Solar Panel Cost in New Jersey (2026): What Homeowners Actually Pay

Last Updated: May 16, 2026 | Reviewed by: Dylan DeSantis, SolarMetric

Quick Answer

New Jersey solar averages $2.57 per watt, or $15,420–$35,980 for a typical 6–14 kW system. The 30% federal residential tax credit was eliminated for cash/loan purchases after December 31, 2025. New Jersey’s SuSI ADI program pays $76.50 per MWh for 15 years — a major ongoing income stream. With electricity rates near $0.23/kWh and full retail net metering, most homeowners see payback in 5–7 years.

How Much Do Solar Panels Cost in New Jersey?

New Jersey consistently ranks among the top five solar markets in the U.S., driven by high electricity rates, a dense population of eligible homes, and one of the strongest state incentive programs in the country. Based on EnergySage marketplace data through Q1 2026, the statewide average is $2.57 per watt installed, all-in.

Cost by System Size — New Jersey (2026)

Monthly savings use statewide average of 4.5 peak sun hours/day, 80% efficiency, and $0.2298/kWh (EIA Dec 2025 NJ residential rate). Full retail net metering applies — every kWh produced is valued at the retail rate regardless of export timing.

System Size	Typical Home	Installed Cost	Est. Monthly Savings (electricity only)
6 kW	Small 2-bed home	$15,420	~$149/mo
8 kW	Average 3-bed home	$20,560	~$199/mo
10 kW	4-bed home / average usage	$25,700	~$248/mo
12 kW	Large home or EV charging	$30,840	~$298/mo
14 kW	Very large / high bill	$35,980	~$347/mo

SuSI income is additional — on top of electricity savings, new systems registered after March 6, 2026 earn $76.50 per MWh produced for 15 years. A 10 kW system producing ~13,500 kWh/year adds approximately $1,033/year in SuSI payments, or $15,495 over 15 years.

Cost per watt range: $2.20–$3.20/watt. North Jersey and suburban New York metro tend to come in at the higher end. South Jersey (Burlington, Camden, Salem counties) tends to be more competitive. Premium panel brands (REC, Panasonic) push costs toward $3.00+/watt.

Average system size in NJ: 12.64 kW, larger than the national average, driven by high per-home electricity consumption and high motivation to offset large bills.

The Federal Tax Credit: What Changed in 2026

The 30% federal residential solar tax credit (Section 25D) no longer applies to systems installed after December 31, 2025. The One Big Beautiful Bill Act, signed July 4, 2025, eliminated it entirely for homeowner cash and loan purchases.

What this means for New Jersey homeowners:

A $25,700 system (10 kW) previously generated a $7,710 federal credit. In 2026 it generates zero.
Payback periods are roughly 1–2 years longer than figures in older guides — but because NJ electricity rates and the SuSI program are so strong, NJ still has some of the best solar ROI in the country even without it.
The Section 48E commercial credit still applies to solar leases and PPAs through end of 2027, since the leasing company owns the system and claims the credit.

New Jersey Solar Incentives

SuSI ADI Program (Successor Solar Incentive — Administratively Determined Incentive)

This is New Jersey’s flagship solar incentive and the most valuable ongoing income stream available to homeowners in 2026.

How it works: For every megawatt-hour (MWh) your solar system produces, you earn a payment — called an SREC-II — for 15 years from your interconnection date. The rate is set by the NJ Board of Public Utilities (BPU) and periodically steps down.

Current rate: $76.50/MWh for systems with applications submitted on or after March 6, 2026. Systems registered before March 6, 2026 locked in $85/MWh. Once registered, your rate is fixed for the full 15-year term.

How much will you earn?

System Size	Annual Production (4.5 hrs/day)	Annual SuSI Payment	15-Year Total
8 kW	10,512 kWh (10.51 MWh)	$804	$12,060
10 kW	13,140 kWh (13.14 MWh)	$1,005	$15,075
12 kW	15,768 kWh (15.77 MWh)	$1,206	$18,090

Annual production = kW × 4.5 hrs × 365 × 0.80. SuSI payment = MWh × $76.50.

SuSI payments are typically sold through an aggregator like SRECTrade or Sol Systems. Your installer should set this up at commissioning — if they don’t mention it, ask explicitly.

Sales Tax Exemption

Solar equipment is fully exempt from New Jersey’s 6.625% sales tax. On a $25,700 system, that’s approximately $1,703 in tax not collected. Applied automatically at purchase; no action required.

