Solar Panel Cost Guide in Colonia, NJ (Aug 2022)
- Colonia Solar Installation Cost: $9,593
- 25-Year Savings: $8,257
- Payback Period: 13.4 Years
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Updated 7/19/2022
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Average Cost of Solar Panels in Colonia
Find out what the average cost of solar panel installation is in Colonia.
The average cost of a solar panel system in Colonia is $3 per watt. To account for the typical energy needs of the average home in Colonia, most homeowners require a 4.7-kilowatt system. Using the per-watt figure above, a solar installation costs around $9,593, or $7,099 after the federal solar tax credit is applied.
The prices above are just estimates to give you an idea of the cost of solar panels. The true cost of making the switch to solar can vary quite a bit depending on multiple factors, such as how many panels you need, your energy usage and what solar installer you go with. For most homeowners, the upfront cost of solar panels is worth paying. On average you could be looking at about $14,000 in savings on energy bills over 20 years.
For a personalized quote from a local solar installer that has been pre-vetted by the EcoWatch team, click the button below.
Solar savings over time in Colonia
| Year | Return on Investment |
|---|---|
| 1 years | $-8,879 |
| 3 years | $-7,451 |
| 5 years | $-6,023 |
| 7 years | $-4,595 |
| 9 years | $-3,167 |
| 11 years | $-1,739 |
| 13 years | $-311 |
| 15 years | $1,117 |
| 17 years | $2,545 |
| 19 years | $3,973 |
| 21 years | $5,401 |
| 23 years | $6,829 |
| 25 years | $8,257 |
Top Solar Installers in Colonia
When going solar, many homeowners choose to go with a solar company since overseeing your solar installation yourself can be a challenging project. Some solar installers, especially local ones, can help you make the most of incentives in Colonia, therefore optimizing your ROI.
If you'd like to make the switch to solar but still aren't certain which solar system installer to go with, here are our recommendations for providers in Colonia:
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best Technology
The Green Panel
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
See all of the solar companies in Colonia
Factors that Affect Solar Panel Costs in Colonia
Cost is typically one of the most important factors for homeowners considering investing in solar. There are a few major factors that affect your total cost in Colonia: solar equipment and system size, financing options and the solar installation company you choose. We'll cover each of these briefly below.
Solar Equipment Size
One of the most important factors to consider when it comes to the cost of installing solar panels is the size of the solar system, which is measured in kilowatts (kW). The more energy your household uses, the larger your system will likely need to be. You can expect to pay about $2,770 per kilowatt in Colonia. Some solar panel brands — like Maxeon from SunPower — are more expensive upfront but also tend to offer better efficiency. In a city like Colonia, where sunlight is relatively abundant, efficiency can quickly pay off. In addition, if you have a small roof or limited space for your panels, higher efficiency options will be a better option. Additional equipment like electric vehicle chargers and solar batteries will also increase the cost.
Solar Financing Terms
Most solar companies in Colonia provide solar loans, which reduce the initial cost of installing solar panels. However, the interest on solar loans also adds to your all-in costs, so it's important to keep that in mind as well. You can always bring down the total you pay in interest and sometimes even your APR by putting more money down.
Solar Panel Installation Company
A final factor to consider when trying to evaluate the cost of solar for your home or business in Colonia is the company you get to install your solar panel system. Similar to choosing a company to renovate your kitchen, for instance, you'll have many options for solar installers that provide a range of services for different budgets. The size of the company sometimes plays the most considerable role in the cost. Larger national companies, like SunPro and Sunrun, often have lower prices because of access to greater resources and better pricing. Smaller local companies might be more costly, but they generally have better customer service and more customization options, and the occasional sale or discount can bring their pricing down to compete with bigger names.
