The WARMAdvantage Program provides rebates for qualifying high efficiency boilers, furnaces and water heaters. Information on solar water hears can be found here. To be eligible, you must purchase, install, and operate home heating systems that meet all program requirements. Call 866-NJSMART or see below for detailed information.
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|Water Heater Rebate|
|Rebates for units purchased through July 31, 2016||Rebates for units purchased on or after Aug 1, 2016|
|Natural Gas/Propane (Tank)
||Both requirements must be met:
1) Power vented and Energy Factor (EF) .67 or greater OR Thermal Efficiency (TE) 90% or greater
|Natural Gas/Propane (On-Demand) Water Heater||Energy Factor (EF) of .82 or greater||$500||$300|
|Heat Pump Water Heater||Minimum 2.0 Energy Factor||$500||$500|
|Boiler and Water Heater Combination Rebate||Qualifying boiler and water heating as noted below:
|Furnace and Water Heater Combination Rebate||Install a qualifying Gas Furnace and either:
||$900 w/ Tier 1
$1,000 w/ Tier 2**
|$700 w/ Tier 1
$950 w/ Tier 2**
For those affected by Hurricane Sandy, an additional $200 per unit may be added to the rebate levels shown for purchases made prior to July 31, 2016. This additional incentive will be processed as a separate rebate check from the above noted rebate check.
|* To determine if a gas water heater is power vented, either click on the model number to expand the product information, or scroll to the "vent type" column in the excel ENERGY STAR product list to ensure the model is power vented.
- WARMAdvantage Application (effective August 1, 2016 through June 30, 2017)
- WARMAdvantage Application (effective through July 31, 2016)
Note: FY2017 SEP funding is currently limited for oil, propane and municipal electric customers who wish to participate in Home Performance with ENERGY STAR, and fully expended for customers wishing to participate in the WARMAdvantage and COOLAdvantage Programs. We will update the website as funding becomes available.
Homes constructed under NJ's Residential New Construction Program are not eligible for the WARMAdvantage Program.
What is the difference between a power-vented and an atmospherically-vented water heater?
It is important to know the difference between these two types of water heaters. Only power-vented water heaters are eligible for an incentive from New Jersey's Clean Energy Program (NJCEP) (among other eligibility factors).
Atmospheric-vented water heaters do not have a motor to assist in drawing in and venting out flue gases as a result of combustion. Rather, the hot gases rise on their own as they are lighter than air and vent out a pipe or through the chimney. In contrast, power-vented water heaters have an electric-powered motor that is housed on top of the tank which powers a fan to draw in the flue gases and force them directly out of a vent pipe (see photo and note the motor housed on top of the tank).
Furthermore, there are some water heater models that utilize electronic dampers that open/close to assist in drawing out the combustion gases. However, this technology is not the same as industry-classified power-vented systems and ENERGY STAR lists these models as being atmospheric vented; therefore these models do not qualify for incentives offered by NJCEP.
When looking for a water heater that will qualify for an incentive, it is very important to consult the ENERGY STAR list of qualifying products to verify ALL eligibility criteria, and focus on Vent Type, Energy Factor or Thermal Efficiency.
Explanation of Heat Pump Water Heaters
Heat pump water heaters use electricity to move heat from one place to another instead of generating heat directly.
To understand the concept of heat pumps, imagine a refrigerator working in reverse. While a refrigerator removes heat from an enclosed box and expels that heat to the surrounding air, a HPWH takes the heat from surrounding air and transfers it to water in an enclosed tank.
A low-pressure liquid refrigerant is vaporized in the heat pump's evaporator and passed into the compressor. As the pressure of the refrigerant increases, so does its temperature. The heated refrigerant runs through a condenser coil within the storage tank, transferring heat to the water stored there. As the refrigerant delivers its heat to the water, it cools and condenses, and then passes through an expansion valve where the pressure is reduced and the cycle starts over.
By heating water only when it's needed, ENERGY STAR certified gas tankless water heaters cut water heating expenses, while lso providing continuous hot water delivery. Gas tankless models are a great choice for new construction and major remodeling, but are also becoming popular as a replacement for gas storage water heaters.
Additional Opportunities to Save
If you qualify for the WARMAdvantage rebate, you may be eligible for an extra rebate from your gas company. Check their websites below for applications and information.
Also, consider getting a home energy assessment from Home Performance with ENERGY STAR to help you save even more and improve the comfort, safety, and durability of your home.
Are you wondering what other rebates might be available? Visit our Rebates and Promotions page.
Also, learn about federal tax credit opportunities.
Please allow up to 120 days from the date we receive all required information to process your rebate. To expedite the processing of your application, please be sure to review the instructions carefully and provide all required information and materials.
Do you have a gas water heater?
If so, find out more information on ensuring the safety of your appliance.