Property Tax Exemption

New Jersey provides a 100% property tax exemption on the assessed value added by a solar installation. This exemption is permanent under current law. On a home where solar adds $20,000–$25,000 in market value, you pay zero additional property tax on that increase.

No State Income Tax Credit

New Jersey does not have a state-level solar income tax credit. The SuSI ADI program, sales tax exemption, and property tax exemption are the three state-level benefits.

Net Metering in New Jersey

New Jersey requires all investor-owned utilities — PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric — to credit excess solar at the full retail electricity rate. Unlike Arizona’s net billing structure, there is no separate lower “export rate” in New Jersey.

This means:
– Every kWh your panels produce reduces your bill at the same rate you pay for electricity (~$0.2298/kWh)
– Excess monthly credits roll forward to the next bill
– Annual excess credits are carried forward indefinitely (no annual cash-out expiration)
– System size cap: Systems up to 110% of your prior 12-month consumption are eligible

Full retail net metering is one of the primary reasons New Jersey solar ROI is among the highest in the country. Every unit of solar production is worth the full retail value, not a discounted export rate.

Top Solar Companies in New Jersey

These installers have strong track records in New Jersey based on EnergySage marketplace data, BBB ratings, and verified customer reviews.

Company	Best For	Service Area	Financing Options
Infinity Energy	Premium installs, installer of the year	Statewide	Loan, cash
Trinity Solar	Local NJ expertise, high volume	Statewide	Loan, lease, cash
Green Power Energy	Customer experience, North NJ	North/Central NJ	Loan, cash
Sunrun	Leases and PPAs, no upfront cost	Statewide	Lease, PPA, loan, cash
Palmetto	Equipment quality + monitoring	Major metro areas	Loan, cash
Tesla Solar	Competitive pricing, cash/loan	Statewide	Cash, loan

Note on Freedom Forever: Freedom Forever filed for Chapter 11 bankruptcy on April 15, 2026 (case #26-10522, D. Del.), with over $500 million in reported debts. Verify any Freedom Forever-branded quote comes from an independently operating dealer with its own warranty backstop.

Note on Momentum Solar: Momentum Solar, a New Jersey-founded installer, has significantly reduced operations and accumulated a large volume of customer complaints related to delayed installs, poor post-install service, and warranty disputes. They have not filed for bankruptcy as of May 2026, but numerous customer complaints are on record with the BBB. Get a full warranty and service-contract review before signing with them.

Local advantage: Trinity Solar and Green Power Energy are NJ-founded companies with strong local permitting knowledge — important in NJ, where municipal permitting timelines vary widely by town. Getting at least one local-NJ quote alongside national bids is strongly recommended.

Is Solar Worth It in New Jersey in 2026?

Yes — New Jersey has some of the best solar economics in the country, even without the federal tax credit.

The combination of high electricity rates, full retail net metering, and the SuSI ADI program produces payback periods of roughly 5–7 years on cash purchases — shorter than most states even when the ITC was active. NJ homeowners on PSE&G and JCP&L with above-average bills are among the clearest-cut solar beneficiaries anywhere.

Worked Examples

Static estimates based on $2.57/watt, $0.2298/kWh NJ retail rate, city-specific peak sun hours, SuSI at $76.50/MWh, and 80% efficiency factor. Full retail net metering applied (no self-consumption split needed). Actual quotes will vary.

Homeowner	City / Utility	Monthly Bill	System Size	System Cost	Annual Benefit (Elec + SuSI)	Payback	25-Year Net Savings
3-bed home	Newark / PSE&G	$220	10 kW	$25,700	$4,715	5.5 yrs	$80,405
3-bed home	Trenton / JCP&L	$180	8 kW	$20,560	$3,220	6.4 yrs	$51,900
3-bed home	Cherry Hill / ACE	$200	9 kW	$23,130	$3,716	6.2 yrs	$60,490
4-bed home + EV	Morristown / JCP&L	$300	12 kW	$30,840	$4,625	6.7 yrs	$73,235

Annual electricity savings: kW × city peak sun hrs (Newark 5.27, Trenton 4.5, Cherry Hill 4.6, Morristown 4.3) × 365 × 0.80 × $0.2298. SuSI income: annual kWh ÷ 1,000 × $76.50. Annual benefit = electricity savings + SuSI. 25-year net = (annual benefit y1–15 × 15) + (electricity savings y16–25 × 10) − system cost.

