In our Spotlight on Business report tonight, heat pumps have been proposed as a solution to rising energy costs that can be better for your wallet and for the climate because they reduce greenhouse gas emissions.

They're devices that look similar to a traditional air conditioning unit, but they don't create heat or cool air, they simply move it from one space to another.

But should the state get involved in funding them?

Ted Goldberg takes a look.

The Millers are on a mission.

Which is to leave a livable world for our children and grandchildren.

This husband and wife team are doing their part by pushing heat pumps.

It seemed like a magical appliance.

It has no emissions and it's also three times as efficient as burning any kind of fossil fuel.

Their home in Middletown has four of them.

One heats their pool, one heats and cools their house, and two more are in their washer/dryer and hot water heater.

The Millers say they didn't have to choose between being green and saving green.

So we have a 96% reduction in our greenhouse gas emissions in our house.

In our case, we saved 13% in our total electric and gas combined bill.

Steve Miller says their appliances weren't dramatically more expensive than their fossil fuel counterparts, and that while their electric bill is up, their gas bill plummeted, more than making up the difference.

If you look at the wholesale price of gas, they're actually the spot market for the future.

Prices next year will double for gas.

And prices right now went up 20% on electricity in June because of higher prices in the PGM supplier to New Jersey.

But they didn't double.

They did not double, not at all.

The Millers have a backup furnace, but they rarely use it.

Some homes, like theirs, need a second heat pump because of their size or how airtight they are.

They're happy about state grants that give people rebates for certain energy efficient appliances, especially with congressional grants disappearing after this year.

I'm happy that there are rebates.

I'm really upset that the federal ones are going away.

What's happening right now in Washington is shameful.

It's dumb.

It's going to raise electrical prices for everybody, raise energy prices.

We want to do exactly the opposite.

Senator Andrew Zwicker has sponsored bill S-249, which would codify existing rebates and force New Jersey's Board of Public Utilities to create a program giving direct incentives for heat pumps.

If we can take care of those upfront costs in a way that is affordable, it's going to save New Jersey consumers hundreds of dollars a year.

And so this is exactly the right time to get this done.

That's why I feel confident that we will as this year progresses.

The actions of this Congress and the president will increase energy costs in a state like New Jersey.

And so the state is really the only one who can help.

State and utilities in New Jersey are the ones who can help you lower your energy costs, improve efficiency, and improve the safety and comfort of your home.

Mark Kresowik works for the American Council for an Energy Efficient Economy.

He says heat pumps have become more popular and more user-friendly.

The technology certainly improved over the last two decades.

And part of that's been driven by better efficiency standards.

So now you can get a good heat pump that's going to provide heat as low as negative 13 degrees outside.

They do the job of two appliances in one.

So they can run like an AC, but in reverse, or like a refrigerator, but in reverse.

So they can cool your home like an AC would, although it would be more efficient.

And they're more efficient than gas furnaces and boilers.

David Amanfu is a building decarbonization advocate for the National Resources Defense Council.

He's confident that New Jersey's power grid can withstand the growth in demand that would come with more heat pumps statewide.

Heat pumps tend to be much more efficient appliances.

And since state data says 14% of emissions come from residential buildings, that could give them a bigger role going forward.

We don't expect this transition to happen overnight where 10 million heat pumps are sold in a day.

We expect it to happen gradually.

And so in that time with smart planning, we will expect to see that the grid will continue to perform stably and reliably.

According to a 2020 survey done by the US Energy Information Administration, about 3% of New Jersey households have heat pumps.

But advocates like Kresowick say it's likely outdated information.

More incentives at the state and federal levels could increase demand over the next few years.

In Middletown, I'm Ted Goldberg, NJ Spotlight News.

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