Is solar worth it in New Jersey?
For a typical New Jersey home in 2026, solar is worth it: about a 7.8-year payback and $55,248 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 7.8 yrs6.6 kW, paying cash
- Electricity price
- 23.8¢per kWh, U.S. 18.0¢
- Solar production
- 1,317kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical New Jersey home
| Electricity use | 661 kWh a month (New Jersey average) |
|---|---|
| Best-value system | 6.6 kW, producing 8,693 kWh a year (110% of use) |
| Price | $20,000 at about $3.00/W |
| First-year savings | $1,841 |
| Payback | 7.8 years |
| 25-year net | $55,248 (13.0% a year return) |
| Rate increase assumed | 3.6% a year, from New Jersey's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 23.8¢ per kWh over the last 12 months, 32% above the U.S. average (18.0¢).
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,317 kWh per kW per year (ranked #37 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in New Jersey
Full retail net metering. New Jersey offers full retail net metering with monthly rollover and an annual true-up, where leftover credits are paid at a low wholesale rate. Homeowners also earn SREC-IIs under the ADI program: $85/MWh for registrations through July 26, 2026 and $77/MWh after, fixed for 15 years.
kWh-for-kWh credit at full retail; annual excess cashed out at avoided cost (wholesale, ~3-5 cents).
- Netting: monthly
- Unused credits: Monthly kWh rollover; annual true-up (customer-selected month) pays excess at avoided cost.
- Fixed charges: Standard customer charges (PSE&G ~$7/month); no solar fee.
- Last major change: BPU May 21, 2026 ADI triennial review order cut residential ADI from $85 to $77/MWh for registrations on/after July 27, 2026.
- Pending: BPU docket QO24090723 reviewing net metering reforms; NEM exceeded 5.8% statutory threshold in 2024 allowing BPU to change it.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| PSE&G | ~100% of retail | Full retail NEM, annual avoided-cost cash-out. |
| Jersey Central Power & Light (JCP&L) | ~100% of retail | Same. |
| Atlantic City Electric | ~100% of retail | Same. |
| Rockland Electric (O&R) | ~100% of retail | Same. |
Solar incentives in New Jersey
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| SuSI ADI (SREC-II) residential | srec | $77/MWh for residential net-metered registrations on/after July 27, 2026 ($85/MWh before), fixed for 15 years; EY2027 residential block ~300 MW first-come. Eligibility: Residential net-metered systems registered with ADI | active |
| Sales tax exemption | sales tax exemption | Solar equipment exempt from 6.625% sales tax. Eligibility: All | active |
| Property tax exemption | property tax exemption | Added value of solar excluded from property assessment. Eligibility: All | active |
| NJ storage incentive (Garden State Energy Storage Program) | battery incentive | BPU storage program focused on grid-scale/distributed phases; residential incentive details not verified. Eligibility: TBD | unknown |
What solar costs in New Jersey
A fair cash price is around $3.00 per watt before incentives. For the 6.6 kW system that fits a typical home, expect roughly $16,800 to $23,800; smaller systems cost more per watt.
