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

Many New Jersey residents experienced sticker shock when the state’s Board of Utilities approved an increase in electricity rates in February 2024. A heat wave that summer only drove electric bills higher. One Reddit user said their electric bill went up “more than threefold” while trying to keep their home cool over the summer.

Electricity prices in New Jersey have been increasing over the past several years. Garden State residents pay more per kilowatt-hour than the national average, according to data from the US Energy Information Administration. As rates go up and electric usage increases due to factors like extreme weather and temperatures, New Jerseyans are looking for ways to save on electricity costs. 

Here’s a look at the average electric bill in New Jersey, plus tips for getting a better rate and using less energy at home. 

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What’s the average electricity bill in New Jersey?

New Jersey’s electricity rates aren’t the lowest in the country, but they’re significantly less than New York and much of the New England area. The state’s average price per kilowatt-hour in recent years has generally trended three or four cents above the national average, though the recent 2024 rate hike is widening that gap.  

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

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Shopping for electricity in New Jersey

New Jersey has a deregulated energy market. This means you’re given options on where your energy comes from, instead of everyone in a given area buying their energy from a single source. The state deregulated its energy markets 25 years ago, seeking to drive competition between energy suppliers. But even with a deregulated market, you still have to purchase your electricity through the utility that services the area — PSE&G, Atlantic City Electric, Jersey Central Power & Light or Rockland Electric — but you can choose an energy supplier through your utility, potentially resulting in lower electric bills. 

“You should shop around and check out different plans,” Bob Marshall, founder and CEO at Whisker Labs, which makes the Ting, a sensor that monitors home energy currents to predict electricity faults and power outages, told CNET. “You can pick a plan that will be more beneficial for you financially. A lot of places in the country don’t have that option.” 

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

It’s also important to be aware of potential scammers or dishonest companies. You can see a list of licensed third-party energy suppliers available through each New Jersey electrical utility on the NJ Power Switch website. 

Getting solar panels in New Jersey

Installing solar panels in New Jersey requires a hefty upfront investment, but it can be a great way to lower your electricity costs in the long run, while also reducing your home’s carbon footprint. There are a variety of financial incentives available to help lower the cost of going solar. 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-level incentives too. Solar systems are exempt from property and sales taxes. You can also sign up for the Successful Solar Incentive Program, which enables you to receive solar renewable energy credits (SRECs) for every megawatt-hour of energy generated by your panels. Additionally, you can save even more with net metering, allowing you to be compensated for any excess electricity you sell to the grid at the full retail value. 

Electric bill assistance in New Jersey

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

• Universal Service Fund: The USF provides monthly credits for paying energy bills to New Jersey residents who qualify based on income. 
• Home Energy Assistance Program:This program helps New Jerseyans pay for heating and medically necessary cooling costs. To apply, you’ll need to fill out an application. 
• Payment Assistance for Gas and Electric Program: New Jersey households with low to moderate incomes may be eligible for assistance with gas and electric bills. 
• Lifeline Program: Seniors and disabled New Jersey residents can apply for this annual energy benefit, which is available to homeowners and renters. 
• Winter Termination Program: This program prevents eligible ratepayers from energy shutoffs between Nov. 15 and March 15 of each year. Contact your utility for more information. 
• New Jersey Comfort Partners Program: Qualifying income-eligible utility customers can receive free home energy audits and energy efficiency upgrades to lower their electricity bills.  

Energy-saving tips for New Jerseyans

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

Keep your HVAC system in shape

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

Consider changing or cleaning air filters regularly and hiring 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 while struggling to keep your home the proper temperature. 

The average HVAC system’s lifespan is around 15 to 20 years, so if yours is reaching the end of its life, consider upgrading to a heat pump. Your home will be more comfortable, your electricity bills will be lower and you’ll get the benefit of IRA tax credits to help cover the cost. 

Install a smart thermostat

Another way to save on heating and cooling costs is by installing a smart thermostat. This Wi-Fi-enabled device can automatically optimize your HVAC system’s performance while keeping your home comfortable. For example, a smart thermostat can automatically turn down your heater or air conditioner when you’re at work, then kick back on before you arrive, reducing your energy usage and lowering your bill. 

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

Get a home energy audit

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 for a professional energy auditor to assess your home. You’ll get up to $150 back on the cost via a federal tax credit in the Inflation Reduction Act. 

An auditor will look for gaps 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 upgrades to appliances and share strategies for making your home more energy efficient. In New Jersey, home energy audit incentive programs are run through electric utilities, so check with your utility to learn more about your options. 

Unplug unused electronics

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

Avoid space heaters

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

“They’re super inefficient and they are huge energy users, 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 home fires start from space heaters.”