NJ's Green Dividend: Efficiency Programs Fuel Bill Savings and Job Growth

NEWARK, NJ – April 30, 2026 – A sweeping energy efficiency initiative in New Jersey is delivering a powerful one-two punch of economic relief and environmental progress, saving residents and businesses nearly a billion dollars annually while creating a robust clean energy workforce. A recent update from Public Service Electric & Gas Co. (PSE&G) reveals that since late 2020, its programs have become a cornerstone of the state's economic and climate strategy.

Since the program's current phase launched in October 2020, approximately 500,000 residential customers and 22,000 businesses have participated, collectively reaping nearly $960 million in annual bill savings. To catalyze these upgrades, the utility has also disbursed approximately $1.4 billion in rebates, lowering the financial barrier for customers to adopt energy-saving technologies and practices. The results illustrate a significant return on investment, not just for individual participants but for the state's economy and environment as a whole.

A New Engine for New Jersey's Economy

Beyond the direct savings on utility bills, the energy efficiency programs are proving to be a formidable economic engine. The initiatives have supported the creation and sustainment of more than 9,300 clean energy careers across the state. This growing workforce is part of a network of over 1,000 trade allies—local contractors and specialists who are on the front lines of installing modern, efficient equipment in homes and businesses.

This network includes a significant union presence, with more than 100 union-affiliated contractors contributing to the program's success. To date, union labor has been directly involved in over $130 million worth of energy efficiency investments, ensuring that the transition to a greener economy supports skilled labor and provides stable, well-paying jobs.

Businesses across the state are leveraging these programs to manage operational costs and improve their bottom line. Approximately 22,000 businesses—ranging from small local shops to large hospitals and municipalities—have completed nearly 35,000 energy-saving projects. The New Jersey Chamber of Commerce serves as a prime example. Facing persistent maintenance issues and rising costs at its historic headquarters, the organization utilized PSE&G's Direct Install Program.

"Participating in the program allowed us to modernize our historic headquarters in a way that made sense for our operations and our budget," said Christine Lee, facilities manager for the Chamber. "Before the upgrades, we were dealing with ongoing repairs and inefficiencies that created real uncertainty, especially during the winter months. Today, the building is more comfortable, more reliable and more efficient, and we're able to focus our time and resources on serving our members."

Lee noted that the long-term savings will be reinvested back into the organization, a story echoed by the more than 2,100 small businesses that have participated, freeing up capital that can be used for growth, hiring, and community investment.

Beyond the Bill: A Statewide Push for Sustainability

The financial and employment figures are matched by equally impressive environmental gains that place PSE&G's efforts at the heart of New Jersey's climate policy. The collective action of participating customers is preventing more than 2.4 million metric tons of carbon emissions from entering the atmosphere each year. This reduction is equivalent to taking over 530,000 gasoline-powered cars off the road annually.

These carbon reductions are the direct result of massive energy savings. The programs have trimmed annual electricity consumption by approximately 3.3 million megawatt-hours (MWh)—enough to power about 475,000 homes for a year—and cut natural gas usage by 83 million therms. This reduction in demand is a critical tool for achieving the state's ambitious climate goals, which are codified in legislation like the Clean Energy Act of 2018. The act mandates that utilities drive down energy consumption, and these results show significant progress toward that requirement.

The entire framework is overseen by the New Jersey Board of Public Utilities (BPU), which ensures the programs are effective and aligned with state policy. The BPU's approval of a subsequent $2.9 billion investment for PSE&G's energy efficiency programs from 2025 to 2027 signals a continued, long-term commitment to this strategy as a core component of New Jersey’s goal of achieving 100% clean energy by 2035.

Empowering Customers to Control Costs and Comfort

At its core, the success of the initiative lies in its ability to empower individual customers with practical tools to manage their energy use. The program's diverse offerings have seen widespread adoption. More than 108,000 households have received professional home energy assessments to identify savings opportunities, and nearly 364,000 smart thermostats have been purchased through the PSE&G Marketplace, giving customers greater control over their heating and cooling.

Furthermore, the utility has provided approximately 154,000 rebates for the purchase of energy-efficient electric appliances, while a recycling program has responsibly disposed of over 34,000 old, inefficient appliances, preventing them from continuing to waste energy in basements or garages.

Another key component is the Demand Response program, which has enrolled more than 32,000 customers. Participants receive an upfront reward for allowing the utility to slightly reduce their energy consumption during a few peak demand periods each year, such as on the hottest summer days. This helps stabilize the electric grid for everyone while providing a direct benefit to those enrolled.

"With nearly 500,000 customers participating and about $960 million in yearly savings, our energy efficiency programs are making a real difference for households and businesses across New Jersey," said Lauren Thomas, vice president of Clean Energy Solutions at PSE&G. "We're focused on maintaining a stable, consistent program framework that supports the workforce, encourages continued investment and allows us to build on this progress."

As New Jersey's energy landscape continues to evolve, this focus on efficiency remains a foundational strategy. By working with state regulators and community stakeholders, the utility aims to ensure these programs remain accessible and continue to deliver long-term value for customers and communities across the Garden State.