PSE&G’s HVAC Instant Rebates Program could help you save up to 20% on your home’s heating and cooling costs.*
Make the switch to high-efficiency HVAC.
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HVAC Instant Rebates Program
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Ideal indoor temperatures. On-the-spot savings.
Upgrading to ENERGY STAR® certified HVAC equipment can significantly reduce your energy use, keep your home comfortable, and make your energy expenses more manageable.
When you participate in PSEG's HVAC Instant Rebates Program, you can save up to $1,050 on eligible equipment—and you may qualify for up to $25,000 in interest-free, on-bill repayment to help pay for your project.
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From equipment selection to installation and a rebate, a participating contractor can make it simple.
To get started, select a participating contractor. They will confirm your eligibility, explain PSE&G’s on-bill repayment option, and let you know if you qualify for additional incentives.
After reviewing your options, your contractor will install your high-efficiency HVAC equipment, note your instant rebate on your invoice, and ask you to sign a customer acknowledgment form upon completion.
If you have questions about PSE&G’s HVAC Instant Rebates Program or about finding a participating contractor, contact us at 1-855-846-2895.
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Eligible measures and incentives.
We're currently updating all measures and incentives for the 2025 program cycle. Please check back soon for detailed information.
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Did you know?
PSE&G's residential HVAC Instant Rebates Program covers more than just your furnace or A/C condenser. You can also get rebates on the purchase and installation of efficient water heaters, or even a smart thermostat. Ask your contractor for details.
Our on-bill repayment option gives you the flexibility and convenience of being able to pay for home energy efficiency upgrades over a period of time, interest-free. With this option, your monthly PSE&G energy bill will contain repayment installments of equal amounts.
Refer to the tables below for your eligible on-bill repayment allowance and terms.
On-bill repayment allowance
| Electric Provider | Gas Provider | Maximum 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 |
Frequently asked questions
Here, you can find responses to PSE&G customers' commonly asked questions about on-bill repayment. Click the "plus" icon next to any question to read more.
Yes, you may enroll multiple times across different projects and/or programs. However, the maximum amount of credit per account is $25,000.
Yes. If we initially deny you for on-bill repayment, you may reapply after 60 days.
If you believe you have a valid reason to be reconsidered before then, we have an appeal process to review your application.
Eligibility for this incentive is restricted to customers in one of the following groups:
- Customer who reside in a low- or moderate-income census tract area. You can identify the census tract you live in on the FFIEC.gov website.
- Customers who 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 for Needy Families (TANF)
- Universal Service Fund (USF)
- Total gross household income before taxes is less than or equal to 400% of the Federal Poverty Guidelines.
First, you should discuss on-bill repayment with your participating contractor, who will apply for it on your behalf prior to starting your project. To qualify, you must have 12 months of continuous, on-time payment history with PSE&G.
If you’ve not yet been a PSE&G customer for 12 months, you still may be eligible for on-bill repayment. Ask your previous gas or electric utility to provide you with a letter of credit (for service within the past 24 months) confirming that your account had 12 months of continuous, on-time payment.
Once we approve you for on-bill repayment, we’ll notify your participating contractor, and they can enroll you.
All payment agreements are between PSE&G and the eligible customer. Please note that the PSE&G account holder at the property where the work is performed must be the customer who signs the agreement.
PSE&G will notify your contractor that you’ve been approved or denied, and they will inform you.
Yes, you may enroll with each of your PSE&G accounts. Please note that you will be subject to a maximum outstanding balance of $25,000 per account.
If you are enrolled in on-bill repayment, you can either pay the outstanding balance in equal monthly installments over the term of the agreement or pay one lump sum for the full remaining balance at any time.
Please note that once you are enrolled in an installment plan, we cannot accept surplus payments toward the principal of your on-bill repayment balance.
Yes. Your contractor can apply for on-bill repayment on your behalf prior to the start of your project.
If your account is closed for any reason, the unpaid balance is due and payable to PSE&G within 30 days.
Our on-bill repayment option gives you the flexibility and convenience of being able to pay for home energy efficiency upgrades over a period of time, interest-free. With this option, your monthly PSE&G energy bill will contain repayment installments of equal amounts.
