New Jersey approved $100 bill credits for 3.9M households and signed two PJM laws. What they do, what they don't, and what could really lower bills.
New Jersey residents saw electricity bills spike in the summer of 2025, driven largely by soaring PJM capacity costs. In August, the state responded with two moves: $100 bill credits for millions of households, and two new laws aimed at the regional grid operator.
The credits offer some short-term relief. The laws push for more scrutiny of PJM. But neither changes the underlying math driving bills higher.
Here is what New Jersey approved, what it will and won't do, and what it means for businesses and solar owners.
What Bill Credits Did New Jersey Approve?
The New Jersey Board of Public Utilities approved $100 bill credits for 3.9 million households, applied as $50 in September and $50 in October 2025, according to NJBIZ. Low-income customers receive an additional $175, spread out in $25 monthly credits through February 2026.
The credits were part of a $430 million relief package. Earlier in the summer, the state also deferred $60 in charges from July and August bills, to be repaid at $10 a month from September through February.
What Laws Did Governor Murphy Sign?
On August 15, 2025, Governor Phil Murphy signed two measures targeting PJM: one directing a review of PJM's pricing model, and one requiring utilities to disclose how they vote inside PJM, according to the American Public Power Association.
The two laws:
- ●AJR216/SJR154. Directs the Board of Public Utilities to examine whether PJM's Reliability Pricing Model is obtaining adequate resources "at the lowest possible cost," report within one year, and keep pushing for reforms.
- ●A5463/S4363. Requires New Jersey utilities and their affiliates to disclose their PJM voting records each year and explain how each vote supports the state's affordability, reliability, and clean energy goals.
Will the Credits and Laws Lower Bills?
Not in a lasting way. The credits are one-time relief, and the laws focus on review and transparency rather than directly cutting costs.
A $100 credit helps this fall. But if bills keep rising year after year, as many forecasts suggest, families may barely notice it once the next increase arrives.
The audit and disclosure laws are useful. Transparency about how utilities vote in PJM should have existed years ago. But audits and disclosures start a process. They don't change the cost trajectory on their own.
Credits soften this year's bill. They don't change next year's.
Why Are New Jersey Bills So High?
New Jersey's bills jumped because of PJM's capacity market, where prices have hit record highs as supply struggles to keep up with demand. NJBIZ reported a roughly 20% spike in bills in summer 2025.
PJM's most recent auctions cleared at the maximum allowed price. We covered the causes in New Jersey's electric bill crisis and PJM's struggle to meet AI-driven demand.
How Do PJM Capacity Prices Reach New Jersey Bills?
New Jersey utilities buy capacity through PJM's auction, and the cost of that capacity is passed through to customers' bills. When auction prices spike, bills follow.
Capacity is a payment to power plants and other resources to be available during peak demand. PJM runs the auction years ahead of time, so today's high prices lock in costs for future delivery years.
After the July 2025 auction, NJBPU President Christine Guhl-Sadovy said New Jersey families were "already living with the consequences of PJM's broken market." The board said changes it had advocated for meant it didn't expect a comparable bill jump from that auction. But prices remained at record levels.
What Would Actually Bring Bills Down?
Lasting relief would require structural fixes: connecting new supply faster, modernizing PJM's market and planning, and adding more low-cost generation and storage.
The kinds of reforms that could make a difference:
- ●Faster interconnection. Clearing the backlog of projects waiting to connect.
- ●Long-term planning. Transmission built ahead of demand, not after it.
- ●More local supply. Solar and storage inside the state, closer to demand.
- ●Market reform. Capacity rules that reward the resources that actually help at peak.
New Jersey isn't pushing alone. Nine governors, including Murphy, sent a bipartisan letter demanding PJM reforms. The state has also moved to speed up solar permitting and expand clean energy.
What Did New Jersey's Next Governor Promise?
Mikie Sherrill, elected New Jersey governor in November 2025, pledged to freeze utility rates and expand clean energy to address costs. We covered that in PSEG's possible rate options and Sherrill's clean energy push.
How that plays out will shape bills for years. But any lasting fix still has to address supply and PJM's market structure.
What Does This Mean for Solar Owners in New Jersey?
High and rising bills make every kilowatt-hour from a working solar system in New Jersey more valuable.
New Jersey has one of the oldest and densest solar markets in the country. Many commercial systems were installed in the 2010s and are now losing output to aging inverters or degraded panels.
Repowering an aging PV system can restore that output using the grid connection already in place. In a market where new supply is hard to connect, that's valuable.
Start With a Ballpark Estimate
Credits come and go, but New Jersey's bills keep rising. Find out what your existing solar project may be worth before deciding whether to repair, repower, or sell.
Sources: NJBIZ, "New Jersey energy credit and PJM reform"; American Public Power Association, "New Jersey Governor Signs Bills into Law Tied to PJM"; NJBPU statement on PJM auction, July 23, 2025
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