New Jersey’s Electricity Costs Are on the Rise

When you are deciding whether or not to get solar panels, you have to compare the cost of the panels with the estimated cost of electricity. Unless you are independently wealthy, the desire to go green is not enough; you have to save green, or at least break even, in order to get solar panels. Of course, the higher the cost of electricity from the grid, the more money you save with solar panels. Electricity costs have been rising, making solar a more appealing choice for people. However, they are poised to rise even more. Recently, the New Jersey Board of Public Utilities (BPU) approved an increase in electricity costs, making now a great time to go solar.

New Jersey holds annual electricity auctions for Basic Generation Service (BGS). These auctions basically allow providers to bid on the lowest rates they can provide. However, no big providers were willing to supply costs as low as they had in previous years. That means that people will be paying higher electricity bills. Beginning June 1, 2023, the average taxpayer can expect to see an increase in their electricity bill. The increases will depend on which distributor supplies their power but should range between 3.3% to 6.9%.

Those increases are based on the same usage. However, if you have been paying attention to weather in the United States, you may have noticed that the South is currently experiencing a massive heatwave, with cities seeing former record highs for this time of year being broken. If New Jersey gets that type of weather, it is going to increase our electricity usage. So, you may see an increase in electricity usage as well as in electricity rates.

Solar panels can protect you from the rising cost of electricity. After all, it is unlikely that electricity prices are going to decline. Instead, we anticipate that they will continue to rise. Solar lets you have lower energy bills and protects you from rising rates. With net metering, you can get credit for excess electricity you produce. You get to sell it back to the grid. That means that you actually get a benefit from the increase in prices. This net metering helps provide you with “free” solar even at night or on cloudy days.

Contact NJ Solar to find out the cost to get solar panels. We can show you what kind of savings you can anticipate from going solar.