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NJ energy rebate guide: Heat pumps, insulation, PSEG rebates, and more!

Get ready to make your home more efficient and comfortable—and save some $$$. Here’s the scoop on New Jersey home energy rebates.

Get ready to make your home more efficient and comfortable—and save some $$$. Here’s the scoop on New Jersey home energy rebates.

Searching for a guide on NJ energy rebates for home efficiency upgrades?

Long story short: You just found the right corner of the internet. (Hey, look at you winning today!)

If you’ve found us for the first time, we’d like to introduce ourselves: We’re Sealed, and we’re home energy experts who help homeowners in New Jersey and beyond make their houses more comfortable and energy efficient year round.

This guide to New Jersey home energy upgrade rebates can help you save on project costs for important efficiency improvements like insulation, air sealing, and heat pump HVAC, water heater upgrades—and more!

(Bonus tip: If you qualify for Sealed, you could get powerful home energy upgrades—eligible rebates included—with a flexible payment plan and energy-savings guarantee. Learn how.)

Jump ahead to the rebate programs you’re most interested in:

Key points in this guide:

  • There are plenty of rebates available to NJ residents to make powerful energy upgrades to your home, including home weatherization, HVAC upgrades, and more.
  • Local utilities benefit when you cut energy waste: Energy efficiency is great for everyone, which is why rebates are often offered from utility companies to help incentivize home efficiency improvements.
  • If you qualify to work with Sealed, you can get high-performance insulation, air sealing, and heat pump system upgrades at no upfront cost—and we can help you navigate what NJ energy rebates apply to your project. Learn more.
  • We stay on top of changes in New Jersey energy rebates for our readers, but make sure to check with your local utility or rebate program administrator for more information on what rebates are available, as programs can change quickly.

Average energy prices in NJ State—and how rebates can help

If you’ve lived in New Jersey for a while, you’ve probably noticed the steady incline in energy costs—an incline that mirrors the increases experienced by other states around the country. 

New Jersey electricity costs are 3% higher than the national average, and natural gas heating costs have increased in step with the U.S. national average (1, 2).

That means cutting energy waste in New Jersey is important. But you knew that already, right? That’s why you’re here!

To learn more, read Why is my energy bill so high?

And the best way to do that is to make the most efficient use of your energy as possible via home energy upgrades.

Thankfully, in late January 2023, PSE&G was able to cut gas rates by 23% for its New Jersey customers due to a milder winter than expected (3).

But rising energy costs in general may have you wondering if it’s time to cut energy waste wherever you can in your home. 

In our experience, there are three key upgrades that could cut your home’s energy waste big time—whole-home insulation, air sealing, and heat pump HVAC upgrades—and there are federal, state, and local energy rebates that can help make these upgrades happen. 

And there are plenty of New Jersey energy upgrade incentives available. We’ll walk you through them below. 

animated GIF of a realistic white two-story house wasting money via energy waste with money blowing out the sides

Get high-performance energy upgrades at no upfront cost if you qualify.

And eligible home energy upgrade rebates can be applied to your project!

Talk to Sealed to find out more.

New Jersey Home Performance with ENERGY STAR rebates

In New Jersey, all of the investor-owned electric and gas utilities have partnered together to provide customers a consistent rebate program for weatherization projects statewide. 

The Home Performance with Energy Star (HPwES) Program can help you make your home more comfortable—all while lowering your energy usage. 

The following utilities participate in the New Jersey HPwES rebate program:

What is the New Jersey Home Performance rebate? 

This NJ energy rebate is based on energy savings, and customers are eligible to receive up to $5,000 off the cost of their project. 

If you qualify to get your home energy upgrades through Sealed, we:

  1. Match eligible customers with certified contractors to complete the work,
  2. Submit all of required paperwork, and
  3. Take the rebate off the price of your project as an instant discount. (Go you!)

To be eligible for the rebates, you must schedule a home energy assessment with a participating contractor. 

Your comprehensive home energy assessment includes the following:

  • A health and safety check, including your house’s carbon monoxide levels, moisture, indoor air quality
  • Inspection of your overall comfort level (cold/hot spots, stuffiness, stale odors)
  • Air leakage inspections
  • Examination of your insulation levels
  • Your heating and cooling system efficiency
  • Your water heating system efficiency

Atlantic City Electric rebates

Atlantic City Electric offers a variety of rebates for purchasing and installing energy efficient home improvements and appliances. 

