Solar Panels in Edison, NJ:
PSE&G Peak Demand Elimination 2026

Omar Jackson — Founder, Solar by Omar 200+ Edison rooftop installations. I understand PSE&G’s Time-of-Use demand pricing mechanics, peak summer load profiles, Middlesex County fast-track permitting, and how to accelerate approvals for North Edison, South Edison, Menlo Park, and Clara Barton homeowners.

Edison Township is Middlesex County’s largest residential solar market — 100,000+ homes across North Edison, South Edison, Menlo Park, and Clara Barton all depend on PSE&G’s Time-of-Use rate structure. PSE&G’s demand charges penalize afternoon AC loads (2–4 PM summer) at rates 40–60% higher than off-peak. Unlike inland installers, we engineer every Edison system to produce maximum power exactly during peak demand window, converting the utility’s pricing penalty into your savings engine.

Solar by Omar — Edison premium 12 kW rooftop system optimized for 2–4 PM peak demand window, direct PSE&G Time-of-Use penalty elimination.

The PSE&G Time-of-Use Penalty: Your Hidden $2,000+ Annual Cost

PSE&G’s Time-of-Use (TOU) rate structure charges dramatically higher rates during peak demand windows. Specifically: Off-peak (night): $0.12/kWh, mid-peak (morning/evening): $0.16/kWh, peak demand (2–4 PM June–September): $0.28–$0.32/kWh. For Edison homeowners running central AC during summer afternoons, this creates a financial penalty: a 4-hour peak demand window with 3 kWh/hour usage costs $3.36–$3.84/hour. A typical Edison home burns $25–$30/day in peak demand charges during summer. Over June–September (120 days), that’s $3,000–$3,600 in peak penalties alone. Most homeowners don’t realize this cost is hidden in their “demand charge” line item on the PSE&G bill. Solar by Omar inverts this: we size your system to produce 4–5 kW peak output exactly 2–4 PM (maximum summer insolation), directly offsetting peak demand usage. Result: peak penalties drop to near-zero. A 12 kW Edison system eliminates ~$2,400–$3,000/year in TOU penalties — before counting general bill savings.

PSE&G’s Time-of-Use Demand Pricing: How It Works Against You

PSE&G uses a two-tier pricing model: (1) energy charge ($/kWh consumed), and (2) demand charge ($/kW of peak power drawn during billing period). The demand charge is where the penalty lives. PSE&G measures your highest 15-minute usage window each month during June–September. If your AC peaks at 5 kW during 2–4 PM, you’re charged for that 5 kW demand all month (~$15–$20/kW). For a typical Edison home with 7–8 kW peak demand during summer, this translates to $105–$160/month in demand charges alone. Solar directly reduces this: when your 12 kW system produces peak power (2–4 PM), it displaces your home’s grid draw. If your peak demand drops from 8 kW to 3 kW due to solar, you save $75–$100/month in demand charges. Over 4 months of peak season: $300–$400. But this math compounds: as PSE&G rates climb (historical 2–3%/year), your savings multiply.

1:1 Retail Net Metering: Summer Excess Banks Into Winter Credits

Edison sits in PSE&G’s net metering zone. Your system produces excess power June–September (peak 5.2 peak sun hours/day); excess kWh are credited at full retail rate (~$0.22–$0.28/kWh). These credits bank for winter use (November–February heating). For Edison’s 12 kW system, summer excess (4,000–5,000 kWh) banks at $0.25/kWh = $1,000–$1,250 in winter offsets. This dual arbitrage (peak demand penalty avoidance + seasonal net metering) is unique to Edison’s TOU structure.

Middlesex County Municipal Fast-Track: 1–2 Week Approval

Edison’s Building Department prioritizes solar permitting. Our process: Step 1: Structural roof certification + TOU load analysis (2 days). Step 2: PSE&G pre-application with demand offset documentation (same-day filing). Step 3: Municipal permit submission with fire code specs (1 day). Step 4: Inspection and Permission to Operate (5–7 days). Total: 1–2 weeks typical. Because we provide demand-offset analysis showing grid benefit (reduced peak loads), Middlesex County treats these as priority applications.

NJ SuSI Program: 15-Year Rate Lock on $1,031+/Year

Edison residents currently qualify for NJ’s Successor Solar Incentive at $85.90/MWh for 15 years. On a 12 kW system producing 14,400 kWh/year, this locks $1,031/year guaranteed income, immune to PSE&G rate hikes. Combined with bill savings ($3,168/year) and demand penalty elimination ($2,400–$3,000/year), Edison homeowners achieve $6,600+/year in total protected value. This is the single best 15-year hedge against Central Jersey rate inflation.

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