Heat pump vs gas heating cost in New Jersey

$234 a year more to heat a typical New Jersey home with a heat pump than with a gas furnace.

A typical home here burns about 432 therms of gas a year for heat, about $734 at the national average of $1.70/therm. A heat pump would use about 3,844 kWh instead, $968 at 25.19¢/kWh. Electricity would have to fall to 19.1¢/kWh, or gas rise in price, before the heat pump became the cheaper way to heat.

Prices updated October 2026 from EIA, AAA and BLS data.

How New Jersey compares

Ranked by yearly saving against gas, New Jersey is 42nd of 51. At U.S. average figures a heat pump saves $27 a year. New Jersey has the 10th most expensive residential electricity of the 50 states and DC at 25.19¢/kWh, 38% above the U.S. average of 18.31¢.

With an estimated 4,800 heating degree days a year, winters here are moderate, and the calculator uses a seasonal COP of 2.8.

Against propane the heat pump saves $222 a year, against heating oil it saves $830 a year, and against electric baseboard heat it saves $1,743 a year.

Heating now	Now, per year	Heat pump	Difference
Natural gas furnace	$734	$968	−$234
Propane furnace	$1,189	$967	$222
Oil furnace	$1,797	$967	$830
Electric baseboard	$2,711	$968	$1,743

Two of its three neighbors do better against gas: Delaware and Pennsylvania, led by Delaware at $23 a year saved.

State	Electricity	Saving vs gas a year
Delaware	18.48¢	$23
Pennsylvania	21.72¢	−$115
New Jersey	25.19¢	−$234
New York	29.90¢	−$467

More for New Jersey

EV charging cost in New Jersey vs gas: an EV saves $848 a year on fuel.
Solar payback in New Jersey: a typical system pays back in 8.9 years.

What these numbers assume

A heating load estimated from about 4,800 heating degree days a year: 432 therms of gas, 472 gallons of propane, 331 gallons of oil or 10,762 kWh of baseboard heat.
Natural gas at $1.70/therm, the U.S. city average for September 2026. Gas prices vary a lot by state and utility, so enter the price per therm from your bill.
Propane at $2.52 and heating oil at $5.43 a gallon, EIA forecasts for winter 2026–27.
Furnaces 85% efficient (oil 80%), and a heat pump with a seasonal COP of 2.8.
No federal tax credit: Section 25C ended for equipment placed in service after December 31, 2025.

Change any of them in the calculator above to match your own bills. The formulas are on the main heat pump calculator.

Sources

Electricity price: EIA Electric Power Monthly, Table 5.6.A (July 2026 data).
Natural gas: BLS U.S. city average, September 2026.
Propane and heating oil: EIA Short-Term Energy Outlook winter forecast, October 2026.
Heating degree days: MeterMath rounded estimate for the state.
Tax credit status: Public Law 119-21.