PSE&G heat-pump conversion rebates, explained.

Three conversion pathways, three different caps.

PSE&G’s Clean Heat full-displacement offer is the lesser of $10,000 or 50% of the largest system’s project cost. Dual Heat offers the lesser of $5,000 or 50%; Hybrid Heat offers the lesser of $2,000 or 30%. These are alternative project categories.

PSE&G: building decarbonization and HVAC rebates · Source checked 2026-09-06

Start with the contractor’s eligibility check.

PSE&G’s instant-rebate program serves eligible residential homeowners through participating contractors. New construction and commercial properties are excluded. Confirm your account and project eligibility before work. The approved instant rebate is deducted on the project invoice.

PSE&G: building decarbonization and HVAC rebates · Source checked 2026-09-06

Decide how the old heater will operate.

Clean Heat removes or disables fossil-fuel heating. Dual Heat retains it with integrated controls. Both require cold-climate equipment sized for the full heating load. Hybrid Heat retains existing heat with integrated controls and covers a smaller heating share. Each pathway has equipment and sizing requirements.

PSE&G: building decarbonization and HVAC rebates · Source checked 2026-09-06

Income qualification changes the limits.

The corresponding low-to-moderate-income limits are the lesser of $12,000 or 60% for Clean Heat, $6,000 or 60% for Dual Heat, and $3,000 or 40% for Hybrid Heat. Additional eligible work has separate rules. Confirm the complete incentive calculation with the contractor.

PSE&G: building decarbonization and HVAC rebates · Source checked 2026-09-06

Compare complete heating plans.

Ask each contractor to identify the proposed pathway before discussing the final price. Request a room-by-room heating assessment, an equipment schedule, and a clear description of what stays connected. If the old furnace or boiler remains, ask when it will run and how the two systems will be controlled.

Compare the full installation cost, the estimated discount, and the remaining payment as separate numbers. For a proposal to remove equipment, ask whether removal, fuel-line work, permits, and disposal are included. For a proposal that retains equipment, ask who will service each system.

Keep the assumptions with the contract.

Ask the contractor to list every proposed incentive and its eligibility assumption. Avoid building a budget by adding advertised maximums from different project types. Request an updated calculation whenever equipment, scope, or household qualification changes.

Before signing, agree on who handles applications, which records you receive, and what happens if the approved amount differs from the estimate. Financing should appear separately from any rebate in your comparison.

Confirm the offer before installation.

Sources were checked September 6, 2026, including the utility’s expanded rebate table. Temperaly is not PSE&G and does not approve incentives. Use the official program to confirm your account, project category, and final discount.