If you‘re a homeowner in the Garden State, you likely face a familiar dilemma – high utility bills eating into your monthly budget. With electric rates up to $0.22 per kWh across cities like Cherry Hill and Newark, New Jersey families face steep power costs.
Thankfully, centralized policies and strong sun exposure uniquely position the state for solar success.
This guide will explore everything you need to know to unlock savings with home solar panels in NJ, including:
- Cost and sizing estimates tailored to your location
- Projected long-term utility savings
- Available local and federal solar incentives
- Recommended solar installers
- Answers to all your top solar questions
Our goal is to provide complete transparency into the solar opportunity in New Jersey, equipping you to determine if and how pursuing panels can pay dividends for your household.
Why New Jersey Shines for Solar Adoption
While small in size, New Jersey consistently ranks among the top 10 states for cumulative solar capacity. Over 4,400 megawatts worth of projects currently power Garden State homes and businesses.
But with hefty equipment pricing hovering around $3 per watt, what makes solar a worthwhile investment in NJ?
Reason 1: Peak sun alignment – Much of the state enjoys direct southward exposure, priming panels to capture maximum daylight hours. This optimizes solar output potential relative to the northeast.
Image source: NREL Solar Maps
Reason 2: Among the nation‘s highest electric rates – With utility pricing exceeding $0.20 per kWh, typical monthly bills run $100+. Generating your own power provides immediate offsets.
Reason 3: Favorable policy incentives – Between tax credits, net metering, and competitive installation marketplaces, New Jersey specifically cultivates solar adoption.
Now let‘s explore exactly what it takes to install panels on your home. We‘ll analyze costs, payback timing, utility savings projections and available solar incentives across different New Jersey locales.
Calculating Your Perfect Solar System Size
Given considerable differences in sunshine and electric costs depending on proximity to NYC or Philadelphia, there is no one-size-fits all solar solution for New Jersey residents. Location-specific calculations provide the highest precision.
As a baseline, let‘s examine key sizing metrics for a mid-sized suburban home:
- Average monthly electricity consumption: 750 kWh
- Peak sun hours according to closest metro area: 4.1 hours
Daily usage = 750 kWh / 30 days = 25 kWh
To determine necessary solar array output to offset your electrical loads, divide average daily usage by peak daylight hours:
25 kWh daily usage / 4.1 sun hours = 6.1 kW system size
Properly sizing your system prevents overpaying for surplus energy generation. Solar modules last 25-30 years. An oversized array won‘t provide better returns but will cost substantially more upfront.
| System Size | Est. Gross Cost | Est. Net Cost After Tax Credit |
|---|---|---|
| 5 kW | $13,750 | $9,625 |
| 6 kW | $16,500 | $11,550 |
| 7 kW | $19,250 | $13,475 |
While an undersized system risks lacking enough output during peak seasons, oversizing 7kW+ offers increasingly marginal value for most homes.
Keep in mind premium panels and inverters enable smaller systems to generate equivalent kWh output as basic options requiring larger roof footprints. Investing in quality provides flexibility.
Now let‘s analyze solar costs for homeowners in different cities across New Jersey.
Average New Jersey Solar Installation Cost Breakdown
With recent hardware supply chain challenges and rising demands, most equipment and labor quotes now exceed $3.00 per watt nationally.
In New Jersey, total pre-incentive solar pricing lands around $2.80 per watt.
For a 6 kW installation, that equates to approximately $18,360 total.
Factoring available incentives, out-of-pocket spending drops to:
- Pre-incentive cost: $18,360 for 6 kW
- Federal ITC discount (30%): $5,508
- Final out-of-pocket cost: $12,852
Now let‘s examine utility savings projections and payback timing across different cities.
Solar Savings and Payback Period by New Jersey City
Given varying electric rates and sun exposure, solar economics differ greatly depending on your location. Typically Southern cities near Philadelphia offer the fastest payback given higher rates and peak hour alignment.
