This page is research
LA Trusted publishes it so New Jersey homeowners can read the utility programs side by side. It does not run a rebate program, process applications, or decide eligibility; the utilities do.
New Jersey heating rebates, checked September 23, 2026
NJ HVAC Rebates 2026: What PSE&G, Elizabethtown Gas, NJNG, and JCP&L Pay Back on a New Furnace, Boiler, or Heat Pump
A 95% gas furnace earns $900 back from Elizabethtown Gas or New Jersey Natural Gas and $540 from PSE&G. A cold-climate heat pump earns $1,000 from JCP&L or New Jersey Natural Gas, and PSE&G pays up to $10,000 to switch a home to heat pumps. 0% on-bill financing runs up to $25,000 for an HVAC project, and the federal tax credit ended for anything installed after December 31, 2025. Every figure below was read from the utility's own page or application on September 23, 2026.
Last updated September 23, 2026. LA Trusted Partners is not affiliated with PSE&G, Elizabethtown Gas, New Jersey Natural Gas, or JCP&L, does not run any rebate program, and does not perform HVAC work. It routes replacement requests to an independent licensed HVACR provider after your consent. Utility programs change during the year; the utility's current page and the contractor's invoice are what count.
The Short Answer: 2026 Heating Rebates by Utility
New Jersey's rebates for furnaces, boilers, and heat pumps are paid by the utilities in 2026, not by the State. The gas utility pays on gas equipment and, for the most part, the electric utility pays on heat pumps; New Jersey Natural Gas also pays on heat pumps. The four utilities that serve most homes in Essex, Union, and Morris counties pay different amounts for the same furnace, which is why the company on your bill matters more than the brand in your basement.
| Equipment | PSE&G | Elizabethtown Gas | New Jersey Natural Gas | JCP&L |
|---|---|---|---|---|
| Gas furnace, 95% AFUE or higher | $540 | $900 | $900 | Gas equipment goes through your gas utility |
| Gas boiler, 90% to 94.99% AFUE | $540 | $900 | $900 | Gas equipment goes through your gas utility |
| Gas boiler, 95% AFUE or higher | $600 | $1,000 | $1,000 | Gas equipment goes through your gas utility |
| Gas combi boiler, 95% / 97% AFUE | $780 / $1,050 | $1,300 / $1,750 | $1,300 / $1,750 | Gas equipment goes through your gas utility |
| Air-source heat pump, tier 1 / tier 2 | $300 / $450 | Not on its 2026 application; see your electric company | $500 / $750 | $500 / $750 |
| Cold-climate heat pump | $600 | Not on its 2026 application; see your electric company | $1,000 | $1,000 |
| Income-qualified bonus | +$300 per measure | +$300 per item (not thermostats) | +$300 per item (one line of its page says $200) | +$300 per unit (not furnace fans or thermostats) |
| 0% on-bill financing | Up to $25,000 over 84 months | $2,500 to $25,000, up to 7 years | Up to $25,000, 7 years | $2,500 to $25,000; 3, 5, or 7 years |
Read from PSE&G's HVAC Instant Rebates page, Elizabethtown Gas's 2026 rebate application, New Jersey Natural Gas SAVEGREEN, and JCP&L's HVAC equipment rebates on September 23, 2026.
Which Utility Pays You: Read the Bill, Not the Map
Many New Jersey homes get gas from one company and electricity from another. Elizabethtown Gas's own rebate application lists JCP&L, PSE&G, and Rockland Electric as the electric companies its customers pair with, so a home can have Elizabethtown Gas on the heating bill and PSE&G or JCP&L on the electric bill. The gas rebate follows the gas bill; the heat pump rebate follows the electric bill.
