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New Jersey Electric Vehicle Rebates and EV Incentives
By adopting the Advanced Clean Cars II Rule in 2023, New Jersey established gradual electric vehicle adoption targets that will eventually lead to internal combustion engine (ICE) vehicle sales being phased out in 2035. This legal landmark is setting the pace for EV adoption in New Jersey and this trend is also supported by state grants, incentives, and efforts to develop a public charging infrastructure.
The Charge Up New Jersey program played an important part in supporting electrification in the past, with rebates of up to $4,000 available at the point of sale. However, funding for this New Jersey EV rebate is currently depleted. As of May 2024, there is approximately $3 million in EV charger funding remaining (discussed below under EV Charger Rebates).
In this guide, we explore electric vehicle incentives and rebates across The Garden State and how residents can benefit from New Jersey’s available initiatives to support electrification.
New Jersey EV Rebate Program for New and Used Vehicles
Charge Up New Jersey promoted clean vehicle adoption in the state by offering incentives of up to $4,000 for the purchase or lease of new, eligible battery electric vehicles. $90 million in funding for EV incentives was allocated from 2022 to 2024 ($30 million per year). Unfortunately funding for this program has run out, but we’re hopeful the state will set aside future funds for the program in light of its positive effect on EV adoption.
High Occupancy Vehicle (HOV) Lane Exemption
The New Jersey Turnpike Authority allows qualified plug-in, hybrid electric, and all-electric vehicles to travel in HOV lanes located between Interchange 11 and Interchange 14 on the New Jersey Turnpike. EVs, hybrids, and plug-in hybrids are considered fuel-efficient vehicles and can receive access to HOV lanes regardless of passenger count.
For more information, see the HOV Lanes section on NJ Turnpike Authority’s Travel Tools website.
Toll Discounts for EVs in New Jersey
Additionally, New Jersey Turnpike Authority’s Green Pass Discount Plan provides a 10% discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates for drivers of EVs that have a fuel economy of 45 miles per gallon or higher and meet the California Super Ultra Low Emission Vehicle standard. Vehicles must register with New Jersey E-ZPass.
For more information, including application instructions, see the Green Pass Discount Plan section on the NJ E-ZPass website.
New Jersey Sales Tax Exemption for EVs
A sales and use tax exemption for zero emission vehicles is available from the New Jersey Division of Taxation. The exemption is not applicable to partial zero emission vehicles, which includes hybrids such as the Toyota Prius and Honda Civic Hybrid. The definition of “sale” in the law includes rentals and leases. Thus, the exemption is applicable to the sale, rental or lease of a new or used zero emission motor vehicle on and after May 1, 2004.
For more information, see the Zero Emission Vehicles Exemption page on the NJ Treasury website.
New Jersey Vehicle Electrification Grants
The New Jersey Department of Environmental Protection (NJDEP) offers incentives to cover the incremental cost of replacing diesel vehicles with all-electric vehicles. Incentives are available for the 100% of the incremental cost of the vehicle, including associated charging infrastructure. Eligible vehicles include shuttle buses, school buses, garbage trucks, and transit buses. Privately-owned school buses under contract with a public-school district are also eligible. Priority will be given to projects in overburdened communities.
For more information, including eligibility requirements, see the NJDEP Diesel Programs page and the Electric School Bus Program page.
Fleet Electrification Grants
The New Jersey Board of Public Utilities (NJBPU) offers local and state government fleets grants for the purchase of new or pre-owned all-electric vehicles and associated charging infrastructure. Grants are awarded on a first-come, first-served basis. Overburdened municipalities are eligible for additional incentives.
For more information, including eligibility requirements and how to apply, see the Clean Fleet EV Incentive Program section of the NJ Clean Energy website.
Federal Tax Credits For Electric Vehicles
Though there are no New Jersey state tax credits for EVs, it’s important to note that car buyers may qualify for federal tax credits like the clean vehicle tax credit of up to $7,500 for new vehicles, or the used clean vehicle tax credit for up to $4,000. Income restrictions as well as battery component and critical mineral restrictions may apply. Be sure to speak to a qualified CPA or tax professional to check your eligibility.
New Jersey EV Charger Rebates
In addition to the above incentives that are offered for purchasing an electric car, New Jersey residents can also claim rebates for purchasing and installing Level 2 EV chargers, ranging from $250 to up to $5,500, with even higher rebate amounts available for non-residential EV charging projects.
Charge Up New Jersey EV Charger Rebate
Homeowners in New Jersey can receive a $250 rebate for the purchase and installation of an eligible Level 2 EV charger, as part of a $3 million program for in-home EV charging approved by the NJ Board of Public Utilities. For more information, including eligibility requirements, see the Charge Up New Jersey In-Home EV Charger Incentive page.
