Building Decarbonization Programs in New Jersey
Thinking about a heat pump — but not sure where to start?
If you’re a New Jersey homeowner, you may be feeling stuck in the middle.
Your heating system still works — but it’s aging.
Your air conditioner struggles on the hottest days.
You’ve heard about heat pumps, electrification, and new incentives — but it’s not clear what applies to your home, or how far you’re expected to go.
You’re not alone.
Building Decarbonization programs are designed for homeowners exactly in this position — people who want a practical, step-by-step way to modernize their home’s heating and cooling systems.
These programs are administered by New Jersey utilities and supported by the state, offering rebates and financing to help homeowners transition toward more efficient electric heating over time.
What Building Decarbonization Means (In Plain English)
In New Jersey, Building Decarbonization refers to a set of utility incentive programs focused on how homes are heated and cooled.
Rather than pushing a single solution, these programs typically support:
High-efficiency electric heat pumps
Hybrid heating systems that pair heat pumps with existing gas equipment
Electrical upgrades needed to support electrification
Financing and rebates that allow upgrades to happen in stages
This approach aligns with New Jersey’s Energy Master Plan, which calls for:
Reducing reliance on combustion-based heating
Expanding the use of efficient electric technologies
Allowing homeowners to transition gradually, based on what makes sense for their home
Building Decarbonization programs are one way the state and utilities are turning that long-term plan into practical, homeowner-level action.
Find Your Utility Program
Building Decarbonization incentives are offered through your utility, not as a single statewide program. Eligibility depends on which utility serves your home.
Select your utility below to view available incentives, supported upgrade pathways, and program requirements.
PSE&G — Building Decarbonization
Who this applies to:
• You must be an electric customer of PSE&G
• Your home must be located in the PSE&G electric service territory
Program highlights:
• Clean Heat, Dual Heat, Hybrid Heat, and Ground Source pathways
• Strong support for cold-climate heat pumps
• Incentives for electrical upgrades
• Options for full or partial electrification
➡ View PSE&G Building Decarbonization Program
New Jersey Natural Gas — Hybrid Heating
Who this applies to:
• You must be a New Jersey Natural Gas customer
• Your home must be served by NJNG
Program highlights:
• Hybrid Heating focus (heat pump + existing gas system)
• Equipment-specific incentives
• Integrated controls required
• On-Bill Repayment financing available
➡ View NJNG Hybrid Heating Program
Rockland Electric — Building Decarbonization
Who this applies to:
• You must be an electric customer of Rockland Electric
• Your home must be located in the Rockland Electric service territory
Program highlights:
• Heat pump and hybrid pathways
• Electrical upgrade support
• Cold-climate performance focus
➡ View Rockland Electric Building Decarbonization Program
(Additional utility programs will be added as they become available.)
How Building Decarbonization Fits with Whole Home Energy Solutions
Building Decarbonization programs focus primarily on heating systems.
Whole Home Energy Solutions programs focus on how the home itself performs, including insulation, air sealing, and duct improvements.
Many homeowners use both programs together:
Whole Home Energy Solutions to improve how the home holds and distributes heat
Building Decarbonization to upgrade the heating system itself
This coordinated approach helps ensure that new heat pump systems perform as intended.
Why We Always Start with a Home Energy Audit
A Home Energy Audit helps answer the most important questions upfront:
• Which utility program applies to your home
• Whether hybrid or full electrification makes sense
• What electrical upgrades may be required
• How incentives can be combined or sequenced
• What upgrades should come first — and what can wait
The audit creates a clear starting point and helps homeowners move forward with confidence.
How Ciel Power Fits Into the Process
Ciel Power is an independent home performance contractor that helps New Jersey homeowners navigate utility incentive programs and design upgrades that actually work for their homes.
We are not a utility, and we don’t set program rules. Our role is to:
• Perform Home Energy Audits
• Evaluate homes using utility-approved tools
• Design heat pump, hybrid heating, and home performance projects
• Coordinate rebates, incentive paperwork, and financing
• Manage installations and required testing
Because Building Decarbonization and Whole Home Energy Solutions programs often overlap, our job is to help homeowners combine programs where appropriate, avoid common missteps, and upgrade their homes in a logical sequence.
Ready to Get Started?
If you’re considering a heat pump or hybrid heating upgrade, the first step is understanding which program applies to your home and how to take advantage of available incentives.
Schedule a Home Energy Audit to get started.
