NJ and Eight Other States Incentivize Heat Pumps Through Rebates, Financing and Tax Credits.

• Posted on July 29, 2024
• by admin
• in Blog_Posts
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New Jersey’s Clean Energy Program provides financial incentives for homeowners who install energy-efficient heating and cooling systems, including heat pumps. These incentives help to offset the initial installation costs, making it more affordable for residents to make these energy saving upgrades. Several of NJ’s electric and gas utilities participate in the program and offer rebates. Eligibility is based on whether the units installed meet minimum efficiency and quality installation standards. Here are some of the major utilities and the types of support they typically provide to homeowners:

1. Public Service Electric & Gas (PSE&G):
   1. PSE&G offers the Residential HVAC Instant Rebates Program, which provides incentives for energy-efficient upgrades, including heat pump installations. The program offers rebates for qualifying equipment and may also provide financing options to help homeowners with the upfront costs.
   2. PSE&G also offers the Home Performance with ENERGY STAR program, which provides incentives for comprehensive energy efficiency improvements in existing one-to four-family homes and low-rise milti-family buildings. This program can include heat pump installations as part of the overall energy upgrade to lower energy consumption and increase efficiency.
2. Jersey Central Power & Light (JCP&L):
   1. JCP&L offers the Home Performance with ENERGY STAR program, which provides incentives for energy efficiency upgrades, including heat pump installations. Homeowners can receive rebates for qualifying equipment and may also be eligible for low-interest financing options.
   2. JCP&L also offers the COOLAdvantage and WARMAdvantage programs, which provide rebates for the installation of high-efficiency air-source and ground-source heat pumps, respectively. These programs aim to promote energy-efficient heating and cooling solutions.
3. Atlantic City Electric:
   1. Atlantic City Electric offers the Home Performance with ENERGY STAR program, which provides incentives for comprehensive energy efficiency improvements, including heat pump installations. Homeowners can receive rebates for qualifying equipment and may also have access to low-interest financing options.

Federal tax incentives for heat pumps and heat pump water heater projects.

The tax credit amount is 30% of the total project cost (includes equipment and installation) up to a $2000 maximum. This tax credit through the Inflation Reduction Act(IRA) is available through 2032 and can be redeemed when you submit your taxes for the year you installed the heat pump.

These programs typically provide financial incentives in the form of rebates to help offset the cost of heat pump installations. Additionally, they may offer financing options, such as low-interest loans, to assist homeowners with upfront expenses. Some programs also provide energy assessments and guidance to help homeowners make informed decisions about energy efficiency upgrades.

Keep in mind heat pumps are also 2.5 times more efficient than oil furnaces or boilers. They significantly reduce carbon footprint and over the life of operation can save homeowners thousands of dollars in utility costs.

It’s important to note that the specific incentives, eligibility criteria, and application processes may vary among utilities and programs. those interested in the programs offered are advised to visit the websites of their respective utility providers for detailed information on available programs, incentives, and application procedures.