What PSE&G pays in 2026
PSE&G says all programs are subject to change, including ending, without notice. Each card names the fact with the date and source link.
Standard heat pump instant rebate
$300 or $450 by efficiency tier, and $600 for a cold climate model. Applied as a deduction on the contractor's invoice.
Clean Heat: replace gas, oil or propane
Lesser of $10,000 or 50% of the project; income-qualified lesser of $12,000 or 60%. Plus up to $2,000 each for removing the old system and for new ducts, and $2,000 for each extra cold climate heat pump.
Dual fuel and hybrid
Keep the old furnace or boiler as backup. Control unit rebates up to $1,500 each, two per home.
Ground source heat pump
Lesser of $3,000 per 10,000 BTUH or 50% for gas homes, and $4,000 per 10,000 BTUH or 50% for delivered fuel homes.
Heat pump water heater
$750 when replacing a fossil fuel water heater, $450 on the standard list.
Income-qualified bonus
Added to HVAC instant rebates for incomes at or below 400% of poverty, moderate-income areas or safety-net benefits.
Appliance rebates
Induction cooktop $250, electric dryer up to $300, washer up to $100, refrigerator up to $100, dishwasher $30, plus instant discounts.
Smart thermostat
Free with a Whole Home Energy Assessment.
GridSmart Battery Program
Tesla Powerwall 3, Enphase 10C and Enphase 5P. New installs only.
On-bill repayment
Interest-free repayment on your PSE&G bill, over 84 or 120 months.
Home Weatherization and assessment
A one-hour assessment with free products, and free insulation work for moderate incomes.
EV home charger
Charger setup help, plus up to $5,000 off a required deposit for utility work. The off-peak charging credit is discontinued.
Who PSE&G serves
PSE&G's official territory list shows Newark in Essex County and Jersey City in Hudson County for both electric and gas. JCP&L serves much of the central and shore area, and Atlantic City Electric serves southern New Jersey, so check the name on your electric bill. If your bill says something else, see the JCP&L page or the Atlantic City Electric page.
Rules that catch people out
The heat pump programs require you to own the house where the work happens. They cover single-family and attached homes of one to four units, and they exclude new construction and commercial property. Rebates are credited as a deduction on the contractor's invoice, not on your bill. The large replacement rebates apply to gas or delivered fuel customers who take the old system out of service, which means a form and sometimes photos. Heat pumps must be sized to the home with a written heating load calculation.
Paying over time
The repayment option lets qualified customers pay for work in equal parts on the PSE&G bill with no interest. The limit is $25,000 for an HVAC project, $50,000 for a stand-alone decarbonization project and $75,000 when the two are combined. You need 12 months of on-time payment history, though a letter from a previous utility can substitute. PSE&G says it does not run a credit check. Terms are 84 months, or 84 or 120 months for income-qualified customers on projects over $10,000.
What PSE&G does not pay
We did not find a PSE&G rebate for rooftop solar, insulation as a stand-alone rebate (outside the free programs) or windows. State solar credits and net metering still apply to solar owners. The federal credits ended after 2025, and the state's federal-funded home rebates have no launch we could find.
How to claim a PSE&G rebate
- Confirm your electric or gas bill says PSE&G.
- For heating, cooling and water heaters, choose a participating contractor from PSE&G's program page or call 1-855-846-2895.
- Ask for a quote that shows each rebate line and any removal work.
- For appliances, buy the model and apply online within 120 days with the receipt.
- Keep invoices, model numbers and photos.
Our pages for PSE&G customers
- Newark: a renter-heavy city of two-family buildings.
- Newark heat pumps: up to $10,000 explained.
- Jersey City: newer buildings and high electric heat.
- Jersey City heat pumps: electric heat homes and condos.
Guides
- New Jersey rebates by state
- Heat pump water heaters in New Jersey
- Home batteries in New Jersey
- Electric cars and chargers in New Jersey
- Appliance rebates in New Jersey
Common questions
How much does PSE&G pay for a heat pump?
$300 to $600 for a standard heat pump, and up to $10,000 (or $12,000 for income-qualified homes) to replace a gas, oil or propane heating system.
Do I have to own my home?
Yes. The HVAC and decarbonization programs require the owner of the house where the work is done.
Does PSE&G pay for a battery?
Yes. GridSmart pays up to $5,000, for new installs of three approved batteries, in return for letting PSE&G use the battery up to 100 times a year.
Is there help paying upfront?
Yes. Interest-free on-bill repayment of up to $25,000, $50,000 or $75,000 depending on the project.
Can the rebate go on my bill?
No. PSE&G credits HVAC and battery rebates only as a deduction on the contractor's invoice.
By Sam Menard. Sources, last read October 6, 2026: PSE&G HVAC Instant Rebates Program, PSE&G appliance rebates, PSE&G GridSmart Battery Program FAQ, PSE&G service territory. All rebate programs →