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Complete Homeowner's Reference
NJCEP is New Jersey's ratepayer-funded energy efficiency program, administered by the NJ Board of Public Utilities. This guide covers every residential program available in 2026 -- from assessments and insulation rebates to income-eligible benefits and heat pump water heater incentives.
Updated February 2026
The New Jersey Clean Energy Program (NJCEP) is not a utility company. It is the brand name for New Jersey's ratepayer-funded energy efficiency and renewable energy programs -- a statewide initiative that helps homeowners reduce energy costs through assessments, rebates, and income-eligible services. Think of it as New Jersey's version of Mass Save in Massachusetts or Energize CT in Connecticut.
NJCEP is administered by the NJ Board of Public Utilities (BPU) and delivered through the state's four investor-owned electric utilities: PSE&G (the largest, serving ~40% of electric customers), JCP&L (FirstEnergy), ACE (Atlantic City Electric), and RECO (Rockland Electric). Each utility administers programs in its own territory, but rebate amounts and eligibility are standardized across the state.
Funding comes from the Societal Benefits Charge (SBC) on every NJ utility bill. This means every NJ electric and gas customer is already paying into the program. If you pay a NJ utility bill, you are eligible for NJCEP services. NJ is a gas-dominant heating market -- about 75% of NJ homes heat with natural gas -- which is important context for understanding how insulation and heat pump investments compete against relatively inexpensive gas heating.
Every residential program available to NJ homeowners in 2026. Click any card for the full deep-dive guide with step-by-step instructions, eligibility details, and cost breakdowns.
Comprehensive 4-6 hour home energy audit with BPI-certified auditor. Blower door test, thermal imaging, and free installations during the visit.
Attic, wall, basement insulation and air sealing. 50% off for all customers through HPwES pathway. 100% off through Comfort Partners.
FREE comprehensive energy improvements for income-eligible households at 225% FPL. Insulation, heating, appliances -- all at zero cost.
Heat pump water heaters use 60-70% less electricity. $500 NJCEP rebate plus $200 PSE&G adder for qualifying models.
Up to $7,500 for whole-home heat pump installations. Graduated rebate: $2,000 base + $200 per TES percentage point.
NJCEP offers two distinct pathways for home improvements. The right choice depends on whether you are focused on envelope improvements (insulation) or full electrification (heat pumps).
Insulation, air sealing, and envelope improvements
Heat pump electrification rebates
Key distinction: NJCEP rebates are direct rebates funded by NJ ratepayers, not federal tax credits. They are unaffected by the federal expiration and remain fully available in 2026. The HPwES assessment, 50% insulation discount, Comfort Partners, and HPWH rebates all continue as normal.
All four investor-owned electric utilities participate in NJCEP programs. Same core rebates, same eligibility, regardless of your utility. PSE&G offers additional adders on some programs.
Northern and central NJ — largest utility, serves ~70% of NJ gas and ~40% of electric customers
+$200 HPWH adder
Western and northern NJ — serves ~1.1 million electric customers
Southern NJ — shore counties and southern interior, serves ~560,000 customers
Bergen and Passaic counties — smallest NJ utility, serves ~73,000 customers
Gas-only utilities
NJ Natural Gas, Elizabethtown Gas, and South Jersey Gas serve gas only. Their customers also have an electric utility (typically JCP&L or ACE) and access NJCEP programs through that electric utility. Comfort Partners is coordinated through your electric utility.
NJCEP is New Jersey's ratepayer-funded energy efficiency program, administered by the NJ Board of Public Utilities (BPU). It offers rebates, assessments, and income-eligible programs delivered through your utility -- PSE&G, JCP&L, ACE, or RECO. Funding comes from the Societal Benefits Charge (SBC) on every NJ utility bill. If you pay a NJ electric or gas bill, you are already contributing to and eligible for NJCEP services.
The Home Performance with ENERGY STAR (HPwES) assessment costs $150 as a copay. However, this $150 is applied as a credit toward any improvements you complete -- making it effectively free if you do the recommended work. The assessment lasts 4-6 hours and includes a blower door test, thermal imaging, and free direct installations (LEDs, showerheads, aerators, pipe insulation).
Through the HPwES pathway, NJ homeowners can receive up to 50% off insulation and air sealing improvements, with a maximum total rebate of $4,000. This requires completing an HPwES assessment first and achieving a minimum 10% energy savings per BPI modeling. Income-eligible households through Comfort Partners receive 100% coverage at no cost.
Comfort Partners is NJCEP's income-eligible program providing FREE comprehensive energy improvements -- insulation, air sealing, heating system repairs, appliance replacement, and more -- at zero cost. You qualify if your household income is at or below 225% of the Federal Poverty Level, or if you are enrolled in LIHEAP, USF, SNAP, NJ FamilyCare, SSI, Section 8, or TANF. Call 800-915-8309 to apply.
No. The federal Section 25C energy efficiency tax credit (heat pumps, insulation) and Section 25D residential solar ITC both expired December 31, 2025. They provide $0 in 2026. NJCEP rebates are direct rebates funded by NJ ratepayers, not federal tax credits, so they are unaffected by the federal expiration and remain fully available in 2026.
NJCEP offers a $500 base rebate for qualifying ENERGY STAR heat pump water heaters with a UEF of 2.0 or higher. PSE&G customers receive an additional $200 adder for a total of $700. JCP&L, ACE, and RECO customers receive the $500 base rebate only.
All four investor-owned electric utilities participate: PSE&G (~40% of NJ electric customers), JCP&L (~25%), ACE (~13%), and RECO (~2%). Gas-only utilities (NJNG, Elizabethtown Gas, South Jersey Gas) coordinate through the electric utility for Comfort Partners. All NJCEP rebates are available regardless of which participating utility you have.
NuWatt Energy provides this guide as an educational resource to help NJ homeowners understand and navigate the full range of NJCEP programs. All program details, rebate amounts, and eligibility requirements are sourced from njcleanenergy.com and the NJ BPU. We recommend verifying current availability by calling NJCEP directly at 866-657-6278.
Dive deeper into specific topics with our comprehensive NJ energy guides.
Total cost breakdown by system type after NJ Whole Home and utility rebates.
Honest ROI analysis for NJ gas-heated homes. Gas is cheap -- does it still make sense?
BPI certification, NJ licensing, and what to look for in contractor quotes.
PSE&G-specific rebates, adders, and programs for NJ heat pump customers.
Solar pricing, ADI/SREC-II rates, net metering, and tax exemptions.
130 miles of NJ coastline. How salt air affects heat pumps and what to do about it.
Schedule your $150 HPwES assessment and unlock 50% off insulation, Whole Home heat pump rebates, and HPWH incentives. Income-eligible? Comfort Partners covers everything for free.
Apply online at njcleanenergy.com or call 866-657-6278