New Jersey Energy Rebates 2026

New Jersey residents in 2026 can access federal HEAR rebates (up to $14,000 for heat pump HVAC, water heaters, electric appliances) and HOMES rebates (up to $8,000 for whole-home energy savings), both administered by the NJ Board of Public Utilities. PSEG customers can receive $300–$600 in instant heat pump rebates plus up to $10,000 through the decarbonization program. JCP&L customers can receive $500–$1,000 in tiered heat pump rebates. These utility rebates can be stacked with federal HEAR rebates for maximum savings.

No. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) eliminated Section 25C and 25D federal energy tax credits for installations after December 31, 2025. New Jersey residents who installed qualifying heat pumps, insulation, windows, solar panels, or battery storage before December 31, 2025 can still claim those credits on their 2025 taxes. For 2026, HEAR and HOMES rebates plus PSEG and JCP&L utility incentives are the primary benefits.

The NJ Clean Energy Program is the state's long-running incentive program managed by the Board of Public Utilities. It offers rebates on heat pumps, smart thermostats, and home energy audits that can be stacked with HEAR and HOMES federal rebates. For example, you might receive a HEAR rebate for a heat pump water heater AND a separate NJ Clean Energy rebate — effectively lowering your out-of-pocket cost further. Visit njcleanenergy.com to see current rebate amounts by equipment type.

HEAR rebates are available to households earning up to 150% of the Area Median Income (AMI), with maximum amounts for those below 80% AMI. In the Newark/Northern NJ area (part of the NYC metro), 80% AMI for a 4-person household is approximately $93,920 — one of the highest thresholds in the country. In the Trenton area, 80% AMI is around $80,000. HOMES rebates similarly prioritize lower-income households with larger rebate amounts.

Yes. PSEG offers substantial rebates through its HVAC Instant Rebates Program: $300–$600 for air-source heat pumps (depending on tier and cold-climate rating), $450 for heat pump water heaters ($750 for gas conversion), and up to $100 for smart thermostats. The decarbonization program adds up to $10,000 for full replacement of gas heating with a cold climate heat pump. Whole Home Energy Solutions provides up to $7,500 in rebates plus $25,000 in interest-free on-bill financing. Visit homeenergy.pseg.com.

Yes. JCP&L (Jersey Central Power & Light) offers tiered heat pump rebates of $500 (Tier 1), $750 (Tier 2), or $1,000 (cold climate) through the EnergySaveNJ program. Ductless mini-splits earn $750 and geothermal systems earn $1,500. Heat pump water heaters receive $750. Low-to-moderate income (LMI) customers get an additional $200 per qualifying HVAC unit. Smart thermostat rebates include up to $100 instant discount via the Marketplace plus a $75 enrollment bonus for the Energy Savings Rewards demand response program. Visit energysavenj.com/jersey-central.

For standard installations, JCP&L leads with $500–$1,000 in tiered heat pump rebates vs. PSEG's $300–$600 instant rebates. However, PSEG's decarbonization program offers dramatically higher amounts — up to $10,000 for full gas-to-heat-pump conversion (or up to $12,000 for LMI customers). For homeowners switching from gas heating entirely, PSEG's decarbonization rebate is the most generous in the state. Both utilities' rebates can be stacked with federal HEAR rebates for income-qualified households.

Generally yes — utility rebates from PSEG and JCP&L are separate programs from the federal HEAR rebate administered by the NJ Board of Public Utilities. The combined total rebate cannot exceed the actual cost of the equipment and installation. Confirm stacking eligibility with your utility and HEAR program contractor before signing a contract.