New Jersey homeowners will soon see a significant increase in their electricity bills. Starting June 1, 2025, residential customers of major utilities—including PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric—can expect rate hikes of up to 20%. These increases result from recent electricity auctions that set supply rates for customers who rely on utility-provided power.
For the average NJ homeowner, this means paying $20 to $30 more per month on electricity bills—an extra $240 to $360 per year for the same amount of energy.
The good news? New Jersey is a very solar-friendly state where homeowners can see significant savings by installing solar panels.
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How Much Are New Jersey Electricity Rates Going Up?
Depending on your utility provider, here’s how much more you’ll be paying starting in June 2025:
- PSE&G: Bills increasing 17.2% – about $27 more per month
- JCP&L: Bills increasing 20.2% – about $23 more per month
- Atlantic City Electric: Bills increasing 17.2% – about $28 more per month
- Rockland Electric: Bills increasing 18.2% – about $25 more per month
These estimates are based on an average NJ household using 650 kilowatt-hours (kWh) of electricity per month. If have higher electricity usage to power electric heat, home EV charging, or hot tub you’ll likely see a larger impact on your upcoming bills.
For context, utility rates typically increase by 3-4% per year. These increases add up quickly and will continue to rise in the future. With the future of the 30% federal solar tax credit uncertain beyond 2025, now is the best time to consider solar before rates go up again.
How Solar Can Reduce Your Energy Costs in NJ
With electricity prices continuing to rise, many New Jersey homeowners are turning to solar power to lower their monthly bills and gain energy independence. Here’s how installing solar panels can help you avoid the impact of these rate hikes:
1. Lock in a Low, Predictable Energy Cost
When you install solar panels, you generate your own electricity and rely less on your utility provider. This means you’re protected from future rate hikes, like the one coming in June 2025. While utility rates are unpredictable and often rise, solar lets you lock in a lower, fixed cost for decades.
2. Take Advantage of New Jersey’s Solar Incentives
New Jersey is one of the best states for solar incentives, making it easier and more affordable to go solar. Some key programs include:
- Net Metering: Earn credits on your bill when your solar system produces excess energy. These credits offset the electricity you use at night or on cloudy days.
- Successor Solar Incentive (SuSI) Program: Get cash payments for every kilowatt-hour (kWh) of electricity your solar system produces for 15 years.
- Federal Solar Tax Credit: Reduce your solar installation costs by 30% through the federal Investment Tax Credit (ITC).
Learn more about New Jersey solar incentives here.
3. Save Thousands Over Time
A typical New Jersey household uses around 650 kWh per month. With current electricity rates rising, the average electric bill could soon reach $180+ per month in some areas. Over 25 years, that’s more than $84,000 spent on electricity—assuming rates increase at a typical rate of 3.5% each year.
By comparison, an average-sized solar system in New Jersey costs around $30,000 and is eligible for nearly $20,000 in incentives between the 30% tax credit and SuSI program.
By switching to solar, you can significantly cut or even eliminate your electric bill, leading to tens of thousands of dollars in lifetime savings.
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Take Control of Your Energy Future
With electricity rates on the rise, solar power offers a smart, long-term solution for homeowners looking to lower their energy bills and gain independence from their utility provider. Plus, with New Jersey’s generous solar incentives, the cost of going solar has never been more affordable.
Don’t wait until your next bill shocks you—see how much you can save by switching to solar today.