In Elizabeth, Linden, Union, Cranford, Rahway, and Westfield, gas comes from Elizabethtown Gas and electricity from PSE&G: those towns are on both Elizabethtown Gas's tariff list and PSE&G's electric service list. Summit, New Providence, Berkeley Heights, and Plainfield are on PSE&G's gas list instead. In the 21 Essex County municipalities PSE&G lists, from Newark and East Orange to Montclair and Livingston, PSE&G supplies both gas and electricity. Morris County is split: PSE&G gas serves towns such as Morristown, Madison, and Florham Park, New Jersey Natural Gas serves towns such as Dover, Rockaway, and Boonton, and JCP&L lists Morris among the counties it serves with electricity. The company names on your own bills settle it.
One rule catches people: Elizabethtown Gas's application says to “apply for natural gas and electric product incentives through either your gas or electric company. Do not apply to both utilities,” and that electric rebates on that form are processed only when paired with an eligible gas rebate.
How each utility pays the rebate
- PSE&G: an instant rebate credited on the invoice of a participating PSE&G contractor, so the discount is already in the price you pay.
- Elizabethtown Gas: an application with the paid invoice and a photo of the old unit, postmarked or submitted online within 120 days of purchase. Allow about 60 days for the rebate after the paperwork is complete.
- New Jersey Natural Gas: an application within 120 days with the paid receipt, proof of the permit, and a photo of the old furnace or boiler.
- JCP&L: an application within 120 days of purchase with a paid invoice dated January 1, 2025 through June 30, 2027, for equipment installed by a qualified contractor. CLEAResult runs the program for JCP&L.
Gas Furnace and Boiler Rebates, Side by Side
Elizabethtown Gas and New Jersey Natural Gas pay the same amounts: $900 on a 95% furnace and up to $1,750 on a top-tier combi boiler. PSE&G's gas rebates are lower but arrive as an instant discount on the invoice. Every furnace and boiler line requires a condensing unit that replaces a non-condensing one; if the furnace in your basement is already a high-efficiency condensing model, the swap does not earn these rebates.
| Equipment | Efficiency the utility requires | PSE&G | Elizabethtown Gas | New Jersey Natural Gas |
|---|---|---|---|---|
| Gas furnace | AFUE 95% or higher, replacing a non-condensing furnace | $540 | $900 | $900 |
| Gas boiler, tier 1 | AFUE 90% to 94.99%, replacing a non-condensing boiler | $540 | $900 | $900 |
| Gas boiler, tier 2 | AFUE 95% or higher, replacing a non-condensing boiler | $600 | $1,000 | $1,000 |
| Combi boiler (heat and hot water), tier 1 | AFUE 95% or higher | $780 | $1,300 | $1,300 |
| Combi boiler, tier 2 | AFUE 97% or higher | $1,050 | $1,750 | $1,750 |
| Boiler reset control | Invoice must show the boiler control | $75 | $125 (the same form also shows $200) | Not listed |
| Smart thermostat | ENERGY STAR certified, with an eligible HVAC install | $60 | $100 | $100 |
Elizabethtown Gas figures are from its application for equipment installed January 1, 2025 through June 30, 2027; that application shows the reset control at $125 in its rebate table and $200 on its form, so confirm the amount with Elizabethtown Gas. New Jersey Natural Gas figures are from its SAVEGREEN charts and flyers, for equipment purchased and installed by June 30, 2027. Income-qualified households can add $300 per item at Elizabethtown Gas (thermostats excluded), $300 per measure at PSE&G, and $300 per item at New Jersey Natural Gas, whose page also says $200 in one place.
Heat Pump Rebates: PSE&G, JCP&L, and New Jersey Natural Gas
Heat pumps are electric equipment, so the rebate usually comes from the electric company. New Jersey Natural Gas is the exception: its SAVEGREEN chart pays the same heat pump amounts as JCP&L, and it has its own hybrid offer for a heat pump paired with the gas system. JCP&L and New Jersey Natural Gas pay more per unit than PSE&G's instant rebate. PSE&G's larger money for heat pumps sits in its switching incentive in the next section, which pays a share of the whole project rather than a flat amount per unit.
