How much does a heat pump cost in New Jersey after rebates?
The most common job, a ducted air-source heat pump, whole home (~3 ton, ~2,000 sq ft), costs $20,000 before rebates. Most jobs cost between $14,000 and $28,000. With the biggest open rebate ($7,500), you could pay about $12,500.
How much does a heat pump cost?
| Project | Low | Typical | High |
|---|---|---|---|
| Ducted air-source heat pump, whole home (~3 ton, ~2,000 sq ft) | $14,000 | $20,000 | $28,000 |
| Ductless mini-split heat pump, single zone (9-18k BTU) | $3,500 | $6,000 | $9,000 |
| Ductless mini-split heat pump, multi-zone (3 indoor zones) | $9,000 | $16,000 | $25,000 |
| Cold-climate premium ducted heat pump, whole home (~3 ton, NEEP ccASHP-listed, top tier) | $17,000 | $23,000 | $32,000 |
| Heat pump water heater, 50-80 gallon | $2,700 | $4,500 | $7,500 |
| Ground-source (geothermal) heat pump, whole home (~3-4 ton) | $25,000 | $40,000 | $65,000 |
What the typical price covers: variable-speed ducted heat pump outdoor unit and air handler sized ~3 tons, line set, refrigerant, thermostat, condensate, electrical circuit, removal of old equipment, permit, commissioning, using existing usable ductwork.
Is there a rebate for a heat pump in New Jersey?
Yes. We track 17 heat pump programs taking applications in New Jersey. The largest is $7,500 from PSE&G.
- PSE&G HVAC Instant Rebates Program - Building Decarbonization cold-climate heat pump conversion: up to $12,000 (not yet confirmed)
- Rockland Electric Clean Heating & Cooling with Heat Pumps (building decarbonization): up to $12,000 (not yet confirmed)
- PSE&G Whole Home Energy Solutions: up to $7,500
- JCP&L Whole Home Energy Solutions: up to $7,500
- Atlantic City Electric Whole Home Energy Solutions: up to $7,500
- Rockland Electric Whole Home Energy Solutions: up to $7,500
- Atlantic City Electric HVAC Efficiency Program - heat pumps: up to $2,000
- Rockland Electric Instant HVAC Rebate - heat pumps: up to $1,400
- JCP&L HVAC Equipment Rebates - air-source and ductless heat pumps: up to $1,000
- NJNG SAVEGREEN HVAC rebates - heat pumps (with new gas equipment): up to $1,000
- Madison Electric Utility Rebate Incentives - heat pumps: up to $1,000
- PSE&G heat pump water heater rebate: up to $750
See all 17 programs on the New Jersey page.
Which utilities pay heat pump rebates?
Most rebates depend on who supplies your power or gas.
| Utility | Programs | Largest rebate |
|---|---|---|
| PSE&G (electric) | 4 | $12,000 |
| PSE&G (gas) | 1 | $7,500 |
| Jersey Central Power & Light (JCP&L, FirstEnergy) | 3 | $7,500 |
| Atlantic City Electric | 3 | $7,500 |
| Rockland Electric Company (Orange & Rockland) | 4 | $12,000 |
| New Jersey Natural Gas | 1 | $1,000 |
| Madison Borough Electric Utility | 2 | $1,000 |
| Butler Electric (Borough of Butler) | 1 | $750 |
How much will I pay after rebates?
Start with the typical price, $20,000. Take off the largest rebate you qualify for. With $7,500 from PSE&G, that is about $12,500.
Rebates have rules: approved equipment, an approved contractor, and sometimes income limits. Some can be combined, some can't. Check each program before you sign a contract.
Use the rebate calculator to see what applies at your zip code.
Is there a federal tax credit?
No. The federal credits for heat pumps and batteries (25C and 25D) ended for installs after December 31, 2025.
How do I find a licensed installer in New Jersey?
We list 1,344 New Jersey contractors whose state license covers heat pump work. Each one shows its license, and many show a phone number or website.
- Heat pump in Newark
- Heat pump in Jersey City
- Heat pump in Paterson
- Heat pump in Lakewood
- Heat pump in Elizabeth
- Heat pump in Edison
- Heat pump in Woodbridge
- Heat pump in Toms River
Sources
- MA EEAC / NMR - 2024/2025 Residential Heat Pump Pricing Study (MA25X05-BR-RHPINV2), ducted ~ $6,912/ton (Aug 2025$) (2026)
- CT DEEP - CTAC Q&A tracker (average ASHP cost ~ $6,600/ton, 2024 CT installs) (2025)
- Angi - Cost to install a mini split in New York, NY (12,000 BTU ~ $3,800-$4,500) (2026)
- HomeGuide - Mini split installation cost (single zone $2,500-$6,000; 12k BTU $3,500-$5,000) (2026)
- MA EEAC / NMR - 2024/2025 Residential Heat Pump Pricing Study (ductless ~ $7,203/ton, 2024 invoices) (2026)
- MA EEAC - Residential Heat Pump Invoice Cost Analysis (MA23X14-B-RHPINV): ductless ~ $5,830/ton, ~2.3 zones per project (Jan 2024$) (2024)
- NREL (Wilson et al.), Heat pumps for all? Distributions of the costs and benefits of residential air-source heat pumps in the US, Joule (ducted average ~ $22,400) (2024)
- BetterHouse - Cold-climate heat pumps: what the spec requires and what they cost ($12,000-$32,500 cold-climate vs $9,270-$22,295 standard) (2026)
- Angi - Cost to install a heat pump water heater (avg ~ $4,200; $2,800-$8,000) (2026)
- ENERGY STAR - What goes into the cost of installing a heat pump water heater? (unit $1,500-$3,000 + labor/materials $1,000-$3,000) (2026)
- MA EEAC - Residential Heat Pump Invoice Cost Analysis (MA23X14-B-RHPINV): GSHP ~ $14,211/ton (Jan 2024$) (2024)
- EnergySage - Ground source heat pump cost ($15,000-$40,000+) (2025)
- Programs: official program pages, checked 2026-10-10. Installers: New Jersey state license records.