Compare New Jersey Electricity Rates (2024 Best Prices)

Here’s a quick overview of New Jersey electricity rates:

Current average retail rate of electricity: 16.32 cents/kilowatt-hour
Current range of electricity prices in New Jersey: 13.59 to 20.36 cents/kWh
Average monthly electric bill: $109.54
Average energy usage: 683 kWh/month

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Home Electricity Rates by State New Jersey

Written by Kristina Zagame

Reviewed by Melissa Smith

Updated as of May 17, 2022

Why You Can Trust EcoWatch

Our renewable energy experts have conducted hours of research and collected dozens of data points to determine the best energy rates in New Jersey. We’ve also unbiasedly ranked and reviewed numerous energy companies to empower you to make the right choice for your home.

Whether you’re moving to a new area and looking for power connection or simply shopping for the best electricity rates, EcoWatch is here to help. We’ve narrowed down the top renewable electricity providers in America, and by using this tool or clicking the links below, you can compare prices and find the right plan for you.

New Jersey has a “deregulated energy market,” which separates the supply rate of your electric bill from the delivery cost. This means that New Jersey residents can shop for their own energy supplier, while the delivery of the energy will be based on your local utility company.

While the idea of choosing your own energy supplier seems simple enough, deregulated energy can be a confusing industry to understand, and many consumers wind up paying way too much. Let’s compare electric rates in New Jersey so you don’t overpay for energy.

New Jersey Energy Rates

The state of New Jersey passed a bill in 1999 to deregulate electricity and gas, giving residents the freedom to choose their own energy suppliers.¹ With deregulation, customers can shop from dozens of suppliers to find the best rates and plans that match their needs.

The city’s retail electricity providers (REPs) offer plans that vary in price, contract terms, quality and environmental impact. On top of paying your REP, your rate will include an additional charge from your TDU to cover the cost of delivering electricity, meter reading, wiring from the power lines and more. Those charges are regulated by the New Jersey Board of Public Utilities (BPU).

Unlike with REPs, you cannot choose your utility company, as it depends on where you live. The majority (70%) of New Jersey residents are serviced by Public Service Energy & Gas (PSE&G), while the others are split among Jersey Central Power & Light (JCP&L), Atlantic City Electric and Rockland Electric Company.²

To find the best electricity rates in New Jersey, we recommend comparing prices from a few companies. As a trusted energy information source, EcoWatch is often able to secure discounted rates for our readers. You can use this tool or the buttons below to be connected with local energy providers near you.

Green Mountain Energy

Best Green Energy Options

EcoWatch rating

Average cost

Pros

Green-e certified plans
Wide variety of contract term options
Low number of customer complaints
Many years of experience
Makes charitable contributions

Cons

Charges contract cancellation fees
No prepaid or no-deposit plans
No satisfaction guarantee

Get Estimate Click to get a free quote

Clearview Energy

Great Renewable Energy Choice

EcoWatch rating

Average cost

Pros

Many years of experience
Makes charitable contributions
Values transparency
All plans use clean energy
Low rates

Cons

Charges contract cancellation fees
Some reports of misleading door-to-door sales

Get Estimate Click to get a free quote

Inspire Clean Energy

Best Fixed Billing Option

EcoWatch rating

Average cost

Pros

All plans use clean energy
Certified B Corp
Great industry reputation
No sign-up or cancellation fees

Cons

Relatively young company
Low number of plans to choose from

Get Estimate Click to get a free quote

Verde Energy

Best Value for Renewable Energy

EcoWatch rating

Average cost

Pros

No early termination fees
Many years of experience
Low rates

Cons

History of issues with misleading marketing
No prepaid plans

Get Estimate Click to get a free quote

Comparison of Electricity Prices in New Jersey

Here at EcoWatch, we strive for a healthier planet and encourage our readers to live more sustainably when feasible. As such, we’ve chosen to highlight some of the best electric companies in New Jersey that offer 100% renewable energy.

On average, a renewable plan might cost 1 to 2 cents more per kWh than a non-renewable plan. If you use 1,000 kWh per month, that will be about a $10 to $20 difference. The electricity prices below may not be exact, as rates can fluctuate daily and may vary depending on your ZIP code and your local utility.

How to Find the Best Electricity Rates in New Jersey

When searching for the best electricity prices in New Jersey, remember that rates can fluctuate based on location, seasonality, energy demand and more. EcoWatch can help you lock in a great rate using this tool, but here are a few things to keep in mind when signing up for a new electric plan:

Your Energy Usage

Most REPs offer tiered plans based on your household’s average energy usage. Tiered-rate energy plans are often called “V-shaped plans” because the rates are more expensive for people who use the least and most amounts of energy and are lowest for those in the middle.

