Upgrading Old Equipment

Many homes still rely on late model boilers and furnaces to provide heat. In addition to the reliability issues inherent with older equipment, these systems are significantly less energy efficient than the ones available today.

For example, many old boilers are rated at only 50-55% AFUE, Annual Fuel Utilization Efficiency, a standard government efficiency rating. In these homes, 45-50 cents of every heating dollar is wasted by system inefficiencies. Compare this to new boiler efficiencies of 84-87%. A new boiler can cut energy costs by 1/3, paying for itself in fuel savings in the first two to three years. And in homes converting from electric to hot water heat, fuel costs can be cut by over 50%.

When purchasing a heating unit you should consider the upgrades that are available such as high efficient air cleaners, programmable thermostats, humidifiers and zoning equipment.

Air cleaners available in the residential installation are up to 95% efficient. Whether you have breathing disorders, allergies, or just wish to have a cleaner house, air cleaners are an integral part of an air conditioning system.

Humidifiers raise the humidity level in the house to protect wood furniture, prevent dry skin, and help with breathing disorders.

Programmable thermostats will help lower the utility bill by allowing you to customize your thermostat to operate the air conditioning or heating unit according to your schedule.

Zoning Equipment allows you to have multiple thermostats which control dampers in the air ducts to allow different rooms to be different temperatures in the house.

Warm Advantage Program
To Qualify For a Warm Advantage Rebate, You Must:
  1. Purchase a high efficiency gas furnace with an Annual Fuel Use Efficiency (AFUE)* of 90.0 or greater, or a high efficiency gas boiler with an AFUE** of 85.0 or greater (conversion burners are not eligible).  To qualify for a gas water heater rebate, you must purchase a high efficiency freestanding gas water heater with an Energy Factor (EF) of .62 or greater.
  2. Be a New Jersey residential gas customer of PSE&G, New Jersey Natural Gas, Elizabethtown Gas, or South Jersey Gas Companies.***
  3. Complete the necessary information on the rebate form. If you are applying for more than one rebate, a separate rebate form must be completed for each unit that you purchased. 

    High-Efficiency Natural Gas Equipment Incentives

    Equipment Type Efficiency Standard Rebate Level
    Furnace 90% AFUE or greater, ENERGY STAR $300
    Furnace with Electronic Commutated Motor (ECM or equivalent) 92% AFUE or greater, ENERGY STAR $400
    Boiler 85% AFUE or greater, ENERGY STAR $300
    Water Heater 0.62 Energy Factor or greater $50

    *AFUE levels are as stated in the Gas Appliance Manufacturers Association's (GAMA) Consumers Directory of Certified Furnace and Boiler Efficiency Ratings. All AFUE levels for furnaces must be calculated based on Isolated Combustion System (ICS) or outdoor ratings.
    **Steam boilers are not available with an AFUE of 85% or greater and are not eligible for rebates.
    ***Rebates are based on the date the equipment was installed.

    Please Note:

    Effective March 6, 2003 the eligibility requirements for incentives for high efficiency residential heating and cooling systems have been modified to comply with the State of New Jersey Board of Public Utilities Energy Order Docket No. EO02120955, dated March 4, 2003.

    After March 6th, incentives for HVAC installations in newly constructed homes are only available within areas designated for growth in the State Plan. These Smart Growth Areas are defined as Planning Area 1 and 2, plus the Designated Centers, utilizing the policy map of the New Jersey State Development and Redevelopment Plan. As a result, equipment installed later than March 6th in newly constructed homes in non-Smart Growth Areas is no longer eligible for the incentive.There is no change for installations in existing homes.

    Important Notice:

    • Please submit only one application per unit.
    • PSE&G recommends that you have your new furnace or boiler inspected by PSE&G after it is installed. This can be arranged by calling the telephone number on your monthly energy bill.
    • Homes constructed under the NJ Energy Star Homes program are not eligible for the Gas Furnace/Boiler/Water Heater Rebate Program.