
New Jersey's electricity sources are evolving, bringing consumers more environmentally friendly options. The state's electricity was previously dominated by nuclear power, but today, natural gas is the primary source of energy production, with solar energy also contributing significantly. New Jersey has embraced renewable energy sources, with a goal of generating a significant portion of its electricity from renewables by 2025. The state's energy infrastructure has been developed over decades, and its electricity generation mix includes natural gas, nuclear power, solar energy, and other sources.
| Characteristics | Values |
|---|---|
| Main sources of energy | Natural gas and nuclear electricity |
| % of energy from natural gas and nuclear electricity | 95% in 2016 |
| % of energy from renewable sources | 2.4% in 2017, 7% in 2023 |
| Ranking in small-scale solar power generation | 7th in 2023 |
| Ranking in solar capacity | 3rd in 2015 |
| % of energy from coal | 2.4% in 2017, 11% in 2013, less than 5% in 2017 |
| % of energy from petroleum | 0.4% in 2017, less than 0.1% in 2024 |
| % of renewable energy that is solar | Over 70% |
| % of electricity generated in-state | 75% |
| Renewable energy goal by 2021 | 25% |
| Renewable energy goal by 2025 | 25% |
| Renewable energy goal by 2030 | 50% |
| Renewable energy goal by 2035 | 100% clean electricity |
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What You'll Learn

Natural gas
In the past, natural gas came to New Jersey through pipelines from Texas. However, abundant natural gas from fracking operations in the Marcellus Shale fields in neighbouring Pennsylvania has brought down prices and led to the construction of more pipelines. This has allowed for the upgrade of older natural gas plants and the construction of new ones, such as the Bayonne Energy Center and the Newark Energy Center.
In 2023, electricity generation in New Jersey accounted for 36% of the state's total natural gas deliveries to consumers. The residential sector closely followed, accounting for about 31% of the state's natural gas consumption. Seven out of ten New Jersey households use natural gas as their primary home heating fuel, with about 72% relying on it for heating. The commercial sector used about 21% of the natural gas delivered to consumers, and the industrial sector accounted for approximately 12% of the state total. A small amount of natural gas was consumed by the transportation sector as vehicle fuel and separately for pipeline and distribution use.
New Jersey is the 14th-largest natural gas consumer in the nation. However, due to its large population, the state uses less natural gas per capita than three-fifths of the states. New Jersey is committed to cost-effective emissions reduction and has introduced innovative technology from Carbon Reform to achieve this. The state also encourages the use of natural gas through its Home Performance with ENERGY STAR® program, which offers rebates, zero-interest financing options, and alternative credit approvals.
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Nuclear power
New Jersey is home to three nuclear power plants: Oyster Creek in Lacey Township, Hope Creek in Lower Alloways Creek, and a third plant that is not named in sources. In 2024, the owner of these plants, PSEG Nuclear LLC, announced that it would seek federal approval to extend their licenses for another 20 years, which would enable the plants to run beyond 2050. The plants provide nearly half of New Jersey's electricity, and the license extension is seen as a hedge against the potential unavailability of wind projects to meet the state's needs.
While nuclear power has traditionally been a significant source of electricity in New Jersey, the state's energy landscape is changing. New Jersey is moving towards more environmentally friendly and cost-effective options. The state's reliance on coal is dwindling, and renewable energy sources, such as solar and wind, are beginning to play a more significant role in its energy mix.
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Solar power
The state has implemented several initiatives and regulations to promote and support the use of solar power. The Solar Act of 2012, for example, mandated that 4.1% of electricity sales must come from solar sources by 2028. This target was later updated and increased by the Clean Energy Act of 2018, which aimed for 5.1% of electricity sales from solar by 2020, a goal that was achieved ahead of schedule.
The Community Solar Energy Program (CSEP) is another initiative that provides incentives for the development of solar energy projects. This program enables utility customers to participate in community solar energy projects that may not be located on their property. The Successor Solar Incentive Program (SuSI Program) was established to implement the increased solar target of up to 3,750 megawatts of solar generation by 2026, set by Governor Murphy in 2021.
