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JCP&L offers tiered heat pump rebates from $500 to $1,000 based on efficiency ratings. Cold-climate models earn the highest tier. Stack with NJ Whole Home ($7,500) for up to $8,500 in direct rebates.
Jersey Central Power & Light (JCP&L), a FirstEnergy subsidiary, serves approximately 1.1 million customers across central and western New Jersey. Unlike PSE&G’s flat rebate, JCP&L rewards higher efficiency with bigger rebates — especially for cold-climate heat pumps designed for northern NJ’s colder winters.
The $2,000 federal Section 25C credit expired under the OBBBA, signed July 4, 2025. There is no federal tax credit for residential heat pump purchases in 2026. The JCP&L utility rebates ($500-$1,000) plus NJ Whole Home ($7,500) are now the primary financial incentives available to JCP&L customers.
JCP&L uses a tiered system that rewards higher-efficiency equipment with bigger rebates. Unlike PSE&G’s flat rebate, your savings scale with the quality of your system.
| Tier | Rebate | Cooling Efficiency | Heating Efficiency |
|---|---|---|---|
Tier 1 | $500 | SEER2 ≥ 15.2 | HSPF2 ≥ 7.8 |
Tier 2 | $750 | SEER2 ≥ 17.1 | Higher efficiency |
Cold-ClimateBEST VALUE | $1,000 | Cold-climate rated | HSPF2 ≥ 8.1 |
Ductless Mini-Split | $750 | ENERGY STAR certified | Per outdoor unit |
Heat Pump Water Heater | $500–$750 | UEF ≥ 2.0 | ENERGY STAR certified |
JCP&L serves central and western New Jersey — approximately 1.1 million customers. The territory includes some of the coldest parts of the state, making cold-climate heat pumps particularly valuable.
Coldest part of JCP&L territory. Climate Zone 5A. Cold-climate heat pumps strongly recommended. Sussex, Warren, and northern Morris counties.
Rolling hills and suburban communities. Zone 4A/5A transition. Hunterdon, Somerset, and southern Morris counties.
Suburban density, moderate climate. Parts of Middlesex, Mercer, and Union counties served by JCP&L.
Coastal-influenced climate. Parts of Monmouth and Ocean counties in JCP&L territory.
Check your electric bill for "Jersey Central Power & Light" or "FirstEnergy." You can also call JCP&L at 1-800-662-3115 or visit firstenergycorp.com to verify your account. If you have PSE&G, ACE, or another provider, look for their specific rebates.
New Jersey has two major utilities offering heat pump rebates. Here is how they compare — remember, you do not choose your utility, it is determined by where you live.
| Feature | JCP&L | PSE&G |
|---|---|---|
| Rebate Structure | Tiered: $500 / $750 / $1,000 | Flat: $900 |
| Cold-Climate Rebate | $1,000 (HSPF2 8.1+) | $900 (no cold-climate bonus) |
| On-Bill Financing | Not available | Yes — up to $75K at 0% APR |
| Territory | Central and western NJ | Northern and central NJ |
| Stackable with Whole Home | Yes — up to $7,500 | Yes — up to $7,500 |
Bottom line: JCP&L customers with cold-climate equipment get $100 MORE than PSE&G customers ($1,000 vs $900). However, PSE&G customers have access to 0% APR on-bill financing that JCP&L does not offer. If you are in JCP&L territory, maximize your rebate by choosing a cold-climate system.
JCP&L customers can combine multiple rebate sources to significantly reduce their heat pump cost. Here is the maximum stacking scenario:
| Rebate Source | Amount | Status |
|---|---|---|
| NJ Whole Home | $7,500 | Available Now |
| JCP&L Cold-Climate | $1,000 | Available Now |
| HEAR Federal (Low-Income) | $8,000 | PENDING |
| HEAR Federal (Moderate-Income) | $4,000 | PENDING |
| Maximum Total Possible | $16,500 | $8,500 today |
Whole Home and JCP&L rebates are available today. HEAR is pending NJ BPU launch. Do not sign contracts that depend on HEAR funding.
All systems must be ENERGY STAR certified. Systems with R-32 or R-454B refrigerants are recommended for new installations.
Min: SEER2 15.2+ / HSPF2 7.8+
Entry-level qualifying system. Whole-home heating and cooling through existing ductwork.
Min: SEER2 17.1+
Higher efficiency for moderate zones. Strong cooling performance, good heating output.
Min: HSPF2 8.1+
Recommended for Sussex, Warren, Morris. Maintains output below 5°F. Highest JCP&L rebate.
Min: ENERGY STAR certified
Great for older homes, additions, or supplemental zones. $750 per outdoor unit.
Min: UEF 2.0+
Replaces standard electric water heater. Saves $200-400/year. Separate JCP&L rebate.
R-32 and R-454B refrigerants are replacing R-410A in new systems. They have significantly lower global warming potential and represent the future industry direction. While not strictly required for the JCP&L rebate, buying a system with next-generation refrigerant avoids future phase-out concerns.
