High rates, rising further
Public Service Electric & Gas's average residential electricity price has risen from 16.5 cents per kWh in 2015 to 20.42 cents in 2024, an increase of about 24 percent, or roughly 2.4 percent per year. The chart shows PSE&G's average residential price by year. Hover any point for the exact figure.
Current residential rates
PSE&G residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.
| Plan | Energy charge | Fixed / basic |
|---|---|---|
| Residential Service (Rate Schedule RS, standard) | Distribution plus a Basic Generation Service supply charge plus a transmission charge; the combined summer price runs into the high 20 cents per kWh, lower in winter | $6.00 per month service charge |
| Residential Load Management Service (RLM, time-of-use) | On-peak (7 am to 9 pm weekdays) and off-peak prices vary by season | about $13.94 per month |
The RS price combines a distribution charge, a Basic Generation Service (BGS) supply charge, and a transmission charge, plus small riders. The all-in residential average was about 20.4 cents per kWh in 2024 per EIA, and it rose further on June 1, 2025 when the annual BGS supply auction raised a typical PSE&G residential bill by about 17.2 percent. Confirm current figures on PSE&G's rate pages.
What rising PSE&G rates could cost you
PSE&G rates have risen about 2.4% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.
Estimate only. Projects your current bill forward at PSE&G's historical average rate increase (2.4% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.
The status change to watch
New Jersey passed its net-metering cap in 2024
State law lets regulators authorize utilities to stop offering net metering to new customers once statewide enrollment tops 5.8 percent of annual kWh sold. Board of Public Utilities staff calculated that the state crossed 5.8 percent during Energy Year 2024, which ended May 31, 2024. Full retail net metering is still in effect today, but the Board is developing a successor program, so the terms for brand-new customers could change. Confirm the current rules before you install.
Full retail netting plus SREC-II
New Jersey requires full retail-rate net metering, and PSE&G credits exported solar on a 1:1 kWh basis at the full retail rate. Your system can be sized up to your annual usage. Monthly kWh credits roll forward at retail through the annualized period; any net excess remaining at the end is paid at the wholesale rate (PJM real-time locational marginal pricing) rather than retail, and it is not forfeited. One current caveat to know: statewide net-metering enrollment passed its 5.8 percent cap in energy year 2024, so the Board of Public Utilities is developing a successor program and the terms for brand-new customers could change; confirm the current rules before installing. On top of net metering, New Jersey pays a separate incentive through the SuSI program: a residential rooftop system earns one SREC-II per MWh generated for 15 years, currently worth $85 per MWh, dropping to $77 for registrations received on or after July 27, 2026. With PSE&G's high retail rates, each kWh you offset is worth a lot, which is what makes New Jersey one of the stronger residential solar states. Whether solar makes sense depends on your usage, roof, and rate plan, so get a site-specific quote.
Strong deal, with a moving part
PSE&G is New Jersey's largest utility and one of its more expensive, with an all-in price above 20 cents that rose again in mid-2025. High rates make each offset kWh valuable, and New Jersey layers two solar benefits on top: full retail 1:1 net metering during the year, plus a SREC-II payment of $85 per MWh generated for 15 years, a genuine second income stream.
Two cautions. Year-end net excess is trued up at the wholesale rate, not retail, so sizing to your own usage still matters. And because the state crossed its net-metering cap in 2024, the rules for new customers are under review, which makes locking in current terms sooner rather than later worth considering. Get a site-specific quote.
PSE&G service area
PSE&G serves much of northern and central New Jersey, including Newark, Jersey City, Elizabeth, Trenton, and New Brunswick.
To confirm whether a specific address is served by PSE&G, check your electricity bill. A ZIP lookup tool is coming to this site.
Full data and sources
Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.
| Year | PSE&G (c/kWh) |
|---|---|
| 2015 | 16.5 |
| 2016 | 16.28 |
| 2017 | 16.35 |
| 2018 | 16.36 |
| 2019 | 16.42 |
| 2020 | 16.63 |
| 2021 | 16.62 |
| 2022 | 17.4 |
| 2023 | 18.94 |
| 2024 | 20.42 |
Sources: EIA Form 861 annual data (Sales_Ult_Cust files, 2015-2024) · EIA Electric Sales, Revenue, and Average Price (Table 6) · NJ Clean Energy Program: net metering and interconnection · NJ BPU: net metering successor stakeholder notice (5.8% cap) · NJ BPU: SuSI ADI SREC-II incentive order (May 2026) · PSE&G electric tariffs
FAQ
Does PSE&G offer net metering?
Yes. New Jersey requires full retail-rate net metering, so PSE&G credits exported solar 1:1 at the retail rate, and your system can be sized up to your annual usage. Monthly credits roll forward at retail; any net excess at the end of the year is paid at the wholesale rate rather than retail.
What is the New Jersey SREC-II worth?
Under the state's SuSI program, a residential rooftop system earns one SREC-II per MWh generated, currently worth $85, paid for 15 years. That drops to $77 per MWh for systems registered on or after July 27, 2026, so the registration date affects 15 years of payments. This is separate from and on top of net metering.
Is New Jersey ending net metering?
Not yet, but it is under review. Statewide enrollment crossed the 5.8 percent threshold in Energy Year 2024, which gives regulators authority to change net metering for new customers. The Board of Public Utilities is developing a successor program. Existing full retail net metering remains in effect, so confirm the current rules before installing.
Is solar worth it on PSE&G?
High rates plus full retail net metering plus the SREC-II income make New Jersey one of the stronger residential solar states, and PSE&G's above-20-cent rates mean each offset kWh saves a lot. Size to your usage so year-end excess, which pays only wholesale, stays small. Get site-specific numbers.