The average residential electricity rate in New Jersey is about 23.5 cents per kWh in 2026 (EIA, as of March 2026), one of the highest in the country and roughly 25% above the U.S. average. That is the all-in rate. The supply-only “Price to Compare” your utility quotes is lower (PSE&G about 11.9 to 13.6 cents, JCP&L 16.48 cents, effective June 1, 2026), but delivery charges push the total into the mid-20s. Rooftop solar with New Jersey’s full-retail net metering offsets that all-in rate, so every kWh your roof makes cancels one you would buy at about 23.5 cents.
New Jersey has some of the highest electricity prices in the country, and in 2026 the number on your bill is the strongest reason to look at rooftop solar. The rate you actually pay depends on which utility serves your address, PSE&G, JCP&L, or Atlantic City Electric, and on a distinction most rate pages skip: the “Price to Compare” you see quoted is only the supply half of your bill, not the all-in rate. This page breaks down what New Jersey homeowners really pay per kilowatt-hour in 2026 by utility, why bills jumped, and how solar with New Jersey net metering turns that high rate into savings you can lock in.
New Jersey homeowners pay about 23.5 cents per kWh all-in in 2026 (EIA, as of March 2026), one of the highest electricity rates in the country, and the supply-only “Price to Compare” your utility quotes sits well below that all-in number.
Updated for 2026. Every rate and figure below is dated to its source and was last reviewed in July 2026; utility supply rates reset each June 1, so confirm the current number on your own bill.
What New Jersey homeowners actually pay per kWh in 2026
New Jersey homeowners pay about 23.5 cents per kWh all-in in 2026, one of the highest rates in the country (EIA, as of March 2026). Here is how that breaks down by utility.
- The all-in average is about 23.5 cents per kWh. New Jersey residential electricity averages 23.49 cents per kWh (EIA, as of March 2026), roughly 25% above the national average, which works out to about $155 a month for a typical home.
- Your utility is PSE&G, JCP&L, or Atlantic City Electric. Each has its own regulated “Price to Compare” supply rate, effective June 1, 2026, and Atlantic City Electric customers carry the highest average bills of the three (NJ Board of Public Utilities, as of February 2026).
- The “Price to Compare” is supply only, not your full rate. JCP&L’s residential Price to Compare is 16.48 cents per kWh (FirstEnergy JCP&L, effective June 1, 2026), but that covers generation only. Delivery charges push your all-in rate up to the mid-20s.
- Bills jumped about 17% to 20% in mid-2025 and stayed high. A statewide supply-rate increase took effect June 1, 2025, driven by higher regional capacity-market prices, and 2026 rates held near that elevated level (NJ Board of Public Utilities, as of February 2025).
- Solar offsets the all-in rate, and New Jersey pays full retail for it. New Jersey credits rooftop solar at the full retail rate for the power you send back, up to your yearly usage (NJ Clean Energy Program, as of 2026), so every kWh your roof makes cancels one you would have bought at about 23.5 cents.
- The 30% federal homeowner credit (Section 25D) ended after December 31, 2025 (IRS, as of January 1, 2026), so a New Jersey homeowner who buys solar in 2026 cannot claim it, though state programs continue.
Key numbers, dated and sourced
- New Jersey residential all-in rate: 23.49 cents per kWh, as of March 2026 (EIA).
- JCP&L residential supply “Price to Compare”: 16.48 cents per kWh, effective June 1, 2026 (FirstEnergy).
- PSE&G residential supply “Price to Compare”: about 11.9 to 13.6 cents per kWh, effective June 1, 2026 (PSE&G).
- A 6 kW system in Newark produces about 7,833 kWh a year, as of 2026 (NREL PVWatts).
- According to MySolarFY’s analysis (as of July 2026), a typical New Jersey home offsets about $1,840 of electricity a year with full net metering (EIA rate times NREL PVWatts production).
What is the price per kWh in New Jersey, and why so much of it is “delivery”
New Jersey’s all-in residential rate is about 23.5 cents per kWh in 2026, one of the highest in the nation. The EIA puts the statewide residential average at 23.49 cents per kWh as of March 2026 (EIA), which lands a typical home near $155 a month. That is roughly 25% above the U.S. average, and it is the number that matters for solar, because solar offsets the whole delivered rate, not just one piece of it.