In conjunction with ENERGY STAR, Atlantic City Electric participates in a Home Performance program, offering thousands of dollars in incentives. 

Here’s an overview of the rebates available, but you’ll get a closer look at a few rebates of note below!

  • Air source heat pumps
  • Central air conditioners
  • Heat pump water heaters
  • Air sealing
  • Duct insulation
  • Attic insulation
  • Wall insulation
  • ENERGY STAR certified lighting
  • Foundation insulation
  • Refrigerators
  • Clothes washers and dryers
  • Dehumidifiers
  • Window air conditioners

And depending on your income level, you may be eligible for income-qualifying increased rebates.

Atlantic City Electric weatherization, insulation, and air sealing rebates

Atlantic City Electric participates in New Jersey’s Home Performance with ENERGY STAR (HPwES) program (tap here for more information). 

Learn how you can get whole-home weatherization, insulation, and air sealing at no upfront cost with Sealed.

outdoor heat pump condenser unit on exterior of white new construction home

Atlantic City Electric HVAC rebates

Atlantic City Electric’s HVAC Efficiency Program offers incentives to homeowners for the installation of high-efficiency HVAC equipment, including heat pumps, central air conditioning, and mini-splits. 

With Sealed, you can get a heat pump professionally installed (and use your Atlantic City Electric rebate!) with zero upfront cost. Learn more.

Atlantic City Electric water heater rebates

Homeowners can receive $750 off the price of an ENERGY STAR certified electric hybrid water heater, also known as a hybrid heat pump water heater or electric heat pump water heater.

On average, switching to a heat pump water heater can save a four-person household about $330 a year.

Consumer Affairs

Atlantic City Electric Appliance Recycling rebates

As an Atlantic City Electric customer, you have access to a refrigerator and clothes washer and dryer rebate for an ENERGY STAR certified appliance upgrade. 

The utility also offers incentives for properly recycling your old appliance.

Homeowners receive $50 for recycling their old freezer or refrigerator and an additional $25 for recycling a room air conditioner or dehumidifier. Pickup and disposal is offered at no additional cost! 

Jersey Central Power and Light rebates

Jersey Central Power and Light (JCP&L) offers thousands of dollars in financial incentives through various rebate programs. These incentives can help you with purchasing and installing energy-efficient home improvements.

Here’s an overview of the rebates available, but we’ll dive in deeper to a few key rebates below.

  • Air source heat pumps
  • Central air conditioners
  • Heat pump water heaters
  • Air sealing
  • Duct, attic, foundation, and wall insulation
  • ENERGY STAR certified lighting
  • Refrigerators
  • Clothes washers and dryers
  • Dehumidifiers
  • Smart thermostats
  • Window air conditioners

Depending on your household income level, you may be eligible for income-qualifying increased rebates.

Jersey Central Power and Light weatherization, insulation, and air sealing rebates

JCP&L’s Home Performance with ENERGY STAR program offers thousands in instant rebates. 

To qualify, the homeowner must be:

  1. A residential customer with a JCP&L account number, and 
  2. Work with a participating contractor. 

If you qualify to get your home upgrades with Sealed, we’ll scope your project with a participating contractor—so no need to go through the headache of contacting and coordinating with multiple contractors for quotes!

And with Sealed, you can get a heat pump professionally installed (and use your Jersey Central Power and Light rebate) with zero upfront cost. Learn more.

Jersey Central Power and Light HVAC rebates

Jersey Central Power and Light residential customers can save with HVAC equipment rebates for energy-efficient heating and cooling improvements. 

ENERGY STAR certified heat pumps, central air conditioning, furnace fans, heat pump water heaters, and smart thermostats are discounted to homeowners through this program.

Jersey Central Power and Light appliance rebates

As a Jersey Central Power and Light residential customer, you can receive rebates for certified ENERGY STAR appliances and equipment to help make your home more energy efficient. 

(And there’s an added bonus for recycling your old refrigerator and freezer!)

Orange & Rockland New Jersey energy rebates

If you’re a New Jersey Orange & Rockland (O&R) residential customer, there are quite a few rebates available to you when you make energy-saving home upgrades. 

Orange & Rockland participates in the statewide Home Performance Program and models the New York Clean Heat rebate program. 

