11 August

The Changing Electric Prices in New Jersey

The Cost of Electricity and the Impact of Solar Energy

As any other New Jersey resident as well as business owner, how much you pay for your electric bills is a major concern. Of course, your desire as a resident or a business owner is to pay less for your electric bills because this determines life affordability or the amount of profits your business generates. Research shows that the cost of electricity has continued to increase each year due to various factors. In January 2018, the monthly electric rate in New Jersey was found to be 15.54 cents per kilowatt- hour. In January 2019, the rates were found to have increased from 15.54 to 15.72 cents per kWh. This change indicates 1.1 percent increase in the cost of electricity between the two years. Various reports have indicated that utility residential electricity prices have risen over the last one decade in New Jersey by over 15%. Remember that the cost of your electric bill is a product of the power you consume monthly multiplied by the electricity rates in your region. If your home consumes about 800kWh of electricity each month, it means that you will end up paying more money in 2019 than you would have paid in 2009. In other words, the increase in electricity cost continues to burden you with higher bills. The increasing cost of electricity is as a result of the rising gasoline prices for those connected to the utility. It is also quite clear that the cost of electricity will continue to increase over the years due to the rising cost of fuel and factors related to the nuclear power plants. Extreme temperatures will also drive the cost of electricity up in the future due to climate changes caused by global warming as one would be required to heat or cool their houses.

Despite the rising cost of electricity, there is a big hope for New Jersey residents and business owners when it comes to obtaining cheaper energy. Solar energy is one of the biggest breakthroughs ever witnessed in the energy industry. The rooftop solar panels continues to be more affordable and accessible to most Americans than ever. The government has also offered tax credits which make it possible for you to install solar panels without worrying so much about the cost. The utility electricity rates usually fluctuates seasonally and annually and that why solar energy makes a lot of sense. Going solar will give you control over what you normally pay for electricity and shield you from the rising electricity prices. When your house or business has a solar energy system installed on the roof or within the compound, it becomes quite possible to reduce your power bills because the system is not subject to utility variations. If you essentially choose to entirely purchase the solar energy system, it means that your electricity bills will be completely eliminated after installing the system and connecting it to the grid. A cheaper alternative to purchasing is the power purchase agreements (PPA) or leases. These options can be cheaper but come with different pros and cons.