Find out if solar panels are right for your home in New Jersey.
While solar panels seem to be most popular in the sunny states, solar systems are still popping up more around New Jersey. While EnergyBot is all for going green, we still want to make sure you make the right financial decision for your home. Solar may make sense for some, but it may not be right for all. There is a lot to consider including amount of sun exposure, location, energy usage, roof structure, energy priorities, and financial availability.
Whether you are trying to reduce your carbon footprint or your utility bills we’ll walk you through the most important factors to help you make the best energy decision.
The average price for a home solar panel system in New Jersey is for a 6kW system or about per watt. Systems will vary depending on the solar installation company the types of solar panels you choose and the size of your system. When shopping for solar panels you should consider getting multiple quotes from various installers.
| Average Cost 6 kW System | Average Cost 10 kW System | Estimated Tax Credit (10 kW System) | Average Cost/Watt | |
|---|---|---|---|---|
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| New Jersey | ||||
| U.S.Average | $18,771 | $31,285 | $9,385.50 | $3.13 |
| Most Costly State(Michigan) | $22,680 | $37,800 | $11,340 | $3.78 |
| Least Costly State(Arizona) | $14,640 | $24,400 | $7,320 | $2.44 |
For many New Jersey residents, the perfect solar system size strikes a balance between cost and capacity. In the Garden State, the objective is to harness enough solar energy to meet your home's electrical needs while maintaining costs as competitive as possible.
In other words, you'll want to achieve maximum value for your investment in New Jersey.
| System Size | System Cost | Cost After Federal Tax Credit |
|---|---|---|
| 5 kW | $8,785 | |
| 6 kW | $10,542 | |
| 7 kW | $12,299 | |
| 8 kW | $14,056 | |
| 10 kW | $17,570 |
Solar, even in the Garden State, has its nuances. Before diving in, New Jersey residents should carefully weigh the benefits and potential challenges of incorporating solar installations into their homes. Assess these factors to determine if it's the ideal fit for you in New Jersey. Everyone may prioritize or evaluate these considerations differently.
Our goal is to present the common pros and cons specific to New Jersey, enabling you to arrive at a well-informed personal decision.
New Jersey does not have an ideal climate for solar panels but there is plenty of sunlight throughout the year to make the purchase worth it for some. Electricity costs in New Jersey are around average compared to the rest of the country so savings depends more on your solar exposure and cost analysis. If you have trees shading your house, solar may not work.
While some homes may see a slightly more expensive investment over 15 years versus buying electricity traditionally, the average payback is . However, if you prioritize energy independence and renewable energy, even a longer payback period may make sense.
If you are on the fence you can use this tool to get an accurate cost breakdown for your home based on your historical energy usage.
There are several ways you can purchase and/or finance your solar panel installation in New Jersey. Your goals and financial situation will dictate which option is best for you.
The most straightforward option. You pay upfront for the entire cost of the rooftop solar system. No interest, and fewer headaches, but many people are hesitant about spending several tens of thousands of dollars out of pocket.
The most common method for buying solar systems. Like many other types of large purchases, you can finance your solar system through a bank or solar loan provider.
This sounds great, and many other solar loan salespeople will leverage the low payment to justify the costs. You will likely hear something like "You pay $250 a month on your electric bill, with a solar loan you will pay $200 and have free electricity."
Do your due diligence before you sign on the dotted line. There are many horror stories of variable loan terms, ballooning interest rates, and harsh missed payment penalties.
Leasing solar panels generally involves less money out of pocket upfront. But, it's important to note - you do not own your solar energy system. You essentially renting the solar system. A solar provider will install the equipment and charge you a fixed monthly fee.
Most solar lease contracts last for a couple of decades, during which time the provider will keep an eye on the system's hardware and performance. At the end of your lease, you can choose to:
Solar leases can be complicated. Not all are bad, but in many cases the lease terms in not in favor of the buyer. Before you decide on a solar lease make sure to read your contract thoroughly. If you don't understand something, ask an expert.
A power purchase agreement (PPA) is a financial agreement where a solar company will design and install a solar system on your home or business with little or no cost upfront. Instead of paying a monthly fee like a lease, the agreement includes a fixed price per kilowatt-hour (kWh) of electricity generated.
For example, you agree to pay $0.12 per kWh of electricity generated for the next 20 years. The solar company will install and maintain your system and sell the power back to you that you use. They may also collect payment for any additional energy they put back into the grid.
Just like a lease, you do not own the panels. When the contract is up, they will either be removed or your contract may have other terms for you to buy or renew your power purchase agreement.
Power purchase agreements can be complicated. Before you sign make sure you review the contract and if possible have an expert in power purchase agreements review the details.