| Equipment | Efficiency the utility requires | PSE&G | JCP&L | New Jersey Natural Gas |
|---|---|---|---|---|
| Air-source heat pump, tier 1 | SEER2 15.2+, EER2 11.7+, HSPF2 7.8+ (split system) | $300 | $500 | $500 |
| Air-source heat pump, tier 2 | SEER2 17.1+, EER2 11.7+, HSPF2 7.8+ | $450 | $750 | $750 |
| Cold-climate heat pump | SEER2 15.2+, EER2 10+, HSPF2 8.1+, and a COP of 1.75 at 5°F | $600 | $1,000 | $1,000 |
| Ductless mini-split | JCP&L: SEER2 17.1+, EER2 11.7+, HSPF2 7.8+ | No separate ductless line | $750 | Ducted or ductless, at the heat pump amounts above |
| Ground-source (geothermal) heat pump | ENERGY STAR certified | Only as a switching project (next section) | $1,500 | Not listed |
| Central air conditioner, tier 1 / tier 2 | SEER2 15.2+ / 17+, EER2 12+ | $60 / $120 | $100 / $200 | $100 / $200 |
Read from PSE&G's electric rebate table, JCP&L's HVAC rebates, and New Jersey Natural Gas's HVAC and heat pump chart on September 23, 2026. JCP&L's income-qualified bonus is $300 per unit, excluding furnace fans and smart thermostats.
PSE&G's Heat Pump Switching Incentive: The Largest Number on This Page
PSE&G's building decarbonization incentive pays a share of the whole project instead of a flat amount per unit. For a full switch, where cold-climate heat pumps sized to at least 100% of the home's Manual J heat load replace the old fossil-fuel heating system, PSE&G pays the lesser of $10,000 or 50% of the project cost of the largest system, and the lesser of $12,000 or 60% for income-qualified customers. PSE&G's table calls it a gas or delivered-fuel customer conversion rebate. It is open to PSE&G residential electric customers who own a single-family or attached home of one to four units.
It is not a do-it-yourself rebate. The old system has to be removed or disabled, a decommissioning form and a Manual S equipment selection go in with the project, and the heat pumps have to meet PSE&G's cold-climate efficiency minimums. An eligible customer can add up to $50,000 of 0% on-bill repayment for a standalone decarbonization project.
| What you install | Standard customers | Income-qualified customers |
|---|---|---|
| Full switch: cold-climate heat pumps replace the fossil-fuel heating system | Lesser of $10,000 or 50% of the project cost | Lesser of $12,000 or 60% of the project cost |
| Dual fuel: a cold-climate heat pump added, the furnace or boiler kept with integrated controls | Lesser of $5,000 or 50%, plus up to $1,500 per control unit (limit two) | Lesser of $6,000 or 60%, plus the same control-unit rebate |
| Hybrid: a heat pump replaces the central air, the existing heat kept with integrated controls | Lesser of $2,000 or 30%, plus up to $1,500 per control unit (limit two) | Lesser of $3,000 or 40%, plus the same control-unit rebate |
| Removing the old system, re-ducting, extra heat pumps (full switch) | Up to $2,000 for removal, up to $2,000 for re-ducting, $2,000 per extra cold-climate heat pump | Same line items; PSE&G does not list them separately by income |
| Electrical work for the heat pump | Up to $300 per 240V circuit (limit four), or $300 for a new panel | Up to $4,000 for a new panel, plus up to $2,500 for wiring |
Read from the residential building decarbonization table on PSE&G's heating and cooling page on September 23, 2026. Percentages are of the project cost of the largest system.
