Going solar in New Jersey

In New Jersey, an average home needs a 6kW solar system in order cover most of their electricity needs. Given the average residential price-per-watt of $3.76 in New Jersey, a 6kW system can cost around $22,560 depending on applicable rebates and other factors.

Select your county by clicking on the map and see the potential generated solar power and panel pricing. See how it compares with the US state average.

Average out-of-pocket cost for a 5 kW system The upfront amount spent to buy and install solar.
New Jersey: $18,800US Average: $19,594
Average Payback Period The number of years until you break even on the solar investment.
New Jersey: 14 yearsUS Average: 13 years
Average Net 20-year savings The total amount of money saved over 20 years minus the out-of-pocket cost.
New Jersey: $8,111US Average: $10,133

Solar Potential in New Jersey

Estimated system size and solar electricity production per median viable roof in
New Jersey.

Roof size 572sq. ft.
Capacity 8kW DC
Electricity 9.5kkWh AC per yr.

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Compare solar panels by system size in New Jersey

Get the most value out of your roof by comparing the different benefits a given system size has.

System Size 2kW
Roof Size Min. space required
143 ft²
Electricity Value Annual Production $466 a year
Est. Price
$7,520
Savings from a 2kWthis system
  • Est. yearly production 2,839 kWh
  • Est. monthly savings $39
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 0.71 tons a year
  • Equivalent to planting 33 trees a year
  • Equivalent to driving 1,758 mi less a year
System Size 3kW
Roof Size Min. space required
215 ft²
Electricity Value Annual Production $700 a year
Est. Price
$11,280
Savings from a 3kWthis system
  • Est. yearly production 4,259 kWh
  • Est. monthly savings $58
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 1.07 tons a year
  • Equivalent to planting 49 trees a year
  • Equivalent to driving 2,636 mi less a year
System Size 4kW
Roof Size Min. space required
286 ft²
Electricity Value Annual Production $933 a year
Est. Price
$15,040
Savings from a 4kWthis system
  • Est. yearly production 5,678 kWh
  • Est. monthly savings $78
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 1.42 tons a year
  • Equivalent to planting 65 trees a year
  • Equivalent to driving 3,515 mi less a year
System Size 5kW
Roof Size Min. space required
358 ft²
Electricity Value Annual Production $1,166 a year
Est. Price
$18,800
Savings from a 5kWthis system
  • Est. yearly production 7,098 kWh
  • Est. monthly savings $97
  • Full payback in 16 years
Environmental Impacts
  • Reduces CO2 emissions by 1.78 tons a year
  • Equivalent to planting 82 trees a year
  • Equivalent to driving 4,394 mi less a year
System Size 6kW
Roof Size Min. space required
429 ft²
Electricity Value Annual Production $1,399 a year
Est. Price
$22,560
Savings from a 6kWthis system
  • Est. yearly production 8,517 kWh
  • Est. monthly savings $112
  • Full payback in 17 years
Environmental Impacts
  • Reduces CO2 emissions by 2.05 tons a year
  • Equivalent to planting 94 trees a year
  • Equivalent to driving 5,064 mi less a year

New Jersey solar incentives, tax credit, and rebates

New Jersey has 12 rebates and tax credits that you may be eligable for. Visit the official links for more details to see if you apply.

Solar incentives in NJ

High Performance Schools Policy

Value:Varies

Since 2002, new public school buildings in New Jersey have been required to meet green building standards sufficient to achieve a minimum LEED score of 29. As of 2009, schools should also pursue formal LEED certification from the US Green Building Council. Facilities constructed between 2002 and 2009 are exempt from the formal certification requirement due to a historical surge in school improvement projects. Additional information is available from the New Jersey Schools Construction Corporation website.

Societal Benefits Charge

Value:Varies

Since 1999, all residential and commercial utility customers in New Jersey have been assessed a Societal Benefits surcharge on their monthly electric bills. Surcharges support the Clean Energy Program, a central fund managing grant programs, rebates, and other incentives for energy efficiency projects and new renewable energy systems for low-income customers and neighborhoods. Annual reports detailing surcharge revenue and spending are available from the Clean Energy Program website.

Edison Innovation Clean Energy Manufacturing Fund - Grants and Loans

Value:Varies

NOTE: This program ended in 2012. The entry remains available for archival purposes. New Jersey's Economic Development Authority (EDA) manages the Edison Innovation Clean Energy Manufacturing Fund. Eligible businesses that manufacture components for Class I renewable energy systems may be eligible for financial assistance from the Fund. A maximum of $3.3 million is available in the form of both grants and loans. Grant funding supports proposals and site planning for new manufacturing facilities, while the loan supports new construction and improvements at existing plants. Additional information is available through the EDA website.

