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Tamara Jude is a writer specializing in solar energy and home improvement. With a background in journalism and a passion for research, she has over six years of experience creating and writing content. In her spare time, she enjoys traveling, attending concerts, and playing video games.
Dana Goetz is a seasoned editor with nearly a decade of experience writing and editing content. She has journalism experience, having worked as a fact checker for prestigious magazines such as New York and Chicago. She earned a degree in journalism and marketing from Northwestern University and has worked in several categories in the home services industry.
Carsten Neumeister is an experienced energy specialist with expertise in energy policy, solar energy and retail. He is currently the communications manager for the Retail Energy Promotions Alliance and has experience writing and editing content for EcoWatch. Before joining EcoWatch, Karsten worked at Solar Alternatives, where he curated content, advocated for local renewable energy policies, and assisted the solar design and installation team. Throughout his career, his work has been featured in media outlets such as NPR, SEIA, Bankrate, PV Mag, and the World Economic Forum.
New Jersey is one of the top states for solar energy production. The state ranks eighth in the United States for solar energy production, according to the Solar Energy Information Association (SEIA). However, installing a solar panel system can be expensive, and you may be wondering how much such a large project will cost.
Our Guide House team researched the top solar companies in the U.S. and calculated the average cost of solar panels in New Jersey. This guide also discusses the solar cost incentives available in the Garden State.
Solar energy systems require a significant upfront investment, with system size being one of the largest determining costs. Most homeowners in New Jersey require a 5-kilowatt (kW) system at an average cost of $2.95 per watt*. After applying the 30% federal tax credit, that would be $14,750 or $10,325. The larger the system, the higher the cost.
In addition to system size, there are many factors that affect the cost of solar panels. Here are a few more key aspects to consider:
Although the initial investment to install a solar energy system is higher, several federal and state tax incentives can reduce costs. You’ll also save on your energy bills in the long run: solar panels typically pay for themselves within five to seven years.
The Federal Solar Tax Credit provides homeowners with a tax credit equal to 30% of the cost of their solar installation. By 2033, this share will drop to 26%.
To qualify for the federal tax credit, you must be a homeowner in the US and have solar panels. This applies to solar owners who pre-purchase a system or take out a loan; customers who lease or sign a power purchase agreement (PPA) will be disqualified. To qualify for the credit, you must file IRS Form 5695 as part of your tax return. More information about tax credit requirements can be found on the IRS website.
New Jersey is one of many states that has a net metering program that allows you to sell excess energy generated by your system back to the grid. For every kilowatt-hour (kWh) you generate, you’ll earn points toward future energy bills.
These plans vary depending on your utility provider. The New Jersey Clean Power Plan website contains guidance for individual utility providers as well as more general information about New Jersey’s net metering program.
A solar system will increase the value of your property, but because the state provides a solar property tax exemption, Garden State homeowners pay no additional taxes.
Owners of solar properties in New Jersey must apply for a certificate from a local property appraiser. This certificate will reduce your taxable property to the value of your home without the use of a renewable energy system.
Equipment purchased for solar energy systems is exempt from New Jersey’s 6.625% sales tax. The incentive is available to all ratepayers and includes passive solar equipment such as solar spaces or solar greenhouses.
Complete this form in New Jersey and send it to the seller in lieu of paying sales tax. Check with the New Jersey Sales Tax Exemption Office for more information.
The scheme is an extension of the popular Solar Renewable Energy Certificate (SREC) scheme. Under SuSI or SREC-II, one credit is generated for every megawatt-hour (MWh) of energy produced by the system. You can earn $90 per SREC-II point and sell your points for additional income.
Residential solar panel owners must complete an Administrative Determined Incentive (ADI) registration package. Candidates are selected on a first-come, first-served basis.
There are more than 200 solar installers in New Jersey, according to SEIA. To help you narrow down your choices, here are three top recommendations for solar energy companies.
Solar panels are a big investment, but they can yield just as big returns. They can save you money on your energy bills, allow you to earn passive income through net metering, and increase the resale value of your home.
Before installation, make sure your home is suitable for solar energy. We also recommend that you request at least three quotes from different solar companies before making your decision.
Yes, if your home is solar-friendly, it’s worth installing solar panels in New Jersey. The state has plenty of sunshine and good incentives to keep installation costs down.
The average cost to install solar panels in New Jersey is $2.75 per watt*. For a typical 5-kilowatt (kW) system, this equates to $13,750, or $9,625 after applying the 30% federal tax credit.
The number of panels needed to power a home depends on the size of the home and its energy needs. A 1,500 square foot home typically requires 15 to 18 panels.
We carefully evaluate solar installation companies, focusing on the factors that matter most to homeowners like you. Our approach to solar energy generation is based on extensive homeowner surveys, discussions with industry experts and renewable energy market research. Our review process involves rating each company based on the following criteria, which we then use to calculate a 5-star rating.
Tamara Jude is a writer specializing in solar energy and home improvement. With a background in journalism and a passion for research, she has over six years of experience creating and writing content. In her spare time, she enjoys traveling, attending concerts, and playing video games.
Dana Goetz is a seasoned editor with nearly a decade of experience writing and editing content. She has journalism experience, having worked as a fact checker for prestigious magazines such as New York and Chicago. She earned a degree in journalism and marketing from Northwestern University and has worked in several categories in the home services industry.
Carsten Neumeister is an experienced energy specialist with expertise in energy policy, solar energy and retail. He is currently the communications manager for the Retail Energy Promotions Alliance and has experience writing and editing content for EcoWatch. Before joining EcoWatch, Karsten worked at Solar Alternatives, where he curated content, advocated for local renewable energy policies, and assisted the solar design and installation team. Throughout his career, his work has been featured in media outlets such as NPR, SEIA, Bankrate, PV Mag, and the World Economic Forum.
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