Electric Rates Are Increasing 20% – Here’s How to Reduce Air Conditioning Costs
Big rate hikes are coming our way.
All four New Jersey utility companies will raise their electric rates by approximately 20%, effective June 1, 2025. This increase will directly affect air conditioning costs, just as the summer heat comes bearing down on New Jersey.
The reason for the rise is simple: it’s the law of supply and demand. Our regional grid, the Pennsylvania-NewJersey-Maryland (PJM) grid, is strained. We are all using more electricity, and when the PJM grid can’t meet the demand, utilities are forced to buy from other suppliers and pay a higher price.
Here are the increases a homeowner will pay, assuming the average New Jersey homeowner’s usage of 650 kilowatt-hours a month.* Those with larger homes or higher electric energy consumption rates will experience greater increases.
Jersey Central Power & Light: $22.67 per month, or 20.2%, to $272.04 a year
PSE&G: $26.87 per month or 17.24%, to $322.44 a year
While there is nothing you can do about the utilities raising their rates, there are a few things you can do to reduce your home’s energy costs. Heating and cooling are typically the lion’s share of any homeowner’s energy expenses, so ensuring that your HVAC system is as efficient as possible is one of the best ways to keep costs in check.
Energy-Efficient Air Conditioners Save Money
Certainly, if you have been considering getting a new air conditioner, now would be an excellent time. There are many high-quality and affordable energy-efficient options to choose from. Meyer & Depew can advise you on which systems make the most sense for your home, and we provide financing with no money down for qualified buyers.
In addition, upgrading to energy-efficient equipment can make you eligible for thousands of dollars in federal tax rebates, which you would receive as a tax credit on your tax return.
Even if your system seems to be working properly, if it is older than 10 years, it could be costing you money through inefficiency. Replacing it now can save you money in the long run and avoid having to replace the system hastily in the event of a breakdown. If you are unsure about the condition of your current system, Meyer & Depew offers free, in-home consultations to see if a high-efficiency system makes sense to you.
Tips for Helping Your Air Conditioner Run More Efficiently
We’ve listed some tips that are fairly simple and can be done rather quickly and easily. These tips can also help extend the life of your heating and cooling equipment in your home, saving you even more money in the long run.
- Keep your home 2-3 degrees warmer when you’re not at home.
- Make sure your vents and registers are clear of obstructions.
- Change air filters regularly. A dirty air filter causes your system to work harder, increasing energy use and decreasing its life. Depending on your system, the air filter should be changed monthly or every three months. Factors such as smoking or pets can also increase the frequency with which you need to change your filters.
- Install a programmable or Wi-Fi thermostat and make sure it is programmed so that your system operates only when necessary to keep your home at the perfect temperature when you get home.
- If your ceiling fan has dual-direction capability, reverse its direction of rotation. In the summer, if you stand under it and look up, your fan should rotate counter-clockwise. This will push air down to create a cooling breeze.
- Utilize heavier or sun-blocking blinds during warm weather. Sunlight coming in can dramatically increase the temperature inside your home, forcing your air conditioner to keep running, and costing you on your electric bill.
Finally, make sure your system receives maintenance every year. Yes! Every system—even if it’s brand new—needs a yearly check to ensure that the filter is changed (for peak operation) and the drains are clean and clear (to avoid costly water damage). Our comprehensive service includes all the steps needed to keep your air conditioner running in top condition.
- Check and replace air filters
- Inspect the condenser unit
- Check refrigerant levels
- Examine electrical components
- Clean coils
- Inspect the condensate drain
- Perform a safety check on the entire system
- Money-back guarantee against breakdowns
Our yearly maintenance will prolong the life of your system and is guaranteed against breakdowns.
Reduce Costs with an Energy-Efficient Air Conditioning System
With New Jersey’s surging electrical rates, replacing your older air conditioner with an energy-efficient model could save you money this summer and for many summers afterward. Find out what the best alternatives are for your home.
Stay comfortable all summer!
Call us today at 908-272-2100
For over 70 years, Meyer & Depew has provided honest, expert HVAC service to New Jersey homes of all sizes and budgets. We offer 24-hour service, 7 days a week, with evening and weekend appointments. We have frequent specials, easy payment plans, and hundreds of excellent Google reviews. Trust us to keep your home safe and comfortable.
*Source: NJ.com