Oil to Gas Conversion Rebates in NJ | Save More with Willco

Oil-to-Gas Conversion Rebates in New Jersey: A Homeowner’s Guide

Oil heat can be pricey, messy, and a headache when a tank or burner acts up. Natural gas brings steadier costs, cleaner combustion, and less upkeep. Across New Jersey, the real question isn’t whether gas runs cleaner or quieter—it’s this: What do oil-to-gas conversion rebates in NJ look like right now, and how do you actually get them without a maze of forms?

You’re in the right place. This guide breaks down oil-to-gas conversion rebate paths in plain language, shows where 0% on-bill repayment can help, and lays out a step-by-step process that puts your comfort first.

Oil-to-Gas Conversion Rebates in New Jersey (No Runaround)

New Jersey utilities continue to offer rebates and low- or no-interest financing for homeowners upgrading from oil to high-efficiency natural gas heating systems. These programs are administered by each gas utility and overseen by the New Jersey Board of Public Utilities (NJBPU).

Because program terms and incentive amounts change regularly, it’s more reliable to focus on current opportunities and links to official sources rather than list outdated figures. Below are the four main utility programs offering active rebates and 0% on-bill repayment options for gas heating conversions.

PSE&G (Public Service Electric & Gas)

Program: PSE&G HVAC Instant Rebates Program
Overview: Customers who install ENERGY STAR®-rated high-efficiency furnaces or boilers can qualify for instant rebates and interest-free, on-bill repayment for eligible projects.
Highlights:
- Up to $1,050 in rebates for qualifying heating and cooling upgrades.
- 0% on-bill repayment (OBRP) available for up to $25,000 in project costs, repaid over 84 months.
- Additional incentives may apply when heating improvements are bundled with weatherization measures through PSE&G’s Whole Home Energy Solutions.

NJNG (New Jersey Natural Gas) — SAVEGREEN Project

Program: SAVEGREEN Rebates and On-Bill Repayment Program
Overview: The SAVEGREEN Project® offers rebates and 0% APR on-bill repayment (OBRP) for qualifying energy-efficient natural gas heating equipment.
Highlights:
- Rebates available for ENERGY STAR® gas furnaces, boilers, and water heating systems.
- 0% financing up to $25,000 for eligible residential customers.
- Program window currently extends through June 30, 2027, per NJNG’s published materials.

South Jersey Gas (SJG)

Program: SJG Rebate Offers and On-Bill Repayment Program
Overview: SJG provides rebates and 0% APR financing for high-efficiency natural gas heating and water heating equipment.
Highlights:
- Rebates up to $1,750 for qualifying heating equipment.
- Optional 0% APR financing on-bill repayment program (OBRP) for eligible customers.
- Additional energy-saving incentives for home performance improvements.

Note: This program is available only in South Jersey, which we do not service. Homeowners in that area should contact a local HVAC provider to learn more about these incentives.

Elizabethtown Gas (ETG)

Program: Elizabethtown Gas Energy Efficiency Programs
Overview: ETG offers rebates for high-efficiency gas heating and water heating systems, as well as home weatherization upgrades that improve comfort and lower energy costs.
Highlights:
- Rebates up to $1,750 available for qualified furnaces, boilers, and water heaters.
- 0% interest on-bill repayment program (OBRP) to spread project costs over time.
- Pairing equipment upgrades with insulation or duct sealing may unlock additional savings through whole-home efficiency programs.

The Bottom Line on Oil-to-Gas Conversion Rebates

While the exact rebate amount and eligibility details depend on your local utility, most NJ homeowners converting from oil to gas can qualify for cash incentives and 0% on-bill repayment for efficient heating systems.

To confirm eligibility, give us a call. We’d be happy to talk with you about your options, which rebates apply, and how you can convert from oil to gas as easily as possible.

If you’re planning your conversion project soon, a Willco heating professional can help identify your rebate path and coordinate with the appropriate utility program during installation.

How the Oil-to-Gas Conversion Process Works.

Step 1: Confirm Gas Availability

We verify whether your street already has natural gas and what it takes to bring service to your home. If a new service line is needed, the utility lays out the plan and timing. Willco coordinates the request and keeps you posted.

Step 2: Right-Size the System and Pick the Gear

A great install starts with the right capacity. We look at square footage, insulation, windows, ductwork or radiators, and how you like your home to feel. As a long-time Lennox dealer, we line up efficient, reliable options that qualify for incentives in your utility territory.

