Beatrice Lang
New Jersey has a deregulated electricity market, which means that residents can choose from 60 different electricity providers and plans. This also means that electricity rates vary significantly across the state, ranging from 10.75 cents to 23.83 cents per kWh. The average electricity rate in New Jersey is 19.74 cents per kWh, which is higher than the national average of 17.47 cents per kWh. So, which areas of New Jersey have the highest electricity rates, and why?
| Characteristics | Values |
|---|---|
| Number of electricity providers in New Jersey | 60 |
| Electricity rates in New Jersey | 10.75 cents to 23.83 cents per kWh |
| Average electricity rate in New Jersey | 19.74 cents per kWh |
| Average residential electricity rate in New Jersey | 20.49 cents per kWh |
| Average commercial electricity rate in New Jersey | 16.56 cents per kWh |
| Average electric bill in New Jersey | $130.93 for residential customers |
| Electricity market type in New Jersey | Deregulated |
| Energy deregulation laws in New Jersey | Allow residents to shop for electricity rates and switch energy providers |
| Best electricity plan characteristics in New Jersey | Competitive rates, renewable energy options, fixed or variable pricing, reliability, transparency, and customer incentives |
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What You'll Learn
Energy deregulation in New Jersey
New Jersey's electricity market was deregulated in 1999, allowing residents to choose their electricity and natural gas providers from a variety of companies. The state has about 60 electricity providers, with some serving specific areas. The deregulated market increases competition among providers, which can help secure cheaper electric rates for consumers.
Under the state's energy deregulation laws, the supply portion of an electric or natural gas bill is separate from the delivery portion. This means that customers can shop around for the best prices for their energy supplies, while their local utility company will still deliver those supplies through their wires and pipes, and respond to emergencies. The utility company also handles billing information.
The average electricity rate in New Jersey is 19.74 cents per kWh, though rates vary depending on the provider and plan, ranging from 10.75 cents to 23.83 cents per kWh. The average electric bill in New Jersey is approximately $130.93 for residential customers. The price to compare (PTC) is the default energy rate set by the utility company, which customers will be enrolled in if they don't sign up for a plan with a third-party supplier.
New Jersey residents can choose from several types of electricity plans, including fixed-rate plans, which provide rate stability for 6 months to 3 years, and variable pricing plans, which allow the customer's price to rise or fall on a monthly basis as it tracks the wholesale cost of electricity. There are also plans that support renewable energy, with 100% green energy options.
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Variable pricing and rates
New Jersey's electricity market is deregulated, meaning that residents can choose from 60 different providers and plans. This allows for variable pricing and rates.
Variable-rate plans offer flexibility without contracts but come with price fluctuation risks. With a variable-rate plan, your rate will change each month based on market conditions. Variable pricing can be advantageous if the market rate for electricity decreases, but it can also be a disadvantage if the market rate increases. The variable price may be tied to a published index or the utility Price to Compare, or it may change in a non-specific manner based on market conditions and supplier costs.
The four major electric utility companies in New Jersey are JCP&L, Atlantic City Electric, PSE&G, and Rockland Electric. These companies' electric supply prices will generally change seasonally on June 1st and October 1st of each year. They will also change from time to time to reflect other changes, such as wholesale costs, transportation costs, and reconciliation of costs from the prior year.
New Jersey residents can compare variable pricing and rates from different providers and plans to find the best option for their needs.
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Average electricity rates
New Jersey's deregulated electricity market includes 60 providers, with rates ranging from 10.75 cents to 23.83 cents per kWh. The average electricity rate in New Jersey is 19.74 cents per kWh, though this varies depending on the provider and plan. The average residential rate is 20.49 cents per kWh, while the average commercial rate is 16.56 cents per kWh. These rates are higher than the national average, with the residential rate being 17.3% higher and the commercial rate being 27.7% higher.
The deregulated market in New Jersey allows residents to choose their electricity provider and plan, encouraging competition among providers and potentially lowering costs. Residents can compare plans and providers online and switch to a different provider or plan to reduce their energy bill. Fixed-rate plans can provide rate stability for 6 months to 3 years, helping to maintain predictable monthly bills. However, it is important to consider contract terms, cancellation fees, and other factors when comparing plans.
The best electricity plans in New Jersey offer competitive rates, renewable energy options, and fixed or variable pricing. Top providers offer reliability, transparency, and customer incentives. Commercial rates are typically cheaper than residential rates in New Jersey because businesses consume much more energy on average.
