New Jersey Electricity Rates Jump—What Businesses Can Do About It

On June 1, 2025, electricity rates across New Jersey increased sharply. Depending on the utility, the average customer is now paying 17–20% more per month. Already among the highest in the country, these rising costs are putting additional pressure on businesses.

The drivers of this spike are twofold: constrained supply and accelerating demand.

Supply constraints in PJM, which serves New Jersey, stem from recent power plant retirements, tightening reliability standards, and a stalled pipeline for new generation. Delays in the interconnection queue, particularly for clean energy projects, have further slowed capacity additions. Legal disputes between PJM and FERC contributed to an unusually late 2025 capacity auction, resulting in prices 800% higher than in 2024 and creating additional uncertainty for the market.

On the demand side, load growth in PJM has risen from about 1% annually to 3%, with projections reaching 5% per year over the next decade. Peak demand in 2025 was forecast at 154 GW but actually reached 160.6 GW during the June heat wave—the highest level ever recorded. Data centers are a major driver, currently accounting for 4% of PJM’s electricity use but expected to reach 12% by 2030. Their rapid expansion is responsible for roughly two-thirds of this year’s price increase. To meet these peaks, utilities often rely on costly peaker plants, which run infrequently and burn expensive fuels, raising electricity prices during critical hours.

How Businesses Can Regain Control of Energy Costs

As energy prices rise, businesses can be more strategic in how they use and source power. At SolMicroGrid, we deliver distributed energy solutions—solar, battery energy storage systems (BESS), generators, and advanced controls—to help businesses reduce exposure to volatile electricity prices, improve resilience, and advance sustainability goals.

A BESS can provide two key financial benefits: time-of-use (TOU) arbitrage and peak shaving.

  • TOU arbitrage involves charging batteries during lower-cost, off-peak periods and discharging them when rates are highest, reducing overall electricity costs without disrupting operations.
  • Peak shaving uses stored energy to reduce a facility’s grid demand during its highest-use intervals, lowering demand charges—a significant cost component for many commercial and industrial customers.
    Additionally, a BESS can provide limited resiliency by supplying backup power during short-term outages. While not a substitute for full standby generation, this capability helps maintain critical operations and avoid costly disruptions.

 

Expanding beyond battery storage, a Distributed Energy Resource (DER) system—or a fully integrated microgrid—can unlock even greater savings and operational benefits. By combining multiple on-site generation and storage technologies such as solar PV, CHP, and backup generation, all managed by intelligent controls, these systems optimize when and how electricity is generated, stored, and consumed.

Key advantages of a DER or microgrid approach include:


Load shifting to avoid expensive utility periods by using on-site or stored power.

  • Coordinated peak demand management across generation and storage assets.
  • Participation in grid programs that provide payments for supplying capacity or ancillary services during high-demand events.
  • Fuel diversity to reduce exposure to price volatility.
  • Enhanced resilience to keep critical operations running during grid disruptions.

 

When paired with rooftop solar, a microgrid not only cuts costs but also supports long-term sustainability objectives.

State Incentives Make Battery Storage Even More Attractive

New Jersey is preparing to launch a Board of Public Utilities (BPU) incentive program for battery storage. Expected benefits include reducing upfront costs and providing ongoing payments for supporting the grid during peak demand. These incentives can be paired with the state’s existing solar programs to maximize value.

Save Money—Without Upfront Capital Investment

SolMicroGrid’s Energy-as-a-Service (EaaS) model enables businesses to adopt solar, storage, and microgrid solutions with no capital outlay. We handle the purchase, installation, and maintenance, allowing you to focus on your operations while we manage your energy system.

Let’s Build Energy Independence Together

Don’t absorb higher utility costs—partner with SolMicroGrid to improve energy independence, protect your bottom line, and prepare your business for a more resilient, sustainable future.

About SolMicroGrid

SolMicroGrid is a differentiated developer and operator of solar-enabled microgrid systems, offering energy resiliency and efficiency to commercial and industrial customers. The company’s service solution reduces operating expenses without the need for customer capital investment. SolMicroGrid is a portfolio company of Morgan Stanley Energy Partners. 

David Klein

Vice President, Finance & Administration

David Klein brings more than 20 years of experience in financial planning and analysis, investor relations, mergers and acquisitions, and overall financial management. As a results-driven leader in the energy industry, he brings a wealth of financial insight and expertise to SolMicroGrid, driving growth and financial excellence.

