New Jersey HVAC Regulatory and Licensing Guide 2026

New Jersey maintains one of the more comprehensive HVAC licensing systems in the northeastern United States, requiring all HVAC contractors to obtain a Master HVACR Contractor License through the New Jersey Division of Consumer Affairs. The state legislature enacted uniform statewide licensing in 2014, forbidding local jurisdictions from requiring additional examinations or fees. The New Jersey Board of Public Utilities oversees four investor-owned electric distribution companies and faces significant challenges in 2025 related to PJM-driven rate increases that have caused electric bills to rise approximately 40% year-over-year. This guide provides comprehensive information for HVAC contractors operating in the Garden State.

New Jersey Board of Public Utilities

The New Jersey Board of Public Utilities (NJBPU) consists of five commissioners appointed by the Governor with advice and consent of the Senate for staggered six-year terms. No more than three commissioners may be members of the same political party. The Governor designates one commissioner as President, a Cabinet-level position. The NJBPU is headquartered at 44 South Clinton Avenue in Trenton.

Current Commissioners (2025):

President Christine Guhl-Sadovy was named President in September 2023 following the death of former President Joseph L. Fiordaliso. She had been appointed Commissioner in June 2023. Commissioner Zenon Christodoulou, Ph.D. has served since August 2022. Commissioner Michael Bange was appointed in January 2024. Commissioner Marian Abdou has served since June 2023. The board currently has two vacancies (one since September 2023).

The NJBPU regulates natural gas, electricity, water, telecommunications, and cable television services. The Board's stated mission is to ensure safe, adequate, and proper utility services at reasonable, non-discriminatory rates while developing competitive, economically cost-effective energy policy that promotes responsible growth and clean renewable energy sources. The NJBPU is considered a quasi-judicial body, functioning similar to a court in regulatory matters. The board traces its roots to 1910 with the Board of Public Utility Commissioners.

Regulatory Environment 2026

New Jersey's regulatory environment in 2025 has been dominated by dramatic electricity rate increases driven by regional wholesale market dynamics.

PJM-Driven Rate Increases: Electric bills for New Jersey customers increased approximately 40% year-over-year in 2025. PSE&G customers saw a 38.5% increase, JCP&L customers 39.7%, Atlantic City Electric customers 40.6%, and Rockland Electric customers 37%. The increases were driven largely by pricing from PJM Interconnection, the regional grid operator, which set higher capacity auction prices. Governor Phil Murphy blamed PJM for lagging generation development efforts and suggested possible market manipulation. PJM responded that New Jersey has insufficient in-state generation and depends heavily on imports, noting that a seven-year offshore wind effort "has failed to deliver any results whatsoever."

Ratepayer Relief Measures: In June 2025, the Murphy Administration announced $430 million in direct bill assistance, providing at least $100 relief to all ratepayers and up to $250 for qualifying low-to-moderate income ratepayers. The NJBPU approved stipulations with all four electric distribution companies implementing interest-free rate deferrals and expanded shutoff protections for July through September. The Residential Energy Assistance Payment provides eligible households a one-time $175 utility bill credit.

Clean Energy Programs: The NJBPU continues administering incentive programs supporting solar and offshore wind development. As of June 2025, 117 community solar projects totaling 179 MW are serving over 28,500 subscribers who have received over $44 million in bill credits. The Grid-Scale Energy Storage Program (GSESP) launched in 2025 to support the state's 2,000 MW storage mandate by 2030. The State's Energy Master Plan targets 100% clean energy transition by 2035.

Winter Termination Program: Expanded protections now cover electric, gas, water, and sewer services, protecting eligible NJ households from utility shutoffs through March.

New Jersey HVAC Licensing Requirements

State Licensing Structure

New Jersey licenses HVAC professionals through the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors under the Division of Consumer Affairs. The Master HVACR Contractor License is the only type of HVACR license issued in the state. In 2014, the state legislature enacted uniform statewide licensing and forbade local jurisdictions from requiring additional examination and fees for local-level licensing.

A Master HVACR Contractor may advertise, undertake, or offer to undertake for another the planning, laying out, supervising, installing, servicing, or repairing of HVACR systems, apparatus, or equipment. A "bona fide representative" must have not less than one percent ownership interest in the licensed entity.

Education and Experience Requirements

Applicants must be at least 21 years old and meet one of the following pathways:

Option 1: Complete a 4-year U.S. Department of Labor-approved apprenticeship in HVACR, followed by 1 year of journeyperson experience under a licensed Master HVACR Contractor.

Option 2: Earn a 4-year bachelor's degree in HVACR from an accredited college or university, followed by 1 year of journeyperson experience under a licensed Master HVACR Contractor.

Option 3: Earn a 4-year bachelor's degree in a related field from an accredited college or university, followed by 3 years of journeyperson experience under a licensed Master HVACR Contractor.

