How much do solar panels cost in New Jersey?
How much do solar panels cost in New Jersey?
$2.50 – $3.00 average cost per watt
$20,000 – $36,000 total cost before tax credits (8 – 12 kilowatts)
$14,000 – $25,200 total cost after tax credits (8 – 12 kilowatts)
Cost of solar panels in New Jersey
The average cost of solar panels in New Jersey is $2.50 to $3.00 per watt or $20,000 to $36,000 total for an 8 to 12-kilowatt system, depending on the type, brand, quality, and installer. This cost drops to $14,000 to $25,200 after a 30% federal tax credit and even lower after factoring in New Jersey's solar incentives.
| System size | Average total cost | Average cost (after 30% tax credit)* |
|---|---|---|
| 3 kW | $7,500 – $9,000 | $5,250 – $6,300 |
| 4 kW | $10,000 – $12,000 | $7,000 – $8,400 |
| 5 kW | $12,500 – $15,000 | $8,750 – $10,500 |
| 6 kW | $15,000 – $18,000 | $10,500 – $12,600 |
| 7 kW | $17,500 – $21,000 | $12,250 – $14,700 |
| 8 kW | $20,000 – $24,000 | $14,000 – $16,800 |
| 9 kW | $22,500 – $2,7000 | $15,750 – $18,900 |
| 10 kW | $25,000 – $30,000 | $17,500 – $21,000 |
| 11 kW | $27,500 – $33,000 | $19,250 – $23,100 |
| 12 kW | $30,000 – $36,000 | $21,000 – $25,200 |
*Local government and utility company incentives may also be available to lower the cost further.
New Jersey averages 200+ sunny days per year, making solar energy systems a cost-effective investment for many NJ homeowners.
The average size of a home solar panel system in New Jersey is 8 to 12 kilowatts (kW).
New Jersey offers attractive incentives for solar system installation, including 1:1 net metering and a program that pays $85 for every megawatt-hour of energy your system generates, not just on the excess amount that you send back to the grid.
A solar panel system produces approximately 1,200 kW per year for each kilowatt installed. Review your average electric bills for the past year to estimate the system size you'll need and determine how much you'll save.
NJ solar panels cost breakdown
While the size of your solar system has a significant impact on the cost, the exact cost of a solar energy system in New Jersey depends on several other factors as well, including:
Quality of installation: Choosing a reputable installer is essential for ensuring quality work. Quotes that seem "too good to be true" may indicate low-quality equipment or unsustainable pricing.
Roof type & condition: The type and age of your roof impact the installation process and cost. Older roofs may need replacement before the solar panel installation, adding to the overall cost. Complex roof designs or non-standard materials may also increase labor costs.
Permits & fees: Building and electrical permit requirements vary by location. For systems over 10 kW, some power companies also charge interconnection fees—$50 to $100, plus $1 to $2 per kW—to connect your solar system to the electrical grid.
Upkeep: While solar panels are low maintenance, they still need periodic cleaning to maintain efficiency. Solar panel cleaning costs $150 to $500, though some solar companies include routine cleaning and annual inspections in the installation contract.
Removal: When upgrading an existing solar panel system, the cost to remove the old solar panels ranges from $200 to $500 per panel.
New Jersey solar incentives
New Jersey offers some of the best incentives for homeowners to save when installing solar panels. The table below details several ways to significantly reduce the cost of going solar in NJ. Check with your utility company and local government for additional incentives specific to your location.
| Incentive type | Description |
|---|---|
| Residential Clean Energy Credit (formerly Solar Investment Tax Credit or ITC) |
|
| Successor Solar Incentive (SuSI) Program |
|
| Sales tax exemption |
|
| Property tax exemption |
|
| 1:1 Net metering |
|
| Local government & utility rebates & incentives |
|
Solar system equipment
There are several components of a solar system that impact the overall cost:
Panels: The heart of the solar system, panels come in various efficiencies and price points. Higher efficiency microcrystalline panels produce more energy but cost more up front. Polycrystalline panels are more affordable but less efficient. Thin-film panels are the least expensive but have the shortest lifespan.
Inverter: A solar inverter costs $1,500 to $3,000 installed on average. The inverter converts the DC power produced by your panels into AC power used in your home.
