Utilities today are all navigating the same tension: demand is climbing, driven by electrification, data centers and more extreme weather, while affordability remains top of mind for customers and regulators alike.

With demand rising and affordability under pressure, managing energy use becomes increasingly important. Energy efficiency is one of the most immediate and effective tools we have to help customers manage their energy use and bills. It doesn’t just change who supplies power or at what price, it cuts the amount of energy customers need to buy, easing bills today while helping manage load growth across the system and making better use of existing grid infrastructure over time.

Beyond bill savings, energy efficiency also plays an important role in reliability. By reducing overall energy use and helping manage demand across the system, efficiency can ease pressure on the grid, particularly as electricity needs continue to grow. Meeting that growth while maintaining reliability and affordability will require an all-of-the-above approach, with energy efficiency remaining an important part of the broader set of tools essential for meeting New Jersey’s future energy needs.

That’s especially important for low- and moderate-income households, which often face greater barriers to participation in energy efficiency programs. We’ve learned that reaching customers effectively often means working through organizations and programs they already know and trust, including state agencies, municipalities, community groups and bill-payment assistance programs, rather than relying on our own outreach alone.

We’ve also learned that low-income and moderate-income customers aren’t a single audience. Different households face different barriers to participation, requiring targeted outreach, program design and incentives. On-bill repayment, offered at 0% interest over five years, has helped reduce one of the biggest barriers to participation: upfront cost, allowing customers to pay for eligible upgrades over time through their utility bill. And for multifamily buildings, where split incentives and complex ownership structures can create additional barriers, we developed processes designed specifically to address those types of challenges.

The same principle applies to businesses and organizations, where energy needs, decision-making and capital constraints can vary significantly by customer and project size. Large commercial projects require longer lead times, more complex planning and greater coordination around a business’s operations and capital needs. Small businesses often need something different: a more turnkey approach that makes it easier to identify and move forward with energy-saving upgrades. 

Working alongside our account teams, implementation contractors and trade allies, customers can identify opportunities, understand available incentives and move projects from assessment through implementation. We’ve also learned that showing customers what these projects look like in practice can be an important part of that engagement. Real customer stories can help demonstrate not only the potential cost savings, but also improvements in operations and comfort. 

Public-sector projects show how that tailored approach can deliver benefits beyond energy savings. The Township of Rochelle Park, for example, recently completed efficiency upgrades across several municipal facilities through our Direct Install Program. With nearly half the project cost covered through incentives, the township expects to save about $7,170 annually, freeing up resources that can be reinvested in recreation and public safety. More broadly, nearly 36,000 commercial and industrial projects have been completed through our programs.

Preparing for What’s Ahead

As demand grows, our role is increasingly about helping customers use energy more efficiently while providing more options to manage when and how they use it. That means looking beyond individual programs toward more coordinated customer energy solutions that bring together energy efficiency, demand response and emerging technologies.

Our demand response offering, for example, already has more than 37,600 customers enrolled to help reduce demand during peak periods. And through our recently launched GridSmart Battery Program, we’re testing how customer-owned battery storage can provide backup power while also supporting peak demand reduction, grid reliability and flexibility. We’re also exploring new approaches to building electrification, including a study evaluating the potential for a thermal energy network using geothermal energy. 

Our experience has demonstrated what energy efficiency can deliver at scale, but the opportunity is much broader than any one program. Utilities will need to continue evolving how we help customers manage their energy use and costs as the energy system changes. 

For us, affordability remains the starting point. By making energy solutions simpler to access and even more coordinated around customers’ needs, energy efficiency can continue to be one of the most immediate and effective tools we have to manage demand while supporting a reliable energy system for the future.