Solar Domestic Hot Water Pilot Program

January 11, 2011


Note: As of August 18, 2010 the portion of this program devoted to eligible electric customers is now fully subscribed and applications are no longer being accepting. It is not clear whether this program will continue with additional funding in the future. The portion devoted to gas customers remains open. The New Jersey Office of Clean Energy (OCE) has initiated a pilot program providing rebates to eligible state residents for the purchase and installation of domestic solar water heating systems. Rebates are only available for systems that replace, retrofit, or supplement an existing gas or electric water heater in single-family residential homes. The designation "gas" includes customers that currently use propane for their water heating needs. Participants in the New Jersey Energy Star Homes, Home Performance with Energy Star, Weatherization Assistance, or other OCE programs are not eligible for incentives. It is also important to note that certain program rules and requirements are differ between electric customers and gas customers. The rebate is set at a flat rate of $1,200 per system. In addition, all systems and components must be new; have an OG-300 rating from the Solar Rating and Certification Corporation (SRCC); and come with a variety of manufacturer and installation warranties. All installations must be performed by program participating contractors that possess a New Jersey Home Improvement Contractor's (HIC) License. Contractors must also be NABCEP certified or have prior industry experience coupled with accredited training. The program website contains a list of eligible solar water heating systems and participating contractors. Due to different equipment requirements, the list of eligible solar water heaters for electric customers differs from that for gas customers. In order to claim the incentive, participants must submit their rebate within 120 days of purchasing the system for systems with electric back-up and within 60 days for systems with gas back-up. Rebates can either be issued to the customer or assigned to the contractor. Completed systems may be subject to inspection or monitoring by program personnel. It is important to that while renewable energy certificate ownership is not directly addressed by program documents, solar water heating system are not eligible to generate Solar Renewable Energy Certificates (SRECs) for use under the state renewable portfolio standard (RPS).

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: New Jersey
Incentive Type: Rebate Program
Web Site:
Administrator: New Jersey Board of Public Utilities, Office of Clean Energy
Start Date: 09/09/2009 (electric); 04/09/2010 (gas)
Eligible Renewable/Other Technologies:
  • Solar Water Heat
Incentive Amount: $1,200
Maximum Incentive: $1,200
Eligible System Size: No size restrictions specified
Equipment Requirements: System and components must be new; be SRCC OG-300 certified; and have warranties of 10 years on the collector, 6 years on the storage tank, 2 years on controls, and 1 year on piping, parts and labor. For gas customers, systems must be Energy Star listed.
Installation Requirements: System must either replace or retrofit an existing gas or electric hot water system in a single family home. All systems must be installed by a program participating contractor with a NJ Home Improvement Contractor's (HIC) License.
Ownership of Renewable Energy Credits: Not specified, but systems do not generate SRECs eligible for the NJ RPS


Name: New Jersey Board of Public Utilities
Address: 44 South Clinton Avenue, Post Office Box 350
Trenton NJ 08625-0350
Phone: (866) 657-6278

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.