Costs at issue
For the most part, criticism focuses on the cost of conversion to heat pumps, which work by gathering heat from one location and transferring it to another, rather than generating heat.
According to data based on conversions in other states in the Northeast, typical costs range from $4,000 to $7,000. Opponents, however, claim the actual costs are much higher, ranging as much as $20,000.
Proponents argued Tuesday that by electrifying buildings, consumers will see lower annual operating costs for a typical home in New Jersey equipped with an average level of weatherization.
The average home would save about $50 annually, even assuming very low gas prices, such as those from the winter of 2020-2021. By combining electric appliances with home weatherization measures, many homeowners in the state can reduce their energy bills by more than 50%, the report said.
“When combined with weatherization, New Jerseyans will save money and improve local health by electrifying their homes,’’ said Amy Boyd, director of policy at the Acadia Center. “New Jersey can follow the framework set by fellow Northeast states to successfully, quickly and affordably switch to an electric future.’’
For instance, Massachusetts offers incentives ranging from $4,000 to $10,000 to convert to cold-climate heat pumps, Boyd said. It also is important to target poorly insulated homes for such conversions, she said, noting they account for half of all greenhouse-gas emissions in the state.