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How New Jersey HVAC System Upgrades Save Money and Energy

February 15, 2013

new furnace upgrade

If you live in New Jersey, you know our seasons don’t mess around. Winter pelts you with ice, and summer wraps you in a humid hug you didn’t ask for. And through it all, your HVAC system is expected to keep up like it’s running a marathon—with no water breaks.

But what if your current system is barely crawling to the finish line?

Bring in the HVAC system upgrade. While it might not seem like the most glamorous home improvement, it’s a strategic investment in your property’s value, energy efficiency, and long-term savings. This comprehensive guide gets into the nitty-gritty of the economic impact of upgrading your HVAC system and gives you all the data and stats you need to make an informed decision.

Table of Contents

What Is an HVAC Upgrade?

An HVAC (Heating, Ventilation, and Air Conditioning) upgrade involves replacing or enhancing components of your home’s climate control system to improve efficiency and performance. Think of it as leveling up your home’s comfort game.

It could mean replacing an old furnace, installing a high-efficiency AC or heat pump, swapping out that ancient thermostat for one that’s smarter than your teenager, or sealing leaky ductwork that’s been quietly hemorrhaging cash.

In short? Lower energy bills, fewer headaches, and maybe a bit of planet-saving, too.

Related reading: HVAC Terms Every Homeowner Should Know

HVAC System Upgrades in New Jersey: The Stats

We could throw a bunch of stats at you. (Actually…we will. But these numbers don’t lie and they’re pretty awesome too.)

New Jersey has made some significant strides in energy efficiency, with the state achieving a nearly 90% increase in utility energy efficiency savings. That puts it into the top 10 nationally. This progress is partly due to NJ energy efficiency programs and initiatives encouraging homeowners to adopt early energy-saving HVAC upgrades.

But with the current 1.7% increase in energy costs in New York-Newark-New Jersey, residents in the tri-state area have all the more reason to upgrade to energy-efficient HVAC systems. ENERGY STAR-certified heating and cooling equipment (including Carrier brand) can save you as much as 10–30% on your energy bill every year.

According to the U.S. Department of Energy, residents in New Jersey also have the potential to save money by making energy-efficient improvements. By upgrading or replacing these parts of your HVAC system, the average savings on utility bills per home every year could be:

  • Smart thermostat: $119

  • Duct sealing and insulating: $141

  • Ductless heat pump: $1,391

  • Wall insulation (wall cavity, drill-and-fill): $455

  • Attic insulation enclosure: $167

For most households, replacing your smart thermostat or ductless heat pump could start paying you back in less than five years with all the savings. That’s a pretty convincing incentive to consider upgrading part, if not all, of your HVAC system.

Federal Tax Credits for HVAC System Upgrades

On its own, a new HVAC system is a home upgrade that adds value, and there are ways to make the initial costs more manageable. Did you know the federal government is in on all the energy-efficient savings? Homeowners and renters can claim a credit for the year they make qualified improvements from 2023 through 2032.

If you do an energy-saving HVAC upgrade in New Jersey, the federal government will provide a credit for:

  • 30% of the cost of efficient air conditioners and heating equipment (up to $600 each and $1200/year)

  • 30% of the cost of heat pumps, heater pump water heaters, and biomass stoves (up to $2000/year)

  • 30% of the cost of electric panel or circuit upgrades (up to $600) and insulation materials (up to $1200).

Ready to upgrade? A.J. Perri is your HVAC system upgrade expert, and we’re ready to help you find the best way to be energy efficient. Call us at 732-733-2541 or schedule an appointment.

Federal Tax Credits for HVAC System Upgrades

“We had an outstanding experience with A.J. Perri. They installed our furnace the very next day with great attention to detail, leaving the space clean and organized. Their expertise and customer service were top-notch. Highly recommend!” —Eugene Galdi—

How Much Does It Cost to Upgrade Your HVAC in New Jersey?

It’s no secret that upgrading your HVAC system isn’t cheap. The cost of upgrading in New Jersey varies based on several factors, including the type of system, the size of your home, and the specific equipment chosen. While exact figures can differ, it’s important to consider the long-term savings and available incentives that can offset initial expenses.

New Jersey Rebates

HVAC equipment rebates are common in New Jersey, especially with the main public utility providers, who offer different rebates for their NJ energy efficiency programs:

If your new equipment is ENERGY STAR, you can check to see if they offer other rebates, too. And don’t forget that A.J. Perri provides financing with flexible payment options and specials so you can start taking advantage of energy-efficient solutions today.

Is It Really Worth It to Upgrade Your HVAC in New Jersey?

upgrade your hvac unit

Yes! But if you want to go with our long (and slightly sassier) answer: It’s worth it to upgrade only if you like saving money, increasing your home’s value, and not getting side-eyed by your eco-conscious neighbors.

But worth depends on what you value. Let’s break it down:

  • Return on investment (ROI): Investing in energy-efficient HVAC systems not only reduces monthly utility bills but also increases property value. Homes with modern, efficient systems are more attractive to buyers, often leading to higher resale values.

  • Payback period: The payback period for HVAC upgrades—the time it takes for energy savings to cover the initial investment—typically ranges from 5 to 7 years, depending on the system and usage patterns.

  • Environmental impact: Beyond financial benefits, upgrading contributes to environmental conservation by reducing greenhouse gas emissions and reliance on fossil fuels.

  • Comfort and health: Upgraded systems provide more consistent indoor temperatures, quieter operation, and improved indoor air quality—especially for households with allergies and asthma. Advanced filtration and humidity control can make you healthier and more comfortable year-round.

Want to find out more about what you can do to upgrade your HVAC system? The experts at A.J. Perri can come assess your system and let you know how we can help. We specialize in air conditioning and heating upgrades.

“We had the furnace and air conditioning unit replaced and added on a new water heater!!! What can we say: Very professional, fast, and efficient workers… Clean… Very happy with the communication and customer service. And we chose them because the job cost was very reasonable! Excellent, trustworthy job, so well worth it! Highly recommend A.J. Perri… don’t waste time looking around for anyone else.” —Shylla Argentero—

How Do I Choose an Efficient HVAC System?

Choosing a new HVAC system isn’t exactly as fun as picking out paint colors, but it might save you a whole lot more money (and stress) in the long run. The key is understanding efficiency ratings and what else to look for before you buy.

  • SEER rating: Seasonal Energy Efficiency Ratio (SEER) measures cooling efficiency. Higher SEER ratings indicate better energy efficiency.

  • AFUE rating: Annual Fuel Utilization Efficiency (AFUE) measures heating efficiency. Look for systems with higher AFUE percentages.

  • System size: Larger isn’t always better. Ensure the system is appropriately sized for your home to maximize efficiency and comfort.

  • Smart thermostats: Integrating smart thermostats can optimize energy use and provide greater control over indoor temperatures.

Working with professionals like A.J. Perri ensures proper system selection and installation, tailored to your home’s specific needs.

A.J. Perri: Experts on Cutting-Edge HVAC System Upgrades

A.J. Perri has been serving New Jersey homeowners with HVAC solutions for decades. Our commitment to quality, efficiency, and customer satisfaction makes us a trusted partner in your home improvement journey.

Our certified technicians are trained in the latest HVAC technologies and installation practices.

From air conditioning and heating to air quality and smart home integrations, we offer a full suite of services to enhance your home’s comfort and efficiency.

Call us at 732-733-2541 or schedule an appointment to upgrade your HVAC system today.

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Last Updated: August 14, 2025