Even though New Jersey doesn’t have ideal sunny weather all year long, it still ranks 8th place for solar in the country. This is because it offers a variety of solar incentives to encourage the adoption of renewable energy.
In addition to the Federal Solar Investment Tax Credit providing a 30% tax credit through 2032, Net Energy Metering in New Jersey allows for full retail rate credit for excess power, and the Successor Solar Incentive program (SuSI) offers significant earnings over 15 years.
Additionally, sales and property tax exemptions, an energy storage incentive, and community solar programs further enhance the affordability and accessibility of solar energy in the state. These combined incentives make New Jersey a favorable location for solar investment, reflecting the state's commitment to sustainability and clean energy.
There are hundreds of solar companies in New Jersey. From solar installers to solar loan providers, and manufacturers. Each is a piece of the puzzle to help you get outfitted with solar panels.
To make things simple, EnergyBot works directly with 3 of the largest solar companies to give you a comprehensive view of the market.
The solar companies we partner with:
We believe comparing these three names in the solar industry will give you the info you need to decide if solar panels are right for you.
Just because solar is a popular discussion right now, doesn’t mean it makes sense for everyone. It is still a large and expensive decision. Installing solar has great financial and environmental benefits but it won’t feel beneficial if you run into issues. Along with studying a 20-year cost comparison for your home, read some more tips to keep in mind when mulling over your decision on your installer, system design, and financial plan.
In 2021, Governor Murphy signed the Solar Act of 2021. This directed the New Jersey Board of Public Utilities (BPU) to double the growth of the existing solar program. Their goal is by 2026, incentivized up to 3,750 megawatts (MW) of solar generation to be installed.
Additionally, NJ enacted laws for larger commercial facilities. First, to make all new warehouses solar-ready by July 2022. Second, to pilot the installation of solar panels on agricultural lands. These initiatives have made New Jersey a leader in solar because of their unique forward-thinking approach.
We have helped thousands of customers find electricity plans for their home or business. And we are pretty darn good at it, with over 1,000 5-Star reviews we know how to help you stay powered up.
Now using the same one-of-kind technology and platform we are helping consumers in New Jersey decide if solar is right for them. You will notice that sometimes our numbers make solar look less attractive. That's not by accident. We believe you should have full transparency during the solar purchasing process.
We aren't here to sell you something. We are here to help you make the best energy decision for your home or business.
The cost of solar panel installation in New Jersey can vary significantly based on a number of factors, including the size and type of the system, the complexity of the installation, your solar installer, and the specific location. However, the average cost of solar panels in the U.S. was about $3.13 per watt, before any incentives or tax credits.
A typical residential solar system is usually around 8 kilowatts (8,000 watts), but varies based on energy use and the size of the house. The US average cost for a 6 kW system is $18,771 and the US average cost for a 10 kW system is $31,285, before incentives. The average price for a home solar panel system in New Jersey is $17,700 for a 6kW system or about or about $2.95 per watt, slightly lower than the US average.
The number of solar panels you would need depends on a variety of factors such as:
To give you a rough estimate, let's say you live in a location that receives about 5 hours of peak sunlight per day, your solar panels have an efficiency of 20%, and each panel has a power rating of 300 watts. If your home uses about 10,400 kWh per year, you would divide this by 365 to get your daily energy use (about 28.5 kWh). You would then divide this by the hours of peak sunlight (5 hours), to get your required power output per hour (about 5.7 kW). If each solar panel produces 300 watts (or 0.3 kW), you would divide 5.7 kW by 0.3 to get the number of solar panels you need, which would be about 19 panels.
The installation process for solar panels can take anywhere from a few days to a few weeks, depending on the size of the system and the complexity of the installation.
Your installer should be able to give you an estimated timeline based on your specific project.
Solar panels generally require very little maintenance. However, it's a good idea to have them inspected every few years to ensure they are working properly and to clean off any debris or dirt that may have accumulated on the panels. Most solar panel installers offer maintenance services for an additional fee.
Some skilled DIYers may be able to save some solar installation costs by installing solar equipment themselves. But, any solar installation will require a foundational knowledge of wiring and electricity. There's is a lot that can go wrong, posing a potentially deadly hazard.
Before you try to DIY your system we would recommend getting a quote from a solar installer. You may find that the labor costs of your install is relatively small compared to the cost of the solar equipment itself.
There are two main types of solar panels: Monocrystalline and Polycrystalline. There are pros and cons to both. Either type can produce enough solar power for your home. We recommend getting a recommendation from a solar installer for your home. Depending on your budget, location, and other factors they can recommend the most efficient solar panels for your home.
