Find the Best Electricity Rates in New Jersey – Compare & Save on Energy Plans

New Jersey Electricity Rates in February 2025

Based on the most recent data from the Energy Information Administration (EIA), the average electricity rates for New Jersey residents and businesses are as follows:

• Residential Electricity Rates: As of February 2025, the average rate for residential electricity in New Jersey stands at 19.64 cents per kilowatt-hour (kWh). This rate is approximately 15.5% higher than the national average of 17.01 cents per kWh.

• Commercial Electricity Rates: For business owners, the average commercial electricity rate in New Jersey is 14.74 cents per kWh. This is about 20.6% higher than the national average rate of 12.22 cents per kWh.

Average Monthly Electricity Bill in New Jersey

For residential customers, the average monthly electric bill is around $125.50. This figure is calculated by multiplying the state’s typical monthly usage of 639 kWh by the average residential electricity rate of 19.64 cents per kWh. This is approximately 15.8% lower than the national average residential electricity bill of $145.44.

Types of Energy Plans Available in New Jersey

When selecting an energy plan, residents and businesses in New Jersey can choose from several options, depending on their preferences and needs. Here are the most common types of energy plans available:

• Fixed-Rate Plans: With a fixed-rate plan, your electricity price remains stable throughout the duration of your contract, which typically ranges from six months to three years. This means you’ll know exactly what you’ll pay each month. However, if you decide to cancel the contract early, you may incur an early termination fee (ETF), unless you’re relocating out of the provider’s service area.

• Variable-Rate Plans: Unlike fixed-rate plans, variable-rate plans have fluctuating electricity rates that change each month, depending on market conditions and wholesale electricity prices. When energy demand is low, rates tend to be cheaper, but they can spike when demand increases. The flexibility of these plans allows you to cancel or switch without penalty.

• Prepaid and No-Deposit Plans: For customers who want to avoid credit checks or upfront deposits, some providers offer prepaid plans. In these plans, you pay upfront for your electricity based on your anticipated use. Your balance is monitored regularly, and you’ll be notified when it’s running low.

• Renewable Energy Plans: Many energy providers in New Jersey offer green energy plans that include a mix of renewable sources like wind and solar power. These plans cater to environmentally-conscious customers looking to reduce their carbon footprint. The Electricity Facts Label (EFL) will show the percentage of renewable energy in the plan you choose.

Deregulation of the New Jersey Energy Market

New Jersey’s energy market was deregulated in 1999, allowing consumers to select their electric and natural gas suppliers from a competitive pool of providers. This deregulation encourages competition among suppliers and gives residents and businesses the opportunity to shop for the best energy rates. By entering your ZIP code, you can compare rates from different providers and find the most affordable plans. Generally, the best deals are available in the spring and fall when energy demand is lower.

Energy Providers and Utility Companies in New Jersey

In New Jersey, the structure of the energy market involves two main entities: the energy supplier and the utility company. The energy supplier is responsible for setting your rates and managing your billing, while the utility company handles the delivery of electricity, maintenance of grid infrastructure, and the restoration of power in case of outages.

Top Energy Suppliers in New Jersey:

• Constellation Energy

• Direct Energy

• Frontier Utilities

• Clearview Energy

• Smart Energy

• CleanChoice Energy

Natural Gas Suppliers in New Jersey:

• Elizabethtown Gas

• New Jersey Natural Gas

• Public Service Electric & Gas (PSE&G)

• South Jersey Gas

Utility Companies in New Jersey:

Your utility company is determined by your location and is responsible for providing and maintaining the physical infrastructure for electricity delivery. Some of the major utility companies in New Jersey include:

• Atlantic City Electric

• Jersey Central Power & Light (JCP&L)

• Public Service Electric & Gas (PSE&G)

• Rockland Electric

• Vineland Municipal Utility

If you encounter an outage, you should contact your utility company directly for updates on restoration.

Business Energy Rates in New Jersey

Deregulation also provides business owners in New Jersey with the freedom to select their energy provider. This is especially advantageous for the more than 860,000 small businesses in the state, as they can explore various plans that may offer significant cost savings. The average commercial rate in New Jersey is 14.74 cents per kWh, though businesses can shop around to find even lower rates.

How to Find the Right Energy Plan in New Jersey

Choosing the right energy plan can be easy if you follow a few simple steps:

1. Enter Your ZIP Code: Use online tools like Choose Energy to search for available plans in your area. By entering your ZIP code, you’ll gain access to a list of providers and their offerings.

2. Compare Plans: Once you’ve entered your ZIP code, you can filter the results to compare energy plans based on price, terms, and green energy options. This will help you find the most suitable plan for your household or business.

3. Sign Up in Minutes: Once you’ve selected a plan, signing up is quick and easy. You can complete the process online or by phone, and your new energy provider will handle the switch for you.

Final Thoughts

New Jersey’s deregulated energy market provides a wealth of opportunities for consumers and businesses to find competitive energy rates. With a little research, you can select a plan that best suits your needs and potentially save on your energy bills. Whether you’re looking for a stable, predictable rate or a plan that allows for flexibility, New Jersey’s market offers a variety of options for both residential and commercial customers.