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Solar Panels in New Jersey: Cost, Savings, and Rebates

Solar panels against a blue sky with a picture of the flag State of New Jersey

Solar Panels in New Jersey: Cost, Savings, and Rebates

Key Points

  • New Jersey ranks 8th in the US for solar energy production, with over 4.4 gigawatts of solar energy.
  • Despite high equipment rates, homeowners in New Jersey can save a lot with solar panels.
  • The federal solar tax credit offers 30% back on any solar installations made in 2023, which could lower the total price of a 6kW system from $16,680 to $11,676.
  • Residents in New Jersey can offset high electricity rates and even earn money back with solar panels, with some saving up to $16,700 on utilities over the lifetime of their system.
  • New Jersey homeowners can take advantage of state rebates, net metering, and tax exemptions to lower the cost of installation and earn money in the long run.

Producing over 4.4 gigawatts of solar energy, New Jersey is the 8th leading state in the country. To many, this might come as a surprise; the Garden State is known for its weather and small size. With some of the best incentives available, homeowners can save a lot with solar panels in New Jersey.

But with such a new option, you might not know where to start with a budget. In this article, we cover all the basics. From average costs to maximum savings, we break it all down. So let’s get started learning about the cost of solar in New Jersey.

Average Cost of Solar Panels in New Jersey

As a Northeastern state, you might not initially consider solar panels in New Jersey. And with some of the highest rates on equipment in the country, ranging around $2.78 per watt, it’s hard to see where the value comes from. In fact, homeowners in the Garden State could expect to pay about $16,680 for 6kW of solar energy.

However, it’s relatively easy to overcome the base cost for panels when you consider the traditional cost of electricity. While New Jerseyans have some of the most energy-efficient practices, the high power rates mean they still pay over $110 a month for utilities. When offset by solar energy, there’s a huge opportunity to save money.

To get you started with the installation, it’s worth taking advantage of the federal solar tax credit. This program offers 30% back on any solar installations made in 2023. Homeowners building a 6kW system could see the total price drop from $16,680 to $11,676. 

How Much Solar Do New Jerseyans Need?

While the above numbers represent the cost of the average size solar panel across the United States, it might not match the power requirements of your house. To find out how much wattage your solar array should produce, there’s a simple math problem to complete. Take your average daily electricity usage and divide it by the typical amount of sunlight your nearest city receives. 

We’ll use the Garden State’s averages to show you how this works.

In New Jersey, homeowners use about 22.8kWh a day (from 683kWh a month). When you divide that number by 4.21, which is the average peak sun hours for the state, you’ll learn that a solar panel system needs to create 5.4kW an hour to support the power needs. The smaller-sized array would only cost $15,012, over $1,600 less than the first example.

Now that you know how the math works, go ahead and figure the size of a solar array for your own home. To find the amount of direct sun for your nearest city, check out this handy New Jersey sun chart.  

New Jersey Solar Cost Factors

As mentioned above, sunlight has a significant influence on the cost of solar panels in New Jersey. And this change can vary even more depending on your geographic location. For example, Atlantic City, located on the Southern side of the state, receives about 4.6 hours of direct sunlight. With almost 30 extra minutes of sun each day, homeowners could expect to pay even less for an array.

To learn more about how sun and geography affect the cost of solar panels, compare New Jersey to its surrounding states.

Some homeowners in the Garden State can find savings in the type of solar panels they install. While monocrystalline equipment is typically more expensive than polycrystalline, it’s also more efficient. If you live in an area with less sunlight, it might be worth it to install mono panels.

Finally, it’s important to consider the solar installer that handles your new system seriously. Although some companies will offer you a better deal than others, they’re also probably using lower-tier equipment or offering a less comprehensive warranty. And with over 250 installers in the Garden State, you’ve really got your choice.

Solar panels on roof of house in Long Beach Island, New Jersey.
Solar panels in New Jersey cost on average $2.78 per watt.

Best New Jersey Solar Installers

When reviewing installation companies for solar panels in New Jersey, we trust EnergySage’s pre-screening recommendations. With endorsements from some of the leading energy institutions, their guidelines are trustworthy. When reviewing companies, we try to consider:

  • Years in the solar industry
  • Contractor transparency
  • Type of equipment
  • Warranty coverage
  • Certifications

Here are two of our top choices.

Across all categories, Green Power Energy is worth your consideration. With headquarters located in Annandale, this installer has nearly 15 years of experience working with solar in the Northeast. They carry all the top equipment brands, including Enphase, Panasonic, and Tesla. And their installations are covered with industry-leading, 25-year warranties to make sure your array lasts its entire lifetime.

While Green Power Energy has some of the best ratings in the state, you might feel more comfortable working with a smaller company. For the utmost local feel, you should consider working with Steve Whitman Solar, Roofing, & Siding. This company has been installing roof and power solutions in the Garden State for over 50 years and has made a point of staying small. With this type of commitment, you can rest easy knowing Steve Whitman is going to take care of your installation.

Can Solar Energy Save New Jerseyans Money?

Having discussed the average cost of solar panels in New Jersey and how it might fluctuate, homeowners in the Garden State should feel good about an installation. With good sunlight and smaller-than-average arrays cutting the cost of high electricity rates, it’s clear there’s money to be made. 

To learn how much you could see in returns, you’ll first have to discover how long it takes to pay off the solar panel system with utility offsets. In New Jersey, the average annual electricity bill is about $1,339.20 (or $111.60 a month). When used to cover the price of a 6kW array, residents of the garden state can have it paid off in 12.5 years. While slightly higher than usual, it’s important to remember these numbers drop with system size.

After paying off the array, New Jerseyans can start earning money back. When we consider the life expectancy of solar panels in New Jersey of around 20-25 years, we can see as much as $10,044 to $16,740 in utility savings. And with state-level support offering several benefits, there are even more ways to cut the cost.

Solar Panels in New Jersey: Rebates, Credits, and Incentives

Unexpectedly, New Jersey is one of the leading states for renewable energy in the country. With one of the best renewable standards, homeowners can take advantage of a variety of incentives to drop the cost of an installation and even earn money in the long run.

Right off the bat, New Jerseyans should consider the federal solar tax credit. With a 30% return on all solar purchases, homeowners could lower installation costs by as much as $5,000. And with state rebates, net metering, and certain tax exemptions, that amount only grows. To learn more about the available solar programs in New Jersey, check out this article.

Frequently Asked Questions

Is solar worth it in New Jersey?

With high electricity rates and decent sunlight, homeowners in New Jersey can offset the cost of equipment and even earn money back with solar panels. Some residents can save as much as $16,700 on utilities alone over the course of their system’s lifetime.

How much does solar cost in New Jersey?

In New Jersey, homeowners can expect to spend about $2.78 per watt for solar energy. This comes to about $16,680 for a 6kW system. This number fluctuates with a few factors including system size, peak sun, geography, equipment type, and installation company. 

How long does it take for solar panels to pay back in New Jersey?

New Jerseyans that have an average annual power bill of about $1,339.20 could cover the cost of a 6kW system in about 12.5 years. While this is slightly higher than normal, they can speed up this time with a smaller-than-average array and a variety of state-level incentives.

Can you get a federal tax credit for solar panels in New Jersey?

Homeowners in New Jersey can take advantage of a federal solar tax credit, which returns 30% of all installation costs including equipment, labor, and sales tax. This could drop the cost of an array by nearly $5,000.

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