How many homes have solar
- Homes with net-metered solar (2025)
- 219,395
- Share of homes
- 5.7%
- Residential solar capacity
- 1,619 MW
- Growth over the past year
- +11.6%
- New systems with a battery
- 0%
- New systems leased or PPA
- 0%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in New Jersey
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| PSE&G | 2,072,339 | 26.4¢ | 559 kWh/mo | Worth it |
| JCP&L | 1,047,687 | 19.9¢ | 790 kWh/mo | Worth it |
| Atlantic City Electric | 509,015 | 27.5¢ | 636 kWh/mo | Worth it |
| Rockland Electric | 66,678 | 24.7¢ | 906 kWh/mo | Worth it |
| City of Vineland | 22,866 | 19.6¢ | 746 kWh/mo | Worth it |
Solar by city in New Jersey
- Newark7.6-yr payback · Worth it
- Jersey City7.6-yr payback · Worth it
- Paterson7.6-yr payback · Worth it
- Elizabeth7.4-yr payback · Worth it
- Toms River8.1-yr payback · Worth it
- Trenton7.4-yr payback · Worth it
- Clifton7.7-yr payback · Worth it
- Bayonne7.6-yr payback · Worth it
- Camden7.4-yr payback · Worth it
- East Orange7.6-yr payback · Worth it
- Passaic7.6-yr payback · Worth it
- Lakewood8.2-yr payback · Worth it
- Union City7.5-yr payback · Worth it
- Vineland6.9-yr payback · Worth it
- Hoboken7.6-yr payback · Worth it
- New Brunswick7.5-yr payback · Worth it
- Perth Amboy7.3-yr payback · Worth it
- Plainfield7.5-yr payback · Worth it
- West New York7.5-yr payback · Worth it
- Hackensack7.6-yr payback · Worth it
- Sayreville8.3-yr payback · Worth it
- Sicklerville6.8-yr payback · Worth it
- Linden7.6-yr payback · Worth it
- Kearny7.6-yr payback · Worth it
- Fort Lee7.5-yr payback · Worth it
- Atlantic City6.8-yr payback · Worth it
- Fair Lawn7.5-yr payback · Worth it
- Garfield7.7-yr payback · Worth it
- Long Branch8.2-yr payback · Worth it
- Westfield7.4-yr payback · Worth it
- Princeton7.4-yr payback · Worth it
- Rahway7.4-yr payback · Worth it
- Englewood7.5-yr payback · Worth it
- Bergenfield7.5-yr payback · Worth it
- Old Bridge8.3-yr payback · Worth it
- Millville6.9-yr payback · Worth it
- Bridgeton6.9-yr payback · Worth it
- Paramus7.5-yr payback · Worth it
- Ridgewood7.6-yr payback · Worth it
- Lodi7.7-yr payback · Worth it
- Cliffside Park7.5-yr payback · Worth it
- Carteret7.5-yr payback · Worth it
Protect yourself when buying
- Check the license. Home Improvement Contractor registration (Division of Consumer Affairs) plus NJ electrical contractor license for electrical work. Look up an installer
- Cancellation rights. 3 business days to cancel many home-solicitation sales. Home Improvement Contractor rules; BPU program disclosures for SuSI/ADI projects. How to cancel
- HOA and solar access. Yes - N.J.S.A. 45:22A-48.2 bars HOAs from prohibiting solar on owned property (reasonable restrictions allowed).
- Community solar. Yes - permanent Community Solar Energy Program (CSEP).
Installers active in New Jersey
Ranked by installations in public records, not by payment. Volume isn't quality: always check licenses and reviews.
- Sunrun 36,004 installs
- Trinity Solar 29,214 installs
- Momentum Solar 15,529 installs
- Tesla Energy 9,604 installs
- Sunnymac 7,931 installs
- Suntuity 4,651 installs
- Emt Renewables 4,412 installs
- All Season Solar Nj 3,868 installs
- Green Power Energy 2,922 installs
- Bright Planet Solar 2,910 installs
- Vision Solar 2,871 installs
- SunPower 2,678 installs · bankrupt
- Freedom Forever 2,291 installs · bankrupt
- Skyline Solar 2,195 installs
- Rcl Enterprises 2,181 installs
Questions about solar in New Jersey
Is solar worth it in New Jersey in 2026?
For a typical New Jersey home, solar is worth it. A 6.6 kW system costing about $20,000 after state incentives saves about $1,841 in the first year and pays back in about 7.8 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in New Jersey?
A reasonable cash price is around $3.00 per watt before incentives, or roughly $16,800 to $23,800 for a 6.6 kW system.
Does New Jersey have net metering?
New Jersey offers full retail net metering with monthly rollover and an annual true-up, where leftover credits are paid at a low wholesale rate. Homeowners also earn SREC-IIs under the ADI program: $85/MWh for registrations through July 26, 2026 and $77/MWh after, fixed for 15 years.
Is there a solar tax credit in New Jersey?
The 30% federal credit for homeowners ended for systems installed after 2025. New Jersey does not offer a state income tax credit for solar that we're aware of. Solar may be exempt from property tax.
How do I check a solar installer's license in New Jersey?
Home Improvement Contractor registration (Division of Consumer Affairs) plus NJ electrical contractor license for electrical work.. Look up any installer with the state's license search at https://newjersey.mylicense.com/verification/.
Policy research current as of October 2026; sources include nj.gov, cleanenergy.nj.gov, nj.gov. Electricity data: EIA, through July 2026. Found something out of date? Tell us.