How much does it cost to heat and cool a 2,000 sq ft home in New Jersey?

In New Jersey (23.1¢/kWh via PSE&G / JCP&L), a 2,000 sq ft home averages $1,035/year ($86/month) with a high-efficiency heat pump, $841/year with a natural gas furnace and central AC, and $3,079/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in New Jersey?

At New Jersey's natural gas rate of $1.55/therm, the economic break-even electricity price for a COP 3.1 heat pump is 17.8¢/kWh. Comparing this against New Jersey's residential electricity rate of 23.1¢/kWh determines annual operating savings.

New Jersey Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$86/mo

NJ Electricity / Gas Rate

23.1¢ / $1.55

15-Yr Savings vs Baseboard

+$27,060

New Jersey Annual Heating & Cooling Bills by Home Size

In New Jersey, a 2,000 sq ft home averages $1,035/year ($86/mo) using a cold-climate heat pump ($936/yr winter heating + $99/yr summer cooling), compared to $841/year with a natural gas furnace and $3,079/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$518/yr ($43/mo)	$421/yr ($35/mo)	$1,540/yr ($128/mo)	+$11,730
1,500 Sq Ft	$776/yr ($65/mo)	$631/yr ($53/mo)	$2,310/yr ($193/mo)	+$19,410
2,000 Sq Ft	$1,035/yr ($86/mo)	$841/yr ($70/mo)	$3,079/yr ($257/mo)	+$27,060
2,500 Sq Ft	$1,294/yr ($108/mo)	$1,051/yr ($88/mo)	$3,849/yr ($321/mo)	+$34,725
3,000 Sq Ft	$1,553/yr ($129/mo)	$1,262/yr ($105/mo)	$4,619/yr ($385/mo)	+$42,390
3,500 Sq Ft	$1,811/yr ($151/mo)	$1,472/yr ($123/mo)	$5,389/yr ($449/mo)	+$50,070