HVAC Instant Rebates Program

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.

(opens in a new tab)Find a Participating Contractor


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 ProviderGas ProviderAllowance
PSE&GPSE&G$25,000
PSE&GN/A (all-electric residence)$25,000
PSE&GN/A (delivered-fuel customers)$25,000
Butler ElectricPSE&G$25,000
PSE&GNot 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 CostAll CustomersIncome-Qualified Customers
$10,000 or less84 months84 months
$10,001 or more84 months84 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 DescriptionMinimum Efficiency RequirementsInstant RebateFederal Tax Credit Eligible
Central Air Conditioning – Tier 1SEER ≥ 16, EER ≥ 12.5$210 
Central Air Conditioning – Tier 2SEER ≥ 18, EER ≥ 13$300 
Air-Source Heat Pump – Tier 1SEER ≥ 16, EER ≥ 12.5, HSPF ≥ 9$450 
Air-Source Heat Pump – Tier 2SEER ≥ 18, EER ≥ 13, HSPF ≥ 10$600 
Air-Source Heat Pump – Cold Climate – Tier 1SEER ≥ 16, EER ≥ 12.5, HSPF ≥ 9, and COP ≥ 1.75 at 5°F$600 
Air-Source Heat Pump – Cold Climate – Tier 2SEER ≥ 18, EER ≥ 13, HSPF ≥ 10, and COP ≥ 1.75 at 5°F$600 
Ductless Mini-Split Heat PumpSingle: SEER ≥ 20, EER ≥ 12.5, HSPF ≥ 10          
Multi: SEER ≥ 18, EER ≥ 12.5, HSPF ≥ 10
$240 
Ductless Mini-Split Air ConditioningSEER ≥ 20, EER ≥ 12.5$300 
Heat Pump Water HeaterENERGY STAR Certified$600Yes
Furnace FanECM Motor Install – Retrofit Only$60 
Smart ThermostatENERGY 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 DescriptionNew Metric Minimum Efficiency RequirementsInstant RebateFederal Tax Credit Eligible
Central Air Conditioning Split System – Tier 1SEER2 ≥ 15.2, EER2 ≥ 12$210 
Central Air Conditioning Split System – Tier 2SEER2 ≥ 16, EER2 ≥ 12$300Yes
Central Air Conditioning Single Package – Tier 1SEER2 ≥ 15.2, EER2 ≥ 11.5$210Yes
Central Air Conditioning Single Package – Tier 2SEER2 ≥ 17.1, EER2 ≥ 11.5$300Yes
Air-Source Heat Pump Split System – Tier 1SEER2 ≥ 15.2, EER2 ≥ 11.7, HSPF2 ≥ 7.8$450 
Air-Source Heat Pump Split System – Tier 2SEER2 ≥ 17.1, EER2 ≥ 11.7, HSPF2 ≥ 7.8$600 
Air-Source Heat Pump Single Package – Tier 1SEER2 ≥ 15.2, EER2 ≥ 10.6, HSPF2 ≥ 7.2$450 
Air-Source Heat Pump Single Package – Tier 2SEER2 ≥ 17.1, EER2 ≥ 10.6, HSPF2 ≥ 7.2$600 
Air-Source Heat Pump – Cold Climate, DuctedSEER2 ≥ 15.2, EER2 ≥ 10, HSPF2 ≥ 8.1, COP ≥ 1.75 at 5°F and provide 70% capacity maintenance at 5°F$600Yes
Ductless Mini-Split Heat PumpSingle: SEER2 ≥ 20, EER2 ≥ 12, HSPF2 ≥ 9          
Multi: SEER2 ≥ 18, EER2 ≥ 12, HSPF2 ≥ 9
$240 
Ductless Mini-Split Air ConditioningSEER2 ≥ 20, EER2 ≥ 12.5$300 
Heat Pump Water HeaterENERGY STAR Certified$600 
Furnace FanECM Motor Install – Retrofit Only$60 
Smart ThermostatENERGY 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 DescriptionMinimum Efficiency RequirementsInstant RebateFederal Tax Credit Eligible
Reset Controls for BoilerAttached to Qualifying Boiler$120 
Gas Boiler – Tier 1AFUE 90–94.99%$450 
Gas Boiler – Tier 2AFUE ≥ 95%$510Yes
Gas Furnace – Tier 1AFUE 95–96.9%$390 
Gas Furnace – Tier 2AFUE ≥ 97%$450Yes
Gas Combi Heat – Tier 1AFUE ≥ 95%$780 
Gas Combi Heat – Tier 2AFUE ≥ 97%$1,050 
Gas Storage Tank Water Heater – Tier 1Power Vented < 55 Gallons, UEF ≥ 0.64 Medium Draw Pattern: High Draw Pattern UEF ≥ 0.68$300 
Gas Storage Tank Water Heater – Tier 2Power Vented ≥ 55 Gallons, UEF ≥ 0.78 Medium Draw Pattern: High Draw Pattern UEF ≥ 0.80$450 
Tankless Water HeaterUEF ≥ 0.87$450 
Indirect Fired Storage Tank Water HeaterPaired 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 ThermostatENERGY 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

(opens in a new tab)Find a Participating Contractor

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.

 

energystar.gov

† 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.