Leadership in energy efficiency has saved New Jersey ratepayers hundreds of millions in energy costs

New Jersey sees the biggest gain in utility energy efficiency savings in the country

TRENTON – The State of New Jersey is being recognized as a national leader in energy efficiency programming and outcomes in the American Council for an Energy Efficient Economy’s (ACEEE) 2025 State Energy Efficiency Scorecard, which ranks all fifty states and Washington D.C. New Jersey ranked #8, returning to the top 10 for the first time since 2008 and was listed as one of the most improved States.

“We are thrilled to earn this major achievement with our rankings in the 2025 ACEEE State Scorecard,” said NJBPU President Christine Guhl-Sadovy. “This confirms our State’s investments in efficiency programs are among the best in the nation at delivering results by reducing energy demand, delivering energy savings, and securing long-term bill stabilization for New Jersey ratepayers.”

“On March 20th’s announcement underscores the tremendous strides New Jersey has made in the years following the signing of the Clean Energy Act into law by Governor Murphy,” said Eric Miller, Executive Director of the Office of Climate Action and the Green Economy. “The BPU staff, in partnership with our utilities, have built nation-leading programs that deliver lower energy costs to all New Jerseyans, reducing our greenhouse gas emissions, and employing tens of thousands of New Jerseyans in the clean energy economy.”

According to the ACEEE, New Jersey had the biggest gain in utility energy efficiency savings in the country, jumping nearly 90% since the last edition of the Scorecard, including increased investment in low-income programs. New Jersey’s leadership is poised to continue in future years, as the NJBPU set new targets for savings to reach 2% annually in the 2026 and 2027 program years, demonstrating how efforts to secure short and long-term utility bill savings and stabilization are paying off.

Over the past few months, the NJBPU advanced major energy efficiency program updates and received hundreds of millions of dollars from President Biden’s bipartisan Inflation Reduction Act to help reduce energy costs for ratepayers.

The Triennium program is the cycle of New Jersey’s multi-year utility-run energy efficiency programs. Established by the Clean Energy Act of 2018, natural gas utilities must achieve energy savings of 0.75%, and electric utilities must achieve energy savings of 2% of the average annual usage in the prior three years within five years of implementation of their energy efficiency programs.

It is estimated that Triennium 1 (T1) programs, which ran from July 2021 to December 2024, disbursed $1.25 billion in financial incentives to ratepayers statewide and reduced customers’ utility bills by $600 million, annual electricity usage by 3 million megawatt hours, equivalent to the use of approximately 330,000 households per year, and annual natural gas usage by 8.5 million MMBtu. T1 resulted in 1.4 million metric tons of annual greenhouse gas emission reductions, which is equivalent to approximately 300,000 cars removed from the road per year. These results prove that energy efficiency works to reduce energy demand and helps reduce generation-related price increases that will take effect in June 2025.

To build upon the successes of T1, in October 2024, the Board approved the second stage in the Triennium (T2) program, slated to run from January 2025 to June 2027. Collectively, over $3.75 billion has been budgeted for the T2 programs and will be implemented over a 30-month period from January 1, 2025 through June 30, 2027. This investment will help the State achieve Governor Murphy’s goals outlined in Executive Order 316 and are anticipated to reduce annual electricity usage by 2.3 million megawatt hours, annual natural gas usage by 8.9 million MMBtu, and annual greenhouse gas emissions by 1.5 million metric tons.

To promote energy equity, the Income-Qualified Program will have more capacity compared to T1 to provide comprehensive home energy assessments and offer health and safety improvements, weatherization, HVAC, and other energy efficiency upgrades at no cost to eligible customers. More broadly, programs across the utilities’ portfolios will continue to include enhanced incentives and more favorable financing terms for income-eligible customers. One notable addition in T2 is the standardization of the Direct Install model, including a Public Sector Direct Install program pathway, which will help support partners in labor in growing a local workforce that represents the diverse fabric of our state. Approximately 37,000 people work in the clean buildings sector, and T2 will strengthen the pathway for diverse workers and businesses to continue to build the clean energy economy.

Additionally, in January 2025, New Jersey received a historic $183 million award that is anticipated to fund two programs to benefit low-income ratepayers. More specifically, this funding is anticipated to support whole building energy efficiency projects for low-income multifamily homes to enhance comfort, affordability, and low-carbon appliance improvements. The second program will make eligible homes served by the Comfort Partners program electrification-ready by upgrading their electric panels and wiring. Specific program design measures will follow all U.S. Department of Energy award and program guidelines and are contingent on available funding.

The New Jersey Comfort Partners Program is a free program that helps income-eligible customers reduce their utility bills through implementing cost effective measures which save energy and money while improving their home's safety and comfort at no cost to them. Comfort Partners has helped over 126,000 families since the program was launched in 2001 and is one of the most effective programs administered by the NJBPU.

“Knowledge is power, and one of the biggest benefits of our energy efficiency programs is giving our customers the opportunity to truly understand how they use their energy and the power to take control where they can,” said Doug Mokoid, President, Jersey Central Power and Light. “By offering a wide variety of programs, we’re able to help customers make the improvements they’re comfortable with, whether they want to dive in and make substantial whole-home improvements or go with smaller projects that can still add up to have a big impact.”

