Assistance programs

HVAC replacement assistance programs for New Jersey commercial and multifamily buildings

The main HVAC replacement assistance program in New Jersey for businesses, nonprofits and apartment buildings runs through the electric and gas utilities: Direct Install pays up to 80% of project cost for smaller business buildings, and incentives on larger projects commonly cover 50 to 80% of project cost. Most utilities let you repay the rest at 0%, while the state's NJ Cool grant is not yet accepting applications and RETROFIT NJ is oversubscribed. Outside Direct Install, we prepare the utility applications and licensed partner contractors install; homeowners will find the programs meant for them near the end of this page.

Check which program fits your building (848) 261-9510 info@rivetenergypartners.com

Looking for help with a home? See the homeowner programs.

New rooftop HVAC units and copper refrigerant piping on a flat gravel roof, the kind of upgrade an HVAC replacement assistance program in NJ helps pay for

NJ HVAC replacement program options by building

Your electric and gas bills show which utilities serve the building and how much energy it uses, and that decides where to start.

Up to 300 kW of peak demand or 40,000 therms a year: check Direct Install first.
Larger buildings, or owners who want to choose the contractor: prescriptive, custom or Engineered Solutions.
Apartment buildings with three or more units: the utility multifamily programs.
Commercial and industrial users billed $5 million or more a year for energy, other than hospitals: the Large Energy Users Program.
Towns, school districts and other public bodies: Direct Install, no-cost LGEA audits and ESIP.

NJ HVAC replacement assistance programs compared

Status as of October 2026. Each program name links to its official page.

Program	Who qualifies	What it covers	How to apply
Direct Install (all utilities)	Small and mid-sized businesses, nonprofits, municipalities, schools and faith-based organizations, up to 300 kW of peak demand or 40,000 therms a year	Up to 80% of project cost in Tiers 1 and 2 and up to 70% in Tier 3, a free on-site energy assessment, and installation by the utility's participating contractor. Utilities may cap the dollars, and you repay the rest in a lump sum or a repayment plan.	Open; the current program cycle runs through June 30, 2027. Contact your electric or gas utility.
Prescriptive and Custom (utility)	All commercial, industrial and other non-residential customers	A set incentive per qualifying unit (prescriptive), or an incentive calculated from modeled savings (custom)	Open. Apply to each utility; custom projects need approval before equipment is bought. You choose the contractor.
Engineered Solutions (utility)	Hospitals, colleges and universities, school districts, municipalities, multifamily apartments and large commercial and industrial buildings. Atlantic City Electric opens it to all commercial, industrial and multifamily customers.	Tier 1: 100% of an up-front audit, plus a buydown of the project's simple payback by up to six years, to no less than three. Tier 2: up to 60% of project cost, or up to 80% for income-eligible multifamily at Atlantic City Electric.	Open. Through the utility; PSE&G's investment-grade audit is at no cost to the customer.
Utility multifamily programs	Apartment buildings with three or more units	HVAC rebates and incentives. PSE&G adds no-cost energy assessments; South Jersey Gas pays $375 to $1,750 per unit on its whole-building pathway.	Open. Through each utility's multifamily program.
On-bill repayment and 0% financing (utility)	Customers using the utility programs above	The balance after the incentive, interest-free in most territories. FirstEnergy's own page lists up to 2.99% for JCP&L commercial customers, so confirm the rate.	Open. Requested alongside the incentive application; terms and payout timing differ by utility.
Large Energy Users Program (BPU)	Non-hospital commercial and industrial organizations billed at least $5 million a year in energy costs by NJ investor-owned utilities	The lesser of a per-kWh and per-therm amount, 50% of project cost, or a buydown to a 3-year payback. $100,000 minimum, $4 million per entity per fiscal year.	Registrations open for July 1, 2026 to June 30, 2027, first come, first served.
NJ Cool Phase 2 (NJEDA grant)	Commercial, industrial and institutional owners or tenants in Overburdened or Adjacent Communities; commercial and industrial applicants need less than $5 million in revenue	50% of eligible costs, or up to 60% with full building electrification, $50,000 to $1 million per project. Must pair on-site renewables or storage with a clean heating or cooling upgrade; new combustion heating is excluded.	Not yet accepting applications as of October 12, 2026.
RETROFIT NJ (NJEDA grant)	Institutional owners or tenants serving a nonprofit or public purpose, and manufacturing owners or tenants; commercial owners or tenants only on thermal energy network projects	Grants for large building retrofits with at least $5 million in eligible project cost	Oversubscribed. New applications go on a waitlist.
Garden State C-PACE (NJEDA financing)	Commercial, industrial, agricultural and certain multifamily owners in participating municipalities	Up to 100% financing of eligible retrofit improvements, repaid through a property assessment over up to 30 years	Open, rolling. Through a qualified capital provider, with any mortgage holder's consent.
Energy Savings Improvement Program (ESIP)	Government entities, from school boards to municipalities	Energy improvements, including major and minor HVAC, paid for from the energy savings they produce	Applications accepted on a rolling basis. A public performance-contracting track, not a Rivet service.
Local Government Energy Audit (LGEA)	Local government agencies, state agencies, K-12 public schools, other public agencies, state colleges and universities, and 501(c)(3) nonprofits	A no-cost energy audit that recommends upgrades	Open year-round through NJ Clean Energy Program.
School and Small Business Energy Efficiency Stimulus Program (BPU grant)	Was for schools and small businesses	Federally funded grants of up to 75% of the cost of upgrading HVAC and plumbing systems	Closed. The BPU's April 18, 2023 announcement says it is no longer accepting applications.

