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In New Jersey, your installer choice determines whether you receive the $7,500 Whole Home rebate and your utility-specific incentives. NJ has three major utility territories with different rebate programs. This guide gives you a 10-point checklist to vet any NJ heat pump contractor before you sign.
Quick Answer: Look for NJ DCA License + Whole Home Certification
Your installer must hold a NJ DCA Master HVAC license, be a registered Home Improvement Contractor (HIC), and have Whole Home program certification to process the up to $7,500 state rebate. They should also have a track record processing rebates through your specific utility (PSE&G, JCP&L, ACE, or RECO). Verify the DCA license, ask for the HIC registration number, and confirm Whole Home status before evaluating anything else.
The NJ Clean Energy Whole Home program is the largest state incentive available for heat pump installations in New Jersey. It provides cash-back rebates based on your project’s projected Total Energy Savings (TES) percentage, starting at $2,000 for 5% TES and scaling up to $7,500 at 33% TES, with an additional $200 for each percentage point above 5%.
Contractor certification through the Whole Home program is not optional. It is the gateway to this rebate. Here is what a certified contractor does that an uncertified one cannot:
Only Whole Home certified contractors can submit project plans to the NJ Clean Energy portal. Uncertified contractors cannot access this system at all.
The program requires a comprehensive energy assessment (blower door test, insulation evaluation) that certified contractors are trained to conduct and document properly.
Certified contractors use approved modeling software to project the TES percentage that determines your rebate amount. This projection must be accurate and defensible.
After installation, the contractor submits completion documentation and test-out results. NJ Clean Energy reviews this before releasing rebate funds. A certified contractor knows exactly what to submit.
Rebate scale: $2,000 at 5% TES, $2,200 at 6%, $2,400 at 7%, and so on — adding $200 per percentage point up to a maximum of $7,500 at 33% TES. Most heat pump installations with basic air sealing achieve 15-25% TES, translating to $4,000-$6,000 in Whole Home rebates alone.
A good installer manages this entire process for you. Understanding each step helps you evaluate whether your contractor is handling things properly.
Search through NJ Clean Energy (njcleanenergy.com) for certified contractors in your area. Confirm Whole Home certification before scheduling a site visit.
The contractor performs a comprehensive energy assessment of your home, including blower door test, insulation inspection, and heating/cooling system evaluation. This determines your baseline energy usage.
Based on the assessment, the contractor designs a project scope (heat pump, insulation, air sealing) and projects the Total Energy Savings (TES) percentage. The TES determines your rebate amount: $2,000 at 5%, up to $7,500 at 33%.
The contractor submits the project plan to NJ Clean Energy for review and approval. This must happen before installation begins. Approval typically takes 2-4 weeks.
Once approved, the contractor proceeds with installation. Ductless systems take 1-2 days, ducted systems 2-4 days. All required NJ permits are pulled before work begins.
The contractor submits completion documentation including test-out results. NJ Clean Energy may conduct a quality assurance inspection to verify the work meets program standards.
After verification, NJ Clean Energy processes the Whole Home rebate. Additionally, your contractor submits utility-specific rebate applications (PSE&G, JCP&L, ACE, or RECO). Rebates typically arrive within 6-10 weeks after completion documentation.
Use this checklist to evaluate every heat pump installer you consider. An installer who meets all 10 points is worth your business.
Verify the installer holds a current Master HVAC license from the NJ Department of Community Affairs (DCA). This is the baseline legal requirement for HVAC work in New Jersey. Search the NJ Division of Consumer Affairs license verification tool to confirm.
The NJ Clean Energy Whole Home program provides up to $7,500 in cash-back incentives. Only contractors certified through this program can submit projects and process the rebate. Without this certification, you forfeit the largest state incentive available.
Building Performance Institute (BPI) certification demonstrates training in whole-house energy assessment, air sealing, and insulation. BPI-certified contractors understand how your heat pump fits into your home as a system, not just as an equipment swap.