New Jersey is also addressing the challenges associated with solar panel recycling and end-of-life management. A law passed in 2019 established a commission to investigate and develop recommendations for recycling and managing photovoltaic structures and other solar energy generation equipment.
The state's renewable energy standard requires that 25% of New Jersey's net energy sales come from renewable sources by 2021 or 2025, and the state is on a path to achieving this goal. New Jersey's solar market continues to grow, driven by net metering, a solar RPS, and an SREC market. Large-scale solar installations, such as the Ben Moreel Solar Farm in Tinton Falls, contribute significantly to the state's solar capacity.
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Coal
New Jersey does not have any coal reserves or production. The state's electric power sector received all of New Jersey's coal deliveries between 2008 and 2022. In 2017, it was reported that New Jersey's reliance on coal was dwindling, with less than 5% of the state's electricity coming from burning coal. Most of the state's coal-fired generation has been shut down, converted to natural gas, or added dual-firing capability.
In 2017, coal-fired electricity generation was reported to be at 2.4%, with nuclear power at 56.8%, natural gas at 36.8%, renewables (mostly solar) at 2.4%, and petroleum-fired at 0.4%.
New Jersey closed its last two coal plants in 2022. One source states that coal was too expensive compared to natural gas, more hazardous to work with, and much more polluting, leaving no incentive to continue using it.
New Jersey has committed to meeting 100% of the state's energy needs with clean energy by 2050. The state's renewable energy standard initially required that 25% of New Jersey's net energy sales come from renewable sources by 2021, and this figure has been updated to 50% by 2030.
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Renewable energy
New Jersey has adopted a renewable portfolio standard, with the state legislature enacting several substantial revisions, including increased use of solar energy, offshore wind energy, small-scale hydroelectric, and waste-to-energy facilities. The most recent update to the law was in May 2018, which requires 50% of electricity sold in New Jersey to come from approved renewable sources by 2030, with a portion of this coming from offshore wind. The state also released its Energy Master Plan in 2019, aiming to meet 100% of its energy needs with clean energy by 2050. This plan includes carbon-neutral electricity generation, electrification of transportation, increased energy efficiency, improvements to the transmission grid, and expanding net-zero carbon homes incentive programs.
New Jersey's renewable energy standard requires that 25% of the state's net energy sales come from renewable sources by 2021, and over 70% of the renewable energy generated in the state comes from solar energy. Solar energy accounted for 7% of New Jersey's total in-state electricity generation in 2023, ranking it as the nation's 12th-largest producer of electricity from solar energy and 7th in small-scale solar power generation. The state also has some renewable resources from biomass, with landfill and other municipal solid wastes contributing.
In 2023, renewable resources supplied 8% of New Jersey's total energy generation, with nuclear power and natural gas accounting for the majority of the remaining energy sources. However, New Jersey's last two coal-fired power plants shut down in 2022, and the state's reliance on coal is dwindling, with less than 5% of electricity coming from burning coal. Instead, older coal plants have been converted to natural gas or added dual-firing capabilities.
While New Jersey is making progress towards adopting more renewable energy sources, it still consumes more electricity than it produces and relies on other states to meet its energy needs.
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Frequently asked questions
New Jersey generates about 75% of the electricity it uses. The state's main sources of energy are natural gas and nuclear power, which together accounted for 95% of energy production in 2016.
In 2024, 49.6% of New Jersey's energy came from natural gas.
In 2023, solar energy accounted for 7% of New Jersey's total in-state electricity generation.
New Jersey has one of the most aggressive Renewable Portfolio Standards in the country, with a goal of generating 22.5% of its retail electricity needs via renewable sources by 2021 and 35% by 2025. The state sources renewable energy from solar photovoltaics, biomass, wind, and hydropower.
New Jersey's largest energy provider is Public Service Enterprise Group (PSEG).











