Direct Install: the small business HVAC replacement program

Direct Install is the utilities' turnkey program for small and mid-sized buildings. The utility's participating contractors do a free on-site energy assessment and the installation, and you repay your share in a lump sum or through a repayment plan.

The Board of Public Utilities set these shares for January 2025 through June 2027, and utilities may cap the dollars:

Tiers 1 and 2, up to 80% of project cost: up to 100 kW and 5,000 therms a year, or up to 300 kW or 40,000 therms in an Urban Enterprise Zone, Opportunity Zone or Overburdened Community, or for a local government, K-12 public school or 501(c)(3).
Tier 3, up to 70%: other buildings from 101 to 300 kW, or 5,001 to 40,000 therms.

Commercial HVAC replacement assistance for larger buildings

Above those limits, or to choose your own contractor, the utilities' other business programs apply. We prepare these applications, and custom projects need approval before equipment is bought.

Prescriptive: a set incentive for each qualifying unit, open to all commercial, industrial and other non-residential customers.
Custom: an incentive calculated from the building's modeled energy savings.
Engineered Solutions: a whole-building route for hospitals, colleges and universities, school districts, municipalities, multifamily apartments and large commercial and industrial buildings. Tier 1 pays 100% of an up-front audit and buys down the project's simple payback by up to six years, to no less than three; Tier 2 pays up to 60% of project cost.

Multifamily HVAC replacement programs for landlords

Buildings with three or more units have their own utility multifamily programs, and larger ones can also use Engineered Solutions.

PSE&G: no-cost energy assessments for buildings with 3+ units, plus rebates and on-bill repayment.
South Jersey Gas: $375 to $1,750 per unit on its whole-building pathway, tiered by savings, for projects that cut energy use at least 5%. Its multifamily prescriptive and custom incentives rise 30% for projects in or serving low- to moderate-income areas and populations.
Atlantic City Electric: Engineered Solutions pays up to 80% of project cost for income-eligible multifamily, against up to 60% for most customers.
M-RISE, a state program for income-qualified apartment buildings of five or more units, has not launched.

