Net Metering With JCP&L

JCP&L Electric Rates Will Increase This Year

Jersey Central Power & Light (JCP&L) customers in New Jersey are facing a significant electricity rate increase starting June 1, 2025. Following the New Jersey Board of Public Utilities' (NJBPU) annual Basic Generation Service (BGS) auction, residential customers can expect their monthly bills to rise by approximately $22.67, or 20.2%, based on average usage of 650 kilowatt-hours (kWh). This will bring the typical JCP&L bill to about $134.92 per month .(Asbury Park Press)

Reasons for the Rate Increase

The rate hike is primarily due to increased electricity supply costs, which have surged as a result of higher demand and limited supply growth. The recent BGS auction secured electricity at prices significantly higher than in previous years, contributing to the overall increase in consumer costs. Factors such as delays in connecting new power projects to the grid and a backlog of proposed clean energy projects awaiting approval have exacerbated the situation .(The US Sun)

Customer Concerns and Municipal Opposition

The proposed rate increase has sparked concern among residents and local officials. The Jackson Township Council, for instance, has strongly opposed the 17–20% hike, citing its potential financial burden on residents, particularly those on fixed incomes and small businesses already struggling with rising costs .(Shore News Network)

JCP&L's Infrastructure Improvement Plan

In addition to the rate increase, JCP&L has introduced the EnergizeNJ initiative, a five-year, $935 million infrastructure improvement plan aimed at modernizing the electric grid. The plan includes investments in grid modernization, system resiliency, and substation upgrades. While these improvements are expected to enhance service reliability and reduce outages, they are also contributing to the overall cost increases for consumers .(FirstEnergy Corp.)

Potential Savings Through Solar Energy

With electricity rates on the rise, many residents are exploring alternative energy solutions to mitigate costs. New Jersey's solar programs, including the Successor Solar Incentive (SuSI), offer opportunities for homeowners to reduce their dependence on the grid and lock in more predictable energy costs. Investing in solar energy can provide long-term savings and contribute to a more sustainable energy future .

As the June 1 implementation date approaches, residents are encouraged to stay informed about the changes and consider energy-saving measures to manage the impact of the rate increase.

What are the rate and pricing structures for net metering provided by Jersey Central Power & Light?

Jersey Central Power & Light calculates its net metering rates based on the annual net metering credits, which are then multiplied by the current retail rate. These credits are applied to forthcoming bills and any excess credits are carried over to the customer's account at the end of the year.

The net metering program from Jersey Central Power & Light encompasses three primary tiers based on system size, which determine the corresponding rates and prices. For Level 1, designed for solar panel systems up to 10kW (typically serving residential customers), Level 2 is intended for installations up to 2,000kW, while Level 3 pertains to facilities falling outside the criteria for Level 1 or Level 2 interconnection procedures.

What is the net metering capacity limit imposed by Jersey Central Power & Light?

In New Jersey, the net metering cap is set at 2.9% of the total annual kilowatt-hours (kWh) sold within the state by individual electric power suppliers in the preceding year. While there is no strict and inflexible constraint on net metering, the Board of Public Utilities (BPU) holds the authority to discontinue net metering availability upon reaching this capacity threshold. However, it is noteworthy that the BPU also retains the option to extend net metering even after this threshold is achieved. This mechanism is referred to as a "trigger" rather than a rigid cap.

What happens with the net metering bill credits from Jersey Central Power & Light?

In certain scenarios, Jersey Central Power & Light patrons might generate surplus electricity beyond their consumption, leading to a situation called net excess generation (NEG). This generates additional net metering credits, which are allocated both on a monthly basis and at the close of the year.

For every kilowatt-hour (kWh) of NEG produced, customers are reimbursed at the full retail rate, up to the total electricity amount they consumed within that yearly period. These credits are utilized to offset forthcoming bills until exhausted and have a validity until the year's end. If there are any remaining credits by the end of the year, the value of the excess generation is credited to the customer's account at the wholesale cost of power.