Save energy at home by making the switch to high-efficiency heating and cooling equipment.
Enjoy instant rebates and long-term savings.
Heating and cooling can account for nearly half the energy you use at home. If your HVAC equipment is more than 10 years old, replacing it with ENERGY STAR® certified models could save up to 20% on heating and cooling costs.*
It’s more affordable than ever to make the switch to a more energy-efficient system. Through PSE&G’s residential HVAC Instant Rebates Program, you can save up to $1,050 on eligible equipment when you work with one of our participating contractors.
How You Can Participate
To get started, contact a PSE&G participating contractor who can help guide you through the process, install your equipment, and provide you with an instant rebate once the installation of your new high-efficiency unit(s) is complete.
On-Bill Repayment
You may be eligible for interest-free, on-bill repayment to help defer the cost of your energy efficiency upgrades, including the purchase and installation of high-efficiency heating and cooling equipment.
- If you receive both electric and gas service from PSE&G, if you are a PSE&G electric-only customer whose residence is all electric, if you are a PSE&G electric-only customer who uses delivered fuel (e.g., oil or propane) to heat your home, or if you are a Butler Electric customer who receives gas service from PSE&G, you may qualify for an on-bill repayment term of 84 months (seven years) for up to $25,000 of your total project cost.
- If you receive either electric or gas service from a municipality or other utility service provider, you may qualify for an on-bill repayment term of 84 months (seven years) for up to $15,000 of your total project cost.
- If you meet the low- to moderate-income qualifications, you are eligible for a repayment term of 84 months (seven years) if your total amount borrowed is $10,000 or less. If you have project costs between $10,001 and $25,000, you can choose a term of either 84 months (seven years) or 120 months (10 years).
| On-Bill Repayment Allowance | ||
|---|---|---|
| Electric Provider | Gas Provider | Allowance |
| PSE&G | PSE&G | $25,000 |
| PSE&G | N/A (all-electric residence) | $25,000 |
| PSE&G | N/A (delivered-fuel customers) | $25,000 |
| Butler Electric | PSE&G | $25,000 |
| PSE&G | Not PSE&G (municipality or other utility service provider) | $15,000 |
| Not PSE&G (municipality or other utility service provider) | PSE&G | $15,000 |
| Repayment Terms | ||
|---|---|---|
| Project Cost | All Customers | Income-Qualified Customers |
| $10,000 or less | 84 months | 84 months |
| $10,001 or more | 84 months | 84 months or 120 months |
What You Can Expect
Your selected participating contractor will contact you to confirm your account eligibility and will provide information about PSE&G’s convenient on-bill repayment option, as well as additional incentives for Low- to Moderate-Income (LMI) customers.
On your scheduled appointment day, your contractor will install your high-efficiency HVAC heating, cooling, or water heater equipment; note your PSE&G instant rebate on your invoice; and ask you to sign a customer acknowledgment form upon completion.
Eligible Measures and Incentives
| SEER - ENERGY STAR Residential HVAC and Water Heater Equipment - Electric | |||
|---|---|---|---|
| Measure Description | Minimum Efficiency Requirements† | Instant Rebate | Federal Tax Credit Eligible‡ |
| Central Air Conditioning – Tier 1 | SEER ≥ 16, EER ≥ 12.5 | $210 | |
| Central Air Conditioning – Tier 2 | SEER ≥ 18, EER ≥ 13 | $300 | |
| Air-Source Heat Pump – Tier 1 | SEER ≥ 16, EER ≥ 12.5, HSPF ≥ 9 | $450 | |
| Air-Source Heat Pump – Tier 2 | SEER ≥ 18, EER ≥ 13, HSPF ≥ 10 | $600 | |
| Air-Source Heat Pump – Cold Climate – Tier 1 | SEER ≥ 16, EER ≥ 12.5, HSPF ≥ 9, and COP ≥ 1.75 at 5°F | $600 | |
| Air-Source Heat Pump – Cold Climate – Tier 2 | SEER ≥ 18, EER ≥ 13, HSPF ≥ 10, and COP ≥ 1.75 at 5°F | $600 | |
| Ductless Mini-Split Heat Pump | Single: SEER ≥ 20, EER ≥ 12.5, HSPF ≥ 10 Multi: SEER ≥ 18, EER ≥ 12.5, HSPF ≥ 10 | $240 | |
| Ductless Mini-Split Air Conditioning | SEER ≥ 20, EER ≥ 12.5 | $300 | |
| Heat Pump Water Heater | ENERGY STAR Certified | $600 | Yes |
| Furnace Fan | ECM Motor Install – Retrofit Only | $60 | |
| Smart Thermostat | ENERGY STAR Certified. New Installation or Replacement of a Manual or Conventional Programmable Thermostat, as Part of an HVAC Install. | $60 | |
| SEER2 – ENERGY STAR Residential HVAC and Water Heater Equipment – Electric | |||
|---|---|---|---|
| Measure Description | New Metric Minimum Efficiency Requirements† | Instant Rebate | Federal Tax Credit Eligible‡ |
| Central Air Conditioning Split System – Tier 1 | SEER2 ≥ 15.2, EER2 ≥ 12 | $210 | |
| Central Air Conditioning Split System – Tier 2 | SEER2 ≥ 16, EER2 ≥ 12 | $300 | Yes |