Klein has held senior finance positions with leading companies in the energy, renewable energy, and related industries, including PBF Energy, NRG Energy, and PSEG. At PBF Energy, he served as Director of Financial Planning & Analysis, overseeing a $2 billion annual EBITDA budget. As Senior Manager of Financial Planning & Analysis at RailWorks, Klein provided critical financial oversight and strategic guidance across the organization. During his tenure at NRG Energy, Klein managed key M&A projects, strategic market analysis, investor relations, and financial planning and forecasting within FP&A.

Klein holds a BS in Management from Tulane University, A. B. Freeman School of Business.

Photo of David Klein

Barry Sanders

Managing Principal, Merle Management

Barry Sanders is the Managing Principal of Merle Management LLC and is based near Boston. Mr. Sanders advises ClimateTech clients with growth and funding strategies and tactics. He also coaches executives and key investors to maximize potential.
He is also a Columbia Technology Ventures – New York State Energy Research & Development Authority (NYSERDA) Entrepreneur-In-Residence. Mr. Sanders currently sits on the Board of Directors of ClimateTech companies.

Prior, he launched American DG Energy Inc. in the US and EuroSite Power Inc. in the UK from start-up through IPO. He was the President and Chief Executive Officer. The companies provided Energy-As-A-Service (EaaS) in the form of electricity, heat, hot water and cooling for C&I customers. He grew business to over $350 million in contract value.

Also, Mr. Sanders served in Executive roles with MicroLogic, Inc.; Schneider Electric (Andover Controls Corp.); Thermo Fisher (Tecogen Inc.); and NYSERDA. He holds a B.S. in Chemical Engineering from the University of Rochester and an MBA in Entrepreneurship from the Lally Business School at Rensselaer Polytechnic Institute.

Barry Sanders

Robert Duva

Senior Vice President, Operations

Bob Duva leads our Operations and Project Management teams. He brings over 38 years of experience in construction, energy efficiency technologies, automation, and renewables. His background includes growing talented engineering teams, managing projects across the continental U.S. and Hawaii, and developing creative solutions in the fields of demand response, solar production, battery integration, and remote automation and control.

Additionally, Bob has served as Engineer of Record for many Solar projects in the NJ/CT/MA area since 2010, being Licensed in those states as a Professional Engineer, as well as NY and PA. He also holds an Electrical Contracting License in NJ.

Bob Duva

Bill Gifford

Vice President, Business Development

Bill Gifford is focused on our business pipeline, building our business development team, and exploring new opportunities to expand our network of microgrid customers. He’s a seasoned industry veteran in C&I renewable energy sales and project management. Gifford joined SolMicroGrid from Dynamic Energy where he worked in various senior business development and revenue origination roles for five years. His previous experience includes roles at SolarCity which was acquired by Tesla. Gifford started his career as a solar installer in 2015, which provided valuable hands-on experience.

Gifford graduated from Hunter College with a BA in Political Science and Rutgers University with a Master of Public Administration.

Smiling white guy in blue suit in front of blurred building

Ryan Jordan

Executive Director, Morgan Stanley Energy Partners

Ryan Jordan is an Executive Director of Morgan Stanley and is based in New York. Mr. Jordan joined Morgan Stanley in 2009 as an Analyst in the Investment Banking Division, working in the firm’s Natural Resources Group in Houston. He joined Morgan Stanley Capital Partners (MSCP) in New York in 2011 and focused on investments in the energy sector, prior to joining Morgan Stanley Energy Partners (MSEP) upon its inception as a separate investing team in 2015. Mr. Jordan currently serves on the Board of Directors of Sterling Energy, a portfolio company of MSCP, and of Specialized Desanders, M.G. Bryan, SolMicroGrid and Durango Midstream, all MSEP portfolio companies. Mr. Jordan holds a B.B.A. in Finance and the Business Honors Program from the McCombs School of Business at the University of Texas at Austin and a B.A. in the Plan II Honors Program from the University of Texas at Austin.

Ryan Jordan

Andrew Griffin

Executive Director, Morgan Stanley Energy Partners

Andrew Griffin is an Executive Director of Morgan Stanley and is based in Houston. Mr. Griffin joined Morgan Stanley Energy Partners in 2017 after completing graduate school. From 2013 to 2015, Mr. Griffin was an Associate at Lindsay Goldberg and, from 2011 to 2013, he worked as an Analyst in the Mergers & Acquisitions group of Bank of America Merrill Lynch. He currently serves on the Board of Directors of Catalyst Energy Services, Mission Creek Resources and SolMicroGrid, all current MSEP portfolio companies. Mr. Griffin holds an A.B. in Economics, magna cum laude, from Harvard College and an M.B.A. from the Wharton School of the University of Pennsylvania where he was a Palmer Scholar.

