The cost of replacing an oil furnace in New Jersey ranges from $8,000 to $15,000 depending on your home's size, the type of heat pump you choose, and the complexity of the installation. But here's the good news: PSE&G rebates can cover up to $16,000 of that cost, meaning many NJ homeowners actually pay $0 out of pocket for a brand new heat pump system.
Cost Breakdown by System Type
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A basic single-zone heat pump system for a smaller NJ home runs $8,000-$10,000 installed. A multi-zone ductless mini-split system for a medium home costs $10,000-$13,000. A full ducted central heat pump for a larger home ranges $12,000-$15,000. These prices include removal of the old oil furnace, installation of the new system, and all electrical work. Mechanical Enterprise provides free quotes with exact pricing before any work begins.
How Rebates Offset the Cost
PSE&G's NJ Clean Heat program offers rebates up to $16,000 for oil-to-heat-pump conversions. For a typical $12,000 installation, a $14,000+ rebate means you're actually money ahead from day one. Mechanical Enterprise handles all rebate applications and ensures your system qualifies for the maximum available amount.
Financing Options
If you prefer not to pay upfront, PSE&G's On-Bill Repayment program lets you finance the remaining cost (after rebates) through your monthly utility bill at 0% interest. Your monthly payment is typically less than what you were spending on oil, so you start saving immediately. Contact Mechanical Enterprise at (862) 423-9396 for a free quote.
Ready to get started? Mechanical Enterprise handles everything — from assessment to installation to rebate paperwork. Call (862) 423-9396 or get your free estimate online.
Get Your Free Assessment
See every NJ rebate you qualify for — no cost, no obligation.