| Central Air Conditioning Single Package – Tier 1 | SEER2 ≥ 15.2, EER2 ≥ 11.5 | $210 | Yes |
| Central Air Conditioning Single Package – Tier 2 | SEER2 ≥ 17.1, EER2 ≥ 11.5 | $300 | Yes |
| Air-Source Heat Pump Split System – Tier 1 | SEER2 ≥ 15.2, EER2 ≥ 11.7, HSPF2 ≥ 7.8 | $450 | |
| Air-Source Heat Pump Split System – Tier 2 | SEER2 ≥ 17.1, EER2 ≥ 11.7, HSPF2 ≥ 7.8 | $600 | |
| Air-Source Heat Pump Single Package – Tier 1 | SEER2 ≥ 15.2, EER2 ≥ 10.6, HSPF2 ≥ 7.2 | $450 | |
| Air-Source Heat Pump Single Package – Tier 2 | SEER2 ≥ 17.1, EER2 ≥ 10.6, HSPF2 ≥ 7.2 | $600 | |
| Air-Source Heat Pump – Cold Climate, Ducted | SEER2 ≥ 15.2, EER2 ≥ 10, HSPF2 ≥ 8.1, COP ≥ 1.75 at 5°F and provide 70% capacity maintenance at 5°F | $600 | Yes |
| Ductless Mini-Split Heat Pump | Single: SEER2 ≥ 20, EER2 ≥ 12, HSPF2 ≥ 9 Multi: SEER2 ≥ 18, EER2 ≥ 12, HSPF2 ≥ 9 | $240 | |
| Ductless Mini-Split Air Conditioning | SEER2 ≥ 20, EER2 ≥ 12.5 | $300 | |
| Heat Pump Water Heater | ENERGY STAR Certified | $600 | |
| Furnace Fan | ECM Motor Install – Retrofit Only | $60 | |
| Smart Thermostat | ENERGY STAR Certified. New Installation or Replacement of a Manual or Conventional Programmable Thermostat, as Part of an HVAC Install. | $60 | |
| ENERGY STAR Residential HVAC and Water Heater Equipment - Gas | |||
|---|---|---|---|
| Measure Description | Minimum Efficiency Requirements† | Instant Rebate | Federal Tax Credit Eligible‡ |
| Reset Controls for Boiler | Attached to Qualifying Boiler | $120 | |
| Gas Boiler – Tier 1 | AFUE 90–94.99% | $450 | |
| Gas Boiler – Tier 2 | AFUE ≥ 95% | $510 | Yes |
| Gas Furnace – Tier 1 | AFUE 95–96.9% | $390 | |
| Gas Furnace – Tier 2 | AFUE ≥ 97% | $450 | Yes |
| Gas Combi Heat – Tier 1 | AFUE ≥ 95% | $780 | |
| Gas Combi Heat – Tier 2 | AFUE ≥ 97% | $1,050 | |
| Gas Storage Tank Water Heater – Tier 1 | Power Vented < 55 Gallons, UEF ≥ 0.64 Medium Draw Pattern: High Draw Pattern UEF ≥ 0.68 | $300 | |
| Gas Storage Tank Water Heater – Tier 2 | Power Vented ≥ 55 Gallons, UEF ≥ 0.78 Medium Draw Pattern: High Draw Pattern UEF ≥ 0.80 | $450 | |
| Tankless Water Heater | UEF ≥ 0.87 | $450 | |
| Indirect Fired Storage Tank Water Heater | Paired With a Qualifying Gas Boiler | $150 | |
| Qualifying Gas Heater With Qualifying Gas Water Heater – Tier 1 | < 55 Gallons and UEF ≥ 0.64 Medium Draw Pattern; UEF ≥ 0.68 High Draw Pattern or High Capacity | $660 | |
| Qualifying Gas Heater With Qualifying Gas Water Heater – Tier 2 | ≥ 55 Gallons and UEF ≥ 0.78 Medium Draw Pattern, UEF ≥ 0.80 High Draw Pattern or High Capacity | $780 | |
| Smart Thermostat | ENERGY STAR Certified. New installation or replacement of a manual or conventional programmable thermostat, as part of an HVAC install. | $60 | |
Enhanced Low to Moderate Income (LMI) Incentives
Residents with low to moderate income may be eligible for an additional incentive of $200 per eligible measure. Eligibility for this incentive will be restricted to customers in one of the following groups:
- Customers that reside in a low- or moderate-income census tract area
- Customers that currently participate in one of the following safety net programs:
- General Assistance (GA)
- Lifeline
- Low Income Home Energy Assistance Program (LIHEAP)
- New Jersey SHARES (NJ SHARES)
- Payment Assistance for Gas and Electric (PAGE)
- Pharmaceutical Assistance to the Aged and Disabled (PAAD)
- Section 8 Housing Assistance
- Supplemental Nutrition Assistance Program (SNAP)
- Supplemental Security Income (SSI)
- Temporary Assistance to Needy Families (TANF)
- Universal Service Fund (USF)
- Customers whose income is up to 400% of the Federal Poverty Guidelines
If you have questions about PSE&G's residential HVAC Instant Rebates Program or about finding a participating contractor, contact us at 1-855-846-2895.
Want to Become a PSE&G Participating Contractor?
Visit our Trade Ally Portal to learn more about PSE&G's energy efficiency programs—and about becoming certified as one of our trusted professional partners. Contact us at 1-855-846-2895 if you have any questions. We look forward to working with you!
Already a HVAC PSE&G Participating Contractor?
Visit our Trade Ally Portal to access resources and marketing materials, program specific documents, and training.
† SEER is seasonal energy efficiency ratio. EER is energy efficiency ratio. HSPF is heating season performance factor. SEER, EER, and HSPF ratings are determined by entering the model number of the indoor coil, the outdoor unit and, in many cases, the air handler/furnace into the AHRI directory (www.ahridirectory.org). UEF is uniform energy factor.
‡ PSE&G cannot offer tax advice. The tax credit information contained herein is provided for informational purposes only and is not intended to substitute for expert advice from a professional tax/financial planner or the Internal Revenue Service (IRS). For tax advice, please contact your tax adviser or the IRS.