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PSE&G offers up to $900 instant rebates on heat pumps, plus on-bill repayment up to $75K at 0% interest. Valid January 1, 2025 through June 30, 2027. Stack with NJ Whole Home ($7,500) for maximum savings.
The $2,000 federal Section 25C Energy Efficient Home Improvement Credit expired under the OBBBA, signed July 4, 2025. There is no federal tax credit for heat pumps in 2026. The PSE&G rebate ($900) + NJ Whole Home ($7,500) are the primary incentives available.
PSE&G offers instant rebates through their Residential Marketplace. The discount is applied at the point of sale — no waiting for reimbursement checks.
| Equipment | Rebate | LMI Adder | Notes |
|---|---|---|---|
| Air-Source Heat Pump (ASHP) | Up to $900 | +$200 | Ducted central system. ENERGY STAR certified required. |
| Ductless Mini-Split Heat Pump | Up to $900 | +$200 | Single or multi-zone. ENERGY STAR certified required. |
| Heat Pump Water Heater (HPWH) | Up to $900 | +$200 | Replaces electric or gas water heater. UEF 2.0+ recommended. |
Valid period: January 1, 2025 — June 30, 2027
PSE&G on-bill repayment program is unique in New Jersey. No other utility offers 0% interest, no credit check, and transferable to the next homeowner.
Maximum financing
$75,000 total ($50,000 for decarbonization)
Interest rate
0% APR
Credit check
Not required
Repayment method
Monthly PSE&G bill line item
Transferable
Yes — stays with the meter, not the homeowner
Eligible measures
Heat pumps, insulation, air sealing, HPWH, windows
Choose qualifying energy efficiency upgrades (heat pump, insulation, etc.)
PSE&G finances the cost through the on-bill repayment program
Repayment is added as a line item on your monthly PSE&G bill
If you move, the repayment transfers to the next homeowner with the meter
PSE&G serves approximately 2.3 million electric customers across northern and central New Jersey, covering 300+ municipalities.
| County | Major Cities | Climate Zone |
|---|---|---|
| Essex | Newark, East Orange, Montclair, Bloomfield | 5A |
| Hudson | Jersey City, Hoboken, Bayonne, North Bergen | 5A |
| Bergen | Hackensack, Paramus, Fort Lee, Teaneck | 5A |
| Passaic | Paterson, Clifton, Wayne, Passaic | 5A |
| Union | Elizabeth, Union, Linden, Plainfield | 5A |
| Middlesex | New Brunswick, Edison, Perth Amboy, Woodbridge | 4A/5A |
| Mercer | Trenton, Princeton, Hamilton, Ewing | 4A |
| Burlington | Mount Laurel, Moorestown, Burlington, Evesham | 4A |
Check your electric bill — if it says "Public Service Electric and Gas" or "PSE&G," you qualify for these rebates. You can also visit pseg.com and enter your address.
PSE&G homeowners can combine multiple incentive programs. Here is the full picture of what is available and what is pending.
| Program | Amount | Status |
|---|---|---|
| PSE&G instant rebate | $900 | Confirmed |
| NJ Whole Home (at 33% TES) | $7,500 | Confirmed |
| HEAR (low-income) | $8,000 | PENDING — not launched |
| HEAR (moderate-income) | $4,000 | PENDING — not launched |
| Total Potential | $16,400 | — |
HEAR amounts are projections based on the $183M federal allocation for NJ. The program has NOT launched as of February 2026. Do not sign contracts that depend on HEAR funding.
The PSE&G process is designed to be straightforward. Here are the steps to qualify for and receive your instant rebate.
Confirm you are a PSE&G electric customer. Check your bill or visit pseg.com.
Use the PSE&G Marketplace or request a list of approved contractors. Contractor must hold NJ DCA license.
The contractor will assess your home, perform a load calculation, and recommend the right system size.
Choose an ENERGY STAR certified heat pump. Your contractor will guide you on models that qualify for the rebate.
The contractor installs the system and applies the $900 rebate as an instant discount. No waiting required.
If you want to finance the remaining cost, set up 0% on-bill repayment through PSE&G. No credit check required.
Tip: Pre-approval is recommended for the on-bill repayment program. Contact PSE&G before installation to confirm your financing eligibility.
New Jersey has four major utilities with different heat pump rebate programs. Here is how PSE&G compares.
| Utility | Rebate | On-Bill | LMI Adder | Territory |
|---|---|---|---|---|
| PSE>HIS PAGE | $900 instant | Yes — $75K at 0% | +$200/measure | Northern/Central NJ (2.3M customers) |
| JCP&L | $500-$1,000 tiered | No | N/A | Central/Western NJ (1.1M customers) |
| ACE | Up to $1,300 flat | No | +$300/measure | Southern NJ/Shore (560K customers) |
| RECO | Up to $1,400 flat | No | N/A | Northwest corner (73K customers) |
PSE&G is the only NJ utility offering 0% on-bill repayment with no credit check. ACE has the highest per-unit rebate ($1,300), but no financing option. JCP&L offers the highest rebate for cold-climate models ($1,000).
The HEAR program has allocated approximately $183 million for New Jersey, but has NOT launched as of February 2026.
Low-income (below 80% AMI)
$8,000
Moderate-income (80-150% AMI)
$4,000
Stackable with PSE&G rebate? Expected yes
Warning: Do NOT sign contracts that depend on HEAR funding until the program officially launches. The PSE&G $900 rebate + NJ Whole Home ($7,500) are the only confirmed incentives. Contractors promising HEAR before launch should be treated with caution.
Complete guide to all NJ rebates including Whole Home and utilities.
Read guideJCP&L tiered rebates from $500 to $1,000 for central/western NJ territory.
Read guidePricing by region, system type, and savings after rebates.
Read guideAll energy guides for New Jersey in one place.
Read guideRates and rebate amounts are approximate as of February 2026. PSE&G rebate amounts, eligibility requirements, and program dates may change. Federal 25C tax credit expired December 31, 2025. HEAR program not yet launched in NJ. Always confirm current details with PSE&G directly.
The PSE&G $900 rebate + 0% financing are available now through June 2027. NuWatt Energy helps you navigate rebates, choose the right system, and maximize your savings.
Free assessment - No obligation - Serving PSE&G territory