2025 NJ Electric Rates: Average Bill and Ways to Save

New Jerseyians are no strangers to high price tags. The state was named the fifth most expensive to live in the U.S., and the price of electricity is no exception. The average New Jersey resident spends about $135 per month on their electricity bill, but with electric rates set to increase in June, residents could end up paying 20% more each month. 

There are a few factors that impact how much an electric bill will be, including a home's energy usage and where the electricity is being purchased from. Let's take a closer look at how much energy costs throughout the state, how it varies by company, and how you can reduce your electricity costs.

How much are New Jersey electric rates?

On average, Garden State residents can expect to pay about $0.20 per kilowatt-hour (kWh) of electricity, which is higher than the national average electric rate of $0.17 per kWh. This rate isn't the same across the state, though. The table below outlines the average electric rate charged by the state’s four major utility companies

New Jersey has what is known as a deregulated energy market, so you can actually choose if you want to buy your electricity from your utility company or from a third-party energy provider. If you choose a third-party provider, your energy bill will include charges from that company and from your utility.

Should you use a third-party energy provider?

Most New Jerseyians don’t use third-party electric suppliers. Instead, they purchase their electricity from their utility company. Aside from the fact that it’s less work to just stick with your local utility, many energy providers actually charge more than what utilities do.

If you do find an energy supplier that charges lower rates than your utility, it may be worth considering. But, you also need to make sure that the terms, taxes, and type of energy plan will work for you. The New Jersey Board of Public Utilities (BPU) has a complete list of third-party energy providers.

2025 New Jersey electric rate increases

In February 2025, New Jersey’s Board of Public Utilities announced that residential electric rates would increase by between 17% and 20%, effective June 2025. On average, residents will see their bill increase by $25.76 per month under the new prices. That’s an additional $300 residents will spend on electricity each year on average. 

Come June, New Jersey will be the fifth most expensive state for electricity in the country, up from its current 12th place position. The table below shows the estimated increases:

Historically, New Jersey’s electric rate increases have been modest. In fact, from 2019 to 2022, electric rates in the Garden States decreased by an average of -0.13%. But, starting in 2023, the percentage at which rates started to increase jumped - with the average annual rate of increase for the last three years now sitting at over 9%.

3 ways to save on your New Jersey electric bill

With rates becoming more expensive, you’ll want to try your best to keep your electricity usage low. Here are a few things you can do to keep your electricity bill down in the Garden States:

1. Adopt energy conservation habits

Changing your daily routines to conserve energy can help lower your electricity bills. When the rate hikes hit in the summer, consider keeping your AC temperature a little higher, especially when you’re not home. Also, try to utilize your windows for sunlight and airflow as much as possible! You can also switch to air drying your clothes instead of using the dryer and unplug devices when they’re not in use. 

2. Make energy-efficient upgrades

If you’ve been wanting to take on some home improvement projects, now might be the time. You can make a few upgrades to make your home use less energy, and thus lower your electric bills. Check your doors and windows for drafts, and seal any cracks you can to prevent air from getting in or getting out. Take the time to clean your appliances, like your dishwasher, refrigerator coils, and dryer vents, to make sure they’re operating the best they can. 

You can also go for bigger ticket items, like getting a home energy audit done, upgrading to energy-efficient appliances, or getting a professional HVAC tune-up done to ensure everything is in tip-top shape. 

3. Install solar panels 

Even though New Jersey isn't the sunniest state, it's an excellent place to install solar panels. High electric prices like the ones in New Jersey make going solar an excellent investment. Plus, with the 30% federal solar tax credit and New Jersey’s solar incentive program, SuSI, you can save thousands of dollars when you go solar. 

Solar panels in New Jersey can eliminate all of your energy costs, leading to almost $1,700 in savings each year! And with electric rates starting to increase more substantially each year, the savings could be even greater!