Net Metering With PSE&G

PSE&G Electric Rates Will Increase This Year

Public Service Electric & Gas (PSE&G) customers in New Jersey will experience a significant increase in their electricity bills starting June 1, 2025. The New Jersey Board of Public Utilities (NJBPU) has approved the results of the state's 24th annual electricity supply auction, which will raise the average monthly bill for a typical residential customer using 650 kilowatt-hours (kWh) by approximately $26.87, or 17.24%, bringing the new average bill to about $182.71 .(NJB Magazine)

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 Basic Generation Service (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 .

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 .

PSE&G's Infrastructure Improvement Plan

In addition to the rate increase, PSE&G 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 .

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 .

What is the functioning of net metering with PSE&G?

PSE&G, or Public Service Enterprise Group, a longstanding electric utility company founded in 1903, operates in New Jersey. They extend net metering services to specific regions within their operational domain. If your residence meets the criteria, you have the opportunity to link your solar setup with their power grid by adhering to their outlined procedures. Net metering is a provision mandated by the New Jersey Board of Public Utilities for all utility companies, enabling solar system owners to gain credits for any surplus energy generated by their installations.

What will happen to my PSE&G net metering bill credits?

Excess energy generated by your solar system is credited to your account at retail rate. So, you will receive credit based on excess kW produced and the retail price at the time of production. You may be credited up to 100% of your electricity usage. At the end of one year, any excess credits will be credited at the wholesale rate (Locational Marginal Pricing) instead of full retail credit. The capacity of your system cannot exceed your annual electric needs.