Heat Pumps
PSE&G Building Decarbonization offers up to $10,000+ in rebates for heat pump installations, plus 0% financing up to $50,000. Add it to your whole-home upgrade for even more savings.
What Is a Heat Pump?
A heat pump is an all-in-one system that heats your home in winter and cools it in summer. Unlike traditional HVAC, it moves heat rather than burning fuel, making it 2 to 3 times more energy efficient than conventional systems.
- Heats and cools with one system
- 2-3x more efficient than furnaces
- Runs on electricity — no gas or oil needed
- Qualifies for the largest rebates available
How Rebates Apply
Heat pumps qualify for the most generous rebates because they deliver the biggest energy savings. Plus, NJ utilities offer 0% financing for up to $50,000 on heat pump projects.
Clean Heat — Up to $10,000+
Fully replace your fossil fuel heating with a heat pump. PSE&G rebates up to $10,000 (or 50% of project cost), plus bonus adders for decommissioning ($2K), re-ducting ($2K), and additional units ($2K each). LMI households qualify for up to $12,000.
0% On Bill Repayment
PSE&G offers 0% interest On Bill Repayment (OBR) financing for up to $50,000 on heat pump projects, repaid over up to 10 years through your utility bill. No separate loan application needed.
Better System. Lower Monthly Cost.
A standard HVAC replacement costs $13,250 out of pocket. A heat pump through HomeWise? $104/month — and your energy bills drop more than that.
The Old Way — Equipment-Only HVAC
You pay
$13,250
out of pocket, upfront
- Standard HVAC replacement only
- Small equipment rebate: $750
- Energy bills barely change
Heat Pump via HomeWise (Example Project)
You pay
$0 down • ~$20,000 after $10,000+ in heat pump rebates
- High-efficiency heat pump system
- Up to $10,000+ in PSE&G Building Decarbonization rebates
- ~$125/mo savings switching from oil to electric
- Can combine with Whole-Home for additional $7,500 in rebates
You pay $104/mo. You save ~$125/mo on energy.
Net positive from month one.
The HomeWise Difference
We make heat pump installation simple, affordable, and stress-free.
Vetted Installers
Every contractor is pre-screened, licensed, and background-checked. Only the best work with HomeWise.
Managed Project
We coordinate scheduling, oversee the installation, and ensure everything meets quality standards.
All Paperwork Handled
We file every rebate application, track every form, and make sure you get the maximum incentive.
Frequently Asked Questions
How does a heat pump work?
A heat pump transfers heat rather than generating it. In winter, it extracts heat from outdoor air and moves it inside. In summer, it reverses to cool your home. This process uses significantly less energy than traditional furnaces or air conditioners.
Can a heat pump work in cold NJ winters?
Yes. Modern cold-climate heat pumps operate efficiently down to -15 degrees F. They are specifically designed for climates like New Jersey and perform well even during the coldest months.
How long does installation take?
A typical heat pump installation takes 1 to 3 days depending on the system size and whether ductwork modifications are needed. Our vetted installers handle everything from start to finish.
What rebates are available for heat pumps?
PSE&G customers can access substantial rebates through the Building Decarbonization program. The Clean Heat tier (fully replacing fossil fuel heating) offers up to $10,000 in base rebates plus adders for decommissioning, re-ducting, and additional units — potentially exceeding $14,000. The Dual Heat tier (adding a heat pump alongside existing heating) offers up to $5,000. All tiers include 0% On Bill Repayment financing up to $50,000 for 10 years.
Ready to Save on a Heat Pump?
Get a free energy assessment and find out exactly how much you can save with rebates.