Cost of Solar Panels in New Jersey (2022 Prices Updated)

Here’s a quick look at the estimated cost of solar in New Jersey:

  • Average Cost Per Watt: $2.77
  • Cost of Average System: $14,349*
  • Cost of Energy Without Solar: $43,196
  • Payback Period: 10 Years**
  • Lifetime Savings of Going Solar: $23,806

*Average system size is calculated using data from the Energy Information Administration. This price is after tax credit.
**Payback period is calculated assuming the system is purchased in cash.

Ecowatch Author Karsten Neumeister

By Karsten Neumeister, Solar Expert

Updated 5/17/2022

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Find Cost Savings on Solar in New Jersey

As a homeowner in New Jersey, you may be wondering: How much do solar panels cost in your area? In this article, we’ll discuss the average cost of a solar installation, how much that can save you on energy for your home and what incentives are available in your region. If you want to jump straight to getting a quote for an installation, you can follow the links below to speak with a verified professional.

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SunPower

  • Pros icon Most efficient panels on the market
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  • Pros icon Cradle to Cradle sustainability certification
  • Pros icon Great warranty coverage
  • Con icon Expensive
  • Con icon Customer service varies by local dealer

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Trinity Solar

  • Pros icon Many financing options
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  • Con icon Limited service area
  • Con icon Relatively short workmanship warranty

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Green Power Energy

  • Pros icon Educational, no-pressure sales approach
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  • Pros icon Multitude of products and services
  • Con icon Relatively young company

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  • Service icon Solar Panels
  • Service icon Solar Batteries
  • Service icon Solar Roof Shingles
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The cost of solar panels in NJ will indeed influence whether residents and businesses across the state embrace the possibilities offered by solar energy and the installation of solar photovoltaic (PV) panels. So, what’s the average solar panel cost in New Jersey?

The Northeast is home to some of the most significant growth in the solar industry in recent years, and New Jersey is no exception. Keep reading to learn how solar panel costs in New Jersey compare with the U.S. average, or to see how much solar panels would cost for your home right away.

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How Much Do Solar Panels Cost in New Jersey?

As with much of the cost of living in New Jersey, the cost of solar panels in the state are also above the U.S. average, but only slightly so. Based on EcoWatch’s market research and data from top solar brands, the cost of solar panels in NJ is about $2.77 per watt. This is about 4% higher than the national average cost of $2.66 per watt.

To put that cost in practical terms for a solar project on an average sized home, a 5-kilowatt (kW) solar system can be expected to cost about $10,249 (after the federal solar tax credit is applied). Here are estimates for other common solar system sizes:

Size of Solar Panel System New Jersey Solar Panel Cost Cost After Federal Tax Credit
5kW $13,850 $10,249
6kW $16,620 $12,299
7kW $19,390 $14,349
8kW $22,160 $16,398
9kW $24,930 $18,448
10kW $27,700 $20,498

Note that the prices above are simply estimated averages based on market data. The actual all-in cost for any individual solar project can and will vary due to factors including those discussed below.

What Determines the Cost of Solar Panels in New Jersey?

As mentioned, the cost of solar panels in New Jersey, as well as anywhere else, will fluctuate based on numerous factors. Each project is unique, and installation costs must be evaluated on a case-by-case basis to determine if a solar investment is worthwhile for your home.
The best approach to determine project costs is to book a home consultation with an expert in your area, but in general, you can expect your choices of solar equipment, financing method, and installation company to affect the cost of solar panels for your NJ home.

Solar Equipment

The cost of solar equipment is not fixed across the industry, and the specific items and brands chosen will have a notable impact on all-in solar panel installation costs. Solar equipment includes not just the solar panels themselves, but also auxiliary equipment like solar racking to attach them to the roof, digital and software tools to control the panels, and any advanced mechanisms like the ability to pivot to track the sun or extra-resilient outer glass to protect against the elements.

As expected, selecting high-end equipment, like the most efficient solar panels and the best solar batteries on the market, will drive up costs. On the other hand, selecting the most basic equipment will keep the budget lower. Anyone installing a solar energy system will need to weigh the pros and cons of choosing better equipment versus affordability.

Solar Financing

The upfront costs required to install solar panels can be a major deterrent to investing in solar energy in the first place. As noted in the table above, a solar project from 5 to 10 kW can cost you $10,000 to $20,000 on average in New Jersey. However, numerous solar financing opportunities exist to help homes and businesses manage these expenses.

Based on the financing option chosen, homeowners can pay lower upfront costs, but the overall lifetime cost can increase accordingly:

  • Cash: When paying for your solar panel system in cash, the all-in price tag is all you’ll pay. If you have the cash to pay upfront, this is the cheapest overall option, as interest and fees won’t add to your overall system cost.
  • Solar loan: For those who cannot or do not want to pay for a solar system in cash, solar loans are often an option. A bank or other lender will pay part or all of the upfront costs to get your system installed, and you’ll pay that back over time, plus interest. Interest will lower your overall return on investment, but a loan is the best choice next to a cash payment.
  • Solar lease or power purchase agreement: With a solar lease or power purchase agreement, you don’t have to pay anything for a solar system to be installed, but you don’t actually own the panels. Rather, the solar company retains ownership and allows you to pay them a fee each month to use them and the power they produce. While this option saves you the most upfront, you’ll miss out on benefits of ownership like being able to claim the federal tax credit and increased property value.

Installation Company

Lastly, the solar installer you choose will directly impact your system costs. The best solar companies in New Jersey will offer high-quality equipment at competitive rates, but to determine the right installer for your job, you’ll want to shop around and get multiple free quotes.

Installer options will vary based on where you are and your specific solar needs. Larger solar companies may get deals on equipment purchased in bulk, but local installers often offer discounts to compete with market leaders.

New Jersey Solar Incentives

Installing solar and promoting clean energy generation is a benefit to any community, which is why local governments offer direct incentives and rebates to help lower the cost of solar panels in New Jersey.

See a breakdown of New Jersey solar incentives below.

New Jersey Solar Incentives Description
New Jersey Net Metering Programs Through net metering, you can receive credits for any surplus solar energy you produce and export to the grid. These credits can be used to pay power bills. Not every state has a net metering mandate, but New Jersey does.
Transition Renewable Energy Certificates You earn one TREC for every 1,000 kWh generated by your solar panels, and these can be sold to companies that are legally obligated to meet renewable energy goals. Residential TRECs sell for $91.20 per credit (as of December 2021).
New Jersey Solar Tax Exemptions Solar panels are exempt from the 7% sales tax in New Jersey, and your home value increase after installing solar is exempt from property taxes.
Local Incentives Additional incentives and low-interest financing programs may be available depending on where you live in New Jersey.
Federal Solar Tax Credit The federal solar investment tax credit (ITC) allows homeowners to claim 26% of the cost of a solar power system turned on before the end of 2022.

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FAQ: Cost of Solar Panels in New Jersey

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Karsten Neumeister

Solar Expert

Karsten Neumeister is a solar energy specialist with a background in writing and the humanities. Before joining EcoWatch, Karsten worked in the renewable energy sector of New Orleans, focusing on solar energy policy and technology. A lover of music and the outdoors, Karsten might be found rock climbing, canoeing or writing songs when away from the workplace.