New Jersey ranks as one of the top states for solar energy production, making it an ideal location for homeowners interested in switching to renewable energy. The Garden State has an average of 205 sunny days yearly and is home to more than 200 solar companies, which keeps the prices of solar competitive. Additionally, New Jersey offers many solar tax incentives to make the transition to solar energy more affordable.
We’ll break down how much you should expect to spend on a solar energy system in New Jersey, which incentives you’ll qualify for to reduce the cost of going solar, and some of the best solar companies in the state.
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How Much Do Solar Panels Cost in New Jersey?
The cost of installing solar panels in New Jersey varies based on factors like system size, equipment quality, and your home’s energy needs. Most New Jersey homes require a 5–8 kilowatt (kW) system, with average costs ranging from $13,750–$22,000, or $10,175–$16,280 after applying the 30% federal tax credit.
Key Cost Factors
Here are other cost factors that influence the cost to go solar in NJ:
- Installation costs: Solar installation costs in New Jersey are slightly higher than the national average of $2.66 per watt. Our research shows the state’s average is around $2.75 per watt.
- Local regulations and incentives: New Jersey homeowners can take advantage of state and federal incentives to help lower the upfront investment.
- System sizing: The size of your solar system depends on your energy consumption, roof space, and panel efficiency. Work with a solar provider to determine the right system for your home.
Cost figures are based on averaged data from multiple sources.
Average Cost by System Size
We calculated the average cost for solar panels in New Jersey based on system size and put it in the table below. We included the price before and after the federal tax credit, which allows you to claim 30% of your system costs on your federal taxes.
| System Size | Price Before Tax Credit | Price After Tax Credit |
|---|---|---|
|
3 kW |
$8,250 |
$5,775 |
|
4 kW |
$11,000 |
$7,700 |
|
5 kW |
$13,750 |
$9,625 |
|
6 kW |
$16,500 |
$11,550 |
|
7 kW |
$19,250 |
$13,475 |
|
8 kW |
$22,000 |
$15,400 |
|
9 kW |
$24,750 |
$17,325 |
|
10 kW |
$27,500 |
$19,250 |
What Factors Affect Solar Installation Cost?
While panel size and wattage play major roles in solar installation costs, several other factors significantly impact pricing:
- Additional equipment: You’ll need more than just solar panels when going solar. Mounting racks secure panels to your roof, and solar inverters convert the direct current (DC) electricity the panels produce into the alternating current (AC) electricity your home uses. Consider add-ons like solar batteries or electric vehicle (EV) chargers, which increase costs but provide added benefits.
- Incentives and rebates: Many states and local governments offer tax credits, rebates, or other incentives that can help offset costs. Research available incentives in your area to maximize savings.
- Installation location: Labor costs vary by location, as some states have higher rates than others. If your roof is difficult to access or requires reinforcement, installation costs may increase.
- Panel type: There are three main types of solar panels: monocrystalline, polycrystalline, and thin-film. Monocrystalline panels are the most efficient and expensive, while polycrystalline panels are more affordable but less efficient. Thin-film panels are the least efficient but can be cost-effective for large-scale installations.
- Seasonal demand: Solar installation costs can fluctuate based on demand. Scheduling your installation during the off-season may help you secure a lower price.
- System size: Larger systems with more panels will cost more upfront. However, they can also save you more on electricity bills over time, making them more cost-effective in the long run.
How Can You Save on Solar Panels?
Solar panels are a big investment, but there are many ways to lower the financial burden.
Federal Solar Tax Credit
The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows you to claim 30% of your solar installation costs on your federal taxes. This rate is available until 2032 and will drop to 26% in 2033.
You’ll need to pay for your system in full or with a loan to take advantage of this incentive. Using a solar lease or power purchase agreement (PPA) disqualifies you.
Solar Renewable Energy Certificates
You earn a renewable energy certificate (REC)—sometimes called a solar renewable energy certificate (SREC) or transition renewable energy certificate (TREC)—for every 1,000 kilowatt hours (kWh) or 1 megawatt hours (MWh) of electricity your system produces. Companies that support clean energy will purchase these certificates at market price, essentially outsourcing electricity production to solar panel owners.
