What are the Best Electric Rates in NJ?

What is Energy Choice?

History of State Deregulation

Energy Choice means New Jersey residents get to pick who generates power for their home, separating electricity supply (energy providers) from electricity transmission (utility companies). New Jersey’s energy choice history began with the passage of the Electric Discount and Energy Competition Act (EDECA) in 1999. This legislation deregulated the state’s electricity generation sector while maintaining regulation over transmission and distribution. It allowed customers in all classes—residential, commercial, and industrial—so ratepayers could swipe right on better plans and prices.

About NJ PowerSwitch

NJ PowerSwitch is the Garden State’s official comparison shopping tool, much like Jersey Shore’s boardwalk arcades, but for energy plans. Use it to compare plans, understand your rights, and find the third-party suppliers available in your ZIP Code.

There’s one big caveat to consider. NJ Power Switch lists all electricity providers available in the state, leaving the review-digging and trial-and-error to you, the customer. At electricityrates.com, we do the heavy lifting for you. Our comparison shopping tool only shows vetted, highly-rated providers specific to your ZIP Code, saving you time, money, and potential migraines.

Whether you’re a renter in Newark or a homeowner in Jersey City, you can shop for electricity providers and plans that suit your needs. Simply enter your zip code in our search bar for a side-by-side comparison of the best energy suppliers and rates in your area.

Understanding Your NJ Electricity Bill

Nobody likes a surprise shock from an expensive electric bill. Here’s how to understand your NJ electric bill.

You’ve got the supply charges (what you pay per kWh for energy generation), delivery fees (the wires and poles that transmit energy), taxes, and fees. The key to saving is to take a magnifying glass to that supply charge and compare it to the “Price to Compare”.

In New Jersey, the state-regulated default “Price to Compare” is set through the Basic Generation Service (BGS) auction. It represents the supply portion of the electric bill charged by the local utility. This price is what customers pay if they do not choose a third-party supplier and serves as the baseline to compare offers from competitive electricity suppliers.

Utility vs. Energy Suppliers

Energy suppliers generate the electricity and compete for your business, while utility companies deliver that electricity to your home and maintain the infrastructure, regardless of your chosen supplier. Think of it like this: suppliers (also known as providers) bake the cake, and utilities deliver it to your door.

NJ Utility Companies

Let’s meet the big players delivering power across the state:

• PSE&G (Public Service Electric & Gas) – The biggest utility—works across Bergen to Gloucester counties. Serving 2.3 million customers for electricity and 1.9 million for natural gas. PSEG’s history dates back over 100 years to when it was founded in 1903, combining over 400 gas, electric, and transportation companies throughout the state.
• Jersey Central Power & Light (JCP&L) – Your go-to if you’re in central or northern NJ. Jersey Central Power & Light (JCP&L) serves over 1.1 million customers across central and northern New Jersey. JCP&L was founded in 1862 and became a subsidiary of FirstEnergy in 2001.
• Atlantic City Electric (ACE) – Atlantic City Electric is a utility company whose service area spans 2,800 square miles of southern New Jersey. As a subsidiary of Exelon, Atlantic City Electric has reliably delivered electricity to over 550,000 New Jersey customers and has donated more than $3.1 million to 600+ organizations.

What to Look for When Selecting an Electricity Supplier

Look for energy plans and providers that fit your goals. Are you focused on a cheap, long-term fixed rate, or maybe you care more about finding a green energy plan? Don’t forget to read provider customer reviews, check out their cost history, and the availability (or lack of) customer support.

Types of Electricity Plans in NJ

Three primary electricity plan flavors:

1. Fixed-rate plans – Like ordering disco fries, consistently good: your rate stays the same for the contract’s length (6 months to 3 years).
2. Variable‑rate plans – Rollercoaster energy: rate changes with the market. It can be fun when the market is cheap or scary during a spike.
3. Green or renewable plans – Want your electrons with a side of eco‑friendly? Most energy suppliers allow you to buy some or all of your electricity from solar or wind sources—great for guilt-free, environmentally conscious energy shopping.

Ways to Compare Rates and Secure a Fixed-Rate Plan

New Jersey consumers have several avenues available to explore competitive electricity rates and potentially lock in a fixed-rate plan to avoid utility Price to Compare fluctuations:

1. Explore the NJ PowerSwitch Website: The NJ PowerSwitch website operated by the New Jersey Board of Public Utilities offers a comprehensive marketplace with potentially hundreds of competing energy offers. While this provides a wide array of choices, navigating through numerous plans and determining the best supplier for your specific needs can sometimes feel overwhelming.
2. Simplify Your Search with ElectricityRates.com: ElectricityRates.com offers a secure, fast, and simple process designed to streamline your rate comparison experience. We present you with only the best rates from top-rated and trusted electricity suppliers serving New Jersey, saving you time and effort in your search for the ideal plan.
3. Shop Directly Through Supplier Websites: You also have the option to visit individual energy suppliers’ websites. However, keep in mind that you will only see the plans offered by that specific supplier, requiring you to visit multiple websites to get a broader view of the competitive landscape.

Renewable Energy in New Jersey

New Jersey’s power mix in 2024 was about 45% natural gas, 45% nuclear, and the rest from solar, biomass, and wind. However, the state is aggressively expanding its renewable energy generation capacity with major solar and energy storage projects forming the backbone of its green energy strategy.

Under recent legislation signed by Governor Murphy in August 2025, New Jersey will register an additional 3,000 megawatts (MW) of community solar projects, effectively doubling its clean energy capacity, roughly 10% of the state’s total energy demand. The expansion will benefit about one million households by 2028, including 250,000 low-income families. Plus, there are the landfill solar projects (like the Mount Olive Solar Farm) and even floating solar arrays at water treatment plants—talk about next-level beach vibes.

Offshore wind is a key renewable focus, with significant projects like Atlantic Shores 1 (1.5 GW) and Ocean Wind II (1.15 GW) planned to provide enough electricity to power over 1.15 million homes. The state’s goal is to generate 7.5 GW of offshore wind power by 2035 and 11 GW by 2040. However, development has faced setbacks due to Trump’s federal actions, including the cancellation of some permits and funding withdrawals, which have delayed key transmission infrastructure projects by about 30 months.

NJ Business Electricity Rates

The average commercial electricity rate in New Jersey in 2025 is approximately 18 cents per kWh, which is about 32% higher than the national average commercial rate. This elevated rate contributes to an average commercial monthly electric bill of around $483, though individual bills vary widely depending on consumption. Factor in demand charges, time-of-use rates, or green energy programs, and it’s worth using electricityrates.com’s business energy marketplace to pick a provider that’s right for your business.

All New Jersey Electricity Providers