New Jersey Solar Panels
Pricing & Installation Data

Find out if solar panels are right for your home in New Jersey.

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New Jersey

Solar Panels 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.

Cost of Solar in New Jersey

The average price for a home solar panel system in New Jersey is $16,680 for a 6kW system or about $2.78 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$16,680$27,800$8,340$2.78
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

Costs by Solar System Size in New Jersey

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 SizeSystem CostCost After Federal Tax Credit
5 kW$13,900$8,785
6 kW$16,680$10,542
7 kW$19,460$12,299
8 kW$22,240$14,056
10 kW$27,800$17,570

Pros and Cons of Solar in New Jersey

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 Solar Pros

  • Reduce or eliminate electric bills
  • Energy independence from the grid
  • Reduce your carbon footprint
  • There are local incentives available
  • There are community solar options
  • There is no increase in property taxes due to a solar system installation, and no sales tax on the system (upfront 7% savings)
  • Increase home value (4.1% on average)
  • New Jersey ranks 8th in solar in the U.S.
  • Net metering is available in a majority of the state
  • There are several solar buy-back plans available

New Jersey Solar Cons

  • Not viable for all roofs or homes
  • Installation costs
  • Financial liability
  • Fewer savings than other states
  • No statewide solar tax credit

EnergyBot's Take

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.

Leasing vs Buying Solar Panels in New Jersey

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.

Cash Purchase

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.

Solar Loan

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.

Solar Lease

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:

  • Renew your lease agreement
  • Purchase the system
  • End your lease agreement

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.

Power Purchase Agreements

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.

New Jersey Solar Incentives

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.

