NJ Clean Energy Rebates For Heaters And Air Conditioners (2021)


Updated May 2021

New Jersey homeowners can get rebates ranging from $300 to $4,000 when replacing old heaters and air conditioners with energy-efficient models.

This is our third annual update to this article. We spoke directly with representatives from NJ Clean Energy and the New Jersey Board of Public Utilities (BPU) in April of 2021 about the latest rates, proposed changes, and how energy usage changed during 2020. 

“Reducing energy usage is the easiest way for people to save money on their energy bills,” a New Jersey BPU spokesperson told us. “We encourage people to contact the Board or their utilities to find ways to participate in New Jersey’s energy efficiency programs.” 

And Broadley’s is here to help, too! The rates we quote here are valid through June of 2021. We’ll update this again when any new offers go into effect. 

A lot has changed over the past year. In this article, we’ll cover: 

  • Eligibilities For Various Rebates
  • Potential Changes To The Program
  • Stats And Success Stories For 2020
  • How BPU Adjusted Strategies During The Pandemic
  • More Ways To Save Energy (And Money!)

Societal Benefits Charge

If you need an extra incentive to apply: The money, technically, is yours in the first place.

Check your utility bills for the “Societal Benefits Charge.” It’s around or under four percent of the total charge. That money goes into a statewide fund for these rebates.

“Each month, every customer pays into that on their gas and electric bills,” said a NJ Clean Energy spokesperson. With the rebates, “You’re being provided a reduced cost for the system. This is an opportunity to get free money.”

Along with saving money, you’re also helping save the environment. 

An energy-efficient appliance uses less oil, gas, or electricity to do the same job — or better — as a model that uses more of these resources.

So, when you switch, you reduce your impact on the electric grid and reduce your carbon dioxide and greenhouse gas emissions.

If you’re in the market for a new heater, air conditioner, or water heater in Ocean City, Marmora, Avalon, Stone Harbor, or anywhere in Cape May or Atlantic County, call or email Broadley’s for a free consultation. 

We’ll help you find the perfect appliance for your home — and get the best possible price for it. 

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Eligibilities For Various Rebates

In this article, we break down how to find eligible equipment and apply for these offers.

We’ll cover:

  • NJ Clean Energy Rebates for Heaters
  • NJ Clean Energy Rebates For Air Conditioners
  • NJ Clean Energy Rebates For Ductless Mini Splits
  • Home Performance With Energy Program
  • How To Apply For Rebates

Fair warning: We’ll get into some technical specs and alphabet soup to explain which models get what rebates. Give us a call here at Broadley’s if you need help sorting through it all. 

South Jersey Gas Temporarily Ending Its Rebate Program.

For the last few years, South Jersey Gas has also offered rebates for new furnaces and other equipment. The current offers end on May 31, 2021. They’ve announced a new program slated to begin on July 1 but have not released any details. 

Check back here for updates. 

NJ Clean Energy Rebates for Heaters

Rebates For Installing A New Energy Efficient Heating System

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NJ Clean Energy offers rebates for new heaters in South Jersey and along the shore. At a glance, these include:

  • $250 to $500 for gas furnaces
  • $700 to $950 for water heaters and gas furnaces
  • $300 for boilers
  • $700 for boilers and water heaters

The eligibility for each model depends on its efficiency ratings. Those tell you how much energy an appliance uses. The less energy, the more you can get back. 

Gas furnaces need either a 95- or 97-percent Annual Fuel Utilization Efficiency (AFUE) rating. 

Oil furnaces require 85 percent. Oil boilers must be 87 percent, and gas boilers 90 percent.

For water heaters, we look at Uniform Energy Factor or UEF.

You can get $300 back on tank heaters using natural gas and propane models with less than 55 gallons of storage and a UEF of .64 or higher. Or more than 55 gallons and UEF of .85 or higher.

Tankless heaters with less than two gallons of storage require at least a .90 UEF rating.

A model using an electric heat pump needs a 2.0 UEF or higher. But, you can get a higher rebate: $750, which is significantly more than those other models.

NJ Clean Energy Rebates For Air Conditioners

Rebates for energy-efficiency air conditioners in New Jersey range from $300 to $2,000.  If your new central air is 16 SEER (Seasonal Energy Efficiency Ratio) and 13 EER (Energy Efficiency Ratio), you can get $300 back. An 18 SEER, 13 EER model gets you a $500 rebate.

Some of these models fall under the ductless mini splits and heat pumps, which we’ll cover next. But, you can also apply for traditional central air systems.