SREC prices fluctuate based on electricity rates, but they averaged $212 each in New Jersey in 2022. You must register with the REC program before installing solar panels. You’ll be eligible for 10 years and can claim up to six RECs per year, though your ability to produce this much energy is not guaranteed.
New Jersey Solar Tax Incentives
New Jersey solar panel systems are exempt from the 6.625% state sales tax. They’re also exempt from property taxes, even though solar panels increase home value.
New Jersey Net Metering Programs
Not all states have net metering programs, but New Jersey does. These programs allow you to sell your solar power system’s excess energy to the grid for either a credit on your monthly electricity bill or an annual payout. These programs vary by utility provider, so check with yours to see what it offers.
Financing Options
Your selected solar financing option affects how much you’ll pay for your system long-term. There are a few payment methods, each with pros and cons:
- Full purchase: This is the most cost-effective option, as you can access tax incentives and avoid interest rates. However, this is a high up-front cost that not everyone can afford.
- Solar loan: This allows you to pay for your system slowly over time. Some companies even offer $0 down for qualifying customers. You’ll pay more in the long run due to interest rates but still get access to cost-saving incentives.
- Solar lease: This option comes with little to no up-front cost, but you’ll be renting your system instead of paying toward ownership. It also disqualifies you from claiming tax incentives.
- Power purchase agreement (PPA): This agreement allows you to pay a monthly rate based on how much energy you use, similar to an electricity bill. However, you won’t own your system nor have access to tax incentives.
Top Two Solar Installation Companies in New Jersey
There are numerous solar installation companies in New Jersey to choose from. Here are our top two recommendations.
Company Overview
Momentum Solar operates in 10 states, including New Jersey. It stands out for its broad selection of products, including seven solar panel brands. The company offers full-service installation and helps with incentive enrollment. It also provides a comprehensive 25-year warranty and a mobile app for system tracking.
Pros and Cons
Pros
- Complimentary solar battery monitoring through Enphase
- Full-service installation process
- Solar incentives enrollment assistance
Cons
- Aggressive sales tactics, per some customer reviews
- Limited solar product selection
Warranty and Financing
Warranty
Momentum provides a 25-year manufacturer and workmanship warranty.
Financing Options
✔ Full purchase
✔ Loan
✔ Lease
✔ PPAs
Company Overview
Venture Solar is a New England company that guarantees it can save you money—or the company will pay you $100 to work with a competitor. It installs high-quality LG solar panels with a 25-year warranty on service, parts, and power output. It also offers remote monitoring via a mobile app.
Pros and Cons
Pros
- Offers a 25-year system and roof warranty
- Provides remote monitoring through mobile app
- Has transparent financing information online
- Has limited availability
Cons
- Doesn’t offer solar battery installation
- Requires a phone number to get an online quote
Warranty and Financing
Warranty
Venture Solar offers its customers a 25-year bumper-to-bumper warranty to help protect their solar investment. The warranty covers workmanship and system parts and includes a power output guarantee.
Financing Options
✔ Full purchase
✔ Loan
✔ Lease
Our Conclusion
Installing a solar panel system is expensive, but it will reduce your carbon footprint, raise your property value, and save you money on energy bills. New Jersey also offers net metering programs and other incentives to reduce initial costs, which can reduce costs to below the average solar cost nationally.
We recommend getting quotes from at least three reputable installers before deciding. Use the tool below to connect to vetted companies near you.
FAQs About Solar Panel Cost in New Jersey
What is the average cost for solar panels in New Jersey?
Solar panels in New Jersey cost an average of $2.75 per watt. This amounts to $13,750 for a typical 5 kW system or $9,625 after applying the 30% federal tax credit.
Are solar panels worth it in New Jersey?
Yes, solar panels are worth it in New Jersey. The state gets enough sunlight and offers several incentive programs to reduce installation costs. Solar panel prices have also fallen 50% over the last 10 years.
How many solar panels do you need to power a house?
Most homeowners need 15–18 panels for a 1,500-square-foot house and 20–24 panels for a 2,000-square-foot house. This number varies based on your energy needs and home specifications.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
