Hoboken debuts competitive prices for renewable energy


Opting into renewable energy programs in Hudson County tends to be more costly than sticking with the standard packages.

That will soon change for Hoboken residents after recent city negotiations won more competitive rates, the city announced Monday.

Through a new Hoboken Renewable Energy Program, residents will be able to purchase their energy with supplier Direct Energy for 65 cents per kilowatt hour less than what PSE&G offered at the time the city went out to bid. Residents can also choose to invest in an extra 10% of renewable energy beyond the state’s minimum and still see lower rates, city officials said.

The latter option will become the new standard in Hoboken. Residents will be automatically enrolled in that program with Direct Energy unless they choose to opt out by Jan. 31.

Under state law, electricity suppliers are required to source a minimum of roughly 23.5 percent of their load from solar, wind, geothermal, wave, tidal, landfill gas, and other renewable sources, Hoboken officials said in a news release.

Opting into 100% renewable energy will also be an option. The rate would be 14.54 cents per kilowatt hour, or about 1.24 cents more than the standard price for PSE&G.

Mayor Ravi Bhalla said that if residents choose 100% renewable, they will help the city reach its goal of net-zero energy by 2030.

“I am excited that after years of effort, residents will be able to take advantage of more renewable energy to power their homes,” he said.

Purchasing renewable energy through Direct Energy is not a guarantee that the energy in one’s home will be from renewable sources. It is instead an investment in renewable energy credits, a currency of sorts in the energy sector, which Direct Energy says it purchases on the customer’s behalf.

By 2025, at least 35% of energy sold in New Jersey will have to be from renewable energy sources.

In Hoboken, purchasing energy from PSE&G that provides the state’s current minimum rate of renewable energy was 13.3 cents per kilowatt hour at the time that Hoboken went to bid for an alternative supplier. The city negotiated a rate of 12.65 cents per kilowatt hour with Direct Energy for the same service.

PSE&G will remain the energy utility — the company that delivers the energy — for all of Hoboken. It will, in other words, still be the company to call if power goes out.

Unless residents opt out of the renewable energy program, however, Direct Energy will become their supplier, or the company that sells the power itself.

Residents can opt in or out of the program at njaggregation.us/hoboken/. The city will host a virtual information session about the program on Jan. 11 at 6 p.m.

To register for the meeting, residents can visit hobokennj.gov/renewablenergyzoom.



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