PSE&G’s Clean Energy Future – Energy Efficiency II Program, which is designed to continue delivering energy efficiency programs and measures to help N.J. residents and businesses save energy, reduce utility costs and lower carbon emissions, was approved by the N.J. Board of Utilities last week.
Spanning from January 2025 to June 2027, this next program cycle aims to help achieve the New Jersey clean energy annual reduction targets of 2% in electric usage and 0.75% in natural gas usage set forth in the 2018 Clean Energy Act and the NJBPU’s energy efficiency framework orders.
Over the next six years, the program will include an investment budget of $1.9 billion, net of administrative expenses, and provides nearly $1 billion of funding to continue the popular on-bill repayment program, which supports affordability and allows customers to repay the cost of equipment upgrades over time directly through their PSE&G bill, company officials said.
This new cycle will fund 10 programs aimed at helping residential and business customers reduce their energy usage, bills, and carbon footprint, while supporting economic growth in New Jersey.
PSE&G officials project that these investments will create and sustain approximately 3,500 direct jobs annually in sectors such as equipment installation, technology services and clean energy.
Specifically, company officials said eight of these programs will focus on delivering PSE&G’s comprehensive suite of energy efficiency offerings, while two new programs will target building decarbonization and demand response.
The building decarbonization program aims to incentivize the installation of heat pumps and other electric measures to replace fossil fuel equipment, thereby advancing efforts to decarbonize homes and businesses. Meanwhile, the demand response program will encourage customers to reduce electric consumption during peak demand periods and help them manage their overall usage to support the reliability of the electric grid.
The combined energy savings for participants are expected to generate gross lifetime bill savings of approximately $4 billion, as well as societal benefits such as providing targeted support to low income and overburdened communities, and the avoidance of nearly 10 million metric tons of carbon dioxide emissions.
Additionally, the expansion of the company’s award-winning Clean Energy Jobs Program, which will provide enhanced job training for emerging technologies, such as heat pump installations, helps ensure that the workforce is well-prepared for New Jersey’s clean energy future.
“Our goal is to continue helping New Jersey residents and businesses save energy and reduce their costs,” PSE&G President Kim Hanemann said. “With the approval of this new program cycle, we aim to enhance our energy efficiency offerings, providing valuable resources and support to our customers. By helping lower carbon emissions across the state, this initiative reflects our commitment to a sustainable energy future where people use less energy that is cleaner, safer and delivered more reliably than ever.”
