How New Jersey’s Energy Demand Crisis is Hurting Local Businesses
How New Jersey’s Energy Demand Crisis is Hurting Local Businesses
New Jersey is facing a growing energy crisis, and the root of the problem lies in a mismatch between rising energy demand and a stagnant energy supply. Despite ambitious clean energy goals and increasing interest in commercial solar energy, the state’s infrastructure and regulatory systems have struggled to keep pace.
One of the primary drivers of increased energy demand in New Jersey is the rapid expansion of AI-driven data centers, which now consume roughly 5% of the state’s electricity supply, with demand expected to double by 2030.
The rising electrical demand is compounded by increased use of electric vehicles and heat pumps, resulting in our grid under immense pressure. Extreme weather events, particularly summer heatwaves, have further strained the system, causing spikes in consumption and driving up electricity bills which already went up 20% this past June.
Yet, the supply side of the equation remains constrained. The PJM Interconnection, which manages the regional grid, has been slow to approve new energy projects. Over 286 gigawatts of potential energy, mostly clean and renewable, are stuck in PJM’s queue, waiting for regulatory clearance. This backlog has artificially suppressed supply, leading to inflated prices and limited access to significantly cheaper green energy solutions.
Despite these hurdles, New Jersey remains a leader in commercial solar adoption, ranking among the top states for installed solar capacity. Programs like the Competitive Solar Incentive (CSI) and community solar initiatives are helping to expand access and affordability.
The state’s aging infrastructure is another bottleneck. Much of New Jersey’s electrical grid was not designed to handle the current or projected load. Utilities are investing in modernization, but progress is slow and costly. Rate hikes meant to fund these upgrades have placed additional financial strain on local businesses’ profitability.
To address these issues, energy experts and lawmakers are calling for reforms to help ease the rapid pace that utility bills are rising at. These include faster project approvals, investment in advanced transmission technologies, and enhanced data transparency from PJM. Expanding energy storage and demand response programs will also help balance the grid and reduce peak load stress.
With everything being said, Commercial Solar Energy remains New Jersey’s cheapest and most reliable form of energy, with businesses and non-profits enjoying a typical ROI within 2 – 3 years. Despite all the challenges New Jersey faces with inferior equipment and bottlenecking, Solar allows for a fixed energy rate, reduced monthly utility bills, and allows business owners to free up operating expenses and consequently increase their bottom line.
However, while solar energy is limitless, New Jersey does have limitations on how many open circuits they allocate to solar projects and capacity varies by utility providers.
Contact LandAir Energy Solutions to get a complimentary (no pressure) property evaluation and discover how much money you will save over the next 25 – 40 years with a LandAir Energy solar solution. LandAir Energy will also be able to let you know if your property is in an open grid, what incentives you qualify for and what type of financing makes the most sense. We’ll help you change the way your business uses energy and earn money doing it.