0% On-Bill Financing: What Each Utility Lends
All four utilities lend at 0% and collect the payments on the utility bill, but the rules differ. PSE&G says it does not run a credit check and asks for 12 months of on-time payments. JCP&L's lender sets the amount by credit score. Elizabethtown Gas checks credit only if you have less than 12 months of history with it. PSE&G's $75,000 ceiling is the highest because it stacks heat pump switching work on top of the HVAC project. Read from PSE&G, Elizabethtown Gas's financing page, New Jersey Natural Gas's on-bill repayment page, JCP&L's financing page, and its lender, NEIF on September 23, 2026.
| Utility | 0% on-bill amount | Term | What it requires |
|---|---|---|---|
| PSE&G | Up to $25,000 for an HVAC project; up to $50,000 for heat pump (building decarbonization) work; $75,000 total | 84 months; income-qualified customers can choose 120 months on projects of $10,001 or more | A participating PSE&G contractor and 12 months of on-time PSE&G payments. PSE&G says it does not run a credit check. |
| Elizabethtown Gas | $2,500 to $25,000 | Up to 7 years; up to 10 years for income-qualified customers | An Elizabethtown Gas participating contractor, a non-condensing to condensing upgrade, and an owner on the deed. Credit history is checked if you have less than 12 months with Elizabethtown Gas. |
| New Jersey Natural Gas | Up to $25,000, net of NJNG rebates | 7 years; up to 10 years for income-eligible customers | No more than two 30-day late payments on the NJNG bill in the last 12 months, no bankruptcy in the past seven years, and proof of ownership. |
| JCP&L | $2,500 to $25,000 | 3, 5, or 7 years; up to 10 years for low- to moderate-income customers | An approved JCP&L rebate and a NEIF-approved contractor. The lender sets the amount by credit score; the full $25,000 needs 720 or higher. |
The Federal Tax Credit Ended on December 31, 2025
The Energy Efficient Home Improvement Credit, Section 25C, used to return 30% of the cost of a heat pump up to $2,000 and up to $600 on a furnace or boiler. The IRS now says the credit “will not be allowed for any property placed in service after December 31, 2025.” A system installed in 2026 does not earn it.
Some pages still say otherwise. The State's own federal incentives page still shows the credit as available for the 2023-2032 tax years, and several New Jersey contractor pages that rank for this search still add the federal credit to their savings math. If a quote subtracts a federal tax credit from a 2026 installation, ask the contractor to take that line out.
What still applies in 2026
- Utility rebates in the tables above.
- 0% on-bill financing from each utility.
- The income-qualified bonus of $300 per item at PSE&G, Elizabethtown Gas, New Jersey Natural Gas, and JCP&L.
- Comfort Partners, a free State and utility program for households at or below 250% of the federal poverty guidelines. It covers measures such as insulation, air sealing, duct sealing, thermostats, and heating and cooling equipment maintenance; it does not list a heating-system replacement.
Eight Rules That Cost People Their Rebate
The utilities do not pay on intent. They pay on the paperwork, the equipment's rated efficiency, and who installed it. These are the conditions written into the 2026 applications and program pages, in the order they usually trip people up.
The permit is not optional either way. Under N.J.A.C. 5:23-2.17A, replacing a furnace or boiler with one of like capacity is minor work: the contractor may start after notifying the local construction office, must file the permit application within five business days, and the work must pass inspection. New Jersey also requires HVACR contractors to be licensed by the State Board of Examiners of HVACR Contractors, which you can check on the State license lookup.
- Condensing must replace non-condensing. PSE&G, Elizabethtown Gas, and New Jersey Natural Gas pay on a new high-efficiency furnace or boiler only when it replaces a non-condensing unit. Swapping one condensing unit for another does not qualify.
- Use the right contractor. PSE&G's instant rebate requires a PSE&G participating contractor, Elizabethtown Gas's 0% financing requires its participating contractor, and JCP&L's financing requires a NEIF-approved contractor. Ask for it in writing before you sign.
- Apply within 120 days. Elizabethtown Gas, New Jersey Natural Gas, and JCP&L all want the application and the paid invoice within 120 days of purchase. One New Jersey Natural Gas page counts from installation instead, so file early.
- Keep the permit. New Jersey Natural Gas asks for a paid receipt and proof of the permit with the application; the permit is required under the state code either way.