All on-bill repayment options are interest-free (0%). On-bill repayment terms pertaining to specific PSE&G programs are as follows:
Home Performance with ENERGY STAR®
The Home Performance with ENERGY STAR Program offers an on-bill repayment term of 84 months (seven years) for project costs less than or equal to $10,000, or a term of 120 months (10 years) for project costs between $10,001 and $25,000.
| 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 |
| Home Performance with ENERGY STAR Repayment Terms | |
|---|---|
| Project Cost | All Customers |
| $10,000 or less | 84 months |
| $10,001 or more | 120 months |
HVAC Instant Rebates
Customers participating in our HVAC Instant Rebate Program have several on-bill repayment options based on their project’s cost, their income level, and their partner utilities:
- 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 |
| HVAC Instant Rebates 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 |
We offer on-bill repayment to customers participating in our HVAC Instant Rebate Program and our Home Performance with ENERGY STAR® Program. For each of these programs, the participating contractor you select can help you determine which specific equipment and installation costs are eligible for on-bill repayment.
Additionally, if you participate in a Quick Home Energy Check-up, you may choose to have a smart thermostat professionally installed for a discounted price, and to be billed through on-bill repayment.
No. We don’t perform credit checks or contact any credit bureaus for additional information in order to gauge your eligibility for on-bill repayment.
PSE&G residential customers with low to moderate incomes could be eligible for an additional incentive of $200 per eligible measure when they participate in the HVAC Instant Rebates Program.
You may qualify if:
- Your income is below 400% of the Federal Poverty Levels.‡ Use the drop-down menu below to select the number of people in your household and to view the maximum qualifying income levels.
OR
- Your primary residence must be located within a low- or moderate-income census tract, and you must be willing to self-certify that you meet the income qualifications. Visit FFEIC.gov to verify the census tract where you live.
OR
- You participate in at least 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)
Here, you can find responses to PSE&G customers' commonly asked questions about the HVAC Instant Rebates Program. Click the "plus" icon next to any question to read more.
PSE&G does not inspect installations to verify quality or safety. However, we do conduct random inspections to confirm that qualifying equipment was installed. If you’re selected for an inspection, we’ll call you to schedule an appointment.
To qualify, you must be a current residential PSE&G customer with a valid account number. You also must be the owner of the house where the installation is to be performed.
Please note that new construction homes and commercial properties aren’t eligible.
You can only claim a single rebate for qualifying equipment for your home’s primary heating or cooling system. However, you can claim additional rebates for a qualifying water heater, as well as for a smart thermostat (if one isn’t already present in your home).
No. Rebates through the HVAC Instant Rebate Program can only be credited as a deduction on your project invoice.
In most cases, your furnace or air handler must be high efficiency in order to qualify for a rebate. Our HVAC Instant Rebate Program requires that your entire heating and cooling system meets the minimum SEER and EER efficiency ratings as specified by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI), so you should confirm with your contractor whether your complete system is eligible.
Yes. You can locate a participating contractor on our website.
If you don’t wish to work with a participating contractor, you may still be eligible for savings on certain equipment through our Appliance Rebates Program.
When you purchase this equipment from a participating contractor, applicable rebates are credited to your invoice, which lowers your total project cost.
Invite your contractor to apply to the program on our Trade Ally Portal. They can contact us at 1-855-846-2895 if they have any questions.
Our experienced participating contractors can guide you through the entire equipment selection and upgrade process. They also can handle all necessary permits required by law, complete your installation, and provide you with an instant rebate on your invoice once the project is finished.
All PSE&G participating contractors are licensed in the state of New Jersey and have provided references, qualifications, and evidence of insurance.
† 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).
‡ You may be required to visually verify or self-certify your income. Income verification includes documentation of all sources of income for every person counted as living within the household. Documentation may include tax filings, benefit statements, or other verifiable records. PSE&G reserves the right to verify income if deemed necessary.
This program is subject to change, including termination, without prior notice.
Contractors: Visit the PSE&G Trade Ally Portal.
Learn more about how to become one of our trusted professional HVAC Trade Allies. If you’re already a participating contractor, simply log in to access resources such as marketing materials, program documents, and training. Contact us at 1-855-846-2895 if you have questions.
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