As the sun sets on the horizon, so too does the affordability of electricity for New Jersey residents and businesses as costs are set to rise. The New Jersey Board of Public Utilities (BPU) has given the green light to increased electricity costs, leaving many of us wondering how we can escape the impending burden on our wallets.
However, there is a silver lining amidst the stormy skies. In this blog, we’ll delve into the recently approved results of the State’s electricity auction and shed light on how harnessing the power of solar energy can help you fight back against rising electricity bills.
New Jersey’s Rising Electricity Costs:
The BPU recently announced the outcome of the State’s 22nd annual electricity auction for Basic Generation Service (BGS). Unfortunately, the results revealed that the cost of electricity supplied by Atlantic City Electric Company (ACE), Jersey Central Power & Light Company (JCP&L), Public Service Electric & Gas Company (PSE&G), and Rockland Electric Company (RECO) will be on the rise. Brace yourselves for slightly higher electricity bills, my fellow New Jerseyans!
According to Joseph L. Fiordaliso, President of the New Jersey Board of Public Utilities, the increase in energy costs is in line with the current rate of inflation. This means that come 2023, BGS ratepayers will experience an uptick in their energy expenses, albeit one that won’t break the bank.
Let’s take a closer look at the projected impact of the BGS auction results on average residential accounts:
Electricity Cost Impact:
The BGS auction plays a pivotal role in determining the cost of electricity for the majority of New Jersey residents and businesses, covering a 12-month period starting from June 1, 2023. The auction results indicate that the average monthly bill for BGS ratepayers will increase by varying percentages, ranging from 3.3% to 6.9%, depending on the electric distribution company (EDC) that supplies their power.
To illustrate these changes, here’s a breakdown of the expected bill increases for ratepayers supplied by each EDC:
ACE customers will face an average estimated bill increase of 4.1%.
JCP&L customers will experience an average estimated bill increase of 4.8%.
PSE&G customers will encounter an average estimated bill increase of 3.3%.
RECO customers will witness an average estimated bill increase of 6.9%.
To better understand the impact, let’s consider the following example for an average residential customer using 650 kWh per month
Solar Power: A Beacon of Savings:
As the dark clouds of rising electricity costs loom overhead, it’s time to consider an alternative that can bring significant relief to your monthly bills—solar power. Solar energy offers a sustainable and cost-effective solution that not only helps the environment.
Here is a bill from one of our NJ customers from July 2022 to give you a real example of the savings you could see once your solar is installed.
Yes, you read that right, our customer only paid $3.25 for their electricity bill in the middle of the summer. That’s the power of solar energy at work! By harnessing the abundant sunlight that graces the Garden State, you can significantly reduce your reliance on traditional electricity sources and take control of your energy expenses.
- Lower Energy Bills
The most obvious advantage of solar energy is the substantial reduction in your monthly electricity bills. By producing your own electricity, you’ll rely less on the grid and its ever-increasing rates. As the sun’s rays power your home, you’ll notice a considerable drop in your energy expenses, allowing you to allocate those savings toward other important aspects of your life.
- Protection against Rising Rates
With the recent announcement of higher electricity costs, it’s clear that relying solely on the grid can leave you vulnerable to unpredictable price hikes. However, when you switch to solar power, you insulate yourself from these fluctuations. By generating your own energy, you’re shielded from rising rates and enjoy a stable, fixed cost of electricity over the lifespan of your solar system.
- Net Metering
New Jersey’s net metering policy allows solar system owners to receive credit for any excess electricity they produce and feed back into the grid. During periods when your solar panels generate more energy than you consume, such as sunny summer days, the surplus is sent back to the grid, and you receive credits on your bill. This means you can offset the electricity you consume at night or during cloudy days, further reducing your overall energy costs.
- Incentives and Rebates
Installing solar panels comes with its own set of financial benefits. In addition to long-term savings on your electricity bills, there are various incentives and rebates available to help make your transition to solar even more affordable. Federal tax credits, state incentives, and renewable energy programs can significantly offset the upfront costs of installation, making solar energy an even smarter investment.
- Environmental Impact
By embracing solar power, you’re not just saving money—you’re also making a positive impact on the environment. Solar energy is clean, renewable, and produces zero greenhouse gas emissions. By reducing your reliance on fossil fuels, you’re helping to combat climate change and create a sustainable future for generations to come.
At Green Power Energy, we specialize in providing top-quality solar installations that are tailored to your specific needs. Our team of experts will guide you through the process, from system design to installation and maintenance, ensuring a seamless transition to solar power.
So, as the New Jersey electricity costs prepare to rise, why not take charge of your energy future? Explore the benefits of solar power and join the growing community of environmentally-conscious homeowners who are saving money and reducing their carbon footprint. Contact Green Power Energy today and let us help you unlock the power of the sun! Together, we can create a greener and more affordable future for New Jersey.