Residential Multifamily Housing Program

Cut your energy costs up to 30% with all upfront construction costs covered

PSE&G’s Residential Multifamily Housing Program provides expert advice, incentives and on-bill financing to reduce energy consumption by installing efficient heating and hot water systems and controls, lighting, insulation, appliances and more. To date, hundreds of buildings with more than 20,000 individual living units have participated in the program resulting in reduced energy use, as well as improved resident safety and comfort.

How The Program Works

PSE&G will provide a free on-site energy audit, recommend energy efficiency upgrades and provide a detailed cost estimate. PSE&G pays for 100% of the upfront costs and the work is done by a PSE&G authorized contractor. When the work is complete, customers repay only 30% of the total, interest free, over 36 months on their PSE&G bill (or in one lump sum payment if they prefer).

  • PSE&G provides an audit to identify energy saving opportunities. 
  • PSE&G facilitates the project by providing engineering, design and bid ready documents. 
  • Participating customers are responsible for management of the construction process. 
  • PSE&G utilizes progress payments to fund 100% of upfront construction costs. Building owners must apply for each of these progress payments. PSE&G buys down the simple payback of costs by six years to a minimum of three years (this incentive may be reduced to improve Program Administrator Cost (PAC) test results). 
  • The building owner repays their portion (50%-70% on average) of the total cost interest free over five years on their PSE&G bill 
  • Repayment length is 10 years for Housing Mortgage and Finance Agency (HMFA) projects. 

The program is available to residential multifamily buildings with five or more individual units (ideal applicant has 100+ units) in PSE&G’s service territory. All applications are subject to screening of PSE&G bill payment history, existing equipment age and baseline energy use and costs.

PSE&G also provides post-project commissioning and monitoring. Should the property be sold, the remaining balance is payable upon transfer of the property or can be transferred to new ownership.

The PSE&G Residential Multifamily Housing Program is for new energy efficiency projects. Participating customers cannot receive or apply for incentives or services for the same energy efficiency measures from another utility, state, or local program.   

Case Studies

PSEG's Multifamily Energy Efficiency Program Video Still
Building Boosts Comfort, Saves Resources
Winston Towers Cliffside Park Building
Clifton Chillers Energy Efficiency Project

Application Process:

Send an e-mail to the program inbox ( to request an application. Fill out the application and ensure to password protect the application if you include your account numbers. Then send the password for the application in a separate email. Questions can also be sent to this email address. Upon acceptance into the program, the following steps may occur:

  1. Sign a Master Customer Agreement. Energy audit conducted (3-5 months)
    • Complete inventory of all energy consuming equipment
    • Aggregation and desegregation of utility bills
    • Interview operations staff
    • Develop detailed investments with supported analysis
    • Customer and PSE&G discuss, review and approve
  2. Sign agreement to process design and bidding (6-8 months)
    • Develop complete drawings for all energy conservation measures (ECMs) and descriptions for bid package
    • Develop basis of design for customer approval (manufacture/ model types)
    • Engage with contractors, bid job and de scope/ levelize bids
    • Develop construction contracts for customer/ contractor review and approval
  3. Customer signs agreement with PSE&G to commit to construction. Customer signs agreements with installation contractors. PSE&G releases 30% of the value of construction
    • Construct project
    • Inspect monthly additional progress payments released as work is completed
    • Advise and manage
    • Construction time will vary based on the projects implemented
  4. At the conclusion of the project, based on the final true up, customer repayment of their share will begin (about 30-60 days post completion)
  5. Post Project Measurement and Verification (one year)
    • Quarterly review of major equipment performance
    • Customer engagement/ report out/ post commissioning  

Project Example:

A project includes $2,670,921 of energy efficiency upgrade opportunities and $360,574 in engineering fees (design, construction administration, commissioning and post project measurement and verification). This project includes a variety of measures including central heating and domestic hot water boilers, insulation, air sealing, lighting and other in-unit upgrades like window air conditioners that the management company provide.

The total simple payback of the project including engineering fees is 16 years.

PSE&G pays for all of the engineering fees through a contract with the engineering firm.

Once the customer finalizes contracts with the installer and the final scope is approved, PSE&G provides 30% of the total cost of construction to the customer upfront, with subsequent progress payments for completed work.

Once the project is completed, the “buy down” is applied to the 16 years and the customer payback is now 10 years. The “buy down” reflects PSE&G’s incentive for the project which in this case is 30% (Total project cost of $3,031,495 and customer portion is $1,900,000). The customer repays their portion ($1.9 million only after the “buy down”) over a 5-year period (10 years for NJHMFA) at no interest. For the project in this example, repayment is $31,712 a month for five years and $15,856 for 10 years if applicable.



  • American Council for an Energy-Efficient Economy (ACEEE) Fourth National Review - PSE&G’s Multifamily Housing Program was selected by ACEEE as an award recipient for its innovation and effectiveness, and designated  as an “Exemplary Program”.  (Top category - January 2019)
  • AESP - PSE&G Multifamily Housing Program was selected as the winner of AESP’s 2018 Energy Award for Outstanding Achievement in Residential Program Design & Implementation.