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PSE&G HVAC Instant Rebates open
Administered by PSE&G, through participating HVAC contractors.
PSE&G takes $300 to $600 off an air-source heat pump on the contractor's invoice, $450 off a heat pump water heater, and $540 to $1,050 off a condensing gas furnace, boiler or combi unit replacing a non-condensing one. Low- and moderate-income customers get $300 more per measure, and the balance can go on the bill at 0%.
source · verified 2 October 2026 · amounts in US dollars
What it pays
| Upgrade | Condition | Amount |
|---|---|---|
| Cold-climate air-source heat pump | 15.2 SEER2, 10 EER2, 8.1 HSPF2, COP 1.75 at 5°F | $600 |
| Air-source heat pump, split or package | Tier 2: 17.1 SEER2 | $450 |
| Air-source heat pump, split or package | Tier 1: 15.2 SEER2 | $300 |
| Heat pump water heater | $450 | |
| Central air conditioner | $60 at 15.2 SEER2, $120 at 17 | $60–$120 |
| Gas combi heating unit | Tier 2: 97% AFUE, replacing a non-condensing unit | $1,050 |
| Gas combi heating unit | Tier 1: 95% AFUE | $780 |
| Gas boiler | Tier 2: 95% AFUE, replacing a non-condensing unit | $600 |
| Gas boiler | Tier 1: 90% AFUE | $540 |
| Gas furnace | 95% AFUE, replacing a non-condensing unit | $540 |
| Tankless gas water heater | $300 at 0.87 UEF, $450 at 0.95 | $300–$450 |
| Gas storage water heater | Power-vented | $240 |
| Smart thermostat or ECM furnace fan | With an HVAC installation; each | $60 |
| Low- and moderate-income add-on | Per eligible measure | $300 |
Condensing-to-condensing gas replacements are not eligible. The on-bill repayment is interest-free, with no credit check, over 84 months (or 120 for income-qualified customers on projects above $10,000).
Who is eligible
- who
- PSE&G residential customers, and Butler Electric customers who take PSE&G gas, for existing homes; not new construction.
- the add-on
- Household income at or below 400% of the poverty line ($132,000 for four), a low- or moderate-income census tract, an Overburdened Community, or LIHEAP, SSI or TANF.
- on the bill
- Up to $25,000 at 0%; electric customers up to $75,000, of which $50,000 only for heat pumps and heat pump water heaters.
What disqualifies you
The rules people find out about after the work is done.
- New construction and commercial properties.
- A condensing furnace or boiler replacing another condensing one.
Where the application goes
Choose a participating PSE&G contractor, who applies the instant rebate on the invoice.
| If this is you | Apply here |
|---|---|
| Program page | homeenergy.pseg.com |
| Phone | 1-855-846-2895 |
The thing most pages get wrong
Rebate guides quote PSE&G heat pump rebates of up to $900. PSE&G's own table pays $300 or $450 for a standard heat pump and $600 for a cold-climate one; $900 is only reached with the $300 add-on for low- and moderate-income customers. Switching completely off gas or oil is a separate, larger offer.
Replacing gas or oil entirely
PSE&G's building decarbonization rebates pay up to $10,000 ($12,000 for low and moderate incomes) to remove a fossil-fuel heating system and heat the whole home with cold-climate heat pumps.
A gas furnace costs less elsewhere
South Jersey Gas and Elizabethtown Gas pay $900 for the same 95% furnace that earns $540 here, and $1,750 for the top combi unit that earns $1,050.
Sources
- https://homeenergy.pseg.com/heatingandcooling — primary source, read 2 October 2026
- https://www.njcleanenergy.com/programs/energy-efficiency/utility-run-programs-for-homeowners