Your bill has two halves, and only one of them is the “Price to Compare.” In New Jersey’s deregulated market, every electric bill splits into supply (the cost of generating the power) and delivery (moving it over the utility’s wires, plus fixed charges and riders). The regulated default supply rate is what the state calls the “Price to Compare,” because it is the benchmark you would measure a third-party supplier against (NJ Division of Rate Counsel and the utilities publish it each June 1, as of 2026). Here is the catch: when a rate page tells you New Jersey power is “16 cents,” that is usually the supply-only Price to Compare. Your all-in rate, supply plus delivery, is the mid-20s figure the EIA reports. Solar is credited against that all-in rate under net metering, which is exactly why the gap matters.
New Jersey electricity rates by utility: PSE&G vs JCP&L vs ACE
Three investor-owned utilities serve almost all New Jersey homeowners, and each sets its own supply rate. Public Service Electric and Gas (PSE&G) is the largest, covering much of the northern and central state. Jersey Central Power and Light (JCP&L), a FirstEnergy company, serves a wide band of central and northwestern New Jersey plus the Jersey Shore. Atlantic City Electric (ACE), an Exelon company, serves the southern counties. Your delivery utility is fixed by where you live, and it sets the Price to Compare below, effective June 1, 2026. Each of those utility guides covers its own net-metering and interconnection details in full.
| Utility | Residential supply “Price to Compare” (effective June 1, 2026) | How it is structured | All-in delivered rate |
|---|---|---|---|
| PSE&G | About 11.9 to 13.6 cents per kWh (PSE&G) | Tiered by season and by the first 600 kWh vs. usage above it, so there is no single flat number | Delivery and riders bring the all-in rate to the low-to-mid 20s per kWh |
| JCP&L | 16.48 cents per kWh (FirstEnergy) | A single published flat residential (RS) rate | Delivery pushes the all-in rate into the mid-20s per kWh |
| Atlantic City Electric | Supply rate set at the June 1, 2026 auction; ACE does not publish a single flat retail figure the way JCP&L does (NJ BPU) | Auction-based BGS-RSCP; confirm the current number on ACE’s Price to Compare page | ACE carries the highest average residential bill of the three NJ utilities (NJ BPU) |
Note: The Price to Compare is a supply-only number. Two homes in different utility territories can see similar all-in bills even when their Price to Compare rates differ, because delivery charges and monthly customer charges vary by utility. The one figure that reflects your true cost per kWh is your own bill: divide a month’s total dollars by the kWh used. That all-in cents-per-kWh is what solar offsets. For the exact supply rate on your account, check your utility’s Price to Compare page, linked in the table above.
See what solar programs are available in your New Jersey ZIP code
Solar incentives, net-metering credits, installer availability, and electric rates change by utility and location. Enter your ZIP and we’ll match you with licensed installers who serve your area.
Free to check. About a minute. No credit pull to check.
Submitted securely and used to match you with licensed installers in your area. Some homeowners may qualify for $0-up-front lease/PPA options where available.
Why is electricity so expensive in New Jersey, and why did my bill go up?
New Jersey bills jumped roughly 17% to 20% starting in June 2025, and the cause was the regional power market, not the utilities’ delivery charges. The state buys default supply for utility customers through an annual Basic Generation Service (BGS) auction. The auction that set the June 2025 rates was certified on February 12, 2025, and it priced in much higher costs from PJM, the regional grid operator whose capacity market cleared far above prior years (NJ Board of Public Utilities, as of February 2025). Because supply is a big slice of the bill, that flowed through to typical residential customers as a 17.2% to 20.2% increase when the new rates took effect June 1, 2025.
The state’s response was bill relief, not a rate freeze. New Jersey did not freeze electricity rates; instead the Board of Public Utilities and the Governor’s office rolled out bill credits, payment deferrals, and a Temporary Supply Offset to soften the increase (NJ Board of Public Utilities, as of June 2025). The 2026 auction, certified February 12, 2026, kept default supply near that elevated level rather than reversing it (NJ BPU, as of February 2026). For a homeowner, the takeaway is simple: the high rate is structural and tied to the wholesale market, so it is unlikely to fall back on its own, which is what makes locking in a portion of your usage with solar attractive.
