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PSEG's Economic Impact Through Energy Efficiency Programs

In recent findings released by Public Service Electric and Gas Company (PSEG), the utility's energy efficiency programs are proving to deliver more than just energy savings; they are also driving significant economic benefits throughout New Jersey. A new economic analysis conducted by E Source reveals impressive figures: for every dollar invested in these initiatives, the return is an astounding $2.85 in economic output.

Overview of Economic Contributions

The analysis showcases that PSEG’s energy efficiency initiatives in 2025 generated over $1.15 billion in total economic output. This contribution to New Jersey’s economy encompassed approximately $467 million in wages and $164 million in tax revenues at various governmental levels. These findings provide a broader understanding of the substantial impacts that energy efficiency investments can have beyond their immediate benefits to consumers.

The Direct and Indirect Impact

One of the standout findings from the economic impact study is that nearly half of the total economic output, amounting to around $575 million, directly stems from the investments made and the customer projects executed under the energy efficiency programs. The remainder comes through supply-chain activities related to these initiatives, as well as through consumer spending linked to wages and savings on energy bills. This reflects a comprehensive economic ripple effect, showcasing how energy investments fuel further growth across various sectors.

Job Creation and Economic Opportunity

The analysis also highlights the jobs created by PSEG's initiatives, estimating that nearly 4,737 jobs were supported through their energy efficiency projects. This translates to a significant number of 11.7 jobs for every million dollars invested, contributing to regional employment growth and providing opportunities for local labor. In total, nearly 60,000 customers participated in approximately 75,000 projects that were part of the PSEG Clean Energy Future-Energy Efficiency II portfolio in 2025.

Building a Sustainable Future

Lauren Thomas, Vice President of PSEG Clean Energy Solutions, emphasized the importance of these findings: “Energy efficiency starts with delivering real value for our customers.” The results affirm that these programs not only assist consumers in reducing their bills but also bolster economic activity throughout New Jersey, which is vital for sustaining local businesses and communities.

Conclusions and Future Outlook

As New Jersey progresses towards a sustainable future, the continued emphasis on energy-efficient practices can be a catalyst for economic revitalization. PSEG is committed to further developing its energy efficiency programs, promoting advancements in how energy is consumed, and continuing to contribute to the state's economy. The analysis not only offers insights into current benefits but underscores the potential for future growth through sustained energy efficiency investments.

To explore more about PSEG's impacts and ongoing energy efficiency initiatives, the economic impact study is available at PSEG's Impact Hub.

In conclusion, advocacy for energy efficiency can lead to a win-win situation by driving economic growth while simultaneously ensuring a sustainable future. As PSEG continues to innovate and expand its programs, it presents an excellent opportunity for New Jersey as a whole to reap significant economic and environmental benefits.