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50% Off Through NJCEP HPwES Pathway
NJCEP offers up to 50% off insulation and air sealing improvements through the Home Performance with ENERGY STAR pathway, with a maximum rebate of $4,000. Income-eligible households through Comfort Partners receive 100% coverage at zero cost.
Updated February 2026
NJCEP provides insulation rebates through two pathways depending on your income level. Both require a BPI-certified contractor.
Maximum $4,000 total rebate
Income-eligible at 225% FPL
Typical costs before and after the 50% HPwES rebate. Actual rebate amounts are determined by your HPwES assessment report.
Blown-in fiberglass or cellulose. Many NJ homes have R-19 or less — bringing to R-49+ dramatically reduces heat loss and summer heat gain.
Dense-pack cellulose through small drill holes. Many older NJ colonials and Victorians (pre-1960) have zero wall insulation.
Rim joist spray foam plus wall or ceiling insulation. Eliminates cold floors above unheated basements — common complaint in NJ homes.
Seal air leaks identified during blower door test — attic bypasses, recessed lights, plumbing stacks, electrical penetrations.
Seal leaky duct joints with mastic. Insulate exposed ducts in unconditioned spaces. Improves HVAC efficiency 20-30%.
Combining attic, wall, basement insulation, and air sealing delivers the biggest comfort and energy savings improvements.
Comfort improvement: Reduces drafts, cold spots, and ice dams. Evens out temperatures between floors. Reduces AC runtime in NJ summers. Total rebate capped at $4,000 per household.
Zone 4A (southern NJ / shore) to Zone 5A (northern NJ / highlands)
NJ has both significant heating AND cooling loads. Insulation reduces both winter heating bills and summer AC costs. Gas-dominant heating market means insulation savings compete against relatively cheap gas — but air sealing comfort benefits are immediate.
Through the HPwES pathway, NJ homeowners receive up to 50% off insulation and air sealing improvements, with a maximum total rebate of $4,000 per household. This covers attic insulation, wall insulation, basement/crawlspace insulation, air sealing, and duct sealing. Income-eligible households through Comfort Partners receive 100% coverage at zero cost.
Yes. The HPwES assessment ($150 copay, credited toward work) is required before you can receive insulation rebates. The BPI-certified auditor evaluates your home, performs a blower door test, and creates a prioritized improvement plan. The proposed improvements must achieve a minimum 10% energy savings per BPI modeling to qualify for rebates.
The NJCEP program targets R-49 to R-60 for attic insulation. Many NJ homes have R-19 or less -- well below modern standards. Bringing attic insulation to R-49+ dramatically reduces heat loss in winter and heat gain in summer. NJ spans Climate Zones 4A (southern/shore) to 5A (northern/highlands).
Yes. NJCEP insulation rebates through HPwES (up to $4,000) and NJ Whole Home heat pump rebates (up to $7,500) are separate programs and can be combined. Doing insulation before or alongside a heat pump installation is the recommended approach -- better insulation means a smaller, more efficient heat pump system.
Attic insulation typically takes 1-2 days. Wall insulation (dense-pack) takes 1-3 days depending on home size. Air sealing is usually completed in 1 day. A comprehensive project combining attic, walls, and air sealing typically takes 3-5 days total. Work can usually begin 2-4 weeks after approving the contractor quote.
No. The Section 25C energy efficiency tax credit expired December 31, 2025 and provides $0 in 2026 for insulation or air sealing. The NJCEP 50% insulation rebate (max $4,000) is a state-funded direct rebate and is fully available in 2026.
Victorian and colonial homes often have balloon-frame construction with air leaks from basement to attic. Cape Cod-style homes have complex sloped ceiling geometry. Shore homes need moisture management with salt air. Post-war ranch homes (1945-1970) typically have minimal original insulation -- often just 2-inch batts. Split-level homes have complex thermal boundaries between conditioned and unconditioned spaces.
Work must be performed by a NJCEP participating contractor with BPI certification to qualify for rebates. You should get 2-3 quotes from different participating contractors. The contractor handles all NJCEP rebate paperwork on your behalf. The assessment report identifies specific measures and rebate amounts for each.
NuWatt Energy provides this guide as an educational resource. Program details and rebate amounts are sourced from njcleanenergy.com. Verify current availability by calling NJCEP at 866-657-6278.
$150 copay assessment -- the required first step to unlock insulation rebates.
FREE insulation and improvements for households at 225% FPL.
Up to $7,500 for heat pumps. Combine with insulation for best results.
$500 base + $200 PSE&G adder for ENERGY STAR HPWHs.
Full cost breakdown by system type after all NJ rebates.
Complete overview of all NJ Clean Energy programs.
Start with the $150 HPwES assessment to unlock 50% off insulation (max $4,000). Income-eligible? Comfort Partners covers everything for free.