Hoboken launches competitive prices for renewable energy


Opting for renewable energy programs in Hudson County tends to be more expensive than sticking to standard packages.

That will soon change for residents of Hoboken after the city’s recent negotiations won more competitive rates, the city said on Monday.

Thanks to a new Hoboken renewable energy program, residents will be able to purchase their power from supplier Direct Energy for 65 cents per kilowatt hour less than what PSE & G was offering when the city launched the tender. Residents can also choose to invest in an additional 10% renewable energy above the state’s minimum while seeing lower tariffs, city officials said.

This last option will become the new standard in Hoboken. Residents will automatically be enrolled in this program with Direct Energy, unless they choose to opt out by January 31.

Under state law, electricity providers are required to source at least about 23.5% of their load with solar, wind, geothermal, wave, tidal, landfill and other energy. renewable sources, Hoboken officials said in a press release.

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

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

“I am delighted that after years of effort, residents can take advantage of more renewable energy to power their homes,” he said.

Purchasing renewable energy through Direct Energy does not guarantee that the energy in the home will come from renewable sources. Rather, it is an investment in renewable energy credits, a kind of currency in the energy sector, which Direct Energy says it purchases on behalf of the customer.

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

In Hoboken, the power purchase from PSE & G which supplies the state’s current minimum rate of renewable energy was 13.3 cents per kilowatt hour at the time Hoboken made an offer 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 supplies the energy – for all Hoboken. In other words, it will always be the company to call in the event of a power outage.

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

Residents can register or withdraw from the program at njaggregation.us/hoboken/. The city will organize a virtual information session on the program on January 11 at 6 p.m.

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

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