Solar Panels in New Jersey
#5 in the Nation for Total Solar Generation
$1,600/yr
Avg. Annual Savings
4.8 peak hrs/day
Peak Sun Hours
11–15 years
Payback Period
$14,000–$22,000
Avg. System Cost
Overview
Is Solar Worth It in New Jersey?
New Jersey still has some of the best incentives on solar power equipment of any U.S. state -- but it won't be forever. The state's SREC (Solar Renewable Energy Certificate) program has historically been one of the most lucrative in the country, and New Jersey consistently ranks in the top 5 states for total solar generation despite its relatively small size.
If you're a New Jersey homeowner considering solar, the combination of high electricity rates and strong state incentives makes now an excellent time to act. Note: the 30% federal ITC expired December 31, 2025.
Benefits
Why Go Solar in New Jersey
Reduce Your Electric Bill
New Jersey homeowners save an average of $1,600/yr after going solar.
State & Local Incentives
New Jersey offers property tax exemptions, net metering credits, and other state-level incentives that reduce your net cost. The federal 30% ITC expired Dec 31, 2025.
Increase Home Value
Solar panels increase your home's resale value — and are excluded from property tax in most states.
Energy Independence
Lock in your electricity rate and protect against rising utility costs for 25+ years.
Available Incentives
New Jersey Solar Incentives & Tax Credits
SREC-II / SuSI Program
State ProgramNew Jersey's Solar Successor Incentive (SuSI) program pays you for every megawatt-hour of solar energy your system produces, providing ongoing income for 15 years.
Net Metering
Net MeteringNJ utilities offer net metering, crediting you at the full retail rate for excess solar energy sent to the grid.
Sales Tax Exemption
Tax ExemptionNew Jersey exempts solar energy equipment from the state's 6.625% sales tax.
Federal Solar Tax Credit (Expired)
Tax CreditThe 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. Not available for 2026 purchases. Solar leases/PPAs may still benefit through commercial credits.
What Changed in 2026 for New Jersey Solar
The federal solar tax credit expired December 31, 2025 — here's what that means for New Jersey homeowners and what options remain.
The 30% Federal Tax Credit Has Expired
The federal Residential Clean Energy Credit (Section 25D) expired December 31, 2025. New Jersey homeowners purchasing solar in 2026 will not receive the 30% federal credit. A typical 8kW system that previously cost ~$12,600 after the ITC now costs $18,000–$22,000 before New Jersey's state incentives. NJ has some of the highest electricity rates in the country, which partially offsets the loss of the federal credit.
Lease and PPA Customers Are the Exception
Solar leases and Power Purchase Agreements (PPAs) are still viable in 2026. The installer owns the system and can claim commercial federal tax credits, passing savings through as a lower monthly rate. New Jersey has a mature solar financing market with multiple lease/PPA providers, and this option may now offer better first-year economics than a cash purchase for many homeowners.
New Jersey's State Incentives Remain Strong
New Jersey's TREC (Transition Renewable Energy Certificate) program, net metering at the full retail rate, and the NJ Sales Tax Exemption on solar equipment all remain fully intact. The TREC program pays NJ homeowners for every kilowatt-hour their system produces, providing ongoing income that partially compensates for the loss of the federal credit. NJ's combination of high electricity rates and strong state incentives means solar still pencils out -- expect payback periods of 9–12 years for 2026 purchases.
Common Questions
New Jersey Solar FAQ
Local Solar Companies
Solar Companies by City in New Jersey
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