Who is the cheapest electricity supplier in New Jersey?
Because New Jersey is deregulated, you can shop the supply half of your bill, but “cheapest” is a moving target and the Price to Compare is your benchmark. Any licensed third-party supplier that beats your utility’s Price to Compare lowers your supply cost; any that is higher raises it. The trap is teaser pricing: a low introductory supply rate that resets to a higher variable rate after a few months, which is how some households end up paying more, not less, after switching (NJ Board of Public Utilities consumer guidance, as of 2026). Two honest points a rate page should make:
- Shopping only touches supply. You cannot shop away the delivery charges, the monthly customer charge, or the riders. Those stay with your utility no matter who supplies the electrons.
- Solar addresses the delivered rate you pay regardless of supplier. Whether you are on your utility’s default supply or a third-party plan, the kWh your roof produces offsets your full retail rate under net metering. That is a different lever than switching suppliers, and the two can stack.
Most New Jersey residential customers are on a flat rate with no peak or off-peak windows, so “off-peak hours” do not apply unless you specifically enroll in an optional time-of-use rate, which PSE&G and others offer for customers who can shift heavy usage (like EV charging) to overnight hours (PSE&G time-of-use, as of 2026).
How much can solar save on a New Jersey electric bill?
At about 23.5 cents per kWh all-in, a right-sized system offsets most of a typical New Jersey home’s electricity, and net metering credits it at full retail. New Jersey requires PSE&G, JCP&L, and Atlantic City Electric to credit rooftop solar at the full retail rate for the excess power it sends to the grid, up to your total annual usage (NJ Clean Energy Program, as of 2026). So a kilowatt-hour your roof exports at noon offsets a kilowatt-hour you pull back at night, one for one, at that same all-in rate. The one caveat: if your system produces more than you use across the whole year, that leftover surplus is trued up at the utility’s lower avoided-cost rate, not full retail, and net metering does not offset the fixed monthly customer charge. The practical move is to size the system close to your yearly usage rather than oversize it.
The table below is our own estimate for New Jersey, computed from the state’s all-in rate and local production, not a figure lifted from another site. Instead of resizing the system to match each home, it holds one representative 6 kW system constant, roughly what an average New Jersey home installs, and shows how much of four different usage levels that same array offsets. That is the useful part: the identical system covers a light user’s whole bill but only part of a heavy user’s, and the dollar offset stops climbing once your usage passes what the panels make. It uses the EIA statewide rate of 23.49 cents per kWh (March 2026) and Newark production of 7,833 kWh a year for a 6 kW system (PVWatts, 07102). Your own numbers depend on your roof, shading, usage, and utility, so treat this as an estimate and check your address.
| Your annual usage | Annual bill at 23.49 cents/kWh | A 6 kW system produces (Newark) | Share of your usage it offsets | Estimated annual bill offset |
|---|---|---|---|---|
| 6,000 kWh (about 500/mo) | About $1,409 | About 7,833 kWh | About 100%, with a small surplus | About $1,409 |
| 7,944 kWh (NJ average, about 662/mo) | About $1,866 | About 7,833 kWh | About 99% | About $1,840 |
| 10,200 kWh (about 850/mo) | About $2,396 | About 7,833 kWh | About 77% | About $1,840 |
| 13,200 kWh (about 1,100/mo) | About $3,101 | About 7,833 kWh | About 59% | About $1,840 |
Inputs and assumptions: all-in rate 23.49 cents/kWh (EIA, March 2026); production 7,833 kWh a year for a 6 kW system in Newark (NREL PVWatts, 07102). The annual bill offset is the production you actually use times the rate, capped at your usage under full-retail net metering; a light user’s year-end surplus is trued up at the lower avoided-cost rate, not full retail. A heavier user would size up, since covering 13,200 kWh a year takes roughly a 10 kW system. To turn this into a payback against a real installed price, run your address through our solar cost and savings guide. Estimate only, not a quote.
