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Get a Free QuoteAtlantic City Electric (ACE) offers the highest flat utility rebate in New Jersey — $1,300 for qualifying heat pumps. Stack with NJ Whole Home (up to $7,500) for a combined total of up to $8,800 in confirmed incentives. Serving ~600,000 customers in Atlantic, Cape May, Salem, Cumberland, and surrounding counties.
The $2,000 federal Section 25C credit expired under the OBBBA (signed July 4, 2025). There is no federal tax credit for heat pumps in 2026. The ACE rebate ($1,300) and NJ Whole Home (up to $7,500) are now the primary incentives available to South NJ homeowners.
Atlantic City Electric serves approximately 560,000–600,000 electric customers across southern New Jersey. ACE is the dominant utility south of Interstate 195, covering most of the Jersey Shore below Point Pleasant, the Pine Barrens, and the Delaware Bay communities.
| County | Key Cities / Townships | Climate Zone |
|---|---|---|
| Atlantic | Atlantic City, Egg Harbor Twp, Galloway, Hamilton, Absecon | 4A |
| Cape May | Cape May, Wildwood, Ocean City, Middle Twp, Lower Twp | 4A |
| Salem | Salem City, Pennsville, Carneys Point, Woodstown | 4A |
| Cumberland | Vineland, Millville, Bridgeton, Deerfield, Fairfield | 4A |
| Burlington (partial) | Southern portions, Shamong, Bass River, Woodland | 4A |
| Ocean (partial) | Manahawkin, Stafford, Little Egg Harbor | 4A |
| Gloucester (partial) | Some southern areas | 4A |
How to verify: Check your electric bill — if it says "Atlantic City Electric" or "ACE," you are in the service territory and eligible for these rebates. You can also enter your address at atlanticcityelectric.com.
ACE offers a flat $1,300 rebate per qualifying heat pump system — the highest flat utility rebate in NJ. Unlike PSE&G's tiered instant-rebate approach, ACE's rebate is processed post-installation via the online rebate portal.
| Equipment | ACE Rebate | LMI Adder | Min. Requirement |
|---|---|---|---|
| Air-Source Heat Pump (ASHP) | $1,300 | +$300 | ENERGY STAR certified, SEER2 ≥ 16 |
| Ductless Mini-Split | $1,300 | +$300 | ENERGY STAR certified. Single or multi-zone. |
| Cold-Climate Heat Pump | $1,300 | +$300 | HSPF2 ≥ 9.5 or COP ≥ 1.75 at 5°F |
ACE customers can combine the $1,300 utility rebate with the NJ Whole Home cash-back program for significantly more total savings. These are separate programs with separate applications.
| Program | Amount | Status | Notes |
|---|---|---|---|
| ACE Utility Rebate | $1,300 | Confirmed | Applied post-installation via ACE portal |
| NJ Whole Home (at 20% TES) | $5,000 | Confirmed | Typical with full HP system replacement |
| NJ Whole Home (at 33% TES) | $7,500 | Confirmed | With added insulation and air sealing |
| Federal 25C Credit | $0 | EXPIRED | Expired December 31, 2025 — not available |
| Best Case Total (33% TES) | $8,800 | — | ACE $1,300 + Whole Home $7,500 |
Much of ACE's service territory — particularly coastal communities, rural Salem and Cumberland counties, and Pine Barrens townships — does not have access to natural gas. Many homes heat with oil at $3.80–$4.20/gallon or propane at $3.20–$3.80/gallon.
Replacing an oil or propane system with a heat pump is the most financially compelling upgrade a South NJ homeowner can make in 2026:
Annual oil heating cost (2,000 sq ft home)
$2,800–$4,200/year
At $4.00/gallon, 700–1,050 gallons/year
Annual heat pump heating cost (same home)
$900–$1,500/year
At $0.22/kWh ACE rate, COP 2.5–3.5 avg
Estimated annual savings vs oil
$1,300–$2,700/year
After heat pump operating costs
Payback period (after $8,800 rebates)
4–9 years
Vs oil system replacement. Net cost: $8,000–$11,000
Note on shore / coastal homes: Cape May, Atlantic, and Ocean County coastal homes benefit especially from modern cold-climate heat pumps that maintain full capacity down to 0°F. ACE's $1,300 rebate covers cold-climate models. See our shore heat pump guide for corrosion-resistant installation requirements.
ACE has the highest flat rebate amount in NJ. PSE&G has the most comprehensive financing program (0% on-bill). Here is how all four NJ utilities compare:
| Utility | HP Rebate | LMI Adder | On-Bill Finance | Rate | Territory |
|---|---|---|---|---|---|
| ACETHIS PAGE | $1,300 flat | +$300/measure | No | ~$0.22/kWh | South NJ / Shore (~600K customers) |
| PSE&G | $900 instant | +$200/measure | Yes — 0% up to $75K | ~$0.24/kWh | North/Central NJ (2.3M customers) |
| JCP&L | $500–$1,000 tiered | N/A | No | ~$0.23/kWh | Central/Western NJ (1.1M customers) |
| RECO | $1,400 flat | N/A | No | ~$0.24/kWh | Bergen/Passaic (NW corner, ~75K customers) |
ACE's $1,300 is the highest flat rebate in NJ (RECO offers $1,400 but serves only ~75K customers in Bergen/Passaic). ACE does not offer on-bill financing, so customers should explore home equity or personal loan options for large projects.
The ACE rebate is post-installation — unlike PSE&G's instant point-of-sale discount, you submit documentation after the heat pump is installed and receive a check within 6–8 weeks.
Check your electric bill — if it says "Atlantic City Electric," you are in the ACE service territory and eligible for these rebates.
Have a licensed NJ HVAC contractor assess your home and perform a load calculation to determine the right system size.
Choose a qualifying heat pump — ENERGY STAR certified, SEER2 ≥ 16. Your contractor will verify model eligibility.
Contractor installs the system. Retain all documentation including model numbers, serial numbers, and installation invoice.
Your contractor or you submit the ACE rebate application online at atlanticcityelectric.com/rebates. Include equipment spec sheets and invoice.
ACE processes most applications within 6–8 weeks. Rebate is typically issued as a check mailed to the homeowner.
Also apply for NJ Whole Home separately: The NJ Whole Home application must be initiated BEFORE installation begins. Contact NJ Clean Energy at njcleanenergy.com or your BPI-certified contractor to start the Whole Home process before scheduling your heat pump installation.
Complete guide to all NJ rebates — Whole Home, PSE&G, JCP&L, ACE, RECO.
Read guideCorrosion-resistant installation requirements for coastal NJ homes.
Read guideFull pricing breakdown by system type, region, and rebate stacking.
Read guideHow to find a BPI-certified contractor for Whole Home qualification.
Read guideRebate amounts and eligibility requirements are approximate as of March 2026 and may change. Federal 25C tax credit expired December 31, 2025. Always confirm current details with Atlantic City Electric directly. This guide is for informational purposes only.
The ACE $1,300 rebate plus NJ Whole Home (up to $7,500) are available now. NuWatt Energy serves South NJ homeowners with licensed, BPI-certified contractors who handle all rebate paperwork.
Free assessment — No obligation — Serving ACE territory in South NJ