The members of the Fuel Merchants Association of New Jersey have been keeping state residents comfortable in your homes since the days of our great-great-grandfathers in the 19th century. We are your business associates, community partners, fellow parishioners, kids’ coaches, friends and neighbors.
Small businesses like ours have survived as long as we have by being trusted resources in what we do. It is why we are very concerned about a state mandate that will force you to install an electric heat pump as the only means of heating your home at a cost of $20,000! If you own multifamily or commercial buildings, the cost will be much higher.
The mandate is just one part of the New Jersey Energy Master Plan (EMP). We agree with the EMP’s goal that heating fuels should be 100% carbon free and that natural gas, heating oil and propane should have to begin immediately transitioning to 100% carbon free and be fully there by January 1, 2050. Where we disagree is that the EMP only allows one source of 100% carbon-free energy for heating in the future—the electric heat pump.
As experienced HVAC contractors, we have installed energy-saving HVAC equipment for decades. In recent years, HVAC contractors have installed large numbers of electric heat pumps—as a supplement or addition to the existing HVAC system—but never once recommended nor been asked to remove the existing central heating system. Why? Because an electric heat pump’s efficacy in providing warmth is reduced as the temperature drops.
Additionally, most NJ homes are not conducive to the disruptive construction retrofits that are needed to install electric heat pumps as the only means of heating the home.
The adopted EMP states the “one-time” cost to install an electric heat pump is $4,000 to $7,000. The real cost is, on average, $20,000. We pointed out the flaws in the EMP cost analysis when commenting on the draft EMP…to no avail.
Please note the $20,000 is only your out-of-pocket expense for the installation of the electric heat pump and does not account for the hundreds of billions we, as ratepayers, will pay for the electric infrastructure to be built out to handle the additional electric demand.
There is still time to stop this home heat tax! It’s time your legislators hear from you!
We look forward to continuing to provide you, our customers, neighbors and friends, affordable, sustainable and achievable options for your home comfort needs.
The Board of Trustees
Fuel Merchants Association of New Jersey
September 1, 2021