Many New Jersey residents were shocked by an increase in electricity rates approved by the state’s Board of Utilities in February 2024. The situation was exacerbated by a summer heatwave that drove electric bills even higher. Data from the US Energy Information Administration indicated that electricity prices in New Jersey had been increasing over the past years, with residents paying more per kilowatt-hour than the national average. Factors such as extreme weather conditions and rising temperatures were contributing to the increase in electric usage, leading residents to seek ways to save on electricity costs.
The average electricity bill in New Jersey had generally trended three or four cents above the national average in recent years, although the 2024 rate hike widened that gap. Despite the higher rates, New Jersey residents tended to use less energy than the national average, resulting in slightly lower monthly bills. The state’s deregulated energy market allowed residents to choose their energy supplier, potentially leading to lower electric bills. Bob Marshall, CEO at Whisker Labs, advised residents to shop around for different plans, considering factors such as variable or fixed rates, time-of-use rates, hidden fees, and how long the rate is locked in.
Installing solar panels in New Jersey required a substantial upfront investment but could significantly lower electricity costs in the long run, while also reducing the carbon footprint of homes. Residents could take advantage of financial incentives such as the federal solar tax credit, state-level incentives, property and sales tax exemptions, the Successful Solar Incentive Program, and net metering. For those struggling to pay their bills, various assistance programs were available, including the Universal Service Fund, Home Energy Assistance Program, Payment Assistance for Gas and Electric Program, Lifeline Program, Winter Termination Program, and New Jersey Comfort Partners Program.
In addition to switching suppliers and installing solar panels, New Jersey residents could save on their electric bills by using less energy. Keeping HVAC systems well-maintained, installing a smart thermostat, getting a home energy audit, unplugging unused electronics, and avoiding space heaters were suggested ways to reduce energy consumption. Marshall emphasized the importance of optimizing HVAC system efficiency to save on energy costs, especially considering that HVAC systems accounted for a significant portion of household energy usage. Home energy audits could help identify areas for improvement, while unplugging electronics could reduce phantom loads. Space heaters were discouraged due to their inefficiency and safety risks.
Overall, residents in New Jersey were facing challenges with rising electricity rates and increasing energy consumption, particularly during extreme weather events. Shopping around for electricity suppliers, installing solar panels, and utilizing energy-saving tips were some strategies to help lower electric bills. Additionally, assistance programs were available for those struggling to pay their bills, underscoring the importance of energy efficiency and conservation in managing electricity costs. By being proactive and implementing these solutions, New Jersey residents could potentially mitigate the impact of rising electricity rates and reduce their overall energy expenses.
