What drives electric bills in New Jersey
Residential electricity in New Jersey averaged 24.0¢ per kWh in January–July 2026, up 8.7% from 22.1¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 25.2¢. The typical home here used 662 kWh a month in 2024, 23% less than the U.S. average, so a high bill usually points to the price per kWh or to one big appliance.
- Basic Generation Service (BGS) resets every June 1. The price is set through a yearly state auction. In June 2025 it rose sharply because of higher capacity prices in PJM, the regional grid New Jersey belongs to.
- Higher summer rates. New Jersey utilities charge more per kWh in the summer months, so the same usage costs more from June to September.
- Air conditioning. Humid summers mean A/C runs for long stretches. It is usually the biggest single cost on a summer bill.
Who supplies your power
PSE&G is the largest utility. Jersey Central Power & Light (JCP&L), Atlantic City Electric and Rockland Electric serve the rest of the state, along with a few municipal utilities such as Vineland and Butler.
Ways to pay less in New Jersey
- You can choose a third-party supplier in New Jersey. Compare its rate with your utility’s Price to Compare and avoid variable plans: some have charged far more than BGS.
- Check New Jersey’s Clean Energy Program and your utility’s rebates for heat pumps, smart thermostats and home energy audits.
For example, a 1,500 W space heater running 8 hours a day costs about $87 a month at New Jersey prices. Check what your appliances cost to run in New Jersey.
Shopping for a cheaper plan in New Jersey
New Jersey lets many homes choose who supplies their electricity. Before you switch, compare offers at your own usage, not just the advertised price: at the 662 kWh a typical home here uses, every 1¢ per kWh is worth about $79 a year. Prefer fixed-rate plans of 12 months or more, check the early cancellation fee, and note when the contract ends.
Help paying your bill in New Jersey
- Universal Service Fund (USF): a monthly credit on gas and electric bills for income-eligible households. Apply through the state’s DCA energy assistance portal.
- NJ SHARES and PAGE: grants for households who earn too much for USF or LIHEAP but are still struggling with bills.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in New Jersey?
A typical 7 kW rooftop system in New Jersey produces roughly 8,750 kWh a year, about 100% of what an average home here uses. At the state’s average price of 24.0¢, that power is worth about $2,098 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How New Jersey compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| New Jersey | 24.0¢ | 662 | $159 |
| Delaware | 17.9¢ | 911 | $163 |
| Pennsylvania | 21.0¢ | 817 | $172 |
| New York | 29.4¢ | 571 | $168 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.