Here’s a quick look at O&R rebates that are available to New Jersey homeowners:

  • Air source heat pumps
  • Central air conditioners
  • Heat pump water heaters
  • Air sealing
  • Attic, duct, wall, and foundation insulation
  • ENERGY STAR certified lighting
  • Refrigerators
  • Clothes washers and dryers
  • Dehumidifiers
  • Smart thermostats
  • Window air conditioners

Orange & Rockland New Jersey heat pump rebates

There are thousands of dollars in rebates available to current Orange & Rockland New Jersey customers for air-source heat pumps and heat pump water heaters through the Rockland Electric Clean Heat program

The equipment must be installed by a certified contractor and meet certain efficient standards to qualify. 

Orange & Rockland New Jersey HVAC rebates

Orange & Rockland’s Instant HVAC Program offers up to $650 when homeowners install energy-efficient central air conditioner, heat pump, heat pump water, or ENERGY STAR smart thermostats. 

Discounts are applied instantly at the point of purchase and are only available when equipment is installed by a participating contractor. 

Orange & Rockland New Jersey thermostat rebates

O&R offers $100 of the price of your ENERGY STAR smart thermostat. When applying, homeowners will need the dated sales receipt and contractor invoice.

Orange & Rockland weatherization, insulation, and air sealing rebates for NJ homeowners

Orange & Rockland participates in New Jersey’s Home Performance with Energy Star (HPwES) program (tap here for more information). 

Curious about weatherization and how it helps you stay more comfortable and cut energy waste? Read What is home weatherization? to learn more.

cellulose installation in an attic

PSE&G NJ energy rebates

PSEG offers home energy upgrade rebates for completing HVAC and weatherization upgrades and purchasing ENERGY STAR certified appliances. 

Here’s a list of the PSEG rebates available on ENERGY STAR certified upgrades, and we’ll cover a few more in depth below.

  • Duct, attic, wall, and foundation insulation
  • Air sealing
  • Smart thermostats
  • Air source heat pumps
  • Central air conditioners
  • Heat pump water heaters
  • ENERGY STAR certified lighting
  • Refrigerators
  • Clothes washers and dryers
  • Dehumidifiers
  • Window air conditioners

PSE&G New Jersey HVAC rebates

Through PSE&G’s residential HVAC Instant Rebate Program, you can receive instant rebates up to $900 on air source heat pumps, ductless mini-splits, heat pump water heaters, and central air conditioners when you work with a PSE&G participating contractor. 

Low- to moderate-income households may be eligible for an additional $200 per measure.

PSE&G dehumidifier rebate

PSE&G New Jersey customers have access to a rebate for ENERGY STAR certified dehumidifiers

Moisture concerns? Check out How to fix a stuffy house or Why is my house so humid? to learn more!

Professional air sealing and insulation can restore correct and healthy airflow through your home and help make it more comfortable year round.

PSE&G weatherization, insulation, and air sealing rebates

The Home Performance with ENERGY STAR program can help you enjoy every room while lowering your energy costs. 

Plus, you can get rebates from PSE&G to make energy-saving home improvements.

Elizabethtown Gas rebates

Elizabethtown Gas, in conjunction with the NJ Home Performance program, offers a variety of rebates to residential NJ gas customers for upgrading to energy efficient equipment. 

Here’s an overview of the rebates available, and we’ll cover one more in-depth below.

  • Gas heaters
  • Air sealing
  • Home insulation (including attics, walls, foundation, and more)
  • ENERGY STAR certified lighting
  • Clothes washers and dryers
  • Smart thermostats

81% say their home comfort has improved by replacing their fossil fuel heaters with heat pumps.

Cool Products 2022 consumer analysis

Elizabethtown Gas weatherization, insulation, and air sealing rebates

Elizabethtown Gas participates in New Jersey’s Home Performance with ENERGY STAR (HPwES) program (tap here for more information). 

Elizabethtown Gas also offers a Home Weatherization for Income-Qualified Customers. If you’re eligible, you could receive a free home audit and can potentially receive air sealing and insulation at no additional cost.

New Jersey Natural Gas rebates

New Jersey Natural Gas (NJNG) offers a variety of rebates to residential customers who are making energy efficient home upgrades through the SaveGreen Project. 

They also participate in the statewide New Jersey Home Performance Program and offer up to $1,500 in incentives for energy efficient HVAC equipment. 