Option 4: Complete a 2-year degree from a trade school, technical school, or community college, plus at least 2 years of a U.S. Department of Labor-approved apprenticeship, followed by 1 year of journeyperson experience under a licensed Master HVACR Contractor.

Examination Requirements

Two examinations are required:

Business and Law Exam: 50 questions in 130 minutes. Minimum passing score is 35 correct (70%). Covers risk management, bidding and estimating, project management, business organization, and contract law.

Master HVACR Trade Exam: 50 questions in 130 minutes. Minimum passing score is 35 correct (70%). Covers HVAC system design, installation, and service.

Pre-approval from the Board is required before scheduling examinations.

Insurance and Bonding

Surety Bond: $3,000 required.

General Liability Insurance: $500,000 minimum coverage required.

Federal Tax Identification Number: Required.

Fees and Renewal

Application Fee: $100

License Fee: $160

Renewal Fee: $160 (biennial)

All Master HVACR licenses expire June 30 of even-numbered years. Renewal notices are sent 60 days before expiration. Renewal is conducted online.

Continuing Education

5 hours of Board-approved continuing education required every biennial period (every two years). Licensees must maintain verification of continuing education attendance for four years for potential audit.

EPA Section 608 Certification

Federal EPA regulations require certification for technicians working with refrigerants. The exam consists of 80 multiple choice questions to be completed within 3 hours. A score of 70% is required to pass. Certification does not expire and is valid in all states.

New Jersey Utility Directory

Electric Distribution Companies

Utility	Type	Service Area	Customers
PSE&G	Investor-Owned	Central and northern NJ (300+ communities)	~2.6 million (electric and gas combined)
Jersey Central Power & Light (JCP&L)	Investor-Owned	Northwest and central NJ	~1.1 million
Atlantic City Electric (ACE)	Investor-Owned	Southern NJ	~560,000
Rockland Electric (RECO)	Investor-Owned	Bergen, Passaic, Sussex Counties	~61,000

PSE&G: New Jersey's oldest and largest publicly-owned utility, serving approximately 2.6 million electricity and natural gas customers in more than 300 urban, suburban, and rural communities in central and northern New Jersey. PSE&G is a distribution-only utility following deregulation. Approximately 56% residential market share statewide. Customer service: 1-800-436-7734.

JCP&L: Part of FirstEnergy, serving approximately 1.1 million customers in the northwest and parts of central New Jersey. Approximately 28% residential market share. Customer service: 1-888-544-4877.

Atlantic City Electric: Serves southern New Jersey. Approximately 14% residential market share. Customer service: 1-800-642-3780.

Natural Gas Utilities

Utility	Service Area	Contact
PSE&G	Central and northern NJ	1-800-436-7734
New Jersey Natural Gas	Monmouth, Ocean, Morris, Middlesex, Burlington Counties	1-800-221-0051
South Jersey Gas	Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem Counties	1-800-582-7060
Elizabethtown Gas	Union, Middlesex, Sussex, Warren, Hunterdon Counties	1-800-242-5830

Frequently Asked Questions

Does New Jersey require a state HVAC license?
Yes. New Jersey requires all HVAC contractors to obtain a Master HVACR Contractor License through the State Board of Examiners of HVACR Contractors under the Division of Consumer Affairs. This is the only HVACR license type issued in the state.
Can local jurisdictions require additional HVAC licenses?
No. In 2014, the state legislature enacted uniform statewide licensing and forbade local jurisdictions from requiring additional examinations or fees for local-level HVAC licensing.
What education is required for a Master HVACR license?
Multiple pathways exist: 4-year DOL-approved apprenticeship plus 1 year journeyperson experience; 4-year HVACR degree plus 1 year experience; 4-year related degree plus 3 years experience; or 2-year degree plus 2-year apprenticeship plus 1 year experience.
What exams are required?
Two exams are required: Business and Law (50 questions, 130 minutes, 70% passing) and Master HVACR Trade (50 questions, 130 minutes, 70% passing).
What insurance and bonding is required?
$3,000 surety bond and $500,000 general liability insurance required. Federal Tax ID number also required.
How much does licensing cost?
Application fee is $100. License fee is $160. Renewal (every 2 years) is $160.
What continuing education is required?
5 hours of Board-approved continuing education every two years (biennial period). Must maintain CE verification records for four years.
Why did electric bills increase 40% in 2025?
Increases were driven by higher capacity auction prices set by PJM Interconnection, the regional grid operator. Contributing factors include insufficient in-state generation, dependence on imports, and delays in offshore wind development.
What assistance is available for high utility bills?
The $430 million state relief package provides $100-$250 credits. Additional programs include the Electric Assistance Program, Lifeline Utility Assistance, Winter Termination Protection, and interest-free payment deferrals.
Is EPA Section 608 certification required?
Yes. Federal EPA regulations require Section 608 certification for technicians working with refrigerants. The 80-question exam requires 70% passing score and certification does not expire.