And below is a summary of EV charger rebate programs offered by utility providers in NJ.
Atlantic City Electric EV Charger Rebate
Atlantic City Electric (ACE) offers rebates worth up to $1,000 for residential customers who install new Level 2 EV chargers. Additional rebates are available for publicly accessible Level 2 and DCFC stations for fleets, multi-unit dwellings, and workplaces.
Maximum rebates range from $2,500 to $60,000 per port, depending on customer location type.
For more information, including eligibility requirements, see the EVsmart program on the ACE website.
Jersey Central Power & Light EV Charger Rebate
Jersey Central Power & Light (JCP&L) offers rebates of up to $5,500 to residential customers for the installation of Level 2 EV chargers.
Additional rebates from $5,000 to $25,000 are available to commercial customers for the installation of publicly accessible Level 2 and DCFC EV charging stations.
For more information, including eligibility requirements, see the New Jersey EV Driven program page.
PSEG EV Charger Rebate
As a Public Service Electric & Gas (PSE&G) customer, you can receive up to $1,500 as a bill credit for installing a residential EV charger.
If your electrification project calls for a utility-side upgrade, PSE&G will issue a reduction of up to $5,000.
Additional rebates are available for commercial and multifamily projects with public access, including a rebate of up to $7,500 per Level 2 charging station and up to $25,000 per DC Fast Charging station.
For more information, including eligibility requirements, see the PSE&G EV Charging Program website.
Rockland Electric Company EV Charger Rebate
The Charger Ready program makes it more affordable for Rockland Electric Company customers to install Level 2 EV chargers at their homes by offsetting the costs of EV charging infrastructure.
The program offers incentives to offset the cost of the infrastructure needed to operate an EV charger. Rockland Electric has incentives for the first eligible 1,448 EV owners until the funding is exhausted. A rebate of up to $1,000 is available for customer-based costs, while an additional rebate of up to $5,000 is available for utility-based costs.
To receive Charger Ready incentives, residential customers must agree to permit Rockland Electric to share their AMI data that is related to the meter associated with their EV charger, with the New Jersey Board of Public Utilities on a confidential basis, as part of program reporting.
For more information, including eligibility requirements, see the Orange & Rockland Charger Ready page.
New Jersey Public EV Charging Station Grants
The New Jersey Board of Public Utilities’ (NJBPU) EV Tourism Program offers grants to local businesses and municipalities for the purchase of up to six Level 2 and two DC Fast Charging stations for installation at New Jersey tourism sites and landmarks.
Level 2 EV charging stations are eligible for grants of up to $5,000, and DCFC are eligible for grants of up to $50,000. Eligible sites include boardwalks, parks, attractions, and overnight lodging establishments.
For more information, including eligibility criteria and funding availability, see the EV Tourism section on the NJ Clean Energy website.
EV Charging Rates in New Jersey
Utilities in New Jersey also offer special time-of-use (TOU) and off-peak electricity rates for EV drivers, designed to encourage vehicle charging during select times of the day.
Below is a list of TOU rate plans available from New Jersey’s leading utilities.
Atlantic City Electric Vehicle Off-Peak Charging Credit
Atlantic City Electric offers residential customers the opportunity to earn a per kWh credit for charging their EV during off-peak hours instead of during peak hours. Customers can earn $0.02 per kWh plus any associated sales and use tax (SUT) for any net off-peak charging.
Net off-peak charging is off-peak kWh EV charging minus peak kWh EV charging. Off-peak hours are 8PM to 8AM EST, Monday-Friday. All other times are considered peak hours.
For more information, including eligibility requirements, see the EVsmart Off-Peak Charging Credit page.
Jersey Central Power & Light EV TOU Rate Credit
A $0.02/kWh net off-peak charging credit is offered to participants in the Jersey Central Power & Light (JCP&L) customers who install a program-qualified Level 2 EV charger and charge their vehicle during off-peak hours.
For more information, including eligibility requirements, see the Jersey Central Power & Light EV Driven Customer Program Guide.
PSE&G Off-Peak Charging Rates for EVs
PSE&G customers may receive an Off-Peak Charging credit for charging during off-peak periods to help reduce costs. Off-peak periods are defined as 9PM to 7AM EST Monday–Friday, and all day on Saturday and Sunday. The Off-Peak Charging credit is approximately $0.105/kWh. Note that any charging conducted during on-peak hours will decrease your total Off-Peak Charging credit.
For more information, including eligibility requirements, see the PSE&G EV Charging Program.
Rockland Electric Company Electric Vehicle Time-of-Day Rate
Rockland Electric Company’s Time-of-Day Rate encourages EV charging and other home consumption during off-peak times to assist in the management of the electric system peak, which benefits both customers and the distribution system. Off-peak periods are defined as 8PM to 12PM EST Monday–Friday, and all day on Saturday and Sunday. Rockland’s off-peak charging rate is approximately $0.04235/kWh.
