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Energy Rebates in New Jersey

New Jersey residents can access a range of federal energy tax credits, state-specific incentive programs, and local utility rebates to help offset the cost of energy-efficient home improvements. This page covers the key programs available in New Jersey, including heat pump rebates, solar incentives, EV charger credits, weatherization assistance, and more. Each program listed below includes eligibility details and links to official sources.

Federal Programs Available in New Jersey

New Jersey Energy Rebate Overview

New Jersey households have access to a combination of federal, state, and local utility incentives designed to make energy-efficient home upgrades more affordable. New Jersey has launched both the HOMES (Home Owner Managing Energy Savings) and HEAR (High-Efficiency Electric Home Rebate) programs under the Inflation Reduction Act, making additional point-of-sale rebates available to qualifying residents. The New Jersey Board of Public Utilities (NJBPU) coordinates state-level energy programs and can provide the latest information on available incentives.

HOMES & HEAR Program Status in New Jersey

New Jersey has launched its HOMES and HEAR rebate programs under the Inflation Reduction Act. The New Jersey Board of Public Utilities (NJBPU) is administering the programs in coordination with utility-run efficiency programs and the state's clean energy initiative.

Income Eligibility for New Jersey Rebates

For New Jersey, 80% of Area Median Income varies by county. In Essex County (Newark), 80% AMI for a family of four is approximately $79,900. In Bergen County, it is approximately $88,650.

For New Jersey, 150% of Area Median Income varies by county. In Essex County (Newark), 150% AMI for a family of four is approximately $149,800. In Bergen County, it is approximately $166,200.

New Jersey State Tax Credits

New Jersey Sales Tax Exemption for Solar

Amount: 100% sales tax exemption on solar energy system equipment

Eligible items: Solar photovoltaic systems, solar energy equipment and components

New Jersey exempts solar energy system equipment from the state sales tax, reducing the upfront cost of installation.

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New Jersey Property Tax Exemption for Renewable Energy

Amount: 100% property tax exemption for the added value of renewable energy systems

Eligible items: Solar panels, wind energy systems, and other renewable energy installations

The added value of a renewable energy system is exempt from local property taxes in New Jersey.

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New Jersey State Rebate Programs

NJ Clean Energy Program - Residential New Construction and HVAC

Administered by: New Jersey Board of Public Utilities / TRC (program administrator)

Amount: Up to $1,000 for heat pumps, $500-$1,000 for HVAC upgrades, $250-$500 for insulation

Eligible items: High-efficiency HVAC systems, heat pumps, insulation, air sealing, duct sealing, ENERGY STAR windows

The NJ Clean Energy Program provides rebates for residential energy efficiency improvements funded through the Societal Benefits Charge on utility bills.

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Successor Solar Incentive Program (SuSI) / ADI

Administered by: New Jersey Board of Public Utilities

Amount: Fixed incentive payments per kWh of solar generation for 15 years (Administratively Determined Incentive)

Eligible items: Residential rooftop solar photovoltaic systems

The ADI program replaced the legacy SREC program and SREC-II transitional program. It provides a fixed, long-term incentive payment for solar energy generation.

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Whole-House Pilot Program

Administered by: NJ Clean Energy Program

Amount: Up to $4,000 for moderate-income, up to $8,000 for low-income households for comprehensive improvements

Eligible items: Comprehensive whole-home energy efficiency improvements including insulation, air sealing, HVAC, and water heaters

Pilot program providing enhanced incentives for whole-house energy efficiency improvements, with higher rebates available for income-qualifying households.

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Solar Net Metering in New Jersey

New Jersey has strong net metering rules. Residential customers can net meter systems up to 10 MW. Customers receive a full retail rate credit for excess generation, carried forward monthly and trued up annually. New Jersey also has a successor solar incentive program (SREC-II/ADI) that provides additional compensation.

Utility Rebate Programs in New Jersey

New Jersey residents may qualify for additional rebates from their local utility company. Here are programs from major utilities serving the state:

PSE&G (Public Service Electric and Gas)

PSE&G Residential Efficiency Rebates

Amount: Up to $500 for HVAC, $200-$500 for insulation, $100 for smart thermostats

Eligible items: High-efficiency furnaces, central air conditioners, heat pumps, insulation, smart thermostats

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PSE&G Home Energy Assessment

Amount: Free or reduced-cost home energy assessment

Eligible items: Comprehensive home energy evaluation with direct-install measures

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JCP&L (Jersey Central Power & Light)

JCP&L Energy Efficiency Rebates

Amount: Varies by measure; up to $500 for heat pumps, $50-$200 for appliances

Eligible items: ENERGY STAR heat pumps, central air conditioners, heat pump water heaters, smart thermostats

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Atlantic City Electric

Residential Efficiency Programs

Amount: Varies by measure; rebates for qualifying equipment

Eligible items: High-efficiency HVAC systems, heat pumps, smart thermostats, insulation

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Get Personalized New Jersey Rebate Guidance

Enter your ZIP code below to chat with our AI about rebates specific to your area in New Jersey. The AI will check federal, state, and utility programs and give you a personalized breakdown of what you may qualify for and how to apply.

Or ask the AI about New Jersey rebates directly.

Frequently Asked Questions About New Jersey Rebates

What energy rebates are available in New Jersey?

New Jersey residents can access federal tax credits including the 25C Energy Efficient Home Improvement Credit (up to $3,200/year) and the 25D Residential Clean Energy Credit (30% for solar and battery storage). State-level programs include NJ Clean Energy Program - Residential New Construction and HVAC, Successor Solar Incentive Program (SuSI) / ADI, Whole-House Pilot Program. New Jersey has also launched the federal HOMES and HEAR rebate programs for income-qualifying households.

Has New Jersey launched the HOMES and HEAR rebate programs?

New Jersey has launched its HOMES and HEAR rebate programs under the Inflation Reduction Act. The New Jersey Board of Public Utilities (NJBPU) is administering the programs in coordination with utility-run efficiency programs and the state's clean energy initiative.

What are the income limits for energy rebates in New Jersey?

For New Jersey, 80% of Area Median Income varies by county. In Essex County (Newark), 80% AMI for a family of four is approximately $79,900. In Bergen County, it is approximately $88,650. For New Jersey, 150% of Area Median Income varies by county. In Essex County (Newark), 150% AMI for a family of four is approximately $149,800. In Bergen County, it is approximately $166,200.

Does New Jersey have net metering for solar panels?

New Jersey has strong net metering rules. Residential customers can net meter systems up to 10 MW. Customers receive a full retail rate credit for excess generation, carried forward monthly and trued up annually. New Jersey also has a successor solar incentive program (SREC-II/ADI) that provides additional compensation.

How do I apply for energy rebates in New Jersey?

Start by entering your ZIP code on Rebate Atlas to get personalized guidance. For federal tax credits (25C and 25D), you claim them when you file your federal income tax return using IRS Form 5695. For state programs, contact the New Jersey Board of Public Utilities (NJBPU). For utility rebates, check with your local utility provider directly.

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