Storage: Battery storage for solar energy costs $5,600 to $11,200 after the federal tax credits. New Jersey's incentives and 1:1 net metering make solar battery storage less cost effective, but it is still an ideal component to have during power outages.
If you have limited roof space, make the most of it by choosing high-efficiency solar panels that generate more energy per square foot of panel.
Purchase method
There are several ways to finance your solar panel system in New Jersey:
Cash purchase: Paying in full up front offers the highest long-term savings and shortest payback period, typically 5 to 7 years in New Jersey.
Solar loans: Many banks and solar companies offer solar-specific loans. These loans allow you to own your system with little to no money down, spreading the cost over 10 to 20 years. However, you pay more over time with a loan, so the long-term savings are not as high.
Solar lease: Leasing requires no upfront cost but means you don't own the system. You pay a fixed monthly rate for the electricity produced. While this can save money on electric bills, it doesn't offer the same long-term benefits as ownership.
Power Purchase Agreement (PPA): Similar to a lease, a PPA involves paying for the electricity produced by the system at a set per-kWh rate, usually lower than utility rates. Like leasing, PPAs don't provide the same benefits as owning the solar panel system outright.
Check out our in-depth guide on Leasing vs. Buying Solar Panels for a breakdown of the major differences and pros and cons of each purchase method.
Top New Jersey solar companies
Many reputable solar companies operate in New Jersey. Here are a few top-rated options:
Trinity Solar: One of the largest solar installers in the Northeast with a solid track record, they have been family owned for over 30 years.
Sunrun: Running since 2007, Sunrun is known for their flexible financing options and comprehensive service.
Infinity Energy: Opened since 2008, they are known for high-quality affordable installations.
Green Power Energy: In business since 2009, this company has been highly rated for customer service and quality installations.
Solar Energy World: Founded in 2009, they offer competitive pricing and a strong warranty program.
FAQs about solar panels in New Jersey
Are solar panels worth it in New Jersey?
Yes, solar panels are generally worth the investment in New Jersey. The state's high electricity rates, combined with generous incentives and net metering policies, create favorable conditions for solar energy. Most homeowners see a return on their investment in less than 10 years.
Do solar panels increase home value in New Jersey?
Studies show that homes with solar systems sell quickly and for a higher price than comparable homes without solar. However, while your home value might increase with a solar panel installation, it is not guaranteed. A home's perceived value depends on many factors, such as the overall condition of the home, neighborhood standards, and buyer preferences.
Are solar panels free in NJ?
While there are no truly "free" solar panel programs in New Jersey, the combination of federal and state incentives can significantly reduce the cost. Some companies may advertise "free" solar through lease or PPA agreements, but these are not the same as owning a system outright.
How long do solar panels last in New Jersey?
Most solar panels come with at least a 25-year warranty and can continue producing energy well beyond that. In New Jersey's climate, properly maintained solar panels can easily last 30+ years, though their efficiency may decrease slightly over time.
Getting estimates from solar contractors in New Jersey
Here are some guidelines to ensure you're hiring a qualified New Jersey solar contractor near you:
Compare at least three estimates with similar details from companies that have been in business for 5+ years.
Look for New Jersey-licensed solar contractors who are certified by the North American Board of Certified Energy Practitioners (NABCEP) and active members of the Solar Energy Industries Association (SEIA).
Hire a solar company with consistently positive reviews on websites like HomeGuide and Google.
Beware of companies advertising free solar panels. If a deal looks too good to be true, it usually is.
Avoid large upfront payments, and don't make the final payment until they finish the installation, pass all inspections, and your system is running smoothly.
Questions to ask a New Jersey-licensed solar installer
To ensure you're working with a qualified solar professional, consider asking these questions:
Are you licensed and insured in New Jersey?
How many solar panel installations have you completed in my area?
Can you provide references from recent local installations?
What solar panels do you recommend for my roof?
What steps do you take to ensure my roof's integrity during the installation?
How do you handle permitting and interconnection fees?
How do you calculate the system size and energy production estimates?
What financing options do you offer, and how do they compare?
How much money can I expect to save with these solar panels?
Can you provide an estimate with a breakdown of everything that's included?
What extra costs do you see come up when you're installing the solar panels?
Do you include an annual cleaning and inspection with the installation?
What ongoing support services do you offer?
What rebates and incentives am I eligible for?
How long is the warranty, and what exactly does it cover?
Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.