If you’re a PSEG customer in New Jersey, your electricity bill is about to change — significantly. Starting June 1, 2026, PSEG is rolling out a new Time-of-Use (TOU) rate structure that will affect how much you pay based on when you use electricity. For homeowners considering solar, this is one of the most important pieces of news in years.
What Are PSEG’s New Time-of-Use Rates?
PSEG’s new TOU rate plan, called RS-TOU-3P, splits the day into peak and off-peak pricing windows. During peak hours — 4 PM to 9 PM on weekdays — electricity rates will climb to approximately $0.31 per kWh. During off-peak hours and weekends, rates drop to roughly $0.21 per kWh.
That’s a spread of about $0.10 per kWh between peak and off-peak. For context, PSEG’s current flat rate sits around $0.23/kWh. Under the new structure, using electricity at the wrong time of day could cost you significantly more.
The peak window — 4 to 9 PM — is exactly when most New Jersey families are home cooking dinner, running appliances, charging devices, and doing the things that draw power. It’s also when solar panels are producing less energy as the sun gets lower in the sky.
Who’s Affected and When Does It Start?
The new TOU rates take effect June 1, 2026 for new enrollees and may eventually roll out more broadly. If you’re already a PSEG customer, you’ll want to review your rate plan and understand whether you’re being automatically moved to the new structure or opting in. Check your PSEG account or your most recent bill notice for details specific to your account.
The timing matters. June 1 is just around the corner, and it coincides with summer — historically the highest electricity usage season in New Jersey.
Why Solar + Battery Storage Becomes More Valuable Under TOU Pricing
Here’s where it gets interesting for homeowners exploring solar energy in NJ. Under a flat rate, solar panels offset whatever electricity you’d otherwise buy from the grid — straightforward and valuable. Under TOU pricing, the math improves for homeowners who pair solar with a battery storage system like the Tesla Powerwall.
Here’s the logic:
Your solar panels produce the most electricity during midday — roughly 10 AM to 3 PM. Under the new TOU structure, that midday production falls during off-peak hours, when grid electricity is cheaper. But if you add a battery, you can store the solar energy your panels generate during the day and discharge it during the 4–9 PM peak window, when grid electricity costs $0.31/kWh.
Every kilowatt-hour of stored solar energy you use during peak hours instead of buying from PSEG is worth about $0.31 in savings. That’s a meaningful difference from the flat-rate world, and it makes the payback math on a battery much more favorable.
At Infinity Energy, we’re a Tesla Powerwall certified installer, and we’ve completed battery installations across New Jersey for homeowners who want energy independence, storm resilience, and — increasingly — peak-rate protection.
NJ Solar Incentives Still Make Going Solar a Strong Financial Decision
The federal solar tax credit (ITC) expired at the end of 2025, which has led some homeowners to wonder whether going solar in New Jersey still pencils out financially. The answer, for most NJ homeowners, is yes — and here’s why.
SuSI/SREC-II Program: New Jersey’s Solar Successor Incentive program pays residential solar owners for the clean energy their system generates. At the current rate of $85.90 per MWh, a typical 8 kW residential system earns roughly $816 per year — for 15 years. That’s a direct cash payment on top of your utility bill savings.
Net Metering: NJ maintains 1-to-1 net metering, meaning when your panels produce more than you use, you receive a full credit against future bills — not a discounted “export rate.” That matters.
Tax Exemptions: Solar panels in New Jersey are exempt from the state’s 6.625% sales tax, saving you hundreds to thousands of dollars on installation. The added home value from your system is also exempt from property tax assessments — permanently.
When you add these incentives to the bill protection a solar + battery system provides under the new PSEG time of use rates, the financial case is still compelling for most NJ homeowners.
What About Homes That Aren’t Ready for Solar Yet?
If your roof needs work before solar can go on it, that’s not a reason to wait. At Infinity Energy, we have an in-house roofing division, which means we can assess your roof, handle any necessary repairs or replacement, and coordinate the solar installation as a single project. There’s no juggling multiple contractors or wondering whether your roof warranty will be voided by a solar company’s work.
We’ve completed over 10,000 installations across NY, NJ, and CT since we were founded in Mahwah, NJ in 2008. We carry an A+ rating with the Better Business Bureau and are a NYSERDA Gold installer and Elite+ installer on EnergySage — a designation held by the top 4% of solar companies nationally.
What to Do Before June 1, 2026
You don’t need to make a rushed decision, but you do need enough time for a system to be properly designed, permitted, and installed before summer peak season. Solar installations in New Jersey typically take 2–4 months from signing to permission to operate, depending on your utility and township permitting timeline.
If you’re thinking seriously about solar — with or without battery storage — April is a smart time to start the conversation. That gives you time to understand your options, review financing, and potentially have your system operating before the new TOU rates change your bill.
We offer $0 down financing for qualified homeowners, and our team will walk you through how the new PSEG rate structure affects your specific situation before you make any decision.
Ready to See What Solar Would Do for Your NJ Home?
If you’re a PSEG customer in Bergen County, Essex County, Morris County, Passaic County, or anywhere else in northern or central New Jersey, we’d be glad to run the numbers for you. Our proposals are free, there’s no pressure to move forward, and we’ll give you an honest picture of what solar would mean for your home under the new TOU rate structure.
Get a free solar quote from Infinity Energy and see exactly how PSEG’s time of use rates affect your payback timeline.
This article is for informational purposes only and is not affiliated with or endorsed by PSEG.