Follow these steps to qualify for and receive your JCP&L heat pump rebate. Rebates are processed through the FirstEnergy platform.
Confirm that "Jersey Central Power & Light" or "FirstEnergy" appears on your electric bill. Your rebate is tied to your JCP&L account.
Schedule a home energy assessment to identify the best improvement opportunities. This may be required to qualify for Whole Home rebates stacked with JCP&L.
Choose a system that meets the efficiency requirements for your target tier. For the maximum $1,000 rebate, select a cold-climate model with HSPF2 8.1+.
Use a contractor with an NJ HIC (Home Improvement Contractor) license experienced with JCP&L/FirstEnergy rebate applications. Ensure they provide the AHRI certificate for your system.
Have your contractor install the system and provide all documentation: invoice, AHRI certificate, equipment specs, and system serial number.
Submit your completed rebate application through the FirstEnergy website or by mail. Include proof of purchase, AHRI certificate, contractor invoice, and JCP&L account verification.
JCP&L processes approved applications within 6 to 10 weeks. The rebate is issued as a check or bill credit to your account.
Important: Incomplete applications are the most common cause of rejection. Ensure all documentation is included, especially the AHRI certificate that verifies your system’s efficiency ratings. Without the AHRI, JCP&L cannot verify tier eligibility.
JCP&L territory includes the coldest parts of New Jersey — Sussex, Warren, and northern Morris counties in IECC Climate Zone 5A. This makes JCP&L’s cold-climate tier rebate particularly valuable.
Recommendation: If you live in Sussex, Warren, northern Morris, or Hunterdon, do not opt for Tier 1 just to save on upfront cost. The $500 rebate difference ($1,000 vs $500) helps offset the system premium, and the efficiency gains in cold northern winters pay for themselves within 2-3 years.
Heat pump costs in JCP&L territory vary by region. Northern counties tend toward higher pricing due to cold-climate system requirements but also see greater heating savings.
| Cost Category | Amount |
|---|---|
| Average 3-ton heat pump (JCP&L north) | $15,000 |
| Average 3-ton heat pump (JCP&L central) | $14,000 |
| JCP&L rebate (cold-climate) | -$1,000 |
| NJ Whole Home | -$7,500 |
| Federal 25C credit (expired) | $0 |
| Net cost (northern NJ) | $6,500 |
| Net cost (central NJ) | $5,500 |
Annual Savings vs Gas
$600\u2013$1,400
Per year at $0.18/kWh NJ average
Payback Period
4\u20137 years
After JCP&L + Whole Home rebates
System Lifespan
15\u201320 yrs
With proper maintenance
NJ rate note: New Jersey electricity rates average $0.18/kWh — higher than the national average but lower than neighbors NY ($0.24) and CT ($0.27). With natural gas at ~$1.35/therm and heat pumps being 2-3x more efficient than gas furnaces, operating costs are competitive. Savings are greatest in northern JCP&L territory where heating demand is high.
The HEAR program allocated $183 million for New Jersey. However, NJ BPU has not launched the program yet.
| Low-income (below 80% AMI) | $4,000\u2013$8,000 |
| Moderate-income (80-150% AMI) | $4,000 |
| Stackable with JCP&L rebate? | Expected yes |
Warning: Do NOT sign contracts that depend on HEAR funding until NJ BPU officially launches the program. The JCP&L rebates ($500-$1,000) and NJ Whole Home ($7,500) are the only confirmed rebates available today.
All NJ rebates: Whole Home, PSE&G, JCP&L, ACE, and HEAR status.
Read guideFlat $900 rebate, 0% APR on-bill financing up to $75K.
Read guideRegional pricing: North $15K, Central $14K, Shore $14.5K, South $13K.
Read guideHonest numbers at $1.35/therm vs $0.18/kWh for NJ gas market.
Read guideWhat to look for in an NJ HIC-licensed contractor, questions to ask.
Read guideAll NJ energy guides in one place.
Read guideRates and rebate amounts shown are approximate as of February 2026. JCP&L rebate amounts, eligibility requirements, and tier ratings may change. NJ electricity rates vary by utility and plan. Federal 25C tax credit expired December 31, 2025. HEAR program not yet launched in NJ. Always confirm current details with JCP&L/FirstEnergy and NJ BPU directly.
JCP&L / FirstEnergy \u2014 firstenergycorp.com/jcpl
NJ Board of Public Utilities (BPU) \u2014 nj.gov/bpu
NJ Whole Home Program \u2014 njcleanenergy.com
ENERGY STAR \u2014 energystar.gov
AHRI Directory \u2014 ahridirectory.org
JCP&L rebates up to $1,000 are available now. Stack with NJ Whole Home $7,500 for up to $8,500 in rebates. NuWatt Energy helps you navigate JCP&L rebates, choose the right tier, and maximize your savings.
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