Assessment of Farmland Hosting Renewable Energy Systems

Value:Varies

Farmers in New Jersey who use on-site renewable energy may be eligible for special property tax incentives under the state's Farmland Assessment Act. The law requires local taxation authorities to assess farmland by its productivity rather than its actual value. Should a renewable system (including solar, wind, or self-grown biomass) meet qualifying technical standards, sales of energy or heat from the system will not be assessed for tax purposes. Additional information is available from the New Jersey Department of Agriculture.

Edison Innovation Green Growth Fund Loans

Value:Varies

New Jersey's Economic Development Authority (EDA) manages the Edison Green Growth Fund (EIGGF). Eligible businesses investing in new solar, wind, hydroelectric, biomass, or landfill gas energy devices may be eligible for a loan from the Fund. A maximum principal of $2 million is available, some of which takes the form of grant money. Over the course of the equipment's installation, the business should commit to creating at least 10 jobs pertinent to sustainability, which can include equipment maintenance. Additional information is available from the EDA website.

Interconnection Standards

Value:Varies

In New Jersey, interconnection and distributed generation are standardized across private utilities only. Local public utilities and utility cooperatives are not subject to interconnection guidelines but may adopt them voluntarily. Any system using a Class I renewable technology (solar, wind, biomass, geothermal, wave/tidal hydroelectric, landfill gas) may be connected to the power grid. Each system will be sorted into one of three capacity tiers governing permit processes, fees, review turnaround time, and the IEEE/UL performance and safety standards to which the system is subject. For Level 3 interconnection (the highest capacity level,) utilities may require disconnect switch installation or a minimum liability insurance policy. Additional information is available from the NJ Clean Energy website.

NJ Clean Energy- Residential New Construction Program

Value:Varies

Through the Clean Energy Program, New Jersey homebuilders may qualify for special cash incentives if they follow certain green construction standards. Most homes can meet the criteria for an incentive by achieving ENERGY STAR certification. The rebate amount will be based on the property's Home Energy Rating System score. Higher incentives may apply if the home achieves energy net-zero, follows IECC 2015 insulation/weatherization standards, obtains 100% of its energy from on-site renewables, and/or follows EPA indoor air quality benchmarks. Additional programs, including similar incentives for multi-family residential property, are listed on the NJ Clean Energy website.

NJ Clean Energy- WARMAdvantage Program (Electric and Gas)

Value:Varies

Through the Clean Energy WARMAdvantage Program, New Jersey homeowners may be entitled to rebates on HVAC and thermal systems meeting energy efficiency standards. Any ENERGY STAR certified water heater, central HVAC system, or heat pump can qualify. Rebates are flat cash payments. Their amount depends on the type of system being installed. Bonus incentives may apply to solar water heaters or other systems powered using solar energy. Additional information is available from the NJ Clean Energy website.

Net Metering

Value:Varies

In New Jersey, private/municipal utilities, electric retailers, and utility cooperatives may offer net metering contracts to their distributed renewable energy customers. Any solar PV/heating, wind, hydroelectric, or hydrogen fuel cell system, regardless of rated capacity, will qualify to participate. Upon signing the contract, the utility will install a bidirectional meter on the customer's system at no cost. This meter measures net excess generation (NEG) sent back to the grid. The customer's electric bill will be credited at a fixed avoided-cost rate for NEG generated during each billing cycle. Should generation exceed consumption for any given month, credits may carry forward to subsequent cycles. Customers may keep all solar renewable energy credits they generate.

PSE&G - Solar Loan Program

Value:Varies

Since 2008, Public Service Electric and Gas has provided its residential and business customers special financing for new solar PV systems. Funding for the loan program is earmarked into five groups supporting different panel array types and sizes. The maximum principal available to a customer, as well as their interest rates, will depend on expected electricity production. Repayments can be made in cash or by the customer relinquishing ownership of the solar renewable energy credits (SRECs) their system generates. As SREC value fluctuates with market forces, customers will keep the SRECs not applicable to the loan. Additional information is available from the PSEG website.

Solar Renewable Energy Certificates (SRECs) Registration Program

Value:Varies

New Jersey has a solar renewable energy credit (SREC) system to enforce solar carve-out provisions within the renewable portfolio standard. By 2028, solar energy must form 4.1% or more of the retail electric market in the state. Any solar facility in the state will generate SRECs for goal compliance so long as it is registered with the RPS program. Utilities are expected to purchase a portion of their SREC quotas through net metering and private solar array owners within their service area. The state operates a marketplace where utilities can enter power purchasing agreements (PPAs) or net metering contracts. Marketplace activity governs the fluctuating monetary value of individual credits. Additional information is available from the NJ Clean Energy website.