For example, in a typical tiered plan, customers who use around 500 kWh or 1,500 kWh per month will pay more than those who use around 1,000 kWh per month. According to the EIA, the average New Jersey home uses 683 kWh per month.³

Contract Length

Typically, the longer you commit to one provider, the better deal you’ll get. We’ll discuss the different types of electricity plans in the next section.

A word of caution: Read the fine print and ask questions before you sign up for a new plan. Many contracts come with startup fees as well as cancellation fees for early termination. And while some New Jersey electricity providers will advertise a $10 cancellation fee, the fine print may read that it’s really $10 per month left on the contract.

If you’re not sure which company to choose, we recommend getting a few quotes and comparing rates and service options. You can use this tool or click below to get started.

Types of Electricity Plans in New Jersey

There are a lot of terms that pop up around energy deregulation that many homeowners don’t fully understand — including the nuances of the different types of electric plans offered in New Jersey. Here’s an overview of each option, including major advantages and disadvantages.

Fixed-Rate Plans

Just as it sounds, a fixed-rate plan allows you to secure a rate that will stay the same throughout the entire duration of your contract. Note that “fixed rate” does not mean that your electric bill will be exactly the same every month. Instead, it means the rate you pay per kilowatt-hour of electricity won’t change. So, your bills will still be higher during months you use more electricity.

Fixed rate energy plans in texas have fixed prices width=“441” height= — ^{With a fixed-rate plan, you’ll pay the same amount month over month for each kilowatt-hour of energy you use. This ensures your rates will stay the same even when the market rate of electricity fluctuates. Some months, you’ll pay less than the market rate, and others, you’ll pay more.}

Variable-Rate Plans

If you’re wary of being locked into a length-based contract, you may consider a variable-rate electric plan. With these plans, the price you pay is based on variables in the energy market. The price per kWh will increase or decrease depending on supply and demand. This means that the rate you pay for electricity can fluctuate by the month or even the hour.

Variable rate energy plans have fluctuating prices width=“441” height= — ^{With a variable-rate plan, prices change based on the market rate of electricity. Some months, you’ll pay less than homes with fixed-rate plans, and others, you’ll pay more. You may also see surprisingly high bills during extreme fluctuations.}

No-Deposit and Prepaid Energy Plans

Many power plans require a deposit upon signing a contract to protect the REP from losses should a customer be unable to pay their energy bill. However, certain companies will offer a no-deposit electricity plan option so long as the customer passes a credit check. If a customer doesn’t have a high enough credit score for a no-deposit plan, they can still avoid paying a deposit by opting for a prepaid, or “pay-as-you-go,” electricity plan.

With a prepaid plan, the customer pays in advance for a set amount of electricity. The good news is that the customer can track their electricity usage online and can reload the account when it runs low. However, rates are not fixed in a prepaid plan, so it can be harder to plan out expenses.

Pros of a Prepaid Energy Plan in New Jersey	Cons of a Prepaid Energy Plan in New Jersey
The obvious — no deposit.	You’ll have to pay for your electricity upfront and remember when to top up your meter.
You have total control over how much you spend on your electricity.	Your power will be automatically shut off if you hit the threshold of electricity you paid for (this can be avoided by actively monitoring your usage or enrolling in an auto-pay plan).
You don’t have to sign a contract that may come with cancellation fees.	You’ll pay a higher rate per kWh compared to other plans (in most cases).

Green Energy Plans

Green energy plans are those that supply electricity from renewable energy sources. That’s going to be primarily wind or solar energy in New Jersey.⁴

New Jersey is currently one of the top states for solar and has an ambitious Renewable Portfolio Standards (RPS) goal of requiring 35% of energy sold in the state to come from renewables by 2025.⁵ As such, most energy providers offer 100% green energy plans. Some REPs may even have Green-e Verification or a similar certification to ensure that the electricity is responsibly generated, transmitted and distributed.

Most green energy REPs will still offer variable- and fixed-rate plan options; the main difference is where the energy comes from.

Pros of a Green Energy Plan in New Jersey	Cons of a Green Energy Plan in New Jersey
You can feel good about where your electricity is coming from.	On average, renewable plans cost around 1 to 2 cents per kWh more than non-renewable plans. (If you use 1,000 kWh per month, that will be about a $10 to $20 difference.)
You can support clean energy without the high initial cost of solar or wind.	They’re not offered by all energy companies, so you’ll have more limited options when choosing a provider.

Business Energy Plans

Not all REPs will provide energy to commercial customers. If you need a supplier for your business, you’ll have to look for a provider that offers business energy rates. Business energy plans may also apply to industrial sectors, as well as schools, government buildings and churches.

Most business energy plans will offer variable or fixed-rate options.