Average Electricity Bill in New Jersey (and How to Save)

Many New Jersey residents were shocked when the state’s Board of Utilities approved a 2024 increase in electricity rates in February 2024. A heat wave that summer was only caused higher electricity bills. A Reddit user said their energy bills “more than tripled” when they tried to keep their home cool in the summer.

Electricity prices in New Jersey have been rising in recent years. Garden State residents pay more per kilowatt hour than the national average, according to data from the US Energy Information AdministrationWith rates rising and electricity consumption increasing due to factors such as extreme weather and temperatures, New Jersey residents are looking for ways to save on electricity costs.

Below you’ll find the average energy bill in New Jersey, plus tips for getting a better rate and using less energy at home.

We help you find the best electricity rates in your area

What is the average electricity bill in New Jersey?

New Jersey’s electricity rates aren’t the lowest in the country, but they are significantly lower than New York and much of New England. The state’s average price per kilowatt-hour has generally been three or four cents higher than the national average in recent years, though the recent 2024 rate increase widens that gap.

New Jersey residents use less energy than the national average, meaning their monthly bills are generally slightly lower despite those higher rates. However, this is according to EIA data 2022so it should be taken with a grain of salt. The recent rate hike will likely tell a very different story when 2024 data becomes available.

We help you find the best electricity rates in your area

Buying Electricity in New Jersey

New Jersey has a deregulated energy market. This means that you have options about where your energy comes from, rather than everyone in a certain area buying their energy from one source. The state deregulated its energy markets 25 years ago in an effort to encourage competition among energy providers. But even with a deregulated market, you still have to buy your electricity from the utility that serves the area — PSE&G, Atlantic City Electric, Jersey Central Power & Light or Rockland Electric — but you can choose an energy provider through your utility, potentially resulting in lower electric bills.

“You have to look around and look at different plans,” says Bob Marshall, founder and CEO of Whisker Labswhat makes the Ting, a sensor that monitors energy flows in a home to predict power outages and blackouts, told CNET. “You can choose a plan that makes more sense for you financially. A lot of places in the country don’t have that option.”

When shopping for an electricity provider, don’t just compare the price per kilowatt hour. Check to see if the plan has variable or fixed rates or time-of-use rates, which cause electricity prices to rise and fall throughout the day. Be on the lookout for hidden fees for early termination or using too much (or too little) electricity. You’ll also want to know how long your rate is locked in, and then set a reminder to shop around before it expires to avoid a potential rate hike.

It is also important to be aware of potential scammers or dishonest companies. You can view a list of licensed third party energy providers available through any New Jersey electric company at NJ Power Switch Website.

Solar panels get installed in New Jersey

Installing solar panels in New Jersey requires a significant upfront investment, but it can be a great way to reduce your electricity costs in the long run while also reducing your home’s carbon footprint. There are several financial incentives available to help you reduce the cost of solar energy. The federal solar tax credit allows you to claim up to 30% of the total cost of a solar panel system on your federal taxes.

New Jersey residents who go solar can also take advantage of state incentives. Solar energy systems are exempt from property and sales taxes. You can also sign up for the Successful solar incentive programwhich allows you to receive solar energy credits (SRECs) for every megawatt-hour of energy generated by your panels. Plus, you can save even more with net metering, which compensates you for any excess electricity you sell to the grid at full retail price.

Electricity Bill Help in New Jersey

If you’re having trouble paying your bill, you may be eligible for programs that can cover some or all of your household’s energy costs. Visit the New Jersey State Board of Public Utilities website for more information.

• Universal Service Fund: USF provides monthly credits toward utility bills to New Jersey residents who qualify based on their income.
• Home Energy Assistance Program:This program helps New Jersey residents pay for heating and medically necessary cooling expenses. To apply, you must complete an application.
• Payment assistance for the gas and electricity program: Low- to moderate-income households in New Jersey may be eligible for help paying gas and electric bills.
• Lifeline ProgramSeniors and disabled individuals in New Jersey can apply for this annual energy allowance, which is available to homeowners and renters.
• Winter Ending Program: This program prevents eligible ratepayers from having their energy shut off between November 15 and March 15 of each year. Contact your utility company for more information.
• New Jersey Comfort Partners Program:Customers who qualify for an income-based utility can have free home energy audits and make energy efficiency improvements to reduce their energy bills.

Energy Saving Tips for New Jersey Residents

Shopping around for a new provider isn’t the only way New Jerseyans can save on their electric bills. A big part of paying less for energy is using less energy, and there are plenty of ways to reduce your energy usage to lower those monthly payments.

Keep your HVAC system in shape

“Air conditioning and heating are the biggest energy consumers in the home,” Marshall said, noting that as much as half of your household’s energy can be used by your home’s HVAC system. “If they’re not working optimally, it’s costing you a lot of money.”

Consider replacing or cleaning air filters regularly and hire a professional for an annual maintenance visit to keep your system running efficiently. An older system can also become inefficient over time, using more energy and struggling to keep your home at the right temperature.

The average lifespan of an HVAC system is about 15 to 20 years, so if yours is nearing the end of its lifespan, consider upgrading to a heat pump. Your home will be more comfortable, your electric bills will be lower, and you’ll benefit from IRA tax credits to help cover the costs.

Install a smart thermostat

Another way to save on heating and cooling costs is to install a smart thermostat. This Wi-Fi-enabled device can automatically optimize the performance of your HVAC system while keeping your home comfortable. For example, a smart thermostat can automatically turn down your heat or air conditioning while you’re at work and turn it back on before you arrive, reducing your energy usage and lowering your bill.

“By leveraging technology like smart thermostats to maximize the efficiency of your HVAC system, you can save energy and quite a bit of money,” Marshall says.

Have an energy audit done for your home

If you’re really interested in lowering your electric bill, consider a home energy audit. You can do a low-tech audit yourself or pay a professional energy auditor to assess your home. You’ll get up to $150 back on the cost through a federal tax credit in the Inflation Reduction Act.

An auditor will look for holes and cracks in walls, floors, and windows where air can get in or out. They’ll also look for areas that could use insulation, recommend appliance upgrades, and share strategies to make your home more energy efficient. In New Jersey, home energy audit programs are administered by electric utilities, so contact your utility to learn more about your options.

Disconnect unused electronics

Even when they’re not turned on, your appliances and electronics use small amounts of electricity. This phenomenon, known as “phantom loads” or “vampire energy,” can account for as much as 10 percent of your home’s energy consumption. While it may not be practical for large appliances, Marshall recommends unplugging devices like phone chargers, laptop chargers, and other small electronics when they’re not in use to reduce ongoing energy consumption.

Avoid space heaters

Space heaters can make a cold room more comfortable, but they’re not the smartest way to heat your home, from both an energy efficiency and safety perspective.

“They’re super inefficient and they’re huge energy consumers, so you don’t want to rely on those things all the time to heat your home,” Marshall said. “They’re dangerous. A lot of house fires start with space heaters.”