- Photograph the old unit before it leaves. Elizabethtown Gas asks for a photo of the existing unit and whether it still worked; New Jersey Natural Gas asks for a photo of the old furnace or boiler before replacement.
- Apply once. Elizabethtown Gas's application says to apply for gas and electric incentives through either your gas or electric company. Do not apply to both utilities.
- Size it on paper. Elizabethtown Gas requires the system to be selected by Manual S from Manual J loads, and PSE&G's heat pump switching incentive requires Manual J sizing and a Manual S submission.
- Existing homes only. PSE&G and New Jersey Natural Gas exclude new construction from these residential rebates.
Worked Example: The Same $10,000 Furnace Quote in Three Homes
Take a round $10,000 quote for a 95% AFUE gas furnace that replaces a 20-year-old non-condensing furnace, and finance it at 0% over 84 months. This is an illustration of how the programs work, not a price: your quote, equipment, and approval will differ. For published New Jersey price ranges, see the furnace and boiler cost guide.
Same furnace, three utility situations
- PSE&G gas customer: $540 comes off the invoice, leaving $9,460. At 0% over 84 months that is $112.62 a month.
- PSE&G gas customer, income-qualified: $540 plus the $300 bonus comes off, leaving $9,160, or $109.05 a month over 84 months.
- Elizabethtown Gas customer: the full $10,000 is billed, and the $900 rebate arrives by check about 60 days after the complete application is received. Financed at 0% over 84 months, the $10,000 is $119.05 a month before the rebate check.
How LA Trusted Partners Fits Into a Replacement
The request is consent-first
You tell us the town, the utility on your bill, what heats the house now, and what you want to do. Contact details go to a matched independent HVACR provider only after you agree.
The provider owns the work
Equipment, price, permit, the rebate paperwork, and any warranty come from the provider. Ask them to confirm in writing that they participate in your utility's program, and verify their license on the State lookup.
Replacing Your Heat This Winter? Get Matched With a Licensed NJ HVACR Contractor
Tell us the town, which company sends your gas and electric bills, what heats the house now, and whether you want a high-efficiency furnace or boiler or a heat pump. An independent licensed HVACR provider calls you back.
Coverage depends on the town. LA Trusted does not do the work itself and does not promise a response time, a price, or rebate approval; the provider who calls you owns the quote and the paperwork.
Related Heating Pages
Furnace repair match requestNot sure it needs replacing? Start with a repair diagnosis, the repair-or-replace math, and a licensed HVACR match.Open page PSE&G WorryFree explainedHolding a WorryFree replacement quote or deciding on a repair plan? What the plans cost and what to compare before you sign.Open page Furnace and boiler repair cost in NJPublished 2026 price ranges for the repair you may be weighing against a replacement.Open page How to check a contractor in NJThe State lookup for HVACR licensing and home improvement registration before anyone is hired.Open page
New Jersey HVAC Rebates: Frequently Asked Questions
What HVAC rebates does PSE&G offer in 2026?
PSE&G's HVAC Instant Rebates Program pays $540 on a 95% AFUE gas furnace, $540 or $600 on a gas boiler depending on efficiency, $780 or $1,050 on a combi boiler, $300 or $450 on an air-source heat pump, and $600 on a cold-climate heat pump, with an extra $300 per measure for income-qualified customers. The rebate is taken off the invoice when a participating PSE&G contractor does the job. Separate, larger incentives apply when you switch to heat pumps through PSE&G's building decarbonization offering.
What is the New Jersey Natural Gas rebate for 2026?
New Jersey Natural Gas's SAVEGREEN program pays $900 on a 95% AFUE gas furnace, $900 or $1,000 on a gas boiler, and $1,300 or $1,750 on a combi boiler when it replaces a non-condensing unit. It also pays $500 or $750 on a qualifying air-source heat pump and $1,000 on a cold-climate heat pump. The application goes in within 120 days with the paid receipt, proof of the permit, and a photo of the old furnace or boiler.
