Energy-Efficient Roofing: A Homeowners Guide (2023)
By Faith Wakefield /
Here’s a quick overview of New Jersey electricity rates:
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Whether you’re moving to a new area and looking for power connection or simply shopping for the best electricity rates, EcoWatch is here to help. We’ve narrowed down the top renewable electricity providers in America, and by using this tool or clicking the links below, you can compare prices and find the right plan for you.
New Jersey has a “deregulated energy market,” which separates the supply rate of your electric bill from the delivery cost. This means that New Jersey residents can shop for their own energy supplier, while the delivery of the energy will be based on your local utility company.
While the idea of choosing your own energy supplier seems simple enough, deregulated energy can be a confusing industry to understand, and many consumers wind up paying way too much. Let’s compare electric rates in New Jersey so you don’t overpay for energy.
The state of New Jersey passed a bill in 1999 to deregulate electricity and gas, giving residents the freedom to choose their own energy suppliers.1 With deregulation, customers can shop from dozens of suppliers to find the best rates and plans that match their needs.
The city’s retail electricity providers (REPs) offer plans that vary in price, contract terms, quality and environmental impact. On top of paying your REP, your rate will include an additional charge from your TDU to cover the cost of delivering electricity, meter reading, wiring from the power lines and more. Those charges are regulated by the New Jersey Board of Public Utilities (BPU).
Unlike with REPs, you cannot choose your utility company, as it depends on where you live. The majority (70%) of New Jersey residents are serviced by Public Service Energy & Gas (PSE&G), while the others are split among Jersey Central Power & Light (JCP&L), Atlantic City Electric and Rockland Electric Company.2
To find the best electricity rates in New Jersey, we recommend comparing prices from a few companies. As a trusted energy information source, EcoWatch is often able to secure discounted rates for our readers. You can use this tool or the buttons below to be connected with local energy providers near you.
Here at EcoWatch, we strive for a healthier planet and encourage our readers to live more sustainably when feasible. As such, we’ve chosen to highlight some of the best electric companies in New Jersey that offer 100% renewable energy.
On average, a renewable plan might cost 1 to 2 cents more per kWh than a non-renewable plan. If you use 1,000 kWh per month, that will be about a $10 to $20 difference. The electricity prices below may not be exact, as rates can fluctuate daily and may vary depending on your ZIP code and your local utility.
When searching for the best electricity prices in New Jersey, remember that rates can fluctuate based on location, seasonality, energy demand and more. EcoWatch can help you lock in a great rate using this tool, but here are a few things to keep in mind when signing up for a new electric plan:
Most REPs offer tiered plans based on your household’s average energy usage. Tiered-rate energy plans are often called “V-shaped plans” because the rates are more expensive for people who use the least and most amounts of energy and are lowest for those in the middle.
For example, in a typical tiered plan, customers who use around 500 kWh or 1,500 kWh per month will pay more than those who use around 1,000 kWh per month. According to the EIA, the average New Jersey home uses 683 kWh per month.3
Typically, the longer you commit to one provider, the better deal you’ll get. We’ll discuss the different types of electricity plans in the next section.
A word of caution: Read the fine print and ask questions before you sign up for a new plan. Many contracts come with startup fees as well as cancellation fees for early termination. And while some New Jersey electricity providers will advertise a $10 cancellation fee, the fine print may read that it’s really $10 per month left on the contract.
If you’re not sure which company to choose, we recommend getting a few quotes and comparing rates and service options. You can use this tool or click below to get started.
There are a lot of terms that pop up around energy deregulation that many homeowners don’t fully understand — including the nuances of the different types of electric plans offered in New Jersey. Here’s an overview of each option, including major advantages and disadvantages.
Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout the entire duration of your contract. Note that “fixed rate” does not mean that your electric bill will be exactly the same every month. Instead, it means the rate you pay per kilowatt-hour of electricity won’t change. So, your bills will still be higher during months you use more electricity.
|Pros of a Fixed-Rate Energy Plan in New Jersey||Cons of a Fixed-Rate Energy Plan in New Jersey|
|You’ll have a better idea of what to expect when it comes to budgeting.||If you cancel early, you could be subject to an early termination fee (ETF), unless you’re moving to a new address outside of the provider’s service area.|
|Your rates remain locked in even if local energy costs rise.||Some fixed-rate plans will turn into variable-rate plans upon contract expiration. Be sure to read the fine print and ask your energy provider specific questions about length and price.|
If you’re wary of being locked into a length-based contract, you may consider a variable-rate electric plan. With these plans, the price you pay is based on variables in the energy market. The price per kWh will increase or decrease depending on supply and demand. This means that the rate you pay for electricity can fluctuate by the month or even the hour.