The proposal must include a room-by-room Manual J load calculation for your home. NJ spans two climate zones (4A and 5A), making proper sizing critical. Oversizing is the most common installation problem in NJ. A Manual J should be included at no extra charge.
PSE&G, JCP&L, ACE, and RECO each have different rebate programs, efficiency requirements, and application processes. Ask how many rebates the installer has processed through your specific utility in the past 12 months. Unfamiliarity with your utility means delays or missed rebates.
Look for Diamond Dealer (Mitsubishi), Premier Dealer (Daikin), or Elite Dealer (Carrier/Bryant) status. These certifications mean the installer has completed manufacturer-specific training and has a direct relationship for warranty support and parts.
Get at least 3 written quotes with itemized breakdowns: equipment cost, labor, permits, electrical work, ductwork modifications, and rebate amounts. Vague "package pricing" hides markups and makes comparison impossible.
Get warranty terms in writing before signing. Minimum standards: 5-12 year equipment warranty from the manufacturer, 1-5 year labor warranty, and a separate workmanship warranty from the installer. Verbal warranty promises are unenforceable in NJ.
Request at least 3 references from New Jersey installations completed in the past 12 months. Check the NJ Better Business Bureau, Google reviews, and ask for references in your county. Contact them and ask about communication, system performance, and rebate processing.
Verify current general liability insurance ($1M minimum) and workers compensation coverage. NJ law requires workers comp for contractors with employees. Ask for a certificate of insurance naming you as additionally insured during the project.
New Jersey has some of the strongest consumer protection laws in the country for home improvement work. Here is what your installer must hold.
NJ Department of Community Affairs
Required for installing, servicing, and maintaining heating, cooling, and refrigeration systems in New Jersey. The DCA issues and regulates this license. Verify at the NJ Division of Consumer Affairs website.
NJ Division of Consumer Affairs
NJ law requires HIC registration for all contractors performing home improvement work over $500. Provides access to the NJ Contractors Guarantee Fund (up to $20,000 per claim). Verify at njconsumeraffairs.gov.
NJ Board of Examiners of Electrical Contractors
Required for all electrical wiring associated with heat pump installation, including circuit breaker additions, disconnect switches, and panel upgrades. May be held by the HVAC company or their licensed electrical subcontractor.
US Environmental Protection Agency
Federal requirement for anyone who handles refrigerants. The technician performing the installation must hold at minimum a Type II (high-pressure) or Universal certification.
NJ Consumer Protection: New Jersey’s Consumer Fraud Act provides strong protections for homeowners. All home improvement contracts must be in writing, include the contractor’s HIC registration number, and provide a 3-business-day right to cancel. If a contractor violates these rules, you can file a complaint with the NJ Division of Consumer Affairs and may be entitled to treble (triple) damages.
Each NJ utility has its own heat pump rebate program with different amounts, requirements, and application processes. Your installer should be experienced with your specific utility.
| Utility | Rebate Amount | Service Area | Application Process |
|---|---|---|---|
| PSE&G | $900 instant | Northern & Central NJ | Instant via PSE&G Marketplace |
| JCP&L | $500-$1,000 tiered | Central & Western NJ | Online application post-install |
| ACE | Up to $1,300 | Southern NJ & Shore | Online or mail within 90 days |
| RECO | Up to $1,400 | NW corner (Bergen/Passaic) | Post-installation application |
Stacking incentives: NJ homeowners can combine the Whole Home rebate (up to $7,500) with their utility rebate. For example, a PSE&G customer could receive $7,500 + $900 = $8,400 in total rebates. An ACE customer could receive $7,500 + $1,300 = $8,800. These are separate programs that stack. Your installer should process both.
Any one of these should give you serious pause. Two or more and you should find a different installer immediately.
An unlicensed contractor is operating illegally in New Jersey. You have no legal recourse through the NJ Contractors Guarantee Fund if something goes wrong. Never hire an unlicensed HVAC contractor regardless of price.
The Section 25C energy efficiency tax credit expired December 31, 2025. Any installer who tells you a $2,000 federal tax credit is available for heat pumps in 2026 is either uninformed or dishonest. Either way, they are not someone you want installing your system.
