Ready to move beyond fossil fuel heat? Your utility will help.
Building Decarbonization programs help New Jersey homeowners replace or supplement gas and oil heating with high efficiency electric heat pumps. Today's cold climate heat pumps heat comfortably through New Jersey winters and cool your home in summer from the same system, and the rebates for installing them are among the largest available anywhere in the state's programs.
With PSE&G, that is up to $10,000 back ($12,000 for income qualified households), plus up to $50,000 in 0% on bill financing, rising to $75,000 when combined with a Whole Home Energy Solutions project.
Current program terms run through June 30, 2027.
Two ways to make the switch
You do not have to go all in on day one. Every utility's program offers pathways to fit different homes and comfort levels:
Full displacement
A cold climate heat pump replaces your fossil fuel heating system entirely and becomes your primary heating and cooling system. This pathway carries the largest rebates, up to $10,000, or up to $12,000 for income qualified households, depending on your utility.
Dual fuel
A heat pump pairs with your existing system. The heat pump does most of the work, and your existing system assists on the coldest days, coordinated by integrated controls. A practical first step for many homes, with meaningful rebates of its own.
Additional rebates are available for related work, including decommissioning your old system, re ducting, dual fuel controls, heat pump water heaters, and electrical upgrades. Pathway names, amounts, and details vary by utility.
A more comfortable, healthier way to heat
Electrifying your heating is about more than efficiency. Heat pumps deliver steady, even warmth instead of the blast and pause cycle of a furnace, and they dehumidify while cooling in summer. Because they move heat rather than burn fuel, there is no on site combustion in your living space, which means one less thing to vent and maintain. Paired with air sealing, insulation, and balanced ventilation, a heat pump project can leave your home quieter, fresher, and more comfortable in every season.
Financing that fits the project
Every utility pairs its rebates with 0% financing, structured differently by program. PSE&G customers can finance qualifying projects at 0% interest up to $50,000 through their utility bill, rising to $75,000 when Building Decarbonization is combined with a Whole Home Energy Solutions project. JCP&L and Rockland Electric customers can access 0% APR fixed payment loans of $2,500 to $25,000 through each program's financing partner. Your audit report shows the exact structure that applies to your home.
Why pair it with envelope work
Heat pumps perform at their best in a well sealed, well insulated home. Pairing your heat pump project with air sealing and insulation through Whole Home Energy Solutions often means a smaller, less expensive heat pump, lower operating costs, and a larger combined incentive package. Your audit will show whether your home is heat pump ready today or whether envelope work should come first.
Find your utility's program
PSE&G Building Decarbonization →
Rebates up to $10,000 ($12,000 income qualified) plus 0% on bill financing.
JCP&L Clean Comfort →
Rebates up to $10,000 ($12,000 income qualified) plus 0% APR financing.
Rockland Electric Clean Heat →
Heat pump rebates up to $10,000 plus 0% APR financing for RECO's New Jersey customers.
New Jersey Natural Gas Hybrid Heating →
Hybrid heating rebates up to $4,000, plus $300 per piece of equipment for income qualified households, for adding a heat pump alongside gas.
How Ciel Power fits in
We are a participating contractor for these programs and a four time ENERGY STAR Contractor of the Year. The rebate itself comes from your utility. Your Ciel Power energy advisor evaluates your home's electrical capacity, heating load, and envelope condition, recommends the right pathway, sizes the equipment properly using industry standard load calculations, and manages every rebate application from start to finish.
Frequently asked questions
Do heat pumps really work in New Jersey winters?
Yes. Modern cold climate heat pumps are rated to heat effectively well below zero degrees Fahrenheit. Proper sizing matters, which is why we size heat pump systems with a load calculation for your specific home.
Will my electric bill go up?
You will use more electricity and less gas or oil. The net effect depends on your home, your rates, and the system installed. Your audit report models this for your home so you can see the full picture before deciding.
Do I qualify for the income qualified rebate tiers?
There are several ways to qualify, including household income up to 400% of federal poverty guidelines, participation in programs like LIHEAP or SNAP, or living in certain designated communities. Your energy advisor can walk you through it.
Can I combine this with the Whole Home program?
It depends on your utility, and it is often the strongest approach. With PSE&G, the two programs stack on one project: both rebates apply, and combined 0% on bill financing rises to $75,000. Other utilities structure their programs separately, and your audit report maps what applies to your home.
Is there an income requirement to participate at all?
No. The program is open to eligible utility customers at every income level. Income qualified households simply receive enhanced rebates.