Andrew Griffin

John Moon

Head of Morgan Stanley Energy Partners

John Moon is a Managing Director of Morgan Stanley and Head of Morgan Stanley Energy Partners (MSEP). He is based in New York and Houston and has 25 years of investing experience. Mr. Moon served as a senior member of the Morgan Stanley Capital Partners (MSCP) team from 1998 to 2004 and then rejoined Morgan Stanley in 2008.

Prior to his return to MSCP, Mr. Moon was a Managing Director of Riverstone Holdings LLC where he served on the Investment Committees of the Carlyle/Riverstone Global Energy & Power Funds III and IV. Prior to Riverstone, Mr. Moon was a founding partner, Managing Director and member of the Management Committee of Metalmark Capital LLC, which sub-advised Morgan Stanley on investments held by MSCP III and MSCP IV beginning in September 2004. He is a former member of the Investment Committees of MSCP III and MSCP IV and Metalmark Capital Partners I.

Mr. Moon served on the Board of Directors of the following MSCP Fund portfolio companies: Aventine Renewable Energy, Cantera Resources, Canyon Gas Resources, Concert Capital Resources, Triana Energy/Columbia Natural Resources, Triana Energy II and Union Drilling. He currently serves as a director of Sterling Energy and Trinity CO2, both MSCP portfolio companies, and M.G. Bryan, XRI, Presidio Petroleum, Specialized Desanders, Durango Midstream, Mission Creek Resources, SolMicroGrid and Catalyst Energy Services, all MSEP portfolio companies. Prior to joining Morgan Stanley in 1998, Mr. Moon worked in the Investment Banking Division of Goldman Sachs in New York.

Mr. Moon holds an A.B., magna cum laude, from Harvard College. He also holds an A.M. and Ph.D. in Business Economics from Harvard University. Mr. Moon is an adjunct professor of finance at Columbia Business School.

John Moon

David Klein

Vice President, Finance & Administration

David Klein brings more than 20 years of experience in financial planning, investor relations,  M&A, financial oversight, forecasting, and reporting to SolMicroGrid. He is an outcome-focused energy industry leader.

Klein has held senior finance  positions with leading companies in the energy/renewable energy and adjacent industries such as PBF Energy, RailWorks, and NRG Energy. He was Director of Financial Planning & Analysis at PBF Energy and managed an annual $2B EBITDA budget. At RailWorks, Klein was Senior Manager of Financial Planning & Analysis and provided financial oversight to the organization. As Manager of Strategy and M&A at NRG Energy, he led acquisition strategy and execution, conducting market analysis and identifying strategic markets. 

Klein holds a BS in Management from Tulane University, A.B. Freeman.

Photo of David Klein

Kirk Edelman

Chief Executive Officer

Kirk Edelman is focused on expanding business opportunities and driving organizational change to position SolMicroGrid for its next phase of growth. He is a driven leader and proven energy executive with a 25+ year history of success managing multi-cultural teams focused on investing in power, oil gas, natural resources, and infrastructure projects. Edelman served as President and CEO of Siemens Financial Services, Inc. where he built a $15 billion investment portfolio. He has held senior positions in financial services firms like Dresdner Kleinwort Wasserstein and TD Securities and has led several energy investment organizations including those within Bank of Tokyo-Mitsubishi, and GMAC. He was the Chief Commercial Officer of Safari Energy – a leading solar company which is now part of Carlyle’s Aspen Power platform – where he helped build a $300 million portfolio of operating assets. In 2022, Edelman became the Chief Commercial Officer of Verdagy, Inc., a pre-revenue green hydrogen company before accepting the CEO position at SolMicroGrid. He started his career as an engineer with Exxon and transitioned into more senior roles with companies like Catalyst Energy, Translink Transmission and Siemens.

Edelman graduated from Bucknell University  with a BS in Civil Engineering with honors and the University of Pennsylvania’s Wharton School  with an MBA in Finance.  Board memberships have included The German American Chamber of Commerce, New Jersey Institute of Technology’s Martin Tuchman School of Management and Cornell University’s Program in Infrastructure Policy.

Kirk Edelman