Any installer who sizes your system based on square footage alone or "rules of thumb" is guessing. In NJ, where climate zones differ significantly between north and south, this is especially dangerous. Improperly sized systems waste energy, fail to heat adequately, and short-cycle.
"This price is only good today" or "we have one unit left in stock" are high-pressure sales tactics. Reputable NJ installers provide written quotes valid for 30-60 days and encourage you to compare. Walk away from any installer who pressures you to sign immediately.
NJ consumer protection law requires written contracts for home improvement work over $500. A contractor who wants cash-only payment with no contract is violating NJ law and leaving you with zero protection. The NJ Contractors Guarantee Fund only covers registered contractors with written contracts.
The NJ Whole Home program requires certified contractors. An installer who claims they can "help you get" the $7,500 rebate but is not actually certified cannot process the paperwork. You will lose the rebate entirely.
NJ law requires Home Improvement Contractor (HIC) registration with the Division of Consumer Affairs for work over $500. An unregistered contractor is operating illegally. Verify HIC status at njconsumeraffairs.gov before signing anything.
If your installer does not know the specific rebate process for PSE&G, JCP&L, ACE, or RECO (whichever serves your area), they likely have limited NJ heat pump experience. Each utility has different requirements, timelines, and application processes.
Understanding available incentives helps you evaluate installer proposals and spot anyone making false claims.
| Program | Amount | Status | Key Requirement |
|---|---|---|---|
| NJ Whole Home | $2,000-$7,500 | Active | Certified contractor + 5%+ TES |
| Utility Rebates | $500-$1,400 | Active | Varies by utility territory |
| NJ 0% Interest Loan | Up to $25,000 | Active | Through NJ Clean Energy program |
| HEAR (Federal) | Up to $8,000 (income-qualified) | Not Yet Launched | Awaiting DOE approval in NJ (~$183M allocated) |
| Federal 25C Tax Credit | $0 | Expired Dec 31, 2025 | No longer available |
Important: The federal Section 25C energy efficiency tax credit expired on December 31, 2025. Any installer who tells you a federal tax credit is available for heat pumps in 2026 is providing incorrect information. The only active incentives are the NJ Whole Home rebate, utility-specific rebates, and the NJ 0% interest loan. HEAR federal rebates have not launched in NJ yet (~$183M allocated, pending DOE approval).
Print this list and bring it to every installer consultation. A good installer will welcome these questions. A bad one will get defensive.
Do you hold a current NJ DCA Master HVAC license? Can I see your license number?
Why it matters: Legal requirement for HVAC work in NJ. Verify at njconsumeraffairs.gov.
Are you a registered NJ Home Improvement Contractor (HIC)?
Why it matters: NJ law requires HIC registration for work over $500. Provides Contractors Guarantee Fund protection.
Are you certified through the NJ Clean Energy Whole Home program?
Why it matters: Required to process the up to $7,500 Whole Home rebate. No certification means no rebate.
Will you perform a room-by-room Manual J load calculation for my home?
Why it matters: Proper sizing prevents oversizing (NJs most common installation problem). Should be included free.
What specific equipment make, model, and refrigerant are you proposing?
Why it matters: You need specifics to compare quotes. R-32 or R-454B is preferred over legacy R-410A.
Is the proposed equipment ENERGY STAR Cold Climate certified?
Why it matters: Critical for northern NJ (Zone 5A). Even in southern NJ, cold-climate models handle occasional cold snaps better.
What is the rated heating capacity at 5 degrees F and at 47 degrees F?
Why it matters: Reveals real-world cold weather performance. Capacity drop between these temps shows how the system handles NJ winters.
How many heat pump installations have you completed in my utility territory in the past year?
Why it matters: Experience with your specific utility (PSE&G/JCP&L/ACE/RECO) means smoother rebate processing.
Will you handle all Whole Home program paperwork and utility rebate applications?
Why it matters: A qualified installer manages all paperwork. If they say rebates are "your responsibility," find someone else.
