See how much it will cost to install solar panels for your home in New Jersey
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Solar power in New Jersey
Last fact-checked on January 19, 2023, by Catherine Lane
New Jersey is one of the best places in the US to invest in solar for your home. The combination of net metering, a healthy solar carve out system, the 26% federal solar tax credit, and some of the highest utility power costs in the nation makes for a high return on investment.
It is possible to buy a high-quality solar power system in New Jersey from a reputable installer for $2.82 per watt for cash-settled systems before incentives are applied. For financed systems, you can expect to pay $3.02 per watt, before incentives.
At this price level, you are talking about a payback period of 6 years or less! This means the amount of money solar saves you in 6 years will equal just about the cost of your system. A rate of return like this, plus amazing incentives, makes going solar in the Garden State a no-brainer!
Compare solar quotes from the top solar companies in New Jersey
New Jersey solar power facts
$2.82 watt
Average cost: 5kW solar power system
?4 Years 7 Months
Average payback time
$106,641
Average lifetime savings
?6¢ kWh
Levelized cost of solar energy
40¢ kWh
If you don't get solar
?11,785 kWh
Annual power production
Cash flow graph based on cash purchase of a 9.8kW system
This 9.8kW system would offset 100% of your energy usage if your typical monthly bill in New Jersey is $220, however, your situation may vary so try our solar calculator to get a result tailored to you.
8
Solar companies in New Jersey that provide pricing through the Solar-Estimate marketplace.
How much can solar panels save you in New Jersey
Average total cost of solar panel installation in New Jersey
| System Size | Cash purchase After 30% solar tax credit |
Financed purchase After 30% solar tax credit |
|---|---|---|
| 3kw | $6,111 | $6,600 |
| 4kw | $8,036 | $8,679 |
| 5kw | $9,870 | $10,660 |
| 6kw | $11,676 | $12,610 |
| 7kw | $13,377 | $14,447 |
| 8kw | $15,064 | $16,269 |
| 9kw | $16,632 | $17,963 |
| 10kw | $18,200 | $19,656 |
How much do solar panels cost in New Jersey?
$2.82 per watt
Cash purchased solar system
Before 26% solar tax credit
$3.02 per watt
Financed solar system
Before 26% solar tax credit
$16.3¢ /kWh
Lease/PPA
Ave 15 year term, 2.5% price escalator
What are the pros and cons of installing solar panels in New Jersey?
The advantages of installing solar panels in New Jersey are that there are both state-based incentives and the federal tax credit to help reduce system costs. In addition, much like everything else in New Jersey, power is expensive! High electric rates means you have the potential to save more money, making the overall return on investment for residential solar panels in the state much higher than other states in the nation.
The disadvantage of installing solar panels in New Jersey is that there is less overall solar irradiation. This means a system in New Jersey will produce less power than a system in sunnier states, like Arizona. However, the state and local incentives more than make up for this. New Jersey homeowners should not pass up the opportunity to install solar while these amazing incentives are still in place.
Enter your details to calculate the potential costs and savings you can expect to see after installing solar panels on your home.
Best solar companies in New Jersey
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Compare solar quotes from the top solar companies in New Jersey
How much electricity will solar panels produce in New Jersey
Solar panels produce different amounts of energy in different locations.
Around the Trenton area solar panels installed on a south-facing 30-degree pitch roof will typically produce:
1,203kWh
per year per 1kW of peak DC
(direct current) capacity
For more information about how your location, roof direction, and roof tilt affects solar power production use the solar panels calculator and enter your zip code.
I want to buy a solar panel kit and install it myself
What rebates, solar tax credits and other solar incentives are available in New Jersey?
Solar Renewable Energy Credits
New Jersey’s renewable portfolio standard is one of the most aggressive in the US, requiring electric utilities to derive 50% of the electricity they sell from renewable energy resources by 2030. In addition to that, New Jersey has a solar carve out which states that by 2028, 4.1% of electricity sales must be exclusively from solar.
To meet this solar carve out, utilities must obtain solar renewable energy credits (SRECs). An SREC represents the environmental benefits of producing energy through solar. The solar carve out in New Jersey has created a huge market for SRECs, where one SREC can be sold for around $220. You can track NJ SREC prices here.
When you install your solar system, you have the ability to register it with the state so that your system can create SCRECs. You will receive 1 SREC for every megawatt hour (MWh) of electricity your system produces.
For instance, a 5-kW system will create around 6 SRECs per year. If the price of an SREC is $220 and your system produced 6 SRECs, you could earn up to $1,320.
Use the solar savings calculator or the compare solar quotes tool to see the current market value of New Jersey SRECs and the effect it has on your solar investment return.
Net metering in New Jersey
The Garden State requires all utility companies that are regulated by the New Jersey Board of Public Utilities to offer their customers net metering. What that means is, when your solar system produces more energy than you use, you will receive the full retail rate for each kilowatt hour (kWh) of excess energy.
Being that electric rates are so high in New Jersey, net metering can save homeowners a lot of money.
Tax exemptions
New Jersey offers two types of tax exemptions: a sales tax exemption and a property tax exemption.
The solar energy sales tax exemption allows solar energy equipment to be fully exempt from the state’s 7% sales tax.
The property tax exemption for renewable energy systems serves to exclude the assessed costs associated with a solar system from a homeowner’s property taxes.
PSE&G Solar Loan Program
If you are a customer of PSE&G, you can qualify for their Solar Loan Program. This will allow you to take out a loan to cover 30%-50% of the cost of your solar system. The loan can be paid back through cash or through the SRECs your system produces.
For more information, check out PSE&G’s website here.
New Jersey Solar Calculator
Regardless of what you want to know about the economics of installing solar panels for your home or business in New Jersey, we have a solar calculator that can show you exactly the information you require.
What you can find out about installing solar panels in New Jersey using our full monthly solar calculator
This solar calculator requires you to input your address, utility company, your average monthly power spend - It tells you:
- What size solar system do you need?
- Answers the question of how many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in New Jersey
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in New Jersey or Trenton ;
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC sol (home equity line of credit) and a zero-down PPA or third party lease product.
If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this New Jersey solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.
Going solar in New Jersey
Check out all of the ways energy providers of New Jersey can help you be more energy-efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Clean Energy Tax Credit | Federal | Personal Tax Credit |
| Net Metering | State | Net metering |
| Solar Energy Sales Tax Exemption | State | Sales Tax Incentive |
| Property Tax Exemption for Renewable Energy System | State | Property Tax Incentive |
| Successor Solar Incentive Program (SuSI) | State | SREC Program |
Find your local rebates and incentives
Your city may have further incentives to offer. Please keep in mind that the best source of up-to-date information on incentives is the solar installers who specialize in your area.