The bigger driver is what you avoid over 25 years as rates keep climbing. A New Jersey home at the average bill spends about $1,866 on electricity this year. Held flat that is roughly $47,000 over 25 years, but New Jersey rates have not held flat; at a modest 2% to 3% a year that same 25-year spend is about $60,000 to $68,000 (SolarFY estimate, compounding the EIA rate). Solar does not make electricity free, but it locks in a large share of that spend at today’s cost, which is the real hedge against the next BGS auction. To run the payback for your own roof and utility, see our solar cost and savings guide and how much homeowners save on energy with solar.
Does New Jersey have net metering and SREC income?
Yes, and together they are why New Jersey is a strong solar state even though the federal homeowner credit ended. New Jersey net metering credits your exports at full retail up to your annual usage, as described above (NJ Clean Energy Program, as of 2026). On top of that, new residential systems earn income through the Successor Solar Incentive (SuSI) program: each megawatt-hour your system generates earns one SREC-II at an administratively set value of $85 per MWh, fixed for 15 years (NJ Clean Energy Program SuSI, as of 2026). Note the calendar on that one: the residential SREC-II value is scheduled to step down from $85 to $77 per MWh for systems that register on or after July 27, 2026, so the sooner a system is registered, the higher the locked-in rate. We keep the full net-metering and SREC-II mechanics on our New Jersey net metering and SREC-II explainer, and the statewide incentive picture on the New Jersey solar guide, rather than repeating them at length here.
| What it pays | How it is valued | Who receives it |
|---|---|---|
| Net-metering credits on exports | Full retail rate, up to your annual usage; surplus trued up at avoided cost | The utility account holder |
| SREC-II (SuSI program) | $85 per MWh, fixed for 15 years (steps to $77 for registrations on or after July 27, 2026) | The system owner |
| Federal residential tax credit (Section 25D) | Ended for systems placed in service after December 31, 2025 | Not available to 2026 homeowner-buyers |
What the end of the federal tax credit means for New Jersey solar
The federal homeowner credit is gone, but New Jersey’s own programs are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act, so a New Jersey homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS, as of January 2026). You will still see installer pages asking whether the 30% credit is going away; the accurate answer for 2026 is that the homeowner version already ended. What did not change is the part that makes New Jersey solar pay: the high all-in rate you are offsetting, full-retail net metering, and 15 years of SREC-II income. For the full timeline, see what the federal solar tax credit change means in 2026, and for the state-level picture that continues, see New Jersey solar tax credits and incentives in 2026.
One federal exception exists, and it is not the homeowner’s to claim. A separate commercial credit, Section 48E, can apply to a leased or power-purchase-agreement system, but the company that owns the panels claims it, not the homeowner (IRS, as of 2026). On a lease or PPA you do not file for a federal credit yourself. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to compare solar options against your New Jersey rate
Because your utility rate is the thing solar competes with, the smartest comparison starts with your own bill, then screens installers on objective criteria rather than a “best installer” list. When you weigh quotes:
- Start from your all-in rate, not the Price to Compare. Divide a recent bill’s total by the kWh used, then ask each installer to model savings against that number and your actual usage, not a generic state average.
- Confirm the quote uses today’s SREC-II value and net-metering rules. A quote built on an old incentive figure, or one that leans on the federal residential credit that ended after December 31, 2025, is not comparable to one built on 2026 reality.
- Screen every installer the same way. Look for NABCEP certification, a valid New Jersey Home Improvement Contractor registration and electrical licensing, a written workmanship and equipment warranty, and real experience with PSE&G, JCP&L, or ACE interconnection. For a full checklist, see the right questions to ask a solar installer.
- Compare ownership paths. Cash and loan keep the SREC-II income and the most lifetime savings; a lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and the system owner keeps the SREC-II income. See whether solar panels are worth it.
New Jersey has a deep, competitive installer market across Newark, Jersey City, Trenton, and the rest of the state, which is good for pricing. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. You can also read how MySolarFY works and our data and methodology to see how we research these numbers.
Check which solar programs are available at your New Jersey address →
Frequently asked questions
What is the price per kWh in New Jersey in 2026?