What warranties are included (compressor, parts, labor, and your workmanship)?
Why it matters: Get this in writing. Minimum: 10-year compressor, 5-year parts from manufacturer, 2+ year labor from installer.
Do you carry general liability and workers compensation insurance?
Why it matters: Protects you if a worker is injured on your property or installation causes damage. Required by NJ law.
What is the full project timeline from signing through permits to completion?
Why it matters: Helps you plan. NJ municipal permit times vary. A good installer knows typical timelines in your municipality.
Do you pull all required electrical and mechanical permits?
Why it matters: NJ requires both HVAC and electrical permits. The installer should handle this entirely, not ask you to pull permits.
Can you provide 3 references from NJ installations in my county?
Why it matters: Local references let you verify quality, communication, winter performance, and rebate processing experience.
What does cleanup and old equipment disposal include?
Why it matters: A professional installer removes all old equipment, refrigerant (per EPA rules), and leaves your home clean.
For Shore installations: Is the outdoor unit rated for coastal/salt air environments?
Why it matters: NJ has 130 miles of coastline. Standard units corrode in salt air. Coastal-rated units or corrosion-resistant coatings are essential within 5 miles of the ocean.
Here is the typical timeline for a heat pump installation in New Jersey, from first contact to final inspection.
The installer visits your home, assesses your existing heating system, performs a Manual J load calculation, and discusses your goals. You should receive a written proposal within 3-5 business days. Remember you have a 3-business-day right to cancel under NJ law after signing.
Compare at least 3 proposals from licensed, Whole Home-certified installers. Review equipment specs, Manual J results, warranty terms, total cost with itemized breakdown, and rebate amounts. Verify the contract includes the HIC registration number.
Your certified contractor submits the project plan to NJ Clean Energy. This includes the energy assessment results, proposed equipment, and projected TES percentage. Approval typically takes 2-4 weeks. No installation should begin until the project is approved.
The installer pulls HVAC and electrical permits from your municipal building department. NJ requires both. Permit processing times vary significantly by municipality, from a few days in some towns to 2-3 weeks in others. Your installer should know your municipality’s typical timeline.
Ductless mini-split: 1-2 days. Ducted central system: 2-4 days. Hybrid system: 2-3 days. The installer should protect your home with drop cloths, clean up daily, and properly dispose of old equipment and refrigerant per EPA regulations.
Your municipality schedules an electrical and HVAC inspection. The installer commissions the system, verifies refrigerant charge, tests all modes (heat, cool, defrost), and walks you through operation. NJ Clean Energy may also conduct a quality assurance inspection.
The installer submits completion documentation to NJ Clean Energy for the Whole Home rebate and to your utility for the utility-specific rebate. Both programs process independently. Total rebate timeline is typically 6-10 weeks after all paperwork is submitted.
New Jersey has a growing number of heat pump installers. Here is context to help you evaluate your options across the state.
Companies with multiple locations across New Jersey often have dedicated heat pump divisions and established relationships with all four NJ utilities. They tend to have reliable rebate processing and bulk equipment pricing, but may have longer scheduling wait times and higher overhead reflected in pricing.
NJ is natural gas dominant, and many gas/oil HVAC contractors are adding heat pump services. Verify they have specific cold-climate heat pump training and Whole Home certification, not just general HVAC experience. A gas company adding heat pumps is not automatically a qualified heat pump installer. Ask about their Manual J process and recent heat pump installation volume.
NJ has 130 miles of coastline. Installers in Monmouth, Ocean, Atlantic, and Cape May counties should have specific experience with coastal installations. This includes specifying coastal-rated outdoor units with corrosion-resistant coatings, proper mounting for flood zone compliance, and humidity management for Shore homes.
Some solar and whole-home electrification companies offer heat pump services as part of a bundled approach (solar + heat pump + battery). This can be convenient and may qualify for higher Whole Home TES percentages. Verify the heat pump work is performed by DCA-licensed HVAC technicians, not just electricians.
