New Jersey's Solar Program Secretly Hikes Your Energy Bills

New Jersey’s latest push to expand its Community Solar Energy Program sounds noble on paper. Who wouldn’t want cheaper energy bills and a cleaner environment? The state’s Board of Public Utilities just greenlit another 250 megawatts of capacity, promising 15% savings for subscribers and prioritizing low-income households. It’s pitched as a win for affordability and equity, a shining example of forward-thinking policy. But scratch the surface, and this initiative reveals a troubling reality: it’s a government-heavy scheme that risks jacking up energy costs for everyone while delivering far less than it claims.

The program’s advocates paint a rosy picture, boasting that over 28,000 subscribers have pocketed $7 million in net savings since the pilot began. They tout automatic enrollment for hard-to-reach households and streamlined billing as game-changers. Yet, these headlines gloss over a critical flaw: government-driven energy programs, like this one, often distort markets and saddle consumers with hidden costs. New Jersey families, already grappling with rising utility bills, deserve better than a feel-good policy that could leave them paying more for less reliable energy.

This isn’t about dismissing solar power’s potential. Renewable energy, when driven by private innovation and market competition, can be a game-changer. But when bureaucrats in Trenton call the shots, prioritizing quotas and subsidies over sound economics, the result is a system that burdens taxpayers and undermines the very affordability it claims to champion. The evidence is clear: government meddling in energy markets rarely ends well for the average household.

Let’s talk numbers. Electricity bills across the U.S. are projected to climb at least 20% over the next two years, with some households facing annual costs topping $2,000 by 2026. In New Jersey, where the average household already shells out $136 a month for electricity, programs like this solar initiative could accelerate that climb. Why? Because subsidies and mandates, like those baked into the Community Solar Energy Program, shift costs onto non-subscribers, many of whom are working-class families who can’t afford to opt in.

The program’s defenders argue it’s a lifeline for low-income households, pointing to the 51% capacity reserved for them and the $37 million in bill credits distributed so far. But here’s the catch: low-income families still face barriers to participation, from bureaucratic red tape to the complexity of navigating enrollment. Even with self-attestation and automatic enrollment, the reality is that many eligible households won’t see those promised savings. Meanwhile, the program’s costs—subsidized by taxpayers and ratepayers—drive up energy prices for everyone else.

Historical data backs this up. Since the 1970s, federal energy assistance programs like the Weatherization Assistance Program have struggled to reach even a quarter of eligible households. New Jersey’s solar program, despite its lofty goals, risks repeating this failure. Streamlining eligibility is a step, but it doesn’t address the root issue: government programs are often inefficient, bloated, and disconnected from the realities of working families. A market-based approach, where private companies compete to offer affordable solar solutions, would deliver real savings without the bureaucratic baggage.

The Community Solar Energy Program doesn’t just raise costs; it warps the energy market. By mandating that 51% of capacity go to low-income subscribers and guaranteeing discounts, the state is picking winners and losers, stifling the competition that drives innovation. Private companies, like Octopus Energy, have shown how modern billing systems and real-time pricing can empower consumers and integrate renewables efficiently. But in New Jersey, government rules crowd out these innovators, forcing utilities to prioritize state-approved projects over market-driven solutions.

Conservatives have long warned about this. Back in the 1980s, when the Public Utility Regulatory Policies Act forced utilities to buy power from small renewable generators, critics argued it distorted markets and raised costs. They were right. Today, similar policies in the Inflation Reduction Act are funneling billions into renewables, but they’re also inflating electricity prices and straining grids. New Jersey’s program, with its first-come, first-served project approvals and mandated discounts, echoes these mistakes, favoring bureaucracy over the free market’s ability to deliver efficient, affordable energy.

Supporters of the program might argue it’s necessary to combat climate change and ensure equity. But their logic falls apart when you consider the trade-offs. Forcing utilities to prioritize certain projects risks grid instability, especially as demand for electricity grows. And while equity is a worthy goal, artificially propping up one group’s savings at the expense of others isn’t justice; it’s redistribution dressed up as progress. A better path would be to unleash private investment in renewables through permitting reform and tax incentives that don’t distort markets or penalize consumers.

New Jersey’s families deserve energy policies that prioritize affordability, reliability, and choice, not government mandates that inflate costs and undermine competition. The state’s Community Solar Energy Program, for all its good intentions, is a textbook example of what happens when policymakers put ideology ahead of economics. It promises savings but delivers higher bills. It champions equity but leaves many low-income households out in the cold. And it claims to advance clean energy while stifling the market forces that could actually get us there.

The solution isn’t to scrap solar power but to rethink how we get there. Streamline permitting to let private companies build renewable projects faster. Expand tax credits that encourage investment without dictating outcomes. And above all, trust the market to deliver solutions that work for consumers, not just for bureaucrats. New Jersey could lead the way in showing how renewables can thrive without heavy-handed government intervention, but only if it ditches the current approach.