New JerseySolar Panel Costs & Savings
New Jersey averages 4.0 hrs of peak sun per day with an average payback period of 7.5 years. Homeowners can save $38,200 over 20 years.
Peak Sun Hours
4.0 hrs
per day
6kW System Cost
$18,900
before incentives
Payback Period
7.5 yrs
average
20-Year Savings
$38,200
estimated
Solar Cost Breakdown in New Jersey
| Item | Amount |
|---|---|
| 6kW System Cost ($3.15/W) | $18,900 |
| Federal Tax Credit (30%) | -$5,670 |
| Net Cost | $13,230 |
Net Metering
Full Net Metering
Electricity Rate
18.48¢/kWh
Avg Monthly Bill
$121/mo
Solar Incentives in New Jersey
New Jersey TRECs
Transition Renewable Energy Certificates provide ongoing revenue for solar system owners.
Federal Solar Investment Tax Credit (ITC)
The federal ITC allows homeowners to deduct 30% of solar installation costs from federal taxes. Available for systems installed through 2032, stepping down to 26% in 2033 and 22% in 2034.
New Jersey Sales Tax Exemption
Solar energy systems are exempt from New Jersey's sales tax.
Solar Potential by ZIP Code in New Jersey
| ZIP | City | Sun Hours | Annual Savings | Payback |
|---|---|---|---|---|
| 08401 | Atlantic City | 4.2 hrs | $1,397 | 9.5 yrs |
| 08701 | Lakewood | 4.2 hrs | $1,397 | 9.5 yrs |
| 07701 | Red Bank | 4.1 hrs | $1,364 | 9.7 yrs |
| 08001 | Berlin | 4.1 hrs | $1,364 | 9.7 yrs |
| 08101 | Camden | 4.1 hrs | $1,364 | 9.7 yrs |
| 08501 | Allentown | 4.1 hrs | $1,364 | 9.7 yrs |
| 08601 | Trenton | 4.1 hrs | $1,364 | 9.7 yrs |
| 08801 | Flemington | 4.1 hrs | $1,364 | 9.7 yrs |
| 08002 | Cherry Hill | 4.1 hrs | $1,364 | 9.7 yrs |
| 07001 | Avenel | 4.0 hrs | $1,331 | 10 yrs |
| 07030 | Hoboken | 4.0 hrs | $1,331 | 10 yrs |
| 07101 | Newark | 4.0 hrs | $1,331 | 10 yrs |
| 07201 | Elizabeth | 4.0 hrs | $1,331 | 10 yrs |
| 07302 | Jersey City | 4.0 hrs | $1,331 | 10 yrs |
| 07501 | Paterson | 4.0 hrs | $1,331 | 10 yrs |
| 08901 | New Brunswick | 4.0 hrs | $1,331 | 10 yrs |
Compare With Other States
More Data for New Jersey
Frequently Asked Questions
How much do solar panels cost in New Jersey?
A typical 6kW solar system in New Jersey costs approximately $18,900 before incentives. After the 30% federal tax credit ($5,670), the net cost is approximately $13,230.
How long does solar take to pay for itself in New Jersey?
The average solar payback period in New Jersey is 7.5 years, faster than the national average of 9.4 years. After payback, homeowners enjoy free electricity for the remaining system life.
Does New Jersey have net metering?
New Jersey has full net metering. Homeowners receive full retail rate credits for excess solar energy sent to the grid.
How much sun does New Jersey get for solar?
New Jersey averages 4 peak sun hours per day, which is 0.5 hours below the national average. A 6kW system produces approximately 8,760 kWh per year.
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Data verified March 2026 · Source: NREL, DSIRE, EIA