Why is electricity so expensive in New Jersey?
New Jersey pays 25.19¢/kWh for residential electricity, 37.6% above the U.S. average of 18.31¢/kWh and the #10 highest of 51 jurisdictions. At 900 kWh a month that is about $226.71, against $164.79 at the U.S. average.
Rates are EIA residential averages through July 2026, refreshed Sep 28, 2026. The U.S. average is the EIA U.S.-total residential price; rank and region figures compare the 51 jurisdiction averages.
How New Jersey compares
| Measure | New Jersey |
|---|---|
| Residential rate (EIA, July 2026) | 25.19¢/kWh |
| U.S. average (EIA) | 18.31¢/kWh |
| Difference | +37.6% (+6.88¢) |
| Rank among 51 jurisdictions | #10 highest (#42 lowest) |
| Northeast average (9 states) | 26.95¢/kWh |
| Affordability tier | Affordable (index 65/100) |
| 12-month change | fell 0.5% (25.32¢/kWh → 25.19¢/kWh) |
| 5-year change | rose 48.7% (16.94¢/kWh → 25.19¢/kWh) |
See every state in one ranked table on electricity cost per kWh by state or the Northeast region.
What the EIA series shows for New Jersey
- Past 12 months (July 2025 → July 2026)
- The New Jersey residential rate fell 0.5% (−0.13¢/kWh), from 25.32¢ in July 2025 to 25.19¢ in July 2026.
- Past 5 years (July 2021 → July 2026)
- The rate rose 48.7% (+8.25¢/kWh), from 16.94¢ in July 2021 to 25.19¢ in July 2026.
- Past 10 years (July 2016 → July 2026)
- The rate rose 56.5% (+9.09¢/kWh), from 16.10¢ in July 2016 to 25.19¢ in July 2026.
- Highest and lowest month on record
- In this series the New Jersey rate peaked at 25.32¢/kWh in July 2025 and bottomed at 9.34¢/kWh in February 2001. The series covers January 2001 to July 2026.
- Steepest 12-month increase
- The largest single-year move in the series ended in June 2025: the rate rose 25.0% (+4.98¢/kWh), from 19.90¢ in June 2024 to 24.88¢ in June 2025. That is when the change happened; the series does not say what caused it.
- Against the rest of the country
- Over the same window the unweighted average across the 51 jurisdictions with data for this period rose 33.7%, so New Jersey's +48.7% outpaced the nationwide move by 15.0 percentage points. That gap is the part of the movement this dataset cannot attribute to a nationwide trend — it does not identify what else was involved.
- Rank among jurisdictions (July 2021 → July 2026)
- Measured over that identical five-year window, New Jersey's change is the 9th largest of the 51 jurisdictions whose series covers it — rank 1 is the biggest increase, rank 51 the biggest decrease. The rank places the movement; it does not explain it.
Between January 2001 and July 2026 the rate peaked at 25.32¢/kWh in July 2025 and bottomed at 9.34¢/kWh in February 2001.
Every month is charted on the New Jersey electricity price history page, with the year-over-year table and the same measured facts.
What sits on top of the rate in New Jersey
PSE&G's standard residential tariff adds $6.00 a month before the first kilowatt-hour, 12.40¢/kWh in riders, for an all-in 26.00¢/kWh at 900 kWh.
The line items are on hidden electricity fees and taxes for New Jersey, and plan choice matters in a competitive market: read regulated vs deregulated markets.
What generally moves electricity rates
A rate series shows what changed, not why. This dataset records New Jersey's residential rate and nothing about what moved it, and no reviewed New Jersey driver analysis is published yet — so this page makes no causal claim. The factors that generally move retail rates are documented separately.
- Fuel and purchased power. Natural gas, coal, and wholesale power prices pass through to retail rates, often with a lag of months.
- Generation mix. Hydro and legacy nuclear tend to hold rates down; imported fuel, oil, and constrained supply tend to push them up.
- Wires investment. Transmission and distribution upgrades, storm hardening, and wildfire mitigation are recovered through rates over years.
- Market structure. Regulated utilities set rates in rate cases; deregulated markets price supply competitively and bill delivery separately.
- Demand and weather. Load growth, peak-heavy demand, and extreme weather raise the cost of serving each kilowatt-hour.
the factors themselves are documented on electricity generation cost drivers.
What the rate means for a New Jersey bill
| Monthly usage | New Jersey (25.19¢/kWh) | U.S. average (18.31¢/kWh) |
|---|---|---|
| 650 kWh | $163.74 | $119.01 |
| 900 kWh | $226.71 | $164.79 |
| 1,200 kWh | $302.28 | $219.72 |
| 1,600 kWh | $403.04 | $292.96 |
- Average electric bill in New Jersey, by home size and city.
- Estimate a New Jersey bill from your own usage.
- Why is my electric bill so high? The eight usual causes and what to check first.
- Compare electricity plans if your contract rolled to a variable rate.
Frequently asked questions
Why is electricity so expensive in New Jersey?
New Jersey pays 25.19¢/kWh for residential electricity, 37.6% above the U.S. average of 18.31¢/kWh and the #10 highest of 51 jurisdictions. Over the past 12 months the rate fell 0.5% (25.32¢/kWh → 25.19¢/kWh), and over five years it rose 48.7% (16.94¢/kWh → 25.19¢/kWh). The EIA series records the rate and nothing about what moved it, and no reviewed New Jersey driver analysis is published yet, so no cause is claimed here.
How does New Jersey's electricity rate compare with the U.S. average?
25.19¢/kWh in New Jersey against 18.31¢/kWh for the U.S. average (EIA, July 2026): 37.6% above, the #10 highest of 51 jurisdictions. The Northeast average across 9 states is 26.95¢/kWh. At 900 kWh a month that is about $226.71, against $164.79 at the U.S. average.
Is electricity in New Jersey getting more expensive?
Over the past 12 months the rate fell 0.5% (25.32¢/kWh → 25.19¢/kWh), and over five years it rose 48.7% (16.94¢/kWh → 25.19¢/kWh). In EIA data from January 2001 to July 2026, the rate peaked at 25.32¢/kWh in July 2025 and bottomed at 9.34¢/kWh in February 2001. The full monthly series is on the New Jersey electricity price history page.
What can I do about a high electric bill in New Jersey?
Start with the kWh line: compare this bill with the same month last year, then the price per kWh, the billing days, and the fixed charges. PSE&G's standard residential tariff adds $6.00 a month before the first kilowatt-hour, 12.40¢/kWh in riders, for an all-in 26.00¢/kWh at 900 kWh. In New Jersey's competitive market a plan that rolled to a variable rate is a common cause of a jump, so compare plans. The high-bill guide walks through the eight usual causes.