How Much Have New Jersey Electricity Rates Increased Over the Last 10 Years?

Updated November 9, 2026 | New Jersey Electricity Rates | 5-minute read

Electricity costs have become a growing concern for New Jersey homeowners. But just how much have electricity prices changed over the last decade?

According to data from the U.S. Energy Information Administration (EIA), New Jersey's average residential electricity price increased from 15.81 cents per kilowatt-hour (kWh) in 2015 to 22.63 cents in 2025.

That's an increase of approximately 43.1% over 10 years.

For homeowners looking to better understand their electric bills, this historical trend provides valuable insight into why energy costs deserve closer attention.

What Does a 43% Increase Mean for Your Electric Bill?

Let's consider a homeowner using 650 kWh of electricity per month.

Using the statewide average residential prices:

At 2015 electricity prices:

650 kWh × $0.1581 = approximately $102.77 per month.

At 2025 electricity prices:

650 kWh × $0.2263 = approximately $147.10 per month.

That's a difference of approximately $44.33 per month, or $532 per year, assuming the same electricity usage.

These are illustrative calculations, not actual historical bills. Individual customers have different utility rates, energy usage patterns, and billing arrangements.

The comparison demonstrates something important: even without increasing household electricity consumption, higher electricity prices can make the same amount of energy more expensive.

When Did New Jersey Electricity Prices Start Increasing Faster?

Between 2015 and 2021, New Jersey's average residential electricity prices changed relatively little.

From 2022 onward, the increase became more pronounced:

• 2022: 16.74¢ per kWh

• 2023: 17.70¢ per kWh

• 2024: 19.34¢ per kWh

• 2025: 22.63¢ per kWh

The largest increases occurred toward the end of the decade.

These statewide averages include electricity purchased by residential customers across New Jersey's different utility territories.

Why Have Electricity Prices Increased?

Several factors influence the price homeowners pay.

1. Growing Electricity Demand

Electricity demand from businesses, residential customers, data centers, and other large facilities can affect the balance between available electricity supply and demand.

When demand increases faster than available generating capacity, wholesale electricity costs can face upward pressure.

2. Electricity Generation and Capacity Costs

New Jersey participates in the PJM regional electricity market.

PJM coordinates wholesale electricity markets and helps ensure generating resources are available to meet demand.

Changes in energy prices and capacity-market costs can affect electricity supply charges passed through to customers.

3. Grid Infrastructure

Maintaining and improving electrical infrastructure requires ongoing investment.

Utilities must operate and maintain distribution equipment, substations, transformers, and other systems needed to deliver electricity reliably.

Regulated infrastructure and delivery charges can affect the total amount homeowners pay.

4. Household Energy Consumption

Electricity prices are only one part of your monthly bill.

Your energy usage matters just as much.

Air conditioning, electric heating, electric water heaters, appliances, and electric vehicle charging can significantly affect monthly consumption.

Will New Jersey Electricity Prices Keep Increasing?

No one can predict future electricity prices with certainty.

Rates depend on factors including:

• Electricity supply and demand

• Fuel and generation costs

• Regional capacity requirements

• Transmission and distribution investments

• Regulatory decisions

• Seasonal weather and household usage

The historical data shows that residential electricity became more expensive over the past decade, but it does not guarantee that prices will continue increasing at the same rate.

What Can Homeowners Do to Manage Rising Electricity Costs?

Fortunately, homeowners have several ways to take greater control of household energy expenses.

Improve Home Energy Efficiency

Start by reducing unnecessary electricity consumption.

LED lighting, improved insulation, weather sealing, efficient appliances, and programmable thermostats can help lower energy usage.

Understand Your Electric Bill

Review your monthly kilowatt-hour consumption, electricity supply charges, delivery charges, and seasonal patterns.

Understanding which parts of the bill are changing can help you make more informed decisions.

Explore Residential Solar

Solar panels generate electricity using sunlight, potentially reducing the amount of energy your home purchases from the utility.

Some residential solar subscription plans provide options with $0 upfront installation payments, predictable scheduled payments, and long-term equipment protection.

Actual savings, eligibility, contract escalators, and program availability vary.

Consider Solar Battery Backup

Compatible home battery systems can store electricity for later use and, when properly configured, provide backup power for selected circuits during outages.

Systems such as Tesla Powerwall and smart electrical panels may offer additional energy-management capabilities, depending on installation and configuration.

Can Solar Provide Greater Predictability Over Electricity Expenses?

For some homeowners, solar can provide a different way to manage part of their long-term electricity costs.

Instead of relying entirely on utility-supplied electricity, homeowners may generate a portion of their energy on-site.

Depending on the plan, solar agreements may have defined monthly payments and scheduled annual increases.

Solar does not guarantee a lower total electricity bill or eliminate utility charges, so reviewing the full proposal is essential.

Frequently Asked Questions

How much have New Jersey electricity prices increased since 2015?

The average residential electricity price increased approximately 43.1%, from 15.81¢ per kWh in 2015 to 22.63¢ in 2025, based on EIA annual data.

Are all New Jersey homeowners paying the same electricity rate?

No. Electricity costs depend on your utility territory, supply arrangements, rate structure, and usage.

Does a 43% price increase mean everyone's electric bill increased 43%?

No. Actual bills also depend on how much electricity each household uses. The 43.1% figure measures the change in the statewide average price per kWh, not the change in every customer's bill.

Can solar help reduce exposure to future utility rate increases?

Potentially. Solar can reduce the amount of electricity purchased from the grid, but results depend on system output, utility policies, payment terms, and household consumption.

Is it possible to get solar with $0 down?

Some qualifying homeowners may have access to solar plans with no upfront installation payment. Ongoing payments and other contract terms still apply.

Take Greater Control of Your Energy Future

New Jersey residential electricity prices increased substantially between 2015 and 2025.

For homeowners, understanding these trends is an important first step toward making smarter energy decisions.

Whether you're considering energy-efficiency improvements, residential solar, or battery backup, exploring your options today can help you plan for the future.

Ready to Explore Your Solar Options?

Request a free, no-obligation solar consultation and learn what options may be available for your home.

Get Your FREE Solar Quote

Solar eligibility, savings, pricing, and program availability vary. This article is provided for educational purposes by RisingElectricBills.com, an independent solar referral website.

Sources

1. U.S. Energy Information Administration — Electric Power Annual, Table 2.10, Average Price of Electricity to Ultimate Customers by End-Use Sector and State, 2025 and 2024.

https://www.eia.gov/electricity/annual/table.php?t=epa_02_10.html

2. U.S. Energy Information Administration — Electricity Data and Historical Retail Prices.

https://www.eia.gov/electricity/data.php

3. U.S. Energy Information Administration — New Jersey Electricity Profile.

https://www.eia.gov/electricity/state/newjersey/

4. PJM Interconnection — Regional Electricity Markets.

https://www.pjm.com/

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