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.
Amounts
How much you get
Instant rebates through a participating contractor. The amount depends on which of these fits your install.
| What you install | You 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 circuit | N/A |
| Electrical panel replacement | $300 |
| Low- to moderate-income customerElectrical panel replacement | N/A |
| Low- to moderate-income customerElectrical wiring | N/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.
- Choose a participating contractor authorized for building decarbonization.
- The contractor sizes the system (Manual J and Manual S) and confirms which offering fits your home.
- 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.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
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.
When one of these pages changes, we re-check this page against it.
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Checked Oct 25, 2026