“It’s incredible to see this well-deserved recognition of New Jersey’s enhanced commitment to energy efficiency. This progress is driven by the leadership of the state, as well as the efforts and commitment of its utility companies and trade allies,” said Patrick Migliaccio, Senior Vice President and Chief Operating Officer, New Jersey Natural Gas. “New Jersey Natural Gas is proud to be a part of this story, with a record of more than 15 years administering energy-efficiency solutions through our SAVEGREEN program, helping customers save energy while lowering carbon emissions. The next generation of energy-efficiency programs build on that success, with broad-based offerings that put energy-saving measures in reach for more customers and drive smart energy practices and innovative technologies. As always, we recognize and thank the Board of Public Utilities for their continued support of energy-efficiency programs as we work toward a cleaner energy future together.”

“Energy efficiency is an important tool in helping customers lower their energy use and costs, and New Jersey’s ranking in ACEEE’s 2025 State Energy Efficiency Scorecard reflects the strong collaboration between utilities, policymakers, and communities. PSE&G remains committed to expanding access to energy-saving programs that drive meaningful benefits for our customers and the environment,” said Lauren Thomas, Vice President, Clean Energy Solutions, Public Service Electric and Gas.

“SJI congratulates the State of New Jersey on this key accomplishment,” said Maureen Minkel, Senior Director, Marketing and Energy Efficiency, SJI Utilities. “By prioritizing energy efficiency, it’s important for us to provide our customers with energy-saving programs, tools and resources and to remain committed to helping them manage energy usage and save money in the communities we serve.”

“Rockland Electric Company is proud of the progress we have made in promoting and implementing our energy efficiency programs in northern New Jersey,” said Michele O’Connell, president and CEO of Orange & Rockland Utilities. “As our company continues to work with the state to advance clean energy goals, our customers have embraced every opportunity to be more energy efficient, which has ultimately had a positive impact on their monthly bills.”

“New Jersey’s top 10 ranking clearly demonstrates that customers are embracing energy efficiency, and that the work of the state, the BPU and our member utilities to advance clean energy goals is truly having a positive effect,” said Richard Henning, President and CEO of New Jersey Utilities Association. “This achievement is a great success and underscores the value and effectiveness of our utilities’ energy efficiency programs.”

“For the first time in two decades, New Jersey has earned a spot in the top ten of the ACEEE 2025 State Energy Efficiency Scorecard – a monumental achievement for our state! This recognition is a testament to the incredible progress we’ve made in advancing energy efficiency policies that help families and businesses lower their energy costs, create good-paying jobs in the clean energy sector, and reduce harmful pollution,” said Ed Potosnak, Executive Director, New Jersey League of Conservation Voters. “The cheapest energy is the energy you don’t use, and energy efficiency is one of the most effective tools to fight climate change while making energy more affordable and reliable for all New Jerseyans. This milestone comes at a critical time as we continue to push for passage of the 100% clean electricity by 2035 bill. We are doubling down and ensuring that New Jersey remains a national leader in energy affordability, climate action, job creation, and environmental justice. Let’s keep up the momentum.”

“This is a comeback a long time in the making for New Jersey to once again be in the Top 10 most energy efficient states on the ACEEE scorecard,” said Doug O’Malley, Director, Environment New Jersey. “These top metrics reflect a focused commitment from the NJBPU both to implement Triennium 1's successful energy efficiency programs and to launch Triennium 2's historic investment in building decarbonization and demand response programs this year. Coupled with the federal IRA tax credits, these NJBPU historic investments provide relief ahead of coming utility bill increases this summer. The ACEEE accolades also mean that New Jersey is using less energy and producing less climate and air pollution -- this is a list that we want the NJBPU to be on every year.”

“The Energy Efficiency Alliance of New Jersey applauds New Jersey for achieving a top 10 ranking in ACEEE's latest state scorecard for energy savings metrics,” said Jeaneen Zappa, Executive Director, Energy Efficiency Alliance of New Jersey. “As a trade organization for the Garden State’s energy efficiency industry, we know that these rankings reflect smart, innovative policies in the state and lots of persistent, on-the-groundwork from our member businesses. Together, they slash energy bills for consumers and support family-sustaining, clean energy jobs every day. Policy tools—such as well-designed utility programs, efficiency tax credits, and initiatives like the NJ Cool program for building retrofits—further benefit New Jersey residents.”

According to the ACEEE, the State Energy Efficiency Scorecard, now in its 16th edition, is based on data collected from state utility commissions, state energy offices, and publicly available data. ACEEE provided state utility commissions and energy offices the opportunity to review and comment on a draft version of the scorecard prior to its publication. For more information about the ACEEE’s 2025 State Scorecard, please visit: https://www.aceee.org/press-release/.

For more information about State and utility-led efficiency programs, please visit: https://www.njcleanenergy.com/EEP.

About the New Jersey Board of Public Utilities
NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.

About New Jersey’s Clean Energy Program (NJCEP)
NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is www.NJCleanEnergy.com.