|Pros of a Variable-Rate Energy Plan in New Jersey||Cons of a Variable-Rate Energy Plan in New Jersey|
|If the price of energy drops, there may be some months where a variable-rate electric customer will be paying less per kWh than someone on a fixed-rate plan.||Variable rates can be very risky if extreme weather or other factors suddenly — and drastically — increase the price of electricity.|
|Most variable-rate contracts do not have early termination fees.|
Many power plans require a deposit upon signing a contract to protect the REP from losses should a customer be unable to pay their energy bill. However, certain companies will offer a no-deposit electricity plan option so long as the customer passes a credit check. If a customer doesn’t have a high enough credit score for a no-deposit plan, they can still avoid paying a deposit by opting for a prepaid, or “pay-as-you-go,” electricity plan.
With a prepaid plan, the customer pays in advance for a set amount of electricity. The good news is that the customer can track their electricity usage online and can reload the account when it runs low. However, rates are not fixed in a prepaid plan, so it can be harder to plan out expenses.
|Pros of a Prepaid Energy Plan in New Jersey||Cons of a Prepaid Energy Plan in New Jersey|
|The obvious — no deposit.||You’ll have to pay for your electricity upfront and remember when to top up your meter.|
|You have total control over how much you spend on your electricity.||Your power will be automatically shut off if you hit the threshold of electricity you paid for (this can be avoided by actively monitoring your usage or enrolling in an auto-pay plan).|
|You don’t have to sign a contract that may come with cancellation fees.||You’ll pay a higher rate per kWh compared to other plans (in most cases).|
New Jersey is currently one of the top states for solar and has an ambitious Renewable Portfolio Standards (RPS) goal of requiring 35% of energy sold in the state to come from renewables by 2025.5 As such, most energy providers offer 100% green energy plans. Some REPs may even have Green-e Verification or a similar certification to ensure that the electricity is responsibly generated, transmitted and distributed.
Most green energy REPs will still offer variable- and fixed-rate plan options; the main difference is where the energy comes from.
|Pros of a Green Energy Plan in New Jersey||Cons of a Green Energy Plan in New Jersey|
|You can feel good about where your electricity is coming from.||On average, renewable plans cost around 1 to 2 cents per kWh more than non-renewable plans. (If you use 1,000 kWh per month, that will be about a $10 to $20 difference.)|
|You can support clean energy without the high initial cost of solar or wind.||They’re not offered by all energy companies, so you’ll have more limited options when choosing a provider.|
Not all REPs will provide energy to commercial customers. If you need a supplier for your business, you’ll have to look for a provider that offers business energy rates. Business energy plans may also apply to industrial sectors, as well as schools, government buildings and churches.
Most business energy plans will offer variable or fixed-rate options.
There are over 100 New Jersey natural gas and electric suppliers. Here are some of the best energy choices according to our review standards:
Whether you’ve just moved to New Jersey or you’re looking to save money by switching companies, here are five things you should look out for when choosing an electricity provider:
Ready to start comparing energy rates in New Jersey? Use this tool or click below to be connected with top local energy companies.
The EcoWatch team frequently gets energy questions from readers in New Jersey regarding electricity plans. Here are the most common questions we see, along with our answers.
Based on our market research, Clearview Energy offers the cheapest electricity rate in New Jersey through their “GreenGuarantee6Plus” plan, with rates starting at 13.59 cents per kWh.
We’ve found that the best energy providers in New Jersey include Green Mountain Energy, Clearview Energy and Inspire Energy. However, the provider that’s best for you will depend on your household’s specific energy needs.
The average monthly bill for electricity is roughly $111.70 for New Jersey homeowners as of January 2022. We calculated this number based on the most recent data from the EIA that shows New Jersey’s average price for electricity is 16.32 cents per kWh and the average monthly consumption is 683 kWh.10,11
While New Jersey has some of the highest electricity rates, its low consumption keeps utility bills reasonable. For comparison, the national average electric bill is $117.46 and the average price of electricity just below $0.14/kWh.12
Because of deregulation, the best way to lower your electricity bill in New Jersey is to compare rates from multiple providers and choose the one that’s going to offer you the best deal over time.
You can also work to lower your overall electricity use by making more conscious decisions to turn off lights, better insulate your home, mind the thermostat and use more power strips. Follow these tips for more ways to save energy at home.
It’s hard to single out the best energy plan in Texas because what’s best for one customer may not be the best for another. We recommend looking at the plans offered by Green Mountain, Clearview and Inspire Energy and finding one that works best for your household. Or, use this link to get connected to the best energy providers in your area.