Solar Panel Cost Data by System Size
| System size | Cost per system watt | Solar system cost | 25-Year savings | Payback period |
|---|---|---|---|---|
| 6 kW | $2.88 | $12,791 | $10,094 | 14.0 years |
| 8 kW | $2.83 | $16,726 | $13,787 | 13.7 years |
| 10 kW | $2.77 | $20,498 | $17,644 | 13.4 years |
| 12 kW | $2.71 | $24,106 | $21,665 | 13.2 years |
| 14 kW | $2.66 | $27,549 | $25,849 | 12.9 years |
| 16 kW | $2.60 | $30,829 | $30,198 | 12.6 years |
| 18 kW | $2.55 | $33,945 | $34,711 | 12.4 years |
| 20 kW | $2.49 | $36,896 | $39,387 | 12.1 years |
Solar Incentives in Colonia
| Name | NJ Clean Energy- Residential New Construction Program |
| Incentive Amount | Incentives depend on the HERS score and the classification Single family homes: Ranges from $1,125 to - 24,250 Multi-single homes: Ranges from $1,125 to $18,188 Multifamily homes: Ranges from $625-$12,125 |
| Incentive Max | Multifamily: up to $12,125 Individual homes: up to $24,250 |
| Website | Visit here |
| More Info | Click here |
| Name | Property Tax Exemption for Renewable Energy Systems |
| Incentive Amount | 100% of value added by renewable system |
| More Info | Click here |
| Name | ITC |
| Type | Tax Incentive |
| Incentive Amount | 26% of installation cost |
| Website | Visit here |
| Name | Solar Renewable Energy Certificates (SRECs) Registration Program |
| Incentive Amount | Determined by the market. In June 2016, SREC traded at an average price of $229.90. |
| Incentive Max | Maximum price set by the SACP for the particular year. |
| Website | Visit here |
| More Info | Click here |
| Name | PSE&G - Solar Loan Program |
| Website | Visit here |
| More Info | Click here |
| Name | Successor Solar Incentive (SuSI) Program |
| Incentive Amount | Net-Metered Residential: $90/SREC-II Small Net-Metered Non-Residential located on Rooftop, Carport, Canopy and Floating Solar Projects smaller than 1 MW (dc): $100/SREC-II, $120 for public entities Projects 1 MW to 5 MW (dc): $90/SREC-II, $110 for public entities Net Metered Non-Residential Ground Mount Projects smaller than 1 MW (dc): $85/SREC-II, $105 for public entities Projects 1 MW to 5 MW (dc): $80/SREC-II, $100 for public entities Community Solar LMI: $90/SREC-II Community Solar Non-LMI: $70/SREC-II |
| Incentive Max | MW-DC Capacity Blocks Net Metered Residential: 150 MW Net Metered Non-Residential: 150 MW Community Solar (LMI and Non-LMI): 150 MW |
| Website | Visit here |
| More Info | Click here |
| Name | Solar Energy Sales Tax Exemption |
| Incentive Amount | 100% exemption |
| Incentive Max | None |
| More Info | Click here |
How to Save on Solar Panels
The company that does your system installation will affect the warranties and brands you have access to, and it will also have an impact on your total cost. Because picking a company can be a tough decision, we have some tips to help you, such as:
- Installation Process: Get details from your solar company about the installation process and what to expect, including when the site survey will be completed and what the project timeline is.
- Reputation: Make sure your solar panel installer has a good reputation by verifying it has certifications and licenses, checking how long it's been in business and reading reviews by previous customers and solar experts like the EcoWatch team.
- Contract: Review the contract terms thoroughly to make sure you understand the cost breakdown, project completion timeline incentives and warranties.
- Solar Panel Brands: Each solar panel brand and kind offers varying levels of quality, longevity and energy efficiency. They will come at different costs as well. The company you choose impacts which solar panel brands you have access to.
Best Regional Coverage
Momentum Solar
- Great warranty coverage
- Representatives are experts on local policies
- Concierge service ensures steady communication
- Slightly limited service offerings
Best Technology
The Green Panel
- Price-match guarantee
- Sleek, efficient, and durable solar panels
- Best solar battery on the market
- Some reported issues with customer service
- Customer service varies by local dealer
EcoWatch's Colonia, NJ Solar Cost FAQs
How much does it cost to install solar panels in Colonia?
The average cost of solar panels in Colonia is about $13,850 for a 5-kW system and $27,700 for a 10-kW system before the ITC, but the actual cost will depend on certain factors such as the kind of solar panels you want, what size system you need and how much energy you use.
Is cost the most important thing to keep in mind when buying solar panels?
Cost is definitely one of the most important factors you should consider when buying solar panels, but other important factors include efficiency, durability, and quality.
Is it worth going solar in Colonia?
Solar panels can be a great investment for lots of homeowners, but they might not be worth it for everyone. If your home doesn't get a lot of direct sunlight and/or your electricity bills are already fairly low, solar panels might not be for you.
How often do you have to replace solar panels?
On average, the lifespan of solar panels is about 25 to 30 years. Some even last up to 50 years, but their efficiency decreases by about 0.8% each year. You can choose to replace them sooner if you want to maintain a higher level of energy production.
Our goal is to reach as many people as we can with sensible solutions like solar energy. Our team of full-time local researchers collects solar price and installation data for every city in America then compiles it to create these digestible city guides. If you want to read our solar expert’s opinion on the top solar companies featured here, follow this link.
Company research was conducted by Melissa Smith and Karsten Neumeister. Local data analysis was conducted by James Savino. See something we missed or could do better? Email the editor.