Renewables Portfolio Standard

Value:Varies

New Jersey has a renewable portfolio standard governing statewide clean energy investment. By 2030, 50% of all retail electricity in the state must be generated using renewable technology. Certain "carve-outs" require a portion of the renewable energy to be generated with solar and offshore wind systems. Compliance with the standard is measured using a Renewable Energy Credit (REC) system pegging a fixed amount of electricity to a variable dollar value. Each renewable energy device generates RECs, though utilities are expected to purchase some of their share of RECs from private customers. Solar renewable energy credits (SRECs) are accumulated separately to track carve-out progress. Should a utility fail to meet its REC or SREC quota, it will be assessed an "alternative compliance" penalty fee for each kilowatt it is deficient. Additional information is available from the NJ Clean Energy website.

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Frequently Asked Questions

  • As a general rule, unless there are local limitations, the main limitations to the amount of solar panels you can put on your roof are the available space on your roof, your electricity usage, your providers net metering rules, and the limitations of your house hold electrical system.
  • Based on our research the average price per installed watt is $3.76 in New Jersey. This means for a 10kW system you can expect to pay $37,600 though pricing can vary significantly between installers based on the projects requirements.
  • Based on a Zillow research study from 2019, home with solar panels sell for roughly 4.1% more.
  • To generate the most power, solar panels in the United States should face true south as this generally results in the solar panels receiving the most light each day throughout the course of the year. That said, given that energy prices are often variable throughout the day, your installer may recommend you rotate your panels slightly so that the panels will receive more light at the end of the day when energy prices can be more expensive. That said, for most consumers the positioning of solar panels is highly dependent on your home's roof.
  • Based on our continuously updated database of solar installers, we have found 50 verified solar install companies in New Jersey

Solar installers in New Jersey (50)

Enertis

San Francisco, CA(415) 908-1059

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Auditing of energy requirements for independent energy generation.

Paradise Energy Solutions

Paradise CDP, PA(877) 851-9269

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

ECS Energy

Oakland, NJ(201) 425-6554

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

SunVest Solar

Pewaukee, WI(262) 547-1200

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

Green House Solar

Madison, NJ(973) 986-2844

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Green Power Energy

Annandale CDP, NJ(844) 584-0008

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.

Plug PV

Albany, NY(518) 948-5316

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Monitoring of independent energy generation.
  • Expertise in consulting on advantageous financing for solar.

SI Solar

(844) 747-6527

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Solar Energy World

Elkridge CDP, MD(866) 856-4580

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Premier Solar Solutions

Farmingdale, NY(631) 482-8303

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

KC Green Energy

Lancaster, PA(717) 290-6094

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Open Sky Energy

Swarthmore, PA(610) 544-1214

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

ConEdison Solutions

Valhalla CDP, NY(914) 286-7000

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

EIS Solar

Pittsburgh, PA(888) 633-6451

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Venture Home Solar

New York, NY(888) 417-2086

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Sunnyside Solar

(802) 280-7319

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.

Soltage

Jersey City, NJ(201) 432-1786

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Solar Mite Solutions

Neptune City, NJ(732) 796-1996

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Solar systems for selling electricity back to the grid.

Bright Eye Solar

Lancaster, PA(717) 207-8449

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

GenRenew

Freehold, NJ(732) 835-4272

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

Venture Solar

(888) 417-2086

Services

  • Installation of solar arrays.
  • Solar systems for selling electricity back to the grid.
  • Expertise in consulting on advantageous financing for solar.

Ecological Systems

(732) 462-3858

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
  • Consulting on all things solar related.

Lumina Solar

Baltimore, MD(800) 971-6118

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Expertise in consulting on advantageous financing for solar.

ACE Solar

Carlstadt, NJ(201) 507-1110

Services

  • Installation of solar arrays.
  • Reparation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.

US Clean Energy

(888) 560-1710

Services

  • Installation of solar arrays.
  • Expertise in consulting on advantageous financing for solar.
  • Consulting on all things solar related.

PowerLutions

Lakewood CDP, NJ(732) 987-3939

Services

  • Installation of solar arrays.
  • Installation of batteries for energy storage.
  • Solar systems for selling electricity back to the grid.
Last Reviewed By: King Manalo
Published: 2022-09-18