Solar Panels in New Jersey2026 Cost Guide & Incentives
Average cost, state incentives, payback estimates, and how to find certified installers in New Jersey.
$18,000–$31,000
Avg system cost
$12,600–$21,700
After 30% ITC
4.5 hrs/day
Peak sun hours
$0.179/kWh
Avg rate
Is Solar Worth It in New Jersey?
Based on a home with a $150/month electric bill in New Jersey
Est. system size
5.6 kW
Gross cost
$16,334
Federal tax credit
−$4,900
Net cost
$11,434
Year-1 savings
$1,800
20-year savings
$45,911
Estimated payback: 6.4 years — then 13 years of free electricity.
* Estimates assume $2.90/W installed, 92% solar offset, and 3% annual electricity rate inflation. Get an installer quote to confirm your actual savings.
New Jersey Solar Incentives & Policies
Federal
Investment Tax Credit (ITC)
30%
of total system cost — off your federal tax bill
Available through 2032
New Jersey State
State Incentive
Transition Incentive Program (TI) — SREC payments via NJ utilities
Additional New Jersey Solar Policies
Net Metering: Available — excess energy credited to your bill
Property Tax Exemption: Solar system value exempt from property taxes
Sales Tax Exemption: Solar equipment exempt from state sales tax
Solar Installation Cost in New Jersey by System Size
| System size | Gross cost | After 30% ITC | Year-1 savings |
|---|---|---|---|
| 5 kW | $12,272,800 | $8,590,960 | $1,352,435/yr |
| 7 kW | $17,181,920 | $12,027,344 | $1,893,408/yr |
| 9 kW | $22,091,040 | $15,463,728 | $2,434,382/yr |
| 12 kW | $29,454,720 | $20,618,304 | $3,245,843/yr |
* Costs based on $2.90/W national average. New Jersey installer pricing may vary ±15%.
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Frequently Asked Questions — Solar in New Jersey
How much do solar panels cost in New Jersey?
Solar installation in New Jersey typically costs $18,000–$31,000 before incentives. After the 30% federal tax credit, most homeowners pay $12,600–$21,700 net.
Is solar worth it in New Jersey?
Yes — New Jersey homeowners benefit from 4.5 average peak sun hours per day and relatively high electricity rates ($0.179/kWh). The 30% federal ITC combined with transition incentive program (ti) — srec payments via nj utilities make the financial case strong for most homeowners.
What state incentives are available for solar in New Jersey?
Transition Incentive Program (TI) — SREC payments via NJ utilities. On top of state incentives, all New Jersey homeowners qualify for the federal 30% Investment Tax Credit (ITC). Your solar system is also exempt from property tax assessment. Solar equipment is exempt from sales tax in ${s.name}.
How long is the payback period for solar in New Jersey?
Based on New Jersey's average electricity rate of $0.179/kWh and 4.5 peak sun hours, most homeowners see payback in 6.4–9 years. Systems then produce free electricity for 15–20+ more years.
Does New Jersey have net metering?
Yes — New Jersey has a net metering policy that credits your utility bill for excess electricity your system sends back to the grid. This significantly improves your ROI.