Our recommendation: Get at least 3 quotes from NJ DCA-licensed, Whole Home-certified installers experienced with your specific utility. Compare equipment specs, Manual J methodology, warranty terms, rebate amounts, and how they communicate. The cheapest quote is rarely the best value over a 15-20 year equipment lifespan.
Licensed NJ Contractor Serving the Garden State
NuWatt Energy is a licensed NJ contractor serving New Jersey homeowners. We hold the NJ DCA HVAC license, HIC registration, Whole Home certification, and utility rebate experience outlined in this guide. We include Manual J load calculations with every proposal, install only ENERGY STAR Cold Climate equipment, and handle all Whole Home and utility rebate paperwork on your behalf.
15+
Years Experience
2,500+
Installations Completed
NABCEP
Certified Team
We wrote this guide to help you make an informed decision, whether you choose us or another qualified NJ installer. The most important thing is that you end up with a properly sized, properly installed system that qualifies for every NJ rebate available to you.
Common questions New Jersey homeowners ask about choosing a heat pump installer.
NJ heat pump installers must hold a Master HVAC license from the NJ Department of Community Affairs (DCA). They also need a Home Improvement Contractor (HIC) registration from the NJ Division of Consumer Affairs. Electrical work requires a separate NJ electrical license. EPA Section 608 certification is required for refrigerant handling. Verify all credentials before signing any contract.
Visit the NJ Division of Consumer Affairs license verification tool at njconsumeraffairs.gov. You can search by company name, individual name, or license number. For HIC registration, check the NJ Division of Consumer Affairs contractor registry. If the license does not appear or is expired, do not proceed with that contractor.
The NJ Clean Energy Whole Home program provides cash-back incentives up to $7,500 based on projected Total Energy Savings percentage. Contractors must be certified through the program to submit projects. A contractor without Whole Home certification cannot process this rebate for you. Always verify Whole Home certification status before signing.
No. The federal Section 25C energy efficiency tax credit expired on December 31, 2025 under the OBBBA (signed July 4, 2025). There is $0 available for heat pump purchases in 2026. Any installer who tells you a federal tax credit is available is providing incorrect information. The only active incentives are the NJ Whole Home program, utility rebates, and HEAR rebates (when launched).
HEAR (Home Energy Assessment Rebates) is a federal program funded by the Inflation Reduction Act. New Jersey has approximately $183 million allocated but the program has NOT launched yet. NJ is awaiting DOE approval and program administrator selection. When launched, it could provide up to $8,000 for income-qualified households. Do not rely on HEAR in your budgeting until it is officially available.
A Manual J load calculation determines the exact heating and cooling capacity your home needs based on its size, insulation, windows, orientation, and local climate data. New Jersey spans two climate zones (4A in the south, 5A in the north), making proper sizing critical. Without one, an installer is guessing at system size. Oversized systems short-cycle and waste energy; undersized systems cannot keep up in northern NJ cold snaps.
Yes, get at least 3 quotes from licensed, Whole Home-certified NJ installers. Compare not just price, but equipment specifications, Manual J methodology, warranty terms, utility rebate experience, and communication style. The cheapest quote is rarely the best value. A properly sized and installed system will save more over its 15-20 year life than any upfront discount.
Whole Home up to $7,500, utility rebates from PSE&G/JCP&L/ACE/RECO. Complete breakdown.
Ductless, ducted, and hybrid costs by region. Net cost after all NJ rebates.
$900 instant + $200 LMI bonus. On-bill repayment up to $75K.
Tiered: $500/$750/$1,000. Cold-climate HP gets highest tier.
All NJ heat pump guides, calculators, and resources in one place.
Free assessment with Manual J load calculation from a licensed NJ installer.
Last updated: February 2026. Information is accurate as of publication date. NJ Clean Energy program rules, utility rebate amounts, and loan terms are subject to change. Verify current requirements at njcleanenergy.com and your utility’s website.
NuWatt Energy is a licensed NJ contractor with Whole Home certification. We handle all NJ Clean Energy and utility rebate paperwork. Get a free assessment with a Manual J load calculation included.
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