New Jersey homeowners who switch to solar save an average of $1,200–$1,800 per year on electricity — and NJ's incentive programs are among the strongest in the country. Enter your address to see what programs are available in your area.
New Jersey consistently ranks among the top 10 solar states in the country — not because of its sunshine (it gets about 4.5 peak sun hours per day, comparable to the national average), but because of its electricity prices and incentive programs. NJ residents pay some of the highest electricity rates on the East Coast, which means solar panels pay themselves back faster here than in most states.
The combination of the federal 30% Investment Tax Credit, New Jersey's Successor Solar Incentive (SuSI) program, net metering, and full sales and property tax exemptions on solar equipment makes the economics of going solar in NJ exceptionally strong right now.
The Inflation Reduction Act extended and expanded the federal Investment Tax Credit. NJ homeowners who install solar in 2024–2032 can claim 30% of the total system cost as a direct credit on their federal taxes — not a deduction, a dollar-for-dollar credit. On a $22,000 system, that's $6,600 back. Note: the ITC's long-term status may change under future legislation, which makes acting sooner rather than later advisable.
NJ replaced its legacy SREC program with the SuSI program, which pays residential solar owners a set incentive for every kilowatt-hour (kWh) their system produces and exports to the grid. Unlike the old SREC market — where prices fluctuated — SuSI provides a fixed, predictable payment for 15 years, making it easier to calculate your return. Homeowners with systems under 10 kW typically qualify for the residential Administratively Determined Incentive (ADI) rate. Contact a licensed NJ installer for current program rates, as they are updated periodically by the Board of Public Utilities.
New Jersey requires utilities to offer net metering to residential solar customers. When your panels produce more electricity than you use, the excess is sent back to the grid and you receive credits on your electric bill — effectively spinning your meter backward. On sunny days you bank credits; on cloudy days or at night you draw them down. Net metering significantly improves the economics of solar in NJ, especially for PSE&G and JCP&L customers.
New Jersey exempts solar panel systems from the state's 6.625% sales tax. On a $22,000 system, that saves you roughly $1,457 right off the top — before any other incentive is applied.
Solar panels typically increase a home's value, but in New Jersey, that added value is exempt from property tax reassessment. You get the benefit of a higher home value without a higher tax bill.
The gross cost of a residential solar system in New Jersey typically runs $18,000 to $28,000 depending on system size, roof type, and installer. After the federal 30% tax credit, that net cost drops to roughly $12,600 to $19,600 — and additional NJ state incentives reduce it further over time.
The best way to know your exact cost is to get quotes from multiple licensed NJ installers. Prices vary meaningfully by county, by your roof's pitch and orientation, and by the panel brand and installer margin. HomeRateMap connects you with installers who serve your specific area so you can compare apples to apples.
For most NJ homeowners with federal tax liability, a cash purchase or solar loan delivers the best return. Talk to your installer about which option fits your situation.
The net metering and interconnection process varies by utility in New Jersey. Here's a quick overview of the major utilities and solar considerations for each:
PSE&G serves northern and central NJ — the largest utility in the state. PSE&G customers are eligible for net metering and the SuSI program. PSE&G has historically been one of the more efficient utilities for solar interconnection approvals in NJ. See our PSE&G solar page for details specific to PSE&G territory.
JCP&L serves central and northern NJ. JCP&L customers follow the same NJ net metering rules but have their own interconnection process. See our JCP&L solar page for JCP&L-specific guidance.
Serving South Jersey, Atlantic City Electric customers are also eligible for net metering and state incentive programs. South Jersey's slightly higher sun exposure can improve system output compared to the northern part of the state.
Serving a smaller area in northern NJ, Rockland Electric customers should confirm net metering terms directly with the utility before installation, as program details can differ.
HomeRateMap connects homeowners across all 21 New Jersey counties with licensed local solar installers. Select your county below for local pricing, installer reviews, and county-specific incentive information:
Yes — NJ is one of the better states for solar ROI. High electricity rates mean faster payback, and the combination of the federal 30% tax credit, NJ's SuSI production incentive, net metering, and tax exemptions gives NJ homeowners more financial support than most states. Average payback periods run 6–9 years on a 25-year warranted system.
From signing a contract to panels being turned on, most NJ solar installations take 2–4 months. The biggest variable is utility interconnection approval — PSE&G and JCP&L each have their own timelines. Permitting through your municipality adds time as well. Your installer will manage both processes on your behalf.
Not necessarily, but it's worth evaluating. If your roof is more than 15 years old or showing signs of wear, most installers will recommend addressing it before installation, since removing and reinstalling panels to replace a roof later adds cost. Many NJ solar installers can coordinate roofing work as part of the project or refer you to a trusted roofing contractor.
Net metering lets your solar system "bank" excess electricity with your utility. When your panels produce more than you use (typically on sunny days), the extra power goes to the grid and your meter runs backward, crediting your account. When you need more power than your panels produce (at night, cloudy days), you draw those credits down first. New Jersey law requires all major utilities to offer net metering to residential solar customers.
The Successor Solar Incentive (SuSI) program is New Jersey's replacement for the legacy SREC market. It pays residential solar owners a fixed rate per kilowatt-hour generated for 15 years. Most residential systems under 10 kW qualify for the residential ADI rate. Eligibility and current rates are administered by the NJ Board of Public Utilities — your installer will handle the program enrollment as part of your installation.
Yes, and it's increasingly popular in NJ. Battery systems like the Tesla Powerwall or Enphase IQ Battery let you store daytime solar production for use at night or during outages. Adding storage also increases your effective system value when sold to lead buyers. Battery storage costs have dropped significantly and may qualify for additional federal incentives under the IRA. Ask your installer for a quote that includes battery pricing.
When comparing quotes, look at: (1) cost per watt — not just total price; (2) panel brand and efficiency rating; (3) inverter type (string vs. microinverter); (4) production estimate in kWh/year; (5) warranty terms (25 years on panels is standard); and (6) installer licensing and reviews. HomeRateMap connects you with multiple licensed NJ installers so you can compare all of these factors side by side.
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