ACEEE recommends New Jersey expand investments in energy efficiency and demand response programs to ensure that utilities address rapid demand growth using fast, reliable, and least-cost energy resources. Changes made to savings accounting methods and utility performance incentives in the Triennium 2.5 update to New Jersey’s efficiency program should not decrease the ambition of New Jersey’s savings targets or impede progress toward these targets. In New Jersey, energy efficiency is the least-cost resource for meeting energy demand. The cost of energy efficiency in New Jersey was $52/MWh in 2024, cheaper than the national average costs for supply-side energy resources, including onshore wind and gas combined cycle and peaking plants. Reducing investment in utility energy efficiency programs and reducing overall energy savings targets will require utilities to instead rely on more expensive supply-side resources to meet demand growth, which will not advance affordability for utility customers.
