New Jersey ranks #4 in America for savings from installing solar panels for your home

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Our complete guide to solar power in New Jersey

New Jersey solar power facts

$3.22
/watt

Average cost of a 5kw solar power system in 2016
Price shown before incentives

5
yrs

Average payback time

$42,000
 

Average lifetime savings
Price shown after repayments of capital


/kWh

Levelized cost of solar energy

29¢
/kWh

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

1,205
kWh

Power production
(per kW of peak DC solar panels)

 

 

Cash flow graph based on cash purchase of a 5kw system

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

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Best solar offers currently available in your city

 


Get the facts about installing solar panels for your home in New Jersey

Solar power in New Jersey

New Jersey runs a close second to Massachusetts in terms of the financial returns to be made by installing solar power for your home.

In fact with recent changes to the new SMART system in Mass, New Jersey may lay claim to be the best state in America in which to install solar panels for your home.

The combination of Net Metering, a healthy solar carve out system ,the 30% federal solar tax credit as well as having one of the highest utility power costs in the nation makes solar a great investment for your home.

In addition to this the solar carve out has ensured that solar carve out, that are awarded for each MWh of electricity production from your panels have a real value and could add between $1000 to $1500 to your return each year.

You should be able to buy good quality solar power systems from reputable installers in the range of $3.30 to $3.50 per watt for cash settled systems and between $3.50 to $4.00 per watt for financed systems, (before incentives and fully installed).

At this sort of price level you are talking about a payback period of 6 years or less and an internal rate of return on investment of around 20%.

When I did economics at college they called a return like this a "no brainer".

But hurry as the new president has made rumblings that the 30% solar tax credit may not last that long.

 

Estimate your solar savings

 

Solar power in New Jersey

Compare solar quotes from the top solar companies in New Jersey

Useful links

SREC Registration Program

SREC Registration Program
Net Metering

Best solar companies in New Jersey

Best brands of solar panels

To find the best brands of solar panels you can use America's most trusterd 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.

Compare solar quotes from the top solar companies in New Jersey

I want to buy a solar panel kit and install it myself

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:

1,203 kWh 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 address below.

What rebates, solar tax credits and other solar incentives are available in New Jersey

The solar carve out and New Jersey SREC's

New Jersey has a renewable energy targetthat requires utilities operating in the state to source a certain percentage of their electricity from renewable sources.

The legislature has further mandated that part of this renewable energy must come from solar, this is known as the solar carve out.

The way they enact this program, so that the liable entities (the utilities) do not have to build this solar capacity themselves is to attach a Solar Renewable Energy Credit (SREC) to each MWH of solar electricity generation in the state.

You (or your installer) registers your installation and you can then create and trade these SREC certificates.

You get 1 SREC for each MWh (Megawatt hour) of solar electricity production. solar carve out have traded in the range of $200 during 2016 but is capped by the value of the alternative compliance payment that utilities must pay if they don't hold enough solar carve out.

At the time of writing, February 2017 SREC prices were trading around $230 per SREC.

For a 5kw system you get approximately 6 solar carve out per year.

At a market value of $230 this is an annual return of $1380 per year.

This value could be as much as the value of monthly electricity bill savings you get. This alone makes solar a no brainer in New Jersey.

Use the solar savings calculator or the compare solar quotes tool to see the current market value of New Jersey solar carve out and the effect this has on your solar investment return.

You can track NJ SREC prices 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 monty 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 monty 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.

Solar calculator

How much do solar panels cost in New Jersey

$3.10 per watt

Cash purchased solar system
Before 30% solar tax credit

$3.50 per watt

Financed solar system
Before 30% solar tax credit

15¢ 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 Jerey is there is both state based incentives and the federal tax credit.

In addition NJ also has expensive power meaning overall the return on investment for an installation of residential solar panels in NJ is one of the the best in the nation.

The disadvantage of installing solar panels for your home in New Jersey is that there is less overall solar irradiation in NJ per year and so a solar system, produces less than it would in some other areas.

However, the local incentives more than make up for this and I think New Jersey homeowners have a great case as to why they should be installing solar power on their home, if they are going to be in that house for over 7 years it's a no brainer. Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.