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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
- 25C Energy Efficient Home Improvement Credit: Up to $3,200/year for heat pumps, insulation, windows, doors, electrical panels, and home energy audits. Covers 30% of costs.
- 25D Residential Clean Energy Credit: 30% tax credit for solar panels and battery storage with no dollar cap. Available through 2032.
- HOMES & HEAR Rebates: Income-qualified point-of-sale rebates up to $14,000 for heat pumps, water heaters, electrical panels, and other electrification upgrades.
- 30C EV Charger Credit: Up to $1,000 for home EV charging equipment in eligible census tracts.
- Weatherization Assistance Program (WAP): Free weatherization services for low-income households at or below 200% of the federal poverty level.
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.
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.
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.
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.
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.
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
PSE&G Home Energy Assessment
Amount: Free or reduced-cost home energy assessment
Eligible items: Comprehensive home energy evaluation with direct-install measures
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
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
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.
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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