Do you cringe a little every time you open an electric bill? You’re not alone. Electricity rates are skyrocketing in New Jersey and we’re all feeling the pain of rising costs.
But why are New Jersey electric rates so high and, more importantly, what can you do about it?
At NJ Solar Power, we care deeply about affordable electricity. We’re fed up with rising costs, so we dug into what’s causing it. In this article, we share what we found and explain how you can drastically reduce or even eliminate your electric bills for the next 25+ years.
What’s Happening with NJ Electric Rates?
Earlier this year, in February 2024, The New Jersey Board of Public Utilities (NJBPU) approved the results of the State’s 23rd annual electricity auction for Basic Generation Service (BGS). They forecasted a moderate increase in electricity cost for residents and small to medium-sized businesses.
The highest increase was expected to hit JCP&L customers at 8.6 percent. But residents and businesses across the state have seen much higher increases than that. The question is: why?
The answer isn’t simple, and there’s a lot of speculation around why electric rates are so high in New Jersey right now. During a recent assembly hearing, lawmakers brought in representatives from the states four major electric companies—Atlantic City Electric Company (ACE), Jersey Central Power & Light Company (JCP&L), Public Service Electric & Gas Company (PSE&G), and Rockland Electric Company (RECO)—to explain what’s causing prices to go up.
Their explanation is that supply can’t meet the current demand. It’s getting more expensive to produce and distribute power, meanwhile we’re using more of it than ever before. This summer, one of the hottest on record, had all of us cranking up our air conditioners and experiencing sticker shock.
What Is NJ Doing About Rising Electricity Rates?
All the major players are in agreement: we’re not producing enough electricity. But there are major disagreements around how to increase production. Some lawmakers want to invest more in renewable and clean energy sources like solar and nuclear power while others think fossil fuels are the answer.
What’s clear is that, while we scramble for a solution, electricity costs will continue to increase. And the rising costs will hit residents and small to medium-sized businesses the hardest.
What Can You Do About It?
Electricity has always been expensive in New Jersey—we pay around 10% more for power than the national average. If the pattern we’re currently seeing continues, it’s only going to get more expensive.
So what can you do about it?
There are ways to reduce your usage, of course. You can remember to turn the lights off when you’re not using them and try to cut back on air conditioning in the summer. But small changes like these only save so much and they require a sacrifice, especially when you’re adjusting your thermostat.
If you want to save money without a sacrifice, there’s only one solution: solar panels.
Solar panels put you in complete control of your electricity generation by turning your roof into a personal power plant. They allow you to generate your own power using free energy from the sun, so you don’t have to rely exclusively on your utility company for power. This significantly reduces or even eliminates your electricity costs, which means you have extra money to spend or save every month. It also protects you against rising electricity rates so you can stop worrying about price hikes.
It costs money to install solar panels, but the investment pays for itself through electric bill savings. Plus, there are incentives available to reduce the cost of installing solar. Right now, you can save 30% on solar panel and solar battery installation with the federal solar tax credit.
Ready to Take Control?
If you’re fed up with your electricity provider constantly raising rates, NJ Solar Power is here to help you take control. We install residential and commercial solar power systems designed to offset 100% of your energy usage and make you money! We’re one of the oldest and most experienced solar installers in New Jersey and have installed thousands of solar power systems throughout the states.