Solar power in New Jersey

New Jersey is a leader in solar energy in the U.S.—currently, more than 7% of the state’s electricity comes from solar power. With numerous New Jersey solar incentives and credits available, many residents are enjoying the benefits of going solar, such as reducing electric bills and benefiting the environment.

If you live in the Garden State, installing solar panels on your home can help you dramatically reduce your power bills for decades. As the cost of electricity increases, so will your savings. You’ll likely need to pay $20,000 or more for your system upfront, but this initial cost likely pales in comparison to what you can save over the next 25 years.

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New Jersey solar panel cost

Because installing solar panels can be a substantial investment, it is important to understand both the costs and potential savings. The cost of a solar power system is measured in watts, and the average price per watt of a New Jersey solar system is $3.53, according to Find Energy. A typical home in the Garden State needs a 7-kilowatt (kW) system, totaling around$24,680. The national average price for a solar system is slightly higher, at $3.67 per watt. Keep in mind that each solar installation will be tailored to your home, so your cost will ultimately depend on the type of equipment and setup you choose.

Here is how the average cost and size of a solar system in New Jersey compares to the average U.S. system:

*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.

How does New Jersey solar save you money?

Installing a rooftop solar panel system on your home can save you money in several ways. As of April 2023, theaverage monthly electricity bill in New Jersey costs $118.03. Solar power can significantly reduce or eliminate the supply charges on your electricity bills as you rely less on the traditional energy grid. Given that electricity prices trend upward over time, this long-term investment can save you thousands on electric bills in the long run.

Several local and federal incentives offset the cost of solar panels in New Jersey, as well, including tax credits, renewable energy credits, and net metering programs that significantly lower your energy bills. The typical residential solar system in New Jersey pays for itself in savings in about 12 years.

Although the average New Jersey solar system is 7 kW, every home has unique roof sizing, energy consumption habits, and other factors that determine the size of system it will need. The following table shows a range of potential sizes and solar costs at the price of $3.53 per watt.

The best New Jersey solar panel incentives or rebates

The federal government offers the Residential Clean Energy Credit, a solar policy for homeowners who install solar panels on their primary or secondary residences. When you apply for this credit, you can recover 30% of the upfront cost of your solar system on your tax returns for systems installed between 2022 and 2032. A homeowner could qualify for a $7,404 tax credit on a $24,680 New Jersey solar energy system.

Homeowners in the Garden State can also take advantage of local New Jersey solar incentives that lead to significant savings over time.

Solar incentives in Newark

In addition to state-wide New Jersey solar incentive programs, Newark residents may also be eligible for a solar loan program through PSE&G. To qualify, the photovoltaic system must be located in the PSE&G electric service territory and be eligible to generate Solar Renewable Energy Credits.

• Solar loans through PSE&G come with a guaranteed interest rate of 11.179%.
• Loans can cover up to 70% of system costs and be paid back over 10 years.
• The system must be within PSE&G’s service territory and be eligible for net metering and SRECs. Applicants must also meet PSE&G’s credit requirements.

Solar incentives in Jersey City

Jersey City is a populous city in northeastern New Jersey, located across the Hudson River from New York City. Residents may be eligible for PSE&G’s solar loan program, which can help finance a significant portion of solar electric systems. PSE&G’s loans can provide access for more homeowners who want to purchase a solar system and benefit from federal incentives but cannot do so in upfront cash.

• Program information and eligibility requirements are the same as noted for Newark.

Why choose New Jersey solar power?

There are many reasons to choose New Jersey solar. Here are three of the biggest benefits you can experience by switching to solar.

Lower energy costs

Reduced energy costs are a major selling point of home solar systems. Solar panels allow you to produce your own power instead of buying electricity from your utility or energy provider. As a result, you can greatly reduce or even eliminate your electricity bills, and electricity rate hikes won’t affect you as much.

Increase energy independence

When you generate your own solar electricity, you significantly reduce your reliance on fossil fuels and produce much of your own energy instead of depending solely on the grid. Also, if you install a backup solar battery, you can rely on stored power during outages or blackouts.

Go green

Going solar is also an excellent way to conserve resources and preserve air quality. Switching from fossil fuels to renewable energy can reduce your carbon footprint and help protect the environment.

Should I buy or lease my solar panels?

Many homeowners wonder if they should buy or lease solar panels. The best option for you depends on your individual situation. Purchasing your solar system with cash or a loan offers the most long-term financial benefits, as you must own your solar system to take advantage of the 30% federal solar tax credit program. Plus, if you sell your house, a solar system can add an average of $15,000 to its resale value.

However, you may consider alternative methods of acquiring a solar system for a few reasons. For example, if you don’t have the financial resources to afford the cost of solar panels in New Jersey, solar leases and power purchase agreements (PPAs) allow you to reap some of the benefits of solar energy. Alternatively, if you rent your home, have an old roof, or otherwise can’t install solar panels, you may be able to share a solar system through a community solar project.

New Jersey solar panel companies

Several solar installation companies offer services in New Jersey. SaveOnEnergy partners with top-tier solar companies offering affordable pricing and attractive features. To get started, fill out the solar estimator or call us at the number on your screen.

Solar installer	Year founded	Financing options	Warranty terms
	2018	Cash purchase or solar loan	30-year performance warranty, 25-year panel warranty, and 25-year quality guarantee
	2011	Cash purchase or solar loan	25-year manufacturer warranty and production guarantee
	1985	Purchasing, financing, or leasing systems	25-year product, performance, and quality of work warranties
	2009	Cash purchase, solar loan, or lease	25-year quality of work and 25-year product warranties

What to look for in a solar contractor

It’s important to research and find a solar company with a good reputation for using quality equipment and providing excellent customer service. Consider whether the solar company is licensed and certified by a reputable organization like the North American Board of Certified Energy Practitioners (NABCEP). 

It is ideal to pick a solar company with a strong track record and a positive reputation in your area. You can read reviews to learn more about a company’s track record of providing quality installations. Look for an installer with strong warranties for its services and products. It’s also best to compare pricing and research financing options from multiple installers before signing a contract.

Beware of free solar panels in New Jersey scam

If your home gets sufficient sunlight, solar panels can save you thousands in the long run. Nonetheless, it’s important to weigh the upfront costs and ensure you can afford the system and get a sufficient return on your investment over time. Any offers for free solar panels in New Jersey are likely scams, as there’s no way to avoid some solar costs when installing a system.

Important solar installation factors to consider

Although rooftop solar systems are an excellent option for many homes, there are a few factors to consider before making the investment. 

• Age, slope, and condition of your roof: According to the Department of Energy, solar panels work best on south-facing roofs with a 15–40-degree slope. Roofs should also be in good condition and not need updates or repairs. If roof work is needed, it’s best to complete it before installing solar panels.
• Available sunshine: Your solar panels will generate the most power if they’re in direct sunlight. Ideally, your roof should not be heavily shaded by buildings or trees. Once you install a home solar system, avoid planting trees that will eventually shade your array.
• HOA or neighborhood guidelines: Check with your homeowner’s association (HOA) or community association to determine if you need approval to install solar panels on your roof. Your solar installer can help you navigate potential obstacles.