To reduce electricity costs, business owners can compare commercial electricity rates and take advantage of the state's deregulated market. Even a small reduction in the rate per kWh can lead to significant savings for businesses with high energy consumption. Additionally, choosing a renewable energy plan or reducing energy usage can also help lower electricity costs.
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Renewable energy plans
New Jersey's deregulated electricity market gives residents the flexibility to shop around for the best electricity rates and plans. The state's electricity rates range from 10.75 cents to 23.83 cents per kWh, with an average rate of 19.74 cents per kWh. This is higher than the national average of 17.47 cents per kWh.
New Jersey residents can select from several types of electricity plans to match their energy needs and budgetary preferences. The best electricity plans offer competitive rates, renewable energy options, and fixed or variable pricing.
Solar energy accounts for almost 90% of New Jersey's renewable electricity generation, with the rest produced from biomass, wind, and hydropower. The state's clean energy plan includes a goal to register 330,000 electric vehicles by 2025, and it offers financial incentives for purchasing electric vehicles and installing charging stations.
The Successor Solar Incentive (SuSI) Program is the current solar program that allows new solar projects to register to earn New Jersey Solar Renewable Energy Credits II (SREC-II). The SuSI Program provides incentives to eligible solar facilities to enable the continued efficient and orderly development of solar renewable energy generating sources throughout the state.
Other renewable energy programs in New Jersey include the Transition Incentive (TI) Program, which bridged the gap between the Solar Renewable Energy Certificate (SREC) Registration Program (SRP) and the SuSI Program. The Legacy SRP was the solar program previously used to register solar installations in New Jersey before its closure in April 2020.
New Jersey also has two utility-scale onshore wind power facilities located on its Atlantic Ocean coastline. In addition, plans are underway to construct one of the largest food waste-to-renewable natural gas projects in Linden, New Jersey, scheduled to come online in 2026.
By choosing a renewable energy plan, New Jersey residents can support green energy and reduce their carbon footprint. These plans offer various benefits, including lower energy bills, improved comfort and safety, and lower upfront costs for installing renewable energy sources.
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$11.47 $13.99
Comparing electricity providers
New Jersey has a deregulated energy market, which means that residents can choose their electricity supplier and plan from a competitive market. This has resulted in increased competition among providers, which can help you secure cheaper electric rates.
When comparing electricity providers, it is important to consider your energy needs, usage, budget, and the type of plan you prefer. Here are a few things to keep in mind when comparing electricity providers in New Jersey:
- Price: Compare the prices offered by different providers and consider whether you want a fixed or variable rate plan. Fixed-rate plans provide rate stability for 6 months to 3 years, helping you maintain predictable monthly bills. Variable-rate plans may offer more flexibility but can also be more expensive if your energy usage exceeds a certain range.
- Renewable energy options: Choose from plans including 100% green energy options to reduce your carbon footprint.
- Plan incentives: Some providers offer incentives such as smart-home device bundles or other perks.
- Reliability and transparency: Look for providers that offer reliable and transparent services, so you know what you're paying for and can trust that your service will be consistent.
- Customer support: Consider the responsiveness and helpfulness of a provider's customer support team.
- Contract terms and fees: Review the contract term, cancellation fees, and other legal clauses before signing up for a new plan.
Available Tools
There are several tools available to help you compare electricity providers in New Jersey:
- Choose Energy: Allows you to compare energy plans and providers by entering your ZIP code.
- EnergyBot: Allows you to compare energy plans and providers by entering your address or ZIP code and some basic information about your energy usage.
- SaveOnEnergy: Offers a free marketplace to compare and choose electricity providers and plans.
- NJ PowerSwitch: A consumer-facing website launched by the BPU with detailed information on energy deregulation, how to shop for energy, supplier lists, and helpful tips.
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Frequently asked questions
New Jersey has a deregulated electricity market, meaning that residents can choose their electricity provider. This was enacted in 1999.
The average electricity rate in New Jersey is 19.74 cents per kWh. The average electric bill in New Jersey is approximately $130.93 for residential customers.
Energy rates vary based on your ZIP code, but currently, Constellation Energy and Energy Harbor offer some of the cheapest electricity rates in New Jersey.
New Jersey electricity rates range from 10.75 cents to 23.83 cents per kWh. The rates vary depending on the providers and plans available to you.
