Estimated Savings for a Typical New Jersey Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$16,000
State Rebate
-$4,000
Net Cost
$12,000
Current Heating Cost/yr
$2,901
Heat Pump Cost/yr
$1,160
Annual Savings
$1,740
Payback Period
6.9 yrs
15-Year Savings
$21,144
CO₂ Avoided/yr
8,966 lbs
New Jersey Heat Pump Rebates
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Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $4,000
New Jersey State/Utility Rebate
New Jersey's Whole House Energy Solutions program offers up to roughly $4,000 for heat pumps.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by New Jersey. View full rebate detail →
Heat Pump Costs by City in New Jersey
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Newark | $1,800 | 6.7 | 311,549 | PSE&G |
| Jersey City | $1,610 | 7.5 | 292,449 | Jersey Central Power |
| Paterson | $1,712 | 7 | 145,233 | PSE&G |
| Elizabeth | $1,842 | 6.5 | 137,298 | PSE&G |
| Edison | $1,963 | 6.1 | 107,694 | Jersey Central Power |
| Woodbridge | $1,875 | 6.4 | 99,585 | Jersey Central Power |
| Hamilton | $1,703 | 7 | 92,297 | Jersey Central Power |
| Toms River | $2,068 | 5.8 | 91,239 | Jersey Central Power |
| Clifton | $2,086 | 5.8 | 85,973 | PSE&G |
| Trenton | $2,035 | 5.9 | 83,412 | Jersey Central Power |
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Quick Facts: New Jersey
- 🌡️ Climate: Cold (5,000 HDD)
- ⚡ Avg electricity: $0.165/kWh
- 🔥 Natural gas: $1.40/therm
- 🏭 Top utility: PSE&G