Name State Category Type
New Jersey Solar Easements (duplicate entry) NJ Regulatory Policy Solar/Wind Access Policy
Societal Benefits Charge NJ Regulatory Policy Public Benefits Fund
Solar Energy Sales Tax Exemption NJ Financial Incentive Sales Tax Incentive
Renewables Portfolio Standard NJ Regulatory Policy Renewables Portfolio Standard
Environmental Information Disclosure NJ Regulatory Policy Generation Disclosure
New Jersey Renewable Energy Incentive Program (Sustainable Biopower) NJ Financial Incentive Rebate Program
New Jersey - Green Power Purchasing NJ Regulatory Policy Green Power Purchasing
Clean Energy Financing for Local Schools and Governments (REDO Program) NJ Financial Incentive Loan Program
Renewable Energy Economic Development Program (REED) NJ Financial Incentive Grant Program
Solar Renewable Energy Certificates (SRECs) NJ Financial Incentive Performance-Based Incentive
COOLAdvantage Program NJ Financial Incentive Rebate Program
NJ Clean Energy- WARMAdvantage Program (Electric and Gas) NJ Financial Incentive Rebate Program
Combined Heat & Power (CHP) Program NJ Financial Incentive Rebate Program
South Jersey Gas - Residential Loan Program NJ Financial Incentive Loan Program
ENERGY STAR Homes Program NJ Financial Incentive Rebate Program
Home Performance with ENERGY STAR Program NJ Financial Incentive Loan Program
New Jersey Appliance and Equipment Energy Efficiency Standards NJ Regulatory Policy Appliance/Equipment Efficiency Standards
New Jersey SmartStart Buildings - New Construction and Retrofits NJ Financial Incentive Rebate Program
South Jersey Gas - Residential Energy Efficiency Rebate Program NJ Financial Incentive Rebate Program
New Jersey Solar Easement and Access Laws NJ Regulatory Policy Solar/Wind Access Policy
New Jersey Comfort Partners Program NJ Financial Incentive Rebate Program
Home Performance with ENERGY STAR Program NJ Financial Incentive Rebate Program
New Jersey Natural Gas (NJNG) - Home Performance with Energy Star Rebate NJ Financial Incentive Rebate Program
Property Tax Exemption for Renewable Energy Systems NJ Financial Incentive Property Tax Incentive
Edison Innovation Clean Energy Manufacturing Fund - Grants and Loans NJ Financial Incentive Industry Recruitment/Support
Pay for Performance Program NJ Financial Incentive Rebate Program
Clean Energy Solutions Capital Investment Loan/Grant Program NJ Financial Incentive Loan Program
Solar Domestic Hot Water Pilot Program NJ Financial Incentive Rebate Program
Edison Innovation Clean Energy Fund NJ Financial Incentive Grant Program
New Jersey Natural Gas - SAVEGREEN Residential Rebate Program NJ Financial Incentive Rebate Program
PSE&G - Residential Efficiency Program NJ Financial Incentive Rebate Program
Solar and Wind Permitting Laws NJ Regulatory Policy Solar/Wind Permitting Standards
New Jersey Direct Install Program NJ Financial Incentive Rebate Program
Solar Energy Option Requirement for Residential Developments NJ Regulatory Policy Building Energy Code
Assessment of Farmland Hosting Renewable Energy Systems NJ Financial Incentive Property Tax Incentive
New Jersey - Residential Energy Efficient Appliance Rebate Program NJ Financial Incentive Rebate Program
Clean Energy Solutions ARRA CHP Program NJ Financial Incentive Grant Program
Wind Manufacturing Tax Credit NJ Financial Incentive Industry Recruitment/Support
Utility Solar Financing Incentive (ACE, JCP&L, RECO) NJ Financial Incentive Other Incentive
Utility Solar Financing Programs (ACE, JCP&L, RECO) NJ Financial Incentive Other Incentive
PSE&G - Commercial Efficiency Program NJ Financial Incentive Grant Program
New Jersey Natural Gas - SAVEGREEN Residential On-Bill Financing Program NJ Financial Incentive Loan Program
Edison Innovation Green Growth Fund Loans NJ Financial Incentive Industry Recruitment/Support
PSE&G - Government and Non-Profit Facility Direct Install Efficiency Program NJ Financial Incentive Grant Program
PSE&G - Multi-Family Residential Efficiency Program NJ Financial Incentive Grant Program
Orange and Rockland Utilities (Electric) - HVAC Efficiency Program NJ Financial Incentive Rebate Program
Local Option - Property Assessed Clean Energy Financing NJ Financial Incentive PACE Financing
Clean Energy Solutions Large Scale CHP and Fuel Cells Program NJ Financial Incentive Grant Program
Small Scale CHP and Fuel Cell Incentive Program NJ Financial Incentive Grant Program
Local Energy Audit Program NJ Financial Incentive Rebate Program
Large Energy Users Program NJ Financial Incentive Rebate Program
Solar Renewable Energy Certificates (SRECs) Registration Program NJ Financial Incentive Solar Renewable Energy Credit Program
New Jersey Natural Gas- SAVEGREEN Commercial On-Bill Financing Program NJ Financial Incentive Loan Program
NJ Clean Energy- Residential New Construction Program NJ Financial Incentive Rebate Program
Energy Storage Procurement Target NJ Regulatory Policy Energy Storage Target
It Pay$ to Plug in Program NJ Financial Incentive Grant Program
Clean Fleet EV Incentive Program NJ Financial Incentive Grant Program
Charge Up New Jersey Program NJ Financial Incentive Rebate Program
Green Pass Discount NJ Financial Incentive Other Incentive
New Jersey Zero Emission Incentive Program NJ Financial Incentive Rebate Program
Successor Solar Incentive (SuSI) Program - Administratively Determined Incentive NJ Financial Incentive Performance-Based Incentive
New Jersey Community Solar Rules - Remote Net Metering NJ Regulatory Policy Community Solar Rules
Successor Solar Incentive (SuSI) Program - Competitive Solar Incentive NJ Financial Incentive Performance-Based Incentive
EV Tourism Program NJ Financial Incentive Grant Program
PSE&G Electric Vehicle Charging Program NJ Financial Incentive Rebate Program
JCP&L - EV Driven Program NJ Financial Incentive Rebate Program
C-PACE: Garden State Commercial Property Assessed Clean Energy NJ Financial Incentive PACE Financing
Offshore Wind Energy Target NJ Regulatory Policy Offshore Wind Energy Target
Tax-Exempt Financing for Green Buildings, Renewable Energy & Brownfield Redevelopment US Financial Incentive Loan Program
Conservation Security Program (CSP) Production Incentive US Financial Incentive Performance-Based Incentive
Business Energy Investment Tax Credit (ITC) US Financial Incentive Corporate Tax Credit
Federal Excise Tax Exemption for Gasohol US Financial Incentive Corporate Tax Exemption
Modified Accelerated Cost-Recovery System (MACRS) US Financial Incentive Corporate Depreciation
Energy Star Financing and Mortgages US Financial Incentive Loan Program
USDA Rural Housing Service Loans US Financial Incentive Loan Program
Residential Energy Conservation Subsidy Exclusion (Corporate) US Financial Incentive Corporate Tax Exemption
Renewable Energy Production Incentive (REPI) US Financial Incentive Performance-Based Incentive
Renewable Electricity Production Tax Credit (PTC) US Financial Incentive Corporate Tax Credit
Small Business Administration Loan Programs US Financial Incentive Loan Program
Energy-Efficient Mortgages US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Grants US Financial Incentive Grant Program
Office of Indian Energy Policy and Programs - Funding Opportunities US Financial Incentive Grant Program
Green Power Purchasing Goal for Federal Government US Regulatory Policy Green Power Purchasing
Energy-Efficient Commercial Buildings Tax Deduction US Financial Incentive Corporate Tax Deduction
Energy-Efficient New Homes Tax Credit for Home Builders US Financial Incentive Corporate Tax Credit
Energy-Efficient Appliance Manufacturing Tax Credit US Financial Incentive Industry Recruitment/Support
Residential Energy Efficiency Tax Credit US Financial Incentive Personal Tax Credit
Veterans Housing Guaranteed and Insured Loans US Financial Incentive Loan Program
Federal Appliance Standards US Regulatory Policy Appliance/Equipment Efficiency Standards
Energy Goals and Standards for Federal Agencies US Regulatory Policy Energy Standards for Public Buildings
Clean Renewable Energy Bonds (CREBs) US Financial Incentive Loan Program
Qualified Energy Conservation Bonds (QECBs) US Financial Incentive Loan Program
U.S. Department of Treasury - Renewable Energy Grants US Financial Incentive Grant Program
USDA - High Energy Cost Grant Program US Financial Incentive Grant Program
USDA - Biorefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program US Financial Incentive Loan Program
USDA - Repowering Assistance Biorefinery Program US Financial Incentive Grant Program
Title I Property Improvement Loans US Financial Incentive Loan Program
USDA - Rural Energy for America Program (REAP) Energy Audit and Renewable Energy Development Assistance (EA/REDA) Program US Financial Incentive Grant Program
Low Income Home Energy Assistance Program (LIHEAP) US Financial Incentive Grant Program
Weatherization Assistance Program (WAP) US Financial Incentive Grant Program
Fannie Mae Green Financing – Loan Program US Financial Incentive Loan Program
Qualified Commercial Clean Vehicle Tax Credit US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Corporate) US Financial Incentive Corporate Tax Credit
Alternative Fuel Vehicle Refueling Property Tax Credit (Personal) US Financial Incentive Personal Tax Credit
Previously-Owned Clean Vehicle Tax Credit US Financial Incentive Personal Tax Credit