For more information, including eligibility requirements, see the Rockland Electric Utility EV Time-of-Day Rate page.
Public EV Charging Stations in New Jersey
With over 1,300 public EV charging stations throughout the state, New Jersey has a somewhat limited charging infrastructure but given the size of the state, it is still relatively robust.
With over $22 million in NEVI funding awarded to the state for 2024, you will see more EV charging stations in New Jersey in the near future. The state also plans to add over 200 stations to electrify its main highways and has distributed a combined $12 million in grants to fund EV charging projects at tourist destinations, for non-profit fleets, and at multifamily properties.
How Many Public EV Charging Stations Are in New Jersey?
New Jersey has more than 3,700 public charging ports and 1,300 public charging stations including over 1,100 Level 2 and 259 Level 3/DC Fast stations.
There are 73 Tesla Supercharger stations and 724 Tesla Supercharger ports in New Jersey.
As mentioned above, the state also has robust at-home EV charger installation and charging incentives that can help reduce the reliance of EV drivers on public charging, provide the convenience of at-home charging, and offer greater cost savings than utilizing public EV charging stations.
How Much Do Public EV Charging Stations Cost in New Jersey?
Pricing varies from one charging network to another, and charging levels can also impact charging costs. For instance, the city of Hoboken is currently partnering with two EV charging operators as part of its Climate Action plan. The first operator offers free Level 2 charging and charges $0.49 per kWh for DC Fast Charging, while the second operator uses an hourly model that translates to paying $1 per hour of Level 2 charging and $3 per hour when idling.
Costs are higher in Camden County, where you will pay as much as $2.50 for an hour of Level 2 charging.
Are There Free Electric Car Charging Stations in New Jersey?
Yes, you can find a few free EV charging stations in New Jersey, but access to free public charging remains limited and shouldn’t be your primary charging strategy.
Jersey City is one of the best places for EV owners in New Jersey, with over 60 free charging locations. Newark is next best, with around 50 free locations, and Atlantic City is another standout option, with close to 30 free charging stations.
Where Are Public Charging Stations Located for Electric Cars in New Jersey?
You’re more likely to find EV charging stations in major cities since charger distribution reflects EV ownership trends. Statewide grants are also actively supporting the development of charging along Alternative Fuel Corridors and at popular tourist landmarks, and you should soon find more EV charging options in these areas.
Tesla has built a Supercharger network of fast charging stations throughout the state, with locations approximately 150 miles apart along I-95, I-195 and I-295.
Visit the U.S. Department of Energy’s Alternative Fuels Data Center Map of EV Charging Station Locations in New Jersey, which can be sorted and filtered based on public access, charger type (Level 1, Level 2, DC Fast), and connector type (NACS, J1772, CCS, CHAdeMO).
Home Electrification Incentives in New Jersey
In 2024, New Jersey is expected to offer home energy rebates funded through the Inflation Reduction Act, making $91.8 million for home efficiency rebates and $91.3 million for home electrification available for things like appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to smart electrical panels necessary to enable those retrofits.
Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage, or investing in a heat pump, will help you save even more while reducing your environmental impact.
In New Jersey, you may qualify for home electrification incentives through your electricity provider in addition to the U.S. federal government. Scroll down to read rebate and incentive details for specific home electrification technologies.
Battery Storage
Currently there are no state or utility incentives for battery storage in New Jersey. However, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery storage systems size 3kWh and larger.
Electrical Panels
The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit for electrical panel upgrades needed to complete electrification projects like heat pumps and heat pump water heaters (up to 30% of project costs, capped at $600). The 25C tax credit can be used by renters, and homeowners making upgrades to their primary or secondary home.
Qualifying electrical panels must meet the standards of the National Electric Code (NEC) and have a capacity of 200 Amps or more. This means that your new/upgraded panel must be able to serve a load of at least 200 Amps, but you don’t need 200 Amps of incoming utility service. Smart panels may qualify if they allow you to serve a load of 200 Amps.
If you’re claiming 25D for a residential solar or battery storage project and the installation required you to upgrade your main panel, you may be able to apply 25D to electrical panel costs as well.
Heat Pumps & Heat Pump Water Heaters
The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit is available (capped at $2,000 dollars). Eligible technologies must meet certain energy efficiency requirements.
Solar Panels
The 25D Residential Clean Energy Tax Credit also provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.
New Jersey’s statewide Successor Solar Incentive Program compensates PV solar owners 1 solar renewable energy credit (SREC) for every megawatt-hour of clean electricity produced. For residential systems, you’ll earn $85 per SREC.