Step 3: Oil Tank Handling (Decommission or Remove)

Many NJ homes still have old tanks. Decommissioning or full removal depends on location, condition, and local rules. We coordinate the tank pro, paperwork, and inspections so this step doesn’t stall your project.

Step 4: Permits and scheduling

Every town has its own playbook. We pull the permits, schedule the crew, and map the inspection plan. You’ll have dates in writing and a point of contact for questions.

Step 5: Installation and Gas Connection

We install the furnace or boiler, gas piping, venting or chimney liner if required, thermostat, and any add-ons like filtration or humidity control. We start the system, check safety, balance airflow or water temperature, and walk you through the controls. With flat-rate pricing, extra hours don’t change your invoice.

Step 6: Inspection and Rebate Submission

After the town inspection, we help submit your rebate and set up on-bill repayment where available. You’ll know exactly which documents to send and when to send them. No guesswork. No dead ends.

Want your timeline laid out before you commit? Contact us for a conversion assessment and get a clean plan from service availability to final inspection.

How Much Does an Oil-to-Gas Conversion Cost in NJ?

Every home is different, but most New Jersey oil-to-gas conversions fall between $8,000 and $14,000.
That range covers a complete project—new furnace or boiler, venting or chimney liner, gas piping, thermostat, and installation.

Homes that already have gas service may come in closer to $6,000–$9,000, while older houses needing oil tank removal, long gas runs, or venting updates can reach $15,000 or more.

The bright side? Rebates and 0% on-bill financing can trim $1,000–$3,000 off your upfront total or spread the cost into manageable monthly payments.

What’s Included in a Typical Conversion

A standard conversion usually involves:

A high-efficiency gas furnace or boiler matched to your home’s size
Venting or chimney liner upgrades (as required by code)
Gas piping and safe connections inside the home
Thermostat setup and smart control integration
Professional installation and project management from start to finish

What Can Affect the Price

Several factors can shift pricing up or down:

Distance to the gas line and meter placement
Oil tank decommissioning or removal
Electrical upgrades for new circuits or controls
Ductwork or airflow adjustments
Home layout or tight workspaces that impact labor time

How Rebates and Financing Change the Math

Rebate programs typically offer $1,000–$3,000 for qualifying high-efficiency equipment, depending on your utility and the system’s efficiency rating. After rebates, the average total project cost often lands in the $7,000–$11,000 range for a full oil-to-gas conversion.

For homeowners who’d rather not pay everything upfront, most utilities also offer a 0% On-Bill Repayment (OBRP) program, allowing you to spread the remaining cost across your monthly gas bill with no added interest. That keeps payments predictable and budget-friendly while you enjoy the savings from lower fuel costs.

Ready to Switch from Oil to Gas? Willco Makes It Simple

If you’re ready to make the switch to natural gas, the Willco team is here to guide you every step of the way. From confirming gas availability to coordinating permits, equipment, and rebates, we handle the details so you can focus on enjoying a warmer, more efficient home.

When you reach out, you’ll talk with a local professional, not a call center. We’ll walk you through your options, explain what’s realistic for your home, and give you clear, upfront pricing before any work begins. You’ll get honest guidance from a team that’s been serving Sussex, Warren, and Morris Counties since 1988.

Whether you’re still exploring rebates or ready to start your conversion, contact Willco today to schedule your consultation. We’ll help you plan your upgrade, apply available incentives, and make sure your new heating system is built to last.

Real People. Real Service. That’s the Willco Way.

Common Conversion Questions

Do oil-to-gas conversion rebates in NJ apply to every home?

Programs vary by utility territory, equipment efficiency, and home details. We verify your options at the quote stage and show the clearest path for your address.

Can I keep my existing ductwork or radiators?

Many homes do. Forced-air systems use ducts, while hydronic systems use radiators or baseboards. We assess and recommend the right gas furnace or boiler for your setup.

What about hot water?

A conversion is a smart time to replace an oil water heater with a gas model or an indirect tank. We check efficiency ratings and pair it with available incentives when possible.

Will my gas bill replace my oil spending one-for-one?

Fuel usage, thermostat settings, and equipment efficiency shape the monthly picture. We can run a quick payback snapshot based on your current oil use.