Heat Pumps A category from your Ciel audit report
One system that heats, cools, and earns the biggest rebates in New Jersey
A cold climate heat pump replaces both your heating system and your air conditioner with one high efficiency electric system, rated to keep heating in temperatures below 5°F. New Jersey utilities now offer their largest residential rebates, up to $10,000, to homeowners who make the switch.
What a cold climate heat pump actually is
A heat pump does not burn fuel to make heat. It moves heat, pulling warmth from the outdoor air into your home in winter and reversing to cool your home in summer. Because moving heat takes far less energy than creating it, heat pumps deliver more heating per unit of energy than any combustion system can.
Earlier generations lost capacity in cold weather, which earned heat pumps a reputation that no longer fits. Modern cold climate models are certified to keep producing heat well below zero, and they carry that rating from an independent listing, not a marketing claim.
Ducted systems
If your home has ductwork in good condition, a ducted heat pump works like the central system you already know, one outdoor unit feeding your existing supply registers.
Ductless mini splits
For homes without ducts, additions, finished attics, and rooms that never feel right. Each indoor unit has its own thermostat, so you condition the rooms you actually use.
Two ways to make the switch
Full displacement
The heat pump becomes your only heating system, and the old furnace or boiler is decommissioned. This pathway earns the largest rebates because it fully retires fossil fuel heating from your home.
Dual fuel
The heat pump carries most of your heating, and your existing furnace or boiler stays in place as backup for the coldest stretches. A smaller rebate applies, and it is a practical on ramp for homes not ready to electrify completely.
Which path fits your home depends on your current system, your ductwork, your electrical service, and your goals. Your audit models both with real numbers.
Heat pump rebates by utility
PSE&G Building Decarbonization
Up to $10,000 for full displacement ($12,000 for income qualified households), plus 0% on bill financing up to $50,000 standalone or $75,000 when combined with a Whole Home project. Current terms run through June 30, 2027.
JCP&L Clean Comfort
Up to $10,000 for full displacement with a cold climate heat pump ($12,000 for income qualified households), plus 0% APR financing from $2,500 to $25,000 for qualified applicants. Covers equipment installed February 1, 2026 through June 30, 2027.
Stack with Whole Home Energy Solutions
Heat pump rebates combine with the statewide Whole Home program, up to $7,500 in additional cash back plus 0% financing, on the same project. Air sealing and insulating first also lets your heat pump be smaller and perform better.
Other New Jersey utilities offer their own electrification programs, and rebates are always subject to program rules and eligibility. Your audit report shows the exact numbers for your home and utility before you decide anything.
Explore heat pump and electrification rebates →
Explore the Whole Home Energy Solutions program →
Installed to the standard, not around it
- Cold climate certified equipment, selected from independently listed models rated to keep heating below 5°F
- Manual J sizing, so the system matches your home's actual heating and cooling load
- Matched, certified components, with the documentation your utility program requires for rebate approval
- Program paperwork handled for you, from application through rebate processing
A whole home approach to electrification
Ciel Power is a BPI GoldStar contractor, a four time ENERGY STAR Contractor of the Year, and a PSE&G Top 10 Contractor. Because we handle air sealing and insulation as well as equipment, we can plan your envelope and your heat pump together, which is exactly the sequence the utility programs are built to reward.
Frequently asked questions
Do heat pumps really work in New Jersey winters?
Yes. Cold climate heat pumps are specifically rated to keep heating in temperatures below 5°F, well past anything a typical New Jersey winter delivers. The technology that made this possible has matured over the past decade, which is why heat pumps are now the fastest growing heating choice in the state.
How do you make sure the system is the right size?
We size heat pump systems with a Manual J load calculation, the industry standard method for measuring exactly how much heating and cooling your home needs. Oversized systems cycle constantly and never dehumidify properly; undersized systems struggle on the coldest days. Sizing to your actual home, especially after air sealing and insulation, is what makes a heat pump perform.
Do I have to remove my furnace or boiler?
Not necessarily. Full displacement replaces your fossil fuel system entirely and earns the largest rebates. Dual fuel keeps your existing system as backup for the coldest stretches while the heat pump carries most of the load. Your audit models both paths so you can compare them with real numbers.
Ducted or ductless?
Homes with ductwork in good condition usually take a ducted system that works like a conventional central system. Homes without ducts, or with additions and problem rooms, are often better served by ductless mini splits with individual room control. Many projects combine both.
Will my electrical panel need an upgrade?
Sometimes, and we check during your audit. Utility programs include support for electrical work connected to a heat pump project, and income qualified households can receive enhanced electrical upgrade support. Your report spells out what your home needs before you decide.
Which rebate program applies to me?
It depends on your electric utility. PSE&G customers use the Building Decarbonization program, JCP&L customers use the Clean Comfort program, and other utilities have their own versions. Whole Home Energy Solutions is separate and statewide, and it can be combined with heat pump rebates on the same project. Your audit confirms your utility and itemizes your options.
Is there a deadline?
Current PSE&G Building Decarbonization terms run through June 30, 2027, and JCP&L Clean Comfort covers qualifying equipment installed February 1, 2026 through June 30, 2027. Program funding and guidelines can change, so completing your project under current terms is the safest path.
See whether a heat pump fits your home
Start with a $99 home energy audit. It checks your ductwork, electrical service, and envelope, models full displacement against dual fuel, and shows your projected rebates. The fee is credited toward your project if you move forward.