Does Elizabethtown Gas give a rebate on a new furnace or boiler?
Yes. Elizabethtown Gas pays $900 on a 95% AFUE gas furnace, $900 on a 90% to 94.99% boiler, $1,000 on a 95% boiler, and $1,300 or $1,750 on a combi boiler, replacing a non-condensing unit, for equipment installed January 1, 2025 through June 30, 2027. Income-qualified customers can add $300 per item. Apply within 120 days of purchase.
Is there a federal tax credit for a new furnace or heat pump in 2026?
No. The IRS says the Energy Efficient Home Improvement Credit (Section 25C) will not be allowed for any property placed in service after December 31, 2025. A furnace, boiler, or heat pump installed in 2026 does not earn it, even though some state and contractor pages still describe the credit. The utility rebates on this page are unaffected.
How do I get a rebate from PSE&G on a new heating system?
Hire a contractor enrolled in PSE&G's HVAC Instant Rebates Program, choose equipment that meets the efficiency tier, and the rebate is credited on the contractor's invoice. You must be a current PSE&G residential customer and own the home. PSE&G also offers 0% on-bill repayment of up to $25,000 for the project; it requires 12 months of on-time PSE&G payments, and PSE&G says it does not run a credit check.
Can I get a rebate from both my gas and my electric utility?
Mostly, each utility pays for its own fuel: the gas utility for a gas furnace or boiler, the electric utility for a heat pump or central air. New Jersey Natural Gas is the exception among the four; it also lists heat pumps and central air. Elizabethtown Gas runs a combined application with its electric partners, and that application says to apply through either your gas or electric company, not both, and that electric rebates are processed only when paired with an eligible gas rebate.
Do I need a permit to replace a furnace or boiler in New Jersey?
Yes. Under N.J.A.C. 5:23-2.17A, replacing a furnace or boiler with one of like capacity is minor work: the contractor can start after notifying the local construction office, files the permit application within five business days, and the work must pass inspection. New Jersey Natural Gas also asks for proof of the permit with the rebate application.
My old furnace is already high-efficiency. Do I still get the rebate?
Usually not. PSE&G, Elizabethtown Gas, and New Jersey Natural Gas pay the furnace and boiler rebates when a condensing unit replaces a non-condensing one. A condensing-to-condensing replacement does not qualify for those rebates, and Elizabethtown Gas's 0% financing has the same non-condensing to condensing requirement.
Sources used on this page
- PSE&G — HVAC Instant Rebates Program, heating and cooling offers
- PSE&G — find a participating HVAC contractor
- Elizabethtown Gas — HVAC and water heating rebates
- Elizabethtown Gas — Residential HVAC and Water Heating Rebate Application (2026)
- Elizabethtown Gas — on-bill repayment financing
- New Jersey Natural Gas — SAVEGREEN boiler and furnace rebates
- New Jersey Natural Gas — HVAC and water heating rebate application and charts
- New Jersey Natural Gas — on-bill repayment
- JCP&L — HVAC equipment rebates
- JCP&L (FirstEnergy) — New Jersey financing options
- NEIF — JCP&L residential on-bill financing terms
- Elizabethtown Gas — Tariff B.P.U. No. 19, territory served
- PSE&G — New Jersey service territory
- New Jersey Natural Gas — areas served
- IRS — FAQs on the 2025 changes to Section 25C and related credits
- NJ Board of Public Utilities — Federal Incentives page
- New Jersey's Clean Energy Program — Comfort Partners
- N.J.A.C. 5:23-2.17A — Minor work (via Cornell LII)
- NJ State Board of Examiners of HVACR Contractors
- State of New Jersey — license verification search
All sources checked live and figures last verified September 23, 2026.
Replacing a furnace, boiler, or heat pump this winter?
Start with one request. You stay in control of whether your information is shared with a matched independent HVACR provider, and you confirm their license and rebate participation before signing anything.