2026 NJNG Hybrid Heating Rebates: Building Decarbonization for New Jersey Natural Gas Customers
Add a heat pump while keeping your existing gas system. NJNG's Building Decarbonization program is built around hybrid heating, pairing an efficient electric heat pump with the gas equipment you already have, with rebates and 0% on bill financing to make the project practical.
Primary incentives
- $2,000 for a qualifying single zone hybrid heat pump system
- $4,000 for a two zone system, where the second unit is a qualifying cold climate heat pump
- Income qualified households receive an additional $300 per piece of qualifying equipment
- On Bill Repayment (OBRP) financing at 0% for qualifying projects
Incentive amounts depend on the number of zones, equipment efficiency tier (the second unit must meet cold climate specifications), household income eligibility, and compliance with NJNG sizing and installation requirements. Qualifying equipment must be installed by June 30, 2027, while program funding lasts.
How NJNG incentives are structured
Single zone system: $2,000
A qualifying heat pump added to supplement your existing gas system, most often ducted or ductless, sized to the home's load, and installed with integrated controls that coordinate the two heat sources.
Two zone system: $4,000
Homes adding a second zone earn the larger incentive when the second unit is a qualifying cold climate heat pump, tested to perform in New Jersey winters. Income qualified households add $300 per piece of qualifying equipment on top of either tier.
Financing through NJNG (OBRP)
NJNG offers On Bill Repayment Program (OBRP) financing to help spread project costs over time: 0% interest, paid through your utility bill, available to qualified borrowers, and usable for heat pumps and qualifying electrical upgrades. Financing availability and limits depend on the project scope and program rules.
Why NJNG focuses on hybrid heating
NJNG's program is intentionally designed around hybrid systems because many homes in its service territory have existing gas infrastructure, are older or more compartmentalized, and benefit from backup heat during extreme cold. Hybrid heating lets homeowners improve efficiency compared to combustion only systems, maintain reliability, and take advantage of incentives without committing to full electrification immediately.
The key is understanding your home, your options, and the right sequence to follow, which is why every project starts with a Home Energy Audit.
What the audit determines
- Whether NJNG Hybrid Heating is the right fit
- Which heat pump type qualifies for the best incentives
- How many systems make sense
- What electrical upgrades are required
- How to sequence improvements over time
It ensures your project meets program requirements, performs as intended, and qualifies for the maximum incentives available. The audit costs $99 (a $299 value), credited toward your project if you move forward.
How Ciel Power fits into the process
Ciel Power is a participating home performance contractor that helps New Jersey homeowners navigate utility incentive programs and design upgrades that actually work for their homes. We are not the utility, and the rebate comes from NJNG. Our role is to perform Home Energy Audits that establish eligibility, model and evaluate homes using utility approved tools, design heat pump and hybrid heating projects that meet program requirements, coordinate rebates, incentive paperwork, and financing on your behalf, and manage installation and testing through qualified trades.
Because Building Decarbonization and SAVEGREEN Whole Home Energy Solutions can overlap, sequencing matters. Our job is to help you combine programs where appropriate, avoid common missteps, and plan upgrades in a logical order.
Frequently asked questions
Why does NJNG focus on hybrid heating?
Many homes in NJNG territory have existing gas infrastructure, are older or more compartmentalized, and benefit from backup heat during extreme cold. Hybrid heating improves efficiency compared to combustion only systems while maintaining reliability, without committing to full electrification immediately.
Do I have to remove my gas furnace or boiler?
No. The hybrid heating approach adds a heat pump alongside your existing gas system. Integrated controls coordinate the two, so the heat pump handles most of the load and the gas system assists when needed.
What determines my rebate amount?
Incentive amounts depend on the equipment efficiency tier (standard versus cold climate heat pump), whether the system is the first or an additional heat pump at the home, household income eligibility, and compliance with NJNG sizing and installation requirements.
Is financing available?
Yes. NJNG offers On Bill Repayment (OBRP) financing at 0% interest to qualified borrowers, paid through your utility bill. It can be used for heat pumps and qualifying electrical upgrades, subject to project scope and program rules.
Can I combine this with envelope work?
Often, yes. NJNG also offers the SAVEGREEN Whole Home Energy Solutions pathway for insulation, air sealing, and efficiency upgrades, and heat pumps perform best in a tight, well insulated home. Your audit maps how the programs fit together for your home.
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