New Jersey’s all-in residential electricity rate averages about 23.49 cents per kWh as of March 2026 (EIA), roughly 25% above the national average, which puts a typical home near $155 a month. That all-in figure includes both supply and delivery. The supply-only “Price to Compare” is lower: JCP&L’s is 16.48 cents per kWh and PSE&G’s runs about 11.9 to 13.6 cents per kWh, both effective June 1, 2026, with delivery charges and riders making up the difference between that supply rate and your full bill.
Why is electricity so expensive in New Jersey, and why did my bill go up?
New Jersey bills rose about 17% to 20% for typical residential customers starting June 1, 2025 (NJ Board of Public Utilities). The cause was the state’s annual Basic Generation Service auction pricing in much higher regional capacity costs from PJM, the grid operator, not a change in the utilities’ own delivery charges. The state responded with bill credits and a Temporary Supply Offset rather than a rate freeze, and the 2026 auction held rates near that elevated level. Because the increase is tied to the wholesale market, it is unlikely to reverse on its own.
Who is the cheapest electricity supplier in New Jersey?
New Jersey is deregulated, so you can shop the supply portion of your bill, and any licensed supplier that beats your utility’s Price to Compare lowers your supply cost. There is no single permanent “cheapest,” and low introductory rates that reset to higher variable rates are a common trap (NJ Board of Public Utilities). Remember that shopping only affects supply; delivery charges stay with your utility. Solar works on a different lever, offsetting your full retail rate under net metering no matter which supplier you use.
Is the “Price to Compare” what I actually pay per kWh?
No. The Price to Compare is the supply-only rate, the benchmark you would measure a third-party supplier against (PSE&G, as of 2026). Your all-in rate adds delivery charges, the monthly customer charge, and riders on top, which is why JCP&L’s 16.48-cent Price to Compare becomes a mid-20s all-in rate on a real bill. To find your true cost per kWh, divide a month’s total dollars by the kWh you used. That all-in number is what rooftop solar offsets.
How much can solar save on a New Jersey electric bill?
At about 23.5 cents per kWh, a typical New Jersey home using 7,944 kWh a year spends roughly $1,866 on electricity (EIA, March 2026). A 6 kW system in the Newark area produces about 7,833 kWh a year (NREL PVWatts), which offsets almost all of that at full-retail net metering, roughly $1,840 a year, plus SREC-II income on top. Over 25 years, avoiding a bill that compounds 2% to 3% a year is worth an estimated $60,000 to $68,000. Savings vary by roof, usage, and utility, so treat these as estimates and check your address.
Did the 30% federal solar tax credit end for New Jersey homeowners?
Yes. The 30% federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act (IRS, as of January 2026), so a New Jersey homeowner who buys solar in 2026 cannot claim it. A separate commercial credit (Section 48E) can apply to leased or PPA systems, but the company that owns the system claims it, not the homeowner. New Jersey net metering and the SuSI SREC-II program were not affected, so the state-level case for solar holds up on its own.
Does New Jersey have net metering, and what does it pay?
Yes. New Jersey requires PSE&G, JCP&L, and Atlantic City Electric to credit rooftop solar at the full retail rate for the power you export, up to your total annual usage (NJ Clean Energy Program, as of 2026). One kWh sent to the grid offsets one kWh you buy back, at the same all-in rate. Any surplus left at the end of the year is trued up at the utility’s lower avoided-cost rate, and net metering does not offset the fixed monthly customer charge, so the smart move is to size a system close to your annual usage rather than oversize it.
Reviewed by the MySolarFY team. Figures were verified against the linked EIA, NJ Board of Public Utilities, NJ Clean Energy Program, PSE&G, FirstEnergy (JCP&L), and IRS sources as of July 2026. Utility Price to Compare rates reset each June 1, the SuSI SREC-II value steps down for registrations on or after July 27, 2026, and net-metering true-up rules can change, so confirm current terms with your utility and the NJ Board of Public Utilities before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, a utility, an electricity supplier, a financing company, or a government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the SREC-II income and any tax benefits go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Electricity rates, incentives, savings, and net-metering terms vary by utility and are not guaranteed. See our full disclaimer.
