Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed
The federal rebates are nowhere on New Jersey's own programme list — and the state is building something quite different in their place.
Prices pulled August 16, 2026
22.63¢
per kWh, residential electricity
31% above the national average of 17.3¢. 11th most expensive of 51.
Up 38% since 2021 (8.5% a year), against 27% nationally.
$1.37
per therm, residential natural gas
$14.21 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 38% since 2021 (8.5% a year).
Heat pump vs. gas furnace — Close call
New Jersey's electricity-to-gas price ratio works out at 4.8-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
We checked this the hard way, because New Jersey's clean energy site renders through JavaScript and hides from ordinary page fetches. Reading it as a browser does: neither federal rebate track appears on the state's programme directory, neither appears on its homeowners page, and the Inflation Reduction Act is not mentioned at all. The Board of Public Utilities' own residential listing agrees.
That is not the same as a status statement from the state, and we are not going to pretend it is. But the money was obligated to New Jersey and the Board approved hiring a third-party administrator, so the honest reading is a programme in development with nothing yet to apply for — and a state that is not advertising it.
What the Board does list is worth knowing. Comfort Partners installs efficiency measures at no cost for income-eligible households, delivered through utility-affiliated implementers rather than a state portal. The Successor Solar Incentive programme is how rooftop solar is compensated — you register the project and earn certificates over time, which is a fundamentally different economic model from a one-off rebate and needs to be modelled over years, not at purchase.
New Jersey is also going somewhere most states are not. The Board approved a plan in July 2026 restructuring utility efficiency programmes, and a separate approval creating a virtual power plant rebate from 2027 for smart thermostats, water heaters, electric vehicles and heat pumps. The idea is that you are paid for letting the utility lean on your equipment at peak times rather than paid to buy it. If you are installing any of those, that is the incentive worth understanding here — and it is a state mechanism, unaffected by anything happening federally.
Practically: check with the Board of Public Utilities directly before assuming anything about the federal rebates in New Jersey, and do not rely on a contractor's account of them.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
The state's own list of what a homeowner can actually use: utility-run efficiency programmes, Comfort Partners for income-eligible households, new construction, EV incentives and solar. Neither federal rebate track is on it.
Program detailsA Board-approved mechanism paying for smart thermostats, water heaters, EVs and heat pumps to be dispatchable at peak — you are compensated for flexibility rather than for the purchase.
Program detailsEnded. No credit for expenditures made after 31 December 2025.
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
These open with New Jersey's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
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