Heat pump water heater rebates by utility
Each card names the fact we keep on file, with the date we last read the official page. Find your utility on your electric bill.
PSE&G
$750 when it replaces a gas or other fossil fuel water heater through the decarbonization path, $450 on the standard heating and cooling list. The appliance page lists $750 as a post-purchase rebate. Ask your contractor which line applies.
JCP&L
ENERGY STAR certified. Bought and installed January 1, 2025 through June 30, 2027, applied for within 120 days of purchase. Clean Comfort pays $750 too when it replaces a fossil fuel unit.
Atlantic City Electric
ENERGY STAR certified. The program ends December 31, 2026 or earlier if funds run out, so move early.
Federal 25C credit
No federal credit applies to water heaters installed after December 31, 2025.
The three amounts look alike, but the rules are not. The sections below explain where they differ.
How the rules differ
PSE&G ties its larger $750 to replacing a fossil fuel water heater, with an efficiency rating of 2.2 or better on a 120-volt unit or 3.3 on a 240-volt unit. JCP&L and Atlantic City Electric list a flat $750 for an ENERGY STAR model. JCP&L's form is for customers whose old water heater burned gas, oil or propane when the unit is part of Clean Comfort. Atlantic City Electric also pays up to $4,000 for an electrical panel upgrade for income-qualified homes, which can matter because many heat pump water heaters need a 240-volt circuit.
What the savings look like
JCP&L's page, citing ENERGY STAR, says a heat pump water heater uses about 50% less energy than a standard one and can save a family of four around $550 a year. That is the company's figure for an electric household and your result will vary with your water use and rates. Ask the installer to compare the payback with your own gas bill before you swap a gas heater.
Where it goes matters
The heat pump pulls heat from the air around it, so it needs room and some air flow. A contractor should check your space and your electrical panel before you buy. JCP&L's form asks where the unit goes (basement, garage or heated space), which tells you the program expects the installer to think about it.
Pair it with other work
If you are also replacing your heating system, bundle the jobs. PSE&G and JCP&L both pay more when a water heater is part of a larger project, and a single panel upgrade can serve both. Read our guides to heat pumps for PSE&G homes, for electric-heat homes in Jersey City, for JCP&L homes and for Atlantic City Electric homes.
How to claim a heat pump water heater rebate
- Confirm your electric utility on your bill.
- Ask a plumber or electrician to check the space and the 240-volt circuit.
- Buy an ENERGY STAR certified model.
- Apply within the utility's window: 120 days for PSE&G and JCP&L, and 90 days for Atlantic City Electric.
- Keep the receipt with the model number.
More for New Jersey homes
- New Jersey home rebates: every program in one place
- PSE&G rebates: every PSE&G offer
- JCP&L rebates: every JCP&L offer
- Atlantic City Electric rebates: every Atlantic City Electric offer
- Appliance rebates: dryers, washers and more
- Jersey City home rebates: PSE&G customers
- Atlantic City home rebates: Atlantic City Electric customers
Common questions
How much do New Jersey utilities pay for a heat pump water heater?
$750 from JCP&L and Atlantic City Electric, and $450 or $750 from PSE&G depending on what you replace.
Do I need a 240-volt circuit?
Many units need one. Some run on 120 volts. PSE&G lists efficiency minimums for both types, so ask your installer which one fits.
Can I get both a utility rebate and a federal credit?
No federal credit applies. The 25C credit ended for work done after December 31, 2025.
Does the water heater rebate stack with a heat pump rebate?
Programs list them as separate lines, but each utility has its own rules, so ask for the combined amount in writing.
Is the Atlantic City Electric rebate ending?
Its terms say the residential program ends December 31, 2026 or earlier if funding is used up.
By Sam Menard. Sources, last read October 6, 2026: PSE&G HVAC Instant Rebates Program, PSE&G appliance rebates, JCP&L appliance rebates, Atlantic City Electric rebate store.