Starting June 1, 2026, PSE&G residential customers will be automatically moved to a Time-of-Use (TOU) rate structure. This is the biggest change to NJ residential electricity pricing in a generation, and it will hit EV owners and high-electricity households the hardest — or benefit them the most, depending on how prepared you are.
Here is everything you need to know about the new rate structure, what it costs at peak hours, and how to adjust your EV charging and household habits to come out ahead.
What Is Time-of-Use Pricing?
Time-of-Use (TOU) pricing means the cost per kilowatt-hour (kWh) of electricity changes throughout the day based on demand on the grid. During peak hours — when everyone is home and using electricity at the same time — rates are higher. During off-peak hours — overnight and on weekends — rates are lower. You pay for electricity based on when you use it, not just how much you use.
PSE&G's new residential TOU structure has three pricing tiers:
- Peak rate: ~$0.31 per kWh — weekdays 4 PM to 9 PM
- Mid-peak rate: ~$0.18 per kWh — weekdays 9 AM to 4 PM and 9 PM to midnight
- Off-peak rate: ~$0.09 per kWh — midnight to 9 AM weekdays and all day weekends/holidays
The peak rate of $0.31/kWh is more than three times the off-peak rate of $0.09/kWh. For context, today's flat residential rate is approximately $0.17/kWh. If you shift your heavy electricity use to off-peak hours, you will save money. If you do not change anything, your evenings will cost significantly more.
How Much Does This Matter for EV Owners?
If you have an EV and you have been charging at home whenever you plug in — including evenings — the impact is substantial. Here is a concrete example:
A Tesla Model 3 Long Range has a 75 kWh battery. A typical home charge from 20% to 90% is about 52 kWh. At today's flat rate of $0.17/kWh, that charge costs approximately $8.84. Under TOU pricing:
- Charging 4–9 PM (peak): 52 kWh × $0.31 = $16.12
- Charging midnight–9 AM (off-peak): 52 kWh × $0.09 = $4.68
That is a $11.44 difference per full charge — or roughly $550 per year if you charge three times per week. The good news is that virtually every Level 2 smart charger sold today (ChargePoint, JuiceBox, Wallbox, Tesla Wall Connector with scheduling) can be programmed to automatically start charging at midnight and stop before 9 AM, hitting the off-peak window without any daily action from you.
What About Households Without EVs?
You do not need an EV for TOU rates to affect your bill. Any household with high weekday evening electricity use will feel the impact. This includes:
- Electric dryers running after work
- Dishwashers running after dinner
- Resistive electric heating in the evening
- Window AC units cranked up when you get home
- Any home with a pool pump scheduled for evening operation
The simplest response for non-EV households is to shift major appliance operation to after 9 PM or early morning. Most modern dishwashers, dryers, and washing machines have delay-start features that let you load them at 7 PM and start automatically at 10 PM — in the mid-peak window — or set them to run at 1 AM in the off-peak window.
Smart Panels and Load Management
For households with multiple EVs, large appliances, and whole-home systems, a smart panel like the SPAN or Lumin takes TOU management to the next level. These panels can automatically prioritize circuits based on time of day and current rate tier — pausing EV charging or deferring water heater operation during peak hours without you doing anything manually.
We install SPAN smart panels regularly in NJ homes and the ROI becomes considerably easier to justify under TOU pricing. When peak-hour electricity costs $0.31/kWh, a smart panel that reliably shifts 10–15 kWh per day to off-peak can save $600–$900 per year on its own.
Home Battery Storage and TOU Arbitrage
Home battery systems like the Tesla Powerwall 3, Enphase IQ Battery, or Franklin WH (whole-home) become significantly more valuable under TOU pricing. You can charge your battery from the grid during off-peak hours at $0.09/kWh, then discharge it during peak hours (4–9 PM) to avoid paying $0.31/kWh — a $0.22/kWh arbitrage that adds up quickly for households that draw significant power in the evening.
The NJ Garden State Energy Storage Program is also active in 2026, offering up to $1,625 in incentives on qualifying battery installations — making this an ideal time to combine a battery install with TOU rate optimization.
Are There Opt-Out Options?
PSE&G's rollout of TOU rates is structured as an opt-in default — customers will be automatically enrolled but can request to remain on the flat rate structure for a transition period. However, given the long-term direction of NJ utility policy and the federal push toward demand-response rate structures, the flat rate option is unlikely to remain available indefinitely. Our recommendation: treat TOU pricing as permanent and make the behavioral and equipment changes now.
What to Do Before June 1
Here is a practical checklist to prepare before the new rates kick in:
- EV owners: Program your charger to start at 12 AM and stop by 9 AM. Every major smart charger supports this — check your app settings today.
- Appliance scheduling: Enable delay-start on your dishwasher, washer, and dryer for after 9 PM.
- Consider a Level 2 smart charger: If you are charging with a 120V plug-in (Level 1), now is the time to upgrade — the off-peak savings will pay for the installation within months.
- Panel assessment: If you have been thinking about a panel upgrade, a smart panel, or home battery storage, run the numbers under TOU pricing — the economics are much more favorable starting June 1.
Have questions about your specific home, panel, or EV charging setup? We offer free on-site assessments and can walk you through your TOU optimization options. Call (848) 294-1739 or visit malfettonegroup.com/contact.