New Jersey Solar Companies

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:

  • Project Solar - A nationwide provider of solar panel systems that has a non-sales-oriented approach to building your system. They build your system from their central office and send a local company to complete the solar panel installation.
  • EnergySage - The largest online solar installation network. They work with thousands of installers to help you find the perfect solar system for your home. With thousands of successful solar installations, they can give you a range of bids and pricing options.
  • Tesla - Brains behind some of the most cutting-edge technology in the automotive industry, Tesla also offers sleek and powerful solar systems and battery systems.

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.

Before You Install Solar Panels

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.

  • What are the long-term savings and payback period for installing a solar panel system?
  • How will installing solar panels impact my home's value?
  • What is the system’s Return on Investment (ROI)?
  • Are there any specific design or aesthetic considerations for solar panel installation?
  • How do I weigh the environmental benefits against the costs of installation?
  • What are the specific terms and conditions for the installer?

New Jersey’s Policy Pathway

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.

Why Trust EnergyBot

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.

New Jersey Solar FAQs

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:

  1. Your home's energy consumption: The first step is to calculate your household's energy use. You can do this by looking at your electricity bills to see how much electricity you use in a year, usually measured in kilowatt-hours (kWh). The average U.S. home uses around 10,400 kWh per year, but this can vary widely based on the size of your home, the efficiency of your appliances, and your personal habits.
  2. The amount of sunlight your location receives: This can vary depending on where you live. For example, if you live in a place that has many sunny days like Arizona, you might require fewer solar panels compared to someone living in a place with less sunlight like Seattle.
  3. The efficiency of the solar panels: Not all solar panels are created equal. Some panels can convert sunlight into electricity more efficiently than others. On average, residential solar panels have an efficiency rating between 15-20%. The higher the efficiency, the fewer panels you would likely need to meet your energy needs.
  4. The size of the solar panels: Solar panels also come in different sizes. A common size for residential use is roughly 65 inches by 39 inches. Each panel typically produces around 250 to 400 watts of power, but this can vary.

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.

  • Lower Electricity Bills: Once your solar panels are installed, you can generate your own electricity and reduce your reliance on the grid, which can lower your monthly bills.
  • Environmental Benefits: Solar energy is clean and renewable, so using it helps reduce greenhouse gas emissions and other harmful pollutants.
  • Increased Home Value: Installing solar panels can increase the value of your home and make it more attractive to potential buyers.
  • Long-Term Savings: While the upfront cost of installing solar energy systems can be high, they can pay for themselves over time through lower energy bills and other savings.
  • Location: Homes in areas with lots of sunlight are generally better candidates for solar panels. If your home is shaded or doesn't receive much sunlight, it may not be the best choice.
  • Roof Orientation: Ideally, your roof should be facing south to get the most sunlight throughout the day.
  • Roof Condition: Your roof should be in good condition and able to support the weight of the solar panels. If your roof needs repairs or replacement, it's best to take care of that before your solar installation.

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.