New Jersey IRA Rebates — 2026 Guide

HEAR Program Status + PSE&G, JCP&L & ACE Utility Rebates · Comfort Partners · 25C Credits

Last updated: March 29, 2026

HEAR program status: Launching 2026 — New Jersey received $91.3 million in HEAR funding. The NJ Board of Public Utilities (BPU) is finalizing the program through its contractor TRC Energy Solutions. Statewide launch timeline is summer-fall 2026. Utility rebate programs through PSE&G, JCP&L, and Atlantic City Electric are live and substantial.

NJ practitioners have strong options right now. New Jersey's utility rebate programs are among the most generous in the Mid-Atlantic. PSE&G's instant rebates plus 0% on-bill financing, JCP&L's tiered cold-climate rebates, and the Comfort Partners income-qualified program provide real value for clients today — before HEAR even launches.

What's Available to NJ Clients Right Now

PSE&G Heat Pump Rebates (Public Service Electric & Gas)

PSE&G serves most of northern and central New Jersey including Newark, Trenton, and the Jersey Shore corridor.

MeasureRebateAdditional Benefit
Heat pump HVAC (qualifying systems)Up to $900 instant rebate0% on-bill financing up to $75,000
Heat pump water heaterRebate availableCheck current amounts at pseg.com
Smart thermostatRebate availableConnected devices program

PSE&G's 0% on-bill financing is the standout — customers can finance up to $75,000 in energy upgrades at no interest. Verify current rebate amounts and financing terms at pseg.com.

JCP&L Heat Pump Rebates (Jersey Central Power & Light)

JCP&L serves central and northern NJ including Monmouth, Ocean, Warren, Morris, Sussex, and Hunterdon counties.

Equipment TypeRebate
Standard qualifying heat pump$500
Cold-climate heat pump (enhanced efficiency)$1,000
Heat pump water heaterAvailable — check current amounts

JCP&L's cold-climate tier reward is important for NJ practitioners — the state's mix of heating seasons makes cold-climate heat pump specification worth the conversation for most clients.

Atlantic City Electric (ACE) Rebates

ACE serves South Jersey including Atlantic City, Cape May, Salem, Cumberland, Burlington, and Gloucester counties.

MeasureStandard RebateLMI Bonus
Central heat pump system$300–$600+$200
Heat pump water heater$400–$700+$200
Combined maximum (LMI)Up to $1,300

Rockland Electric (RECO) Rebates — Northwestern NJ

MeasureRebate
Qualifying heat pump equipmentUp to $1,400

Comfort Partners — Income-Eligible Program (Live Now)

New Jersey's Comfort Partners program provides free energy efficiency upgrades for income-qualified households. This is one of the most comprehensive income-qualified programs in the country:

Comfort Partners income threshold is more inclusive than HEAR. The 250% federal poverty guideline is a different (and often higher) threshold than HEAR's 80–150% AMI. For low-income clients who might not qualify for HEAR's moderate tier, Comfort Partners is worth checking first. A family of 4 at 250% FPL in 2026 is approximately $77,500 — this covers many working households.

Federal 25C and 25D Credits — Expired December 31, 2025 (OBBBA)

25C Credit Expired (OBBBA): The Section 25C Energy Efficient Home Improvement Credit was terminated by the One Big Beautiful Bill Act, signed July 4, 2025. Improvements installed on or after January 1, 2026 do not qualify. Clients with 2025 installs can still claim on their 2025 tax return. HEAR and HOMES rebates are unaffected. See historical 25C reference →
CreditAmountNotes
25C — Heat Pump HVAC30% of cost, max $2,000/yearStacks with utility rebates
25C — Heat Pump Water Heater30% of cost, max $600/yearStacks with utility rebates
25C — Insulation & Air Sealing30% of cost, max $1,200/year
25C — Panel Upgrade30% of cost, max $600/yearPart of $1,200 combined cap
25D — Solar PV / Battery30% of cost, no capNo income limit
Maximum 25C annual credit$3,200/year
NJ solar angle: New Jersey has one of the best solar incentive environments in the country — the 25D federal credit (30%, no cap) stacks with NJ's Solar Renewable Energy Certificates (SRECs) and net metering. For clients considering solar, the combined federal + NJ incentive stack is one of the strongest on the East Coast.

HEAR Program — When It Launches

NJ HEAR will be administered through the NJ Board of Public Utilities (BPU) via TRC Energy Solutions, which runs the NJ Clean Energy Program. Expected timeline: statewide launch summer-fall 2026, pending BPU finalization.

MeasureLMI (<80% AMI)Moderate (80–150% AMI)Above 150%
Heat Pump HVACUp to $8,000Up to $4,000Not eligible
Heat Pump Water HeaterUp to $1,750Up to $875Not eligible
Electric Stove / InductionUp to $840Up to $420Not eligible
Electric DryerUp to $840Up to $420Not eligible
Electrical Panel UpgradeUp to $4,000Up to $2,000Not eligible
Insulation & Air SealingUp to $1,600Up to $800Not eligible
Household cap$14,000 LMI / $7,000 Moderate

New Jersey AMI Reference (Approximate)

NJ uses area-based AMI by county. The metro areas near New York and Philadelphia have significantly higher AMI than southern and rural counties:

County Area80% AMI (4-person HH)150% AMI
Bergen, Passaic, Hudson (NYC metro)~$95,000~$178,000
Morris, Somerset, Hunterdon~$101,000~$190,000
Middlesex, Monmouth, Ocean~$88,000~$165,000
Mercer, Burlington, Camden~$82,000~$154,000
Atlantic, Cape May~$73,000~$137,000
Cumberland, Salem~$69,000~$129,000

Verify at huduser.gov. Morris and Somerset Counties rank among the highest AMI in the Northeast — the moderate-income HEAR tier would be accessible to many households in these areas.

NJ Practitioner Checklist

  1. Lead with utility rebates + Comfort Partners + 25C credits for immediate client value — don't wait for HEAR.
  2. Check PSE&G's 0% on-bill financing for any PSE&G customer — this is uniquely powerful for clients who want the upgrade but have capital constraints.
  3. For low-income clients, check Comfort Partners first (1-866-378-4345). The 250% FPL threshold is more inclusive than HEAR and covers full installation at no cost.
  4. Cold-climate heat pump spec for JCP&L territory — the $500 vs $1,000 rebate difference justifies specifying a cold-climate-rated unit for most NJ installs.
  5. Monitor BPU.nj.gov for HEAR launch announcements and contractor enrollment requirements. TRC Energy Solutions will administer enrollment.
  6. Stack 25C with utility rebates — utility rebates are not taxable income and don't reduce 25C-eligible cost basis.

Get notified when NJ HEAR launches

With $91.3M allocated, NJ HEAR will be one of the largest programs in the Northeast. The IRA Practitioner Brief will cover contractor enrollment requirements, the pilot-to-statewide transition, and program details as they're finalized.

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