HVAC grants in NJ: what is open in October 2026

Several grants that older articles still describe are closed, waitlisted or not yet open. Status on October 12, 2026:

NJ Cool Phase 2 (NJEDA): not yet accepting applications. It is limited to Overburdened and Adjacent Communities, and each project must pair on-site renewables or storage with a clean heating or cooling upgrade.
RETROFIT NJ (NJEDA): oversubscribed, with new applications waitlisted, and a $5 million minimum eligible project cost.
School and Small Business Energy Efficiency Stimulus Program: closed since the BPU's April 2023 announcement.
Garden State C-PACE (NJEDA): open, but it is financing repaid through a property assessment, not a grant.

How to apply for an NJ HVAC assistance program

If the building fits Direct Install, contact the utility. Otherwise we run the survey and energy model, file with each utility before equipment is ordered, and follow the application to payment, which most programs make after the work is verified.

The current utility program cycle runs through June 30, 2027. The BPU's transition plan for July 2027 through June 2028 cuts utility program spending by 28 percent and keeps free energy assessments for small businesses.

If you own a home, these programs are for you, not us

Rivet Energy works on commercial and multifamily buildings only. If you own or rent a house, help with heating and cooling equipment comes from these state and utility programs.

Comfort Partners: A free program for households with income at or below 250% of the federal poverty guidelines, in homes and buildings of up to 14 units. A failed or failing heating or cooling system can be replaced in some cases. Call 866-378-4345.
Weatherization Assistance Program (NJ DCA): For households at or below 200% of the federal poverty guidelines. It can repair or replace heating systems. Apply through the WAP agency for your county.
Home Energy Assistance / LIHEAP (NJ DCA): Mainly help paying heating and cooling bills, with emergency heating system services for eligible households. Apply online through DCAid at dcaid.dca.nj.gov or through your local Community Action Agency; the hotline is 1-800-510-3102.
Your utility's home efficiency programs: Each of the state's investor-owned electric and gas utilities runs its own home energy efficiency programs, and NJ Clean Energy Program lists them on its page for homeowners.

Common questions

Is there a free HVAC replacement program in NJ for businesses?

Not for the full cost. Direct Install comes closest: it pays up to 80% of project cost, its energy assessment is free, and the business repays the rest. Comfort Partners and the Weatherization Assistance Program can replace a home's heating system at no cost in some cases, but both are income-based programs for households.

What happened to the NJ Cool application?

NJEDA's NJ Cool page says the program is not yet accepting applications and to check back for the opening date. That was still the case on October 12, 2026. When Phase 2 opens, the project must be in an Overburdened or Adjacent Community, commercial and industrial applicants need less than $5 million in revenue, and the work must pair on-site renewables or storage with a clean heating or cooling upgrade.

What is the New Jersey C-PACE program?

Garden State C-PACE is NJEDA's financing program for commercial, industrial, agricultural and certain multifamily properties. It can finance up to 100% of eligible retrofit costs, repaid through an additional assessment similar to a property tax bill, with a term capped at 30 years. Only owners in participating municipalities can apply, and any mortgage holder must consent.

Are there HVAC rebates in NJ for 2026?

Yes. The utility business programs run under a BPU program design that ends June 30, 2027. For the following year, the BPU approved a transition plan in July 2026 that cuts utility program spending by 28 percent and keeps free energy assessments for small businesses.

Can landlords get help replacing HVAC in an apartment building?

Yes, for buildings with three or more units, through the utility multifamily programs and, for larger buildings, Engineered Solutions. Comfort Partners, which is income-based, also serves buildings of up to 14 units where the households qualify.

Does Rivet Energy install the equipment?

No. We run the survey, energy model, application and utility coordination, and licensed partner contractors install. On Direct Install, the utility's participating contractors do the assessment and the work.

Find out which program your building qualifies for

Send 12 months of electric and gas bills, or describe the building. We will tell you which programs it fits, and if Direct Install is the better route, we will point you to your utility.

Call (848) 261-9510 How a retrofit works