On December 27, 2021, Hoboken launched a new Renewable Energy Program in order to offer residents more competitive prices when choosing renewable energy. Direct Energy, an energy supplier, offers three program options for Hoboken residents.
The Basic program meets New Jersey’s minimum requirements for renewable energy. This costs 12.65 cents per kilowatt-hour through Direct Energy. The same service was previously offered at 13.3 cents per kilowatt-hour from PSE&G. As reported by Teri West in The Jersey Journal, this program level “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.”
According to Energy Watch, renewable energy credits are given when a company generates power using renewable energy sources such as wind, solar, hydroelectric, etc. These credits can be kept by the company or sold to other companies, like Direct Energy. Although Direct Energy is not creating renewable energy, the company is supporting the production of sustainable power by purchasing renewable energy credits.
Another package option is The Standard Offering which adds an additional 10% renewable energy to the minimum amount required in New Jersey. This option saves residents 0.46 cents per kilowatt hour and has a higher percentage of renewable energy compared to PSE&G’s Basic Generation Service which was previously the standard plan for Hoboken residents.
Residents who are passionate about sustainability can choose the 100% Green program which buys renewable energy for 100% of the electricity used by the resident. This option is the most expensive at 14.54 cents per kilowatt hour.
Hoboken residents will automatically be enrolled in the new Direct Energy program unless they opt out by January 31, 2022. Those who opt out will return to PSE&G’s Basic Generation Service. Residents can view energy program options and opt in or out at https://www.njaggregation.us/hoboken/.
Residents who do not opt out of the new program will begin to use Direct Energy as their supplier, which is the seller of the power. However, “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” as explained by West.
According to Mayor Ravi Bhalla, Hoboken’s Climate Action Plan is aiming to reach net-zero energy by 2030. West states that in order to reach this goal “by 2025, at least 35% of energy sold in New Jersey will have to be from renewable energy sources.” New Jersey laws state electricity suppliers must get approximately 23.5 percent of energy from renewable sources including wave, tidal, wind, solar, geothermal, or landfill gas. These new energy programs are expected to increase the overall percentage of renewable energy used while also lowering the prices of electricity for Hoboken residents.
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