Who solar works best for in New Jersey:
– Homeowners with bills above $150/month on PSE&G, JCP&L, or ACE
– Homes with south or southwest-facing roof sections with minimal shading
– Homeowners planning to stay 6+ years (payback is short, but shorter tenure reduces total savings)
– Anyone who can register their system before the next SuSI ADI rate step-down

Who should take a harder look:
– Homes with significant shading from trees or neighboring buildings (common in older NI suburbs)
– Homeowners with bills under $100/month (already low consumption reduces absolute savings)
– Those with older roofs needing replacement within 5–7 years — replace the roof first

How to Compare Solar Quotes in New Jersey

Get at least three quotes. Include at least one NJ-founded local company (Trinity Solar, Green Power Energy, Infinity Energy). Local permitting knowledge matters in NJ.
Ask what SuSI rate you’ll be registered at. If you sign after March 6, 2026, your rate is $76.50/MWh. An estimate using $85/MWh overstates your SuSI income by 11%.
Ask who handles SuSI registration and aggregation. Your installer should handle this at commissioning. If they don’t have a clear answer, that’s a red flag.
Compare cost per watt. Divide total installed price by system wattage. Anything over $3.00/watt in NJ warrants pushback; the market average is $2.57.
Check the workmanship warranty term. Industry standard is 10 years. Some NJ installers offer 25-year labor warranties — this matters given NJ’s weather variability.
Confirm SuSI capacity before signing. The SuSI ADI program has a hard capacity cap. As of May 2026, approximately 30 MWdc of the 250 MWdc residential EY26 allocation remains — about 12% of the annual cap. Enrollment is not yet closed, but it will be. Ask your installer to confirm current availability at njadi.programprocessing.com before you sign.

Methodology and Sources

SolarMetric researched New Jersey solar costs using the following sources:

EnergySage Solar Marketplace Data (Q1 2026): Actual quote data from New Jersey homeowners, used for cost per watt and system size averages.
EIA Electric Power Monthly (December 2025): New Jersey residential electricity rate of $0.2298/kWh.
NJ Board of Public Utilities — SuSI ADI Program: Current residential net-metered ADI rate of $76.50/MWh for applications after March 6, 2026 (prior rate $85/MWh locked for earlier registrations).
DSIRE (Database of State Incentives for Renewables & Efficiency): NJ Successor Solar Incentive Program, sales tax exemption, and property tax exemption details.
IRS.gov — One Big Beautiful Bill Act (Public Law 119-21, July 4, 2025): Elimination of Section 25D residential solar credit.
NREL National Solar Radiation Database (NSRDB): Peak sun hours by New Jersey city.

Frequently Asked Questions

How much do solar panels cost in New Jersey in 2026?
The average installed cost is $2.57 per watt. A typical 10 kW system runs $25,700. There is no federal tax credit for 2026 cash/loan purchases, but NJ offers a SuSI ADI payment of $76.50/MWh for 15 years, a full sales tax exemption, and a 100% property tax exemption.

What is the SuSI ADI program in New Jersey?
The SuSI ADI (Successor Solar Incentive — Administratively Determined Incentive) pays you $76.50 for every megawatt-hour your system produces, for 15 years from your interconnection date. The rate is set by the NJ BPU and periodically steps down for new applicants. A 10 kW system earns roughly $1,005/year, or $15,075 over 15 years.

Does New Jersey have net metering in 2026?
Yes — full retail net metering. PSE&G, JCP&L, ACE, and Rockland Electric all credit exported solar at the full retail electricity rate (~$0.2298/kWh). Credits roll forward monthly and carry over indefinitely, unlike some states that cash out annually. There is no separate lower export rate.

How long is the payback period for solar in New Jersey?
Typically 5–7 years for cash purchases in 2026, factoring in electricity savings and SuSI ADI income. This is shorter than most states even without the now-eliminated federal tax credit. High NJ electricity rates and full retail net metering are the primary drivers.

What are the best solar companies in New Jersey?
Top-rated NJ installers based on EnergySage marketplace data include Infinity Energy (EnergySage Installer of the Year 2025 and 2026), Trinity Solar, Green Power Energy, Sunrun (for leases/PPAs), and Palmetto. Always get at least three quotes — pricing and SuSI expertise varies significantly across installers.

Get Free Quotes from New Jersey Solar Installers

New Jersey has some of the best solar economics in the country — but only if you find an installer who prices competitively and handles SuSI registration correctly. Get multiple quotes before you sign.

Get Free Quotes →

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