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NJ Clean Energy Rebates for Ductless Mini Splits

A Ductless Mini Split Can Heat And Cool All Year Long

Ductless mini splits are much more energy-efficient than gas, oil, or other electric heating options. You can get anywhere from $600 to $2,000 in rebates from NJ Clean Energy for installing a new system.

Setups that combine 16 SEER, 13 EER, and 10 HSPF (Heating Seasonal Performance Factor) ratings are eligible for $600 in rebates.

Or, $1,000 for 18 SEER, 13 EER, and 10 HSPF.

Then, you move into cold-climate heat pumps. Single-unit ductless setups that meet requirements get a $1,000 rebate. A multi-zone system can get you $2,000 back.

Single-unit systems must be 20 SEER, 12 EER, 12 HSPF. 

Multi-zone systems must be 18 SSER, 12 EER, 10 HSPF.

Home Performance With Energy Star Program

Separate from the rebates is New Jersey Clean Energy’s “Home Performance With Energy Star” program. It’s a more comprehensive offer for “whole house solutions” that improve your indoor air quality and lower your energy bills.

This program begins with an energy audit to identify how to make your home healthier and more energy-efficient. Based on the recommendation from that report, you can get up to $4,000 in rebates for making improvements to your home.

These include the appliances we’ve been covering along with other work such as air sealing and adding attic insulation.

You can get the individual rebates along with using the Home Performance program. But you can’t get two rebates for the same item.

For instance, if you purchase an eligible water heater, you can apply for the individual incentive or go through Home Performance — but not both.

How To Apply For Rebates

You can apply for the NJ Clean Energy Rebates through their website here. Or, call (866) 657-6278. But, be warned: There’s a lot of paperwork involved.

For that reason, the NJ Clean Energy spokesperson recommends having your contractor apply.

“It’s very specific and technical. If you provide the wrong information, the application bounces back, and then you have to start over again,” they warned.

Any contractor with appropriate state licensing is eligible to submit.

For the rebate, you’ll need the load calculation, the manufacturer and model of the unit, including the model number, and itemized invoices showing your total cost.

Next, you need warranty registration information, a distributor’s invoice, and a copy of an AHRI certificate verifying the AFUE, SEER, EER, HSPF, or UEF ratings.

Finally, you need to show a municipal building permit or permit application showing you’re approved to have someone install the unit.

It can take up to 120 days to receive the rebate, and you can check the status on their website. Even if your contractor fills out the forms and sends them in, the check comes directly to you from the utility company. 

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Stats And Success Stories For 2020

As with everything else in 2020, the energy efficiency program looked a little different during the pandemic than before. Residential energy usage went up while commercial use went down as residents stayed in their houses more and, in particular, worked from home. 

Not as many people took advantage of the offers as in 2019. But, participation is back on the rise. And the program still had a significant impact.

At the beginning of the pandemic, HVAC companies were less active but still preparing for future work. 

“It appears as if contractors used this time to continue their outreach and sales efforts because once restrictions were lifted, we saw a small increase in program participation,” the BPU spokesperson noted.

However, customers seemed to scale back their home projects as we hit subsequent waves of COVID infections. 

Like other companies and nonprofits, NJ Clean Energy quickly pivoted to virtual outreach meetings and webinars. Those replaced in-person presentations, conferences, and customer meetings. 

Thanks to these efforts, the Clean Energy program still put up some impressive stats. In the fiscal year 2020: 

  • More than 80,000 residential customers made energy efficiency improvements;
  • More than 5,000 commercial customers made energy efficiency improvements;
  • Customers installed more than 15,000 solar energy systems;
  • The program awarded more than $145 million in rebates overall.

As a result, the Garden State saved 11.6 million megawatt-hours of energy and 10.2 million BTUs of natural gas. To put that in perspective, that eliminates the same amount of CO2 as if: 

  • 189,000 cars were removed from circulation;
  • 12,000,000 trees were planted;
  • 763,909 metric tons of greenhouse gasses were eliminated.

More Ways To Save Energy (And Money!)

Taking advantage of the New Jersey Clean Energy Program is just one way to save energy and money this spring. Our spokesperson pointed us to a great list of ideas that range from free and DIY to small investments. 

You can read the list here. Or, start with these easy points: 

  • Add timers or dimmers to your lights at home
  • Get an air conditioner Tune-up 
  • Ask your cable provider for an Energy Star set-top box
  • Only run the washing machine when you have a full load
  • Find and eliminate phantom energy sources
  • Set your ceiling fans to run counter-clockwise

And, if you’re looking for ways to save money, increase your energy efficiency, and stay more comfortable than ever in your South Jersey home, call or email us here at Broadley’s. 

Starting with a free consultation, we’ll help you develop strategies and investments that will keep you comfortable while reducing your carbon footprint (and utility bills)!

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