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Electricity Rates by State: How New Jersey Compares and Why you Should Upgrade your System Today

Every month, you receive a utility bill. If your household consumes energy at a similar rate to the average New Jersey household, your bill is probably somewhere around $105 each month for the electricity and gas your home uses. This could be higher if you have a large home, lower with a small home and vary depending on your home’s electrical, heating and cooling systems.

Homes in New Jersey and the rest of the Northeast are typically older than the national average, and older homes generally have less efficient doors, windows, insulation, and appliances. Clearly, outdated, inefficient heating and air conditioning systems also use energy in a far less efficient way than is possible with modern systems. If you find yourself facing high utility bills month after month, year after year, your home’s heating and cooling system could be to blame. 

So about how much are you paying for electricity as a New Jersey resident? Take a moment to inform yourself about electricity consumption in the United States to see how you compare.

The Price of Electricity In Your State

How is Electricity Measured?

Electricity is measured in kilowatt hours. One kilowatt hour is equivalent to the energy consumption of 1,000 watts of electricity for one hour.

Electricity consumption is billed at a rate of a few cents per kilowatt hour. In 2016, the average price per kilowatt hour (kWh) for New Jersey homes was 15.69 cents.

What Drives Electricity Costs Up and Down?

On a micro scale, there are a few different factors that determine how much energy a home consumes and thus, how large of a bill that home’s owner receives. These factors include:

The season. During the summer, air conditioning units use a lot of energy, driving up the customer’s electricity bill.

How the homeowner consumes energy. Do you tend to leave lights and appliances like tv’s on when rooms are not in use?

Light Bulbs. Incandescent light bulbs are far less efficient than CFL and LED bulbs.

Old wiring and electrical systems.

There are also factors that influence energy costs beyond the homeowner’s control, such as:

The time of day the electricity is used. Some providers charge less for consumption during off-peak hours;

The rate his or her utility provider chooses to charge for electricity. In regulated markets, the homeowner has no choice in his or her provider. In deregulated markets, the homeowner can shop around; and

The time of year. In many cases, summer rates are simply higher than winter rates because of the increased load on the electrical grid. Where in the US a consumer lives also factors into this because of the differences in climate.

New Jersey vs Rest of the Country

It is no secret that life in New Jersey is expensive. New Jersey’s residential average kWh cost of 15.69 cents was higher than the national average, but not the highest in the country in 2016. That distinction goes to Hawaii, where residents paid an average of 27.42 cents per kWh.

There are a few reasons why New Jersey’s energy costs are so high. One is the density of our state – the more people who use the power grid, the higher the costs rise. We are on the nation’s largest power grid, PJM Interconnection, which serves 60 million people from the East Coast to Illinois. Another is the average age of our buildings and our infrastructure. Older buildings and systems simply were not built to work as efficiently as today’s.

One of the most effective ways to reduce your monthly utility bill is to replace old heating, cooling, and electrical systems with high energy efficiency units. Team Electric offers a variety of energy efficient heating and air conditioning systems that will help you conserve kilowatts and SAVE on your monthly utility bills.

New Jersey's Clean Energy Program
Credit: www.njheps.org

Learn More About the Benefits of Upgrading your Electrical System by Speaking with One of our Experienced Electricians

Choosing to upgrade your electric system or your heating or cooling system is a big step in modernizing your home and making it more energy efficient. Like all other big steps, you should do your research and speak to professionals in the field about the upgrade before you make any commitments or purchases. Call Team Electric Plumbing & Air in Manalapan, New Jersey today to learn more about how we can help you save money by upgrading your system and taking advantage of New Jersey’s Clean Energy program.  Our HVAC team can talk to you about the specifics of your home’s needs and how you would be served by an upgraded system.