NJNG rebates and incentives do not apply to new construction.

New Jersey Natural Gas offers rebates for:

  • Insulation
  • Air Sealing
  • Gas water heaters
  • Furnaces
  • Boilers
  • Clothes Washers and Dryers
  • Smart thermostats

Heat pump HVAC systems and heat pump water heaters are up to 3x more efficient than conventional methods of the past.

Energy.gov (4, 5)

New Jersey Natural Gas weatherization, insulation, and air sealing rebates

The NJNG Home Performance with ENERGY STAR rebate helps homeowners take a whole-home approach to improve the energy-efficiency and comfort of your home. 

An audit must be conducted by a certified contractor. Once complete, homeowners can receive up to $5,000 in rebates (tap here for more information). 

New Jersey Natural Gas smart thermostat rebates

As a NJNG customer, you have access to a $100 rebate for a certified smart thermostat (in addition to the Home Performance rebate—score!). 

Learn more about how smart thermostats can help cut energy usage (and how you can get one at no upfront cost with Sealed).

You know what goes great with a smart thermostat? A heat pump!

Cold climate heat pumps are up to 3 times more efficient than conventional home heating and cooling systems (6). Learn more about why they’re the most comfortable and efficient way to heat a home.

Plus, there are new federal heat pump tax credits and rebate programs.

South Jersey Gas rebates

South Jersey Gas has multiple rebates available to residential gas customers. They participate in the Home Performance program and offer incentives for various appliances. 

Here’s a quick overview of the rebates they offer, and we’ll cover a notable one in depth below.

  • ENERGY STAR certified lighting
  • Air sealing
  • Home insulation (including attic, walls, foundation, and ducts)
  • Gas heaters
  • Clothes washers and dryers
  • Smart thermostats

South Jersey Gas weatherization, insulation, and air sealing rebates

South Jersey Gas participates in New Jersey’s Home Performance with Energy Star (HPwES) program (tap here for more information). 

South Jersey Gas also offers a Home Weatherization for Income-Qualified Customers. If your income qualifies, you could receive a free home audit and can potentially receive air sealing and insulation at no additional cost.

Sussex Rural Electric Coop, Inc. rebates

Sussex Rural Electric Cooperative offers rebates for ENERGY STAR refrigerators, washers, and dryers. 

Rebates are delivered to members in the form of a bill credit on their monthly bill. Appliances are only eligible for a rebate if they were purchased within the last 12 months.

Solar incentives NJ: Solar benefits for New Jersey homeowners

There are a few financial incentives for New Jersey homeowners who install solar panels.

But quick tip: If you’re looking to install solar, make sure to make your home as energy-efficient as possible before making this big investment. 

Sealed can help you use New Jersey energy rebates to get high-performance insulation, professional air sealing, and heat pump HVAC system upgrades before you switch to solar. 

Cut energy waste in your home first, before you start generating energy of your own!

Cut energy waste in your home first, before you start generating energy of your own!

New Jersey Solar Investment Property Tax Exemption

New Jersey residents can receive a property tax exemption on the added home value from the rooftop solar system.

New Jersey Solar Panel System Sales Tax Exemption

When purchasing solar systems, solar home water heaters, and solar pool heaters, New Jersey residents are exempt from paying state sales tax. 

For more information on home energy upgrade incentives, check out our Homeowner’s Guide to Inflation Reduction Act tax credits and rebates.

Take advantage of NJ energy rebates: Sealed makes energy upgrades hassle-free

With Sealed, qualifying New Jersey homeowners can get home energy upgrades—and increased comfort year round—at no upfront cost.

And we help you understand which New Jersey energy rebates may apply to your home upgrade projects.

Here’s how it works: 

  1. Answer a few easy questions about your house.
  2. Our team of experts will complete a remote energy assessment that tackles the biggest energy-wasters in your home.
  3. Then if you choose to go with Sealed—no obligation!—we’ll hire and vet the best contractors in your area, manage the project start to finish, and identify rebates that apply to your project.
  4. You’ll pay us back for the work done in a way that works for you—and we’ll guarantee the results.

And if you don’t save energy? We take the hit. Not you.

Interested? See if your house qualifies in 2 minutes.

5 energy efficiency myths FREE ebook animated gif

Check out our FREE home energy-efficiency guide to learn how 3 core efficiency upgrades can make your home more comfortable year round.

February 24, 2023