repayment

    Up to $75,000

    PSE&G customers doing an HVAC Instant Rebates or Whole Home Energy Solutions project can pay for it interest-free on their PSE&G bill: up to $25,000, or up to $75,000 when up to $50,000 goes to heat pumps and other building decarbonization measures, over 84 or 120 months.

    Checked Oct 25, 2026

Your address

Next steps

Check that it covers your address. Then, if you want, ask for a contractor quote.

FAQ

Questions

How much does PSE&G Residential Building Decarbonization pay?

$300 to $4,000, depending on what you install. The table under How much you get lists each amount.

Do I need to be a Public Service Electric and Gas customer?

Yes. It’s only for homes in Public Service Electric and Gas customers, New Jersey. See Do I qualify for the details.

Is there an income limit?

The higher low- to moderate-income rebates apply to households at or below 400% of the Federal Poverty Guidelines, in a low- or moderate-income census tract, in an Overburdened Community, or enrolled in a safety-net program (such as LIHEAP, SNAP, SSI, TANF, USF or NJ SHARES).

Do renters qualify?

You must own the home where the installation takes place.

Do I have to use a contractor?

Yes. Work must be done by a participating HVAC Instant Rebates or Whole Home Energy Solutions contractor authorized for building decarbonization projects.

Can I combine it with other rebates?

Yes, with PSE&G HVAC Instant Rebates Program, PSE&G Whole Home Energy Solutions and PSE&G On-Bill Repayment. See Use it with.

Is it still available?

Yes. It was open when we last checked, on October 25, 2026.

Do heat pumps work in New Jersey winters?

Yes. PSE&G says today's heat pumps are designed to perform well in cold climates and can keep your home warm even on the coldest winter days.

Will my electric rate change with a heat pump?

No. Standard electric rates apply when a heat pump is in use; savings come from the heat pump delivering up to three times more heat energy than the electricity it uses.

Plain words

Words used on this page

SEER2 and EER2
Cooling efficiency ratings on the model’s spec sheet. Higher is better.
HSPF2
A heat pump’s heating efficiency rating. Higher is better.
UEF
A water heater’s efficiency rating. Higher is better.
Fossil-fuel heating
Heating that burns gas, oil or propane.

References

Sources

This page is built from these official pages, run by the program itself.

  1. PSE&G HVAC Instant Rebates Program, Residential Building Decarbonization rebatesmyhomeenergy.pseg.com · Read Oct 25, 2026 · Re-checked weekly

When one of these pages changes, we re-check this page against it.

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