If you live in New Jersey, you’ve likely noticed that your electric bill is rising—and it’s about to get even higher. With new utility rate increases set to take effect in June 2025, some residents could see their bills go up by 20-25%.
So, what’s driving these price hikes? And more importantly—how can you protect your wallet?
In this guide, we’ll cover:
- Why did my electric bill go up $200?
- Who is the cheapest energy supplier in New Jersey?
- How much is the average electric bill in NJ?
- Which power source has the highest consumption rate in NJ?
- How to lower your electric bill with solar energy.
Let’s dive in.
Why Did My Electric Bill Go Up $200?
New Jersey’s electricity rate hike isn’t random—it’s caused by a few major factors:
- Annual Electricity Auction (BGS Auction): Every year, New Jersey utilities participate in the Basic Generation Service (BGS) auction, where they purchase electricity from suppliers. Due to increased costs, this year’s auction resulted in significantly higher rates for consumers.
- Increased Demand for Electricity: As more industries (especially data centers and tech companies) move to New Jersey, overall energy demand has skyrocketed, pushing prices higher.
- Delayed Renewable Energy Projects: Although New Jersey is investing in wind and solar energy, delays in new projects mean the state is still relying heavily on fossil fuels, which are becoming more expensive.
- Rising Capacity Prices in the PJM Grid: New Jersey is part of the PJM Interconnection, which controls electricity distribution for multiple states. The cost to reserve energy capacity has risen dramatically, forcing utilities to charge higher prices.
How Much More Will You Pay?
| Utility Provider | Expected Rate Increase |
| Atlantic City Electric (ACE) | +17.23% |
| Jersey Central Power & Light (JCP&L) | +20.20% |
| Public Service Electric & Gas (PSE&G) | +17.24% |
| Rockland Electric Company (RECO) | +18.18% |
📢 The average New Jersey household could see their electric bill increase by $20–$50 per month, or $240–$600 per year.
Who Is the Cheapest Energy Supplier in New Jersey?
While PSE&G, JCP&L, ACE, and RECO dominate the market, New Jersey has an energy choice program, meaning you can shop for competitive rates from third-party suppliers.
Here’s how to find the cheapest energy supplier in NJ:
✔ Use the New Jersey Board of Public Utilities (BPU) website to compare supplier rates.
✔ Look for fixed-rate plans to avoid future rate hikes.
✔ Avoid variable-rate contracts, which can lead to unexpected price jumps.
Check out New Jersey’s official energy supplier comparison tool: NJ Power Switch
How Much Is the Average Electric Bill in New Jersey?
New Jersey’s average monthly electricity bill is around $122—but that’s about to change. With the 2025 rate hike, that number could jump to $140–$150 per month for the average household.
Factors That Impact Your Bill:
✔ Household Size – Larger homes with more occupants use more power.
✔ Seasonal Changes – Summer and winter months cause higher usage due to AC and heating.
✔ Energy Efficiency – Homes with older appliances and poor insulation will see higher costs.
Want to lower your bill? Visit ShopSolar.ai to see how switching to solar can cut costs.
Which Power Source Has the Highest Consumption Rate in NJ?
New Jersey’s electricity supply comes from a mix of natural gas, nuclear, and renewables.
NJ’s Power Consumption Breakdown:
✔ Natural Gas – 50% (Largest energy source, but prices are rising.)
✔ Nuclear – 45% (Reliable, but costly to maintain.)
✔ Solar & Wind – 5% (Growing but not yet enough to offset fossil fuel dependence.)
While solar and wind energy are expanding, the majority of NJ’s electricity still comes from fossil fuels, which are vulnerable to price fluctuations.
🔍 Solution? Generate your own power with solar panels and reduce your dependence on the grid.
How to Lower Your Electric Bill in New Jersey
With rates rising, NJ homeowners need long-term solutions to avoid overpaying for electricity. Here’s what you can do:
1. Improve Energy Efficiency
✔ Upgrade to LED bulbs and ENERGY STAR appliances.
✔ Use smart thermostats to reduce heating and cooling costs.
✔ Seal windows and doors to prevent energy loss.
2. Switch to a Cheaper Energy Supplier
Check rates from alternative energy providers to secure a lower fixed rate.
3. Install Solar Panels & Beat the Rate Hikes
✔ Offset 50–100% of your electricity costs.
✔ Lock in predictable energy prices for 25+ years.
✔ Qualify for the 30% federal solar tax credit.
💰 How Much Can You Save?
A typical 6 kW solar system can reduce your bill by $1,200+ per year, meaning the system can pay for itself within 6-8 years.
📢 Get a free solar consultation at ShopSolar.ai to see how much you can save.
Conclusion
New Jersey’s 2025 electricity rate hikes are coming, and residents could see bills jump 20-25%.
What You Can Do:
✔ Compare energy suppliers to find the best rates.
✔ Upgrade your home’s energy efficiency to cut costs.
✔ Consider solar energy to lock in lower energy costs for decades.
