What Should You Pay For Solar In New Jersey?

Find Out For Your Home Based On Recent Installations In Your ZIP

Solar power in New Jersey

Last fact checked on June 18, 2019 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 30% 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 in the range of $3.30 to $3.50 per watt for cash-settled systems before incentives are applied. For financed systems, you can expect to pay between $3.50 to $4.00 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!

 

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Solar power in New Jersey

New Jersey solar power facts

$3.78
/watt

Average cost of a 5kw solar power system in 2019
Price shown before incentives

4 Years 1 Month

Average payback time

$124,227

Average lifetime savings
Price shown after repayments of capital


/kWh

levelized cost of solar energy

40¢
/kWh

If you don't get solar
The forecast average utility price over the next 25 years

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.


Solar companies in New Jersey that provide pricing through the Solar-Estimate marketplace

8


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Compare solar quotes from the top solar companies in New Jersey

How much do solar panels cost in New Jersey

$3.78 per watt

Cash purchased solar system
Before 30% solar tax credit

$4.18 per watt

Financed solar system
Before 30% solar tax credit

16.3¢ cents/kWh

Lease/PPA
Av. 15 year term, 2.5% price escalator

What are the pros and cons of buying solar panels for your home 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.

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Best brands of solar panels

To find the best brands of solar panels you can use America's most trusted solar panel comparison and reviews website, SolarReviews.

However, reviews of solar panels can be a bit meaningless because most consumer owners have not had any issues and so whilst solar company reviews are very important when choosing solar installers they are of less use when choosing solar panels.

For more information to help you make an informed decision about this topic, I would recommend this article about buying solar panels.

 

Unlock live pricing on the best solar panel brands!

 

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 zipcode below.

 

See how much electricity your solar panels could produce

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 your require.

 

You can either use our full monthly solar calculator that shows you everything you could possibly want to know or you can use one of our range of smaller calculators for specific solar calculations that focus on providing you only with the specific 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:

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 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.

 

Unlock live pricing in your state!

 

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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 Renewable Energy Tax Credit Federal Personal Tax Credit
Solar Renewable Energy Certificates (SRECs) Registration Program State Solar Renewable Energy Credit Program
NJ Clean Energy- Residential New Construction Program State Rebate Program
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
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 are the solar installers who specialize in your area.