How NJ Businesses Can Reduce Energy Costs In 2026 Following Recent Rate Hikes

When Your Energy Bill Becomes Your Biggest Headache

If you opened your business electricity bill in the summer of 2025 and nearly fell off your chair, you weren't alone. Commercial energy costs across New Jersey jumped dramatically, leaving business owners scrambling to understand what happened and how to deal with it going forward.

The situation caught many businesses off guard, but it's not too late to take control. Understanding what drove these increases and knowing your options can help you manage your energy expenses more effectively in 2026.

What Actually Happened In 2025

A July 2024 capacity auction conducted by PJM Interconnection resulted in an 833% increase in capacity charges across 13 states, including New Jersey. The increase took effect in June 2025, with commercial customers experiencing bill increases of up to 29% as capacity charges account for roughly 25% of business energy costs.

Capacity charges are fees that ensure there's enough electricity available during peak demand times. When the grid operator couldn't secure enough power generation to meet projected demand, prices shot up dramatically. Unfortunately, every business connected to the grid has to pay these charges regardless of their supplier.

Focus On What You Can Control

While you can't avoid capacity charges, you absolutely can control other parts of your energy bill. New Jersey operates a deregulated electricity market, which means you're not stuck with default utility rates for your energy supply. You can shop around and choose different suppliers with competitive pricing.

Many business owners don't realize they have this option or assume the process is too complicated to bother with. In reality, comparing supplier rates can save you hundreds or even thousands of dollars annually, helping offset those frustrating capacity charge increases you're stuck paying.

Reduce Your Overall Energy Consumption

Cutting your actual electricity usage is the most direct way to lower your bills. Simple changes like switching to LED lighting, upgrading to programmable thermostats, and encouraging employees to power down equipment at the end of the day can make a noticeable difference over time.

Running high-energy equipment during off-peak hours can also reduce costs if your supplier offers time-of-use rates. Even small adjustments to when and how you use electricity add up when sustained over months and years.

Lock In Rates Before They Jump Again

Energy markets are volatile, and waiting could mean missing opportunities to secure better rates. If you're on a month-to-month plan or your contract is expiring soon, exploring fixed-rate options might protect you from future price spikes that could happen as demand continues growing.

Timing matters when it comes to energy contracts. Prices fluctuate based on market conditions, weather forecasts, and seasonal demand patterns. Getting expert guidance on when to lock in rates can make a significant financial difference for your business.

Get Professional Help Navigating The Market

You wouldn't handle complex legal issues without a lawyer or tackle major tax questions without an accountant. Energy procurement deserves the same level of expertise, especially after rate increases like we saw in 2025.

Working with energy consultants who understand New Jersey's deregulated market can save you both time and money. They can compare multiple suppliers on your behalf, explain contract terms in plain language, and help you avoid common pitfalls that cost businesses thousands in unnecessary expenses.

Taking Action In 2026

The energy rate increases of 2025 aren't going away, but they don't have to drain your business budget indefinitely. By understanding your options, reducing consumption where possible, and getting expert guidance on supplier selection and contract timing, you can take control of your energy costs rather than just accepting whatever shows up on your bill.

Start by reviewing your current energy contract and usage patterns. Then explore what competitive suppliers are offering in your area. The few hours you invest now could translate into significant savings throughout the year ahead.

The Energy Consultant NJ
City: Bayonne
Address: 104 W 16th St
Website: https://theenergyconsultantnj.com
Phone: +1 201 892 2587
Email: askmike@theenergyconsultantnj.com