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In New Jersey, HVAC upgrades are required at frequent intervals. They can provide you with better comfort, reduce your utility bills, and decrease energy consumption. Apart from these benefits, new HVAC systems provide you with peace of mind regarding a smooth, uninterrupted operation. That's why residential and commercial HVAC customers seek new HVAC systems after some years.
But HVAC installations are often costly. Especially for average-income families, managing the costs for both equipment and installation services is a difficult task. That's where HVAC rebates, energy incentives, and financing options come in. In this blog, we will explore the available financing and rebate opportunities for New Jersey customers. This information will help you plan your next HVAC upgrade smartly and reduce the cost burden.
If you are anywhere from Newark, Jersey City, or Hoboken, you can likely benefit from PSE&G benefits. It prioritizes HVAC efficiency and the electrification of heating and cooling systems.
Below are the rebates offered by PSE&G for different equipment.
As heat pumps can handle both heating and cooling, they are highly incentivized. The rebate ranges are below:
|
Equipment |
Efficiency Requirements |
Rebate |
|
Heat Pump |
≥ 15.2 SEER2 / ≥ 7.8 HSPF2 |
~$300 |
|
Heat Pump |
≥ 16 SEER2 / ≥ 8.1 HSPF2 |
~$450 |
|
Heat Pump (Cold Climate) |
Advanced cold-climate certified systems |
Up to ~$600 |
Central air conditioner rebates are generally lower under PSE&G, as they only provide cooling. The average rebates are below:
|
Equipment |
Efficiency Requirements |
Rebate |
|
Central AC |
≥15.2 SEER2 |
~$60 |
|
Central AC |
≥17 SEER2 |
~$120 |
PSE&G also offers many rebates for high-efficiency gas furnaces. The average ranges are below:
|
Equipment |
Efficiency Requirements |
Rebate |
|
Gas Furnace |
≥95% AFUE |
~$500–$540 |
Point to Consider: The offers from PSE&G may vary depending on the program cycles and the funding periods. Over the past two years, we have frequently observed the average ranges listed above.
If you are anywhere from Princeton, Edison, or the nearby regions, you can benefit from Jersey Central Power & Light (JCP&L) programs. These rebates specifically favor units with higher efficiency ratings and the electric ones.
An equipment-wise breakdown of rebates is presented in the tables below:
|
Equipment |
Efficiency Requirements |
Rebate |
|
Heat Pump |
≥15.2 SEER2 |
~$500 |
|
Heat Pump |
≥16–17 SEER2 / higher HSPF2 |
Up to ~$750 |
JCP&L offers higher rebates, especially for the average efficiency systems.
Ductless Mini-Split Rebates
| Equipment | Efficiency Requirements | Rebate |
| Mini-Split System | ENERGY STAR certified | ~$500 |
| Mini-Split System | High-efficiency (≥16 SEER2) | Up to ~$750 |
| Equipment | Efficiency Requirements | Rebate |
| Central AC | ≥16 SEER2 | ~$100 |
| Central AC | High-efficiency tier | Up to ~$200 |
JCP&L programs reward higher-efficiency units more aggressively. Upgrading to one tier higher can make a significant impact on the total rebate amount.
Elizabethtown Gas offers some high-quality rebates for heating systems that operate on gas. The goal is to promote upgrades from older heating appliances to modern, high-efficiency systems. The detailed breakdown is presented in the tables below:
| Equipment | Efficiency Requirements | Rebate |
| Gas Furnace | ≥95% AFUE | Up to ~$700–$900 |
| Gas Furnace | ≥97% AFUE (premium tier) | Up to ~$900+ |
The higher the efficiency of your heating unit, the more rebates you can unlock through this program.
| Equipment | Efficiency Requirements | Rebate |
| Boiler | ≥95% AFUE | Up to ~$900–$1,000 |
| Boiler (High Tier) | Advanced high-efficiency system | ~$1,000+ |
| Combi Boiler | High-efficiency combi system | Up to ~$1,500–$1,750 |
This program offers the highest available rebates for a single appliance in New Jersey utility programs.
The New Jersey utility programs discussed above are no doubt effective in making your HVAC upgrades affordable. But these are not the only programs available. There are also some rebate programs offered at the federal level. You can equally apply for those programs and get the benefits.
Here, we mention two primary offers in this regard:
HEEHRA: It is a program funded by the 2022 Inflation Reduction Act. Its goal is to help low- to middle-income families upgrade their fossil fuel HVAC systems to higher efficiency electrical appliances. Key rebates include up to $8,000 for HVAC heat pumps and $1,750 for heat pump water heaters.
HOMES: This program also operates under the federal government. The target is to fund energy-efficient home improvements in the state. The NJ Whole Home Program offers up to $7,500 for heat pumps, while the NJ Clean Energy Program (NJCEP) provides rebates often exceeding $2,000 for insulation incentives.
Combining the rebates from these two programs with those offered by the state-level utilities is the best practice. This smart approach can make your new HVAC installation much more affordable.
Even after you get rebates, HVAC upgrades are still a nightmare for average families. It is due to high equipment and installation costs. The costs of obtaining permits and complying with local codes are additional. That's where the need for HVAC financing rises. Fortunately, the residents of New Jersey can benefit from multiple financing programs with low interest rates and flexible terms and conditions.
The following are some companies that offer 0% financing for 6 to 12 months with a $0 down payment.
The Lehigh HVAC Advantage
If you choose Lehigh HVAC for new HVAC installation in New Jersey, you can get 0% financing for 12 months with 0 down payment and affordable monthly installments. Plus, our team guides you at every step to claim rebates and incentives from state-level and federal rebate programs.
Contact us at 484-961-7044 for further information.