Cherry Hill:
- Avg Electric Rate: $0.22 / kWh (above state average)
- Estimated 20 Year Savings: $26,500
- Payback Period: 6.2 years
Central Jersey locales like Newark or Paterson present strong 10 year outlooks as well:
Newark:
- Avg Electric Rate: $0.19 / kWh
- Est. 20 Year Savings: $23,000
- Payback Period: 8 years
Even in less ideal Northern NJ cities like Clifton or Paramus, 20+ years of free solar energy provides overwhelming utility savings that justify the initial investment:
Paramus
- Avg Electric Rate: $0.16 / kWh
- Est. 25 Year Savings: $15,200
- Payback Period: 12.5 years
No matter your location in New Jersey, solar delivers compelling long-term economics thanks to high baseline utility costs.
Estimated Lifetime Utility Savings in New Jersey Cities
| City | System Size | Avg Electric Rate | Est. Savings (25 Years) | Payback Period |
|---|---|---|---|---|
| Cherry Hill | 6 kW | $0.22 per kWh | $26,500 | 6 years |
| Voorhees | 5.5 kW | $0.19 per kWh | $21,500 | 8 years |
| Princeton | 6.2 kW | $0.18 per kWh | $19,900 | 10 years |
| Newark | 5 kW | $0.19 per kWh | $23,000 | 7 years |
| Clifton | 6 kW | $0.17 per kWh | $16,600 | 12 years |
Table assumptions:
- Savings figures calculated using local average electric rates, system sizes, and a 4% annual utility escalation
- Payback periods factor the 30% federal investment tax credit
- Analysis uses a 20-25 year asset life typical for quality solar equipment
Rebates, incentives, and rising electricity deliver even greater upside. For those in cities like Cherry Hill, installing solar panels today can generate over $25,000 in nearly guaranteed savings across the next 20+ years.
Solar Incentives Available in New Jersey
While upfront pricing presents a barrier, tremendous local and federal incentives exist to combat high New Jersey solar costs.
Federal Solar Tax Credit
The existing 30% Investment Tax Credit (ITC) discount applies to all project-related expenditures for systems installed by December 31, 2023. This prevents tens of thousands in tax liability.
The credit drops to 26% in 2024 and 22% thereafter – so act now.
SRECs
New Jersey‘s Solar Renewable Energy Certificate (SREC) initiative is among the country‘s most successful clean energy programs.
For each 1,000 kWh your solar system produces annually, an SREC gets generated which can then sell on the open market at ~$150-$250 each. Income from selling your SRECs provides effectively a rebate for the power you self-generate.
Additional NJ Clean Energy Programs
- Net Metering – Receive full retail credit for surplus solar energy sent back to the grid
- Sales Tax Exemption – Waives the state‘s 7% sales tax on solar equipment purchases
- Property Tax Exemption – Excludes the value of a solar array from home assessments
Bundling local and federal incentives allows New Jersey property owners to secure genuine value from adopting solar technology long-term, despite changing regulatory climates.
Total Solar Incentives in New Jersey by Type
| Incentive | Overview | Avg. Value |
|---|---|---|
| Federal Solar Tax Credit | 30% credit on solar hardware and installation costs | $5,000+ |
| SRECs | Receive rebates for the solar power your system produces yearly | $4,000+ |
| Sales Tax Exemption | Waives the 7% sales tax on equipment | $1,000+ |
| Net Metering | Get credited the full electric rate for surplus energy sent to the grid | $10,000+ |
The combination of federal, state and local subsidies for going solar in New Jersey makes payback timing achievable within 5-7 years across cities with high energy costs like Cherry Hill or Newark.
Finding the Best New Jersey Solar Company
While incentives help overcome upfront pricing barriers, choosing the right installation partner proves critical in ensuring your long-term solar success in New Jersey.
I advise homeowners evaluate prospective solar firms across four key criteria:
Experience – Significantly more technical expertise and insider buying power separates a 20 year solar veteran from new market entrants
Equipment Tier & Warranties – Opt for Tier 1 premium panels from SunPower, LG, REC with 25+ year manufacturer performance guarantees
Reviews – Unbiased customer feedback helps reveal the most reputable and professional options
Cost Competitiveness – Leverage free consultation quotes with at least 2-3 solar providers in your area
Based on these factors, a few NJ solar installers stand out:
- Robbins Enterprises – 4.9/5 Google rating with over 35 years of solar experience in NJ specifically
- Nexus Energy Home – Locally owned firm specializing in transparent solar process for NJ homeowners
- Tesla Energy – Premium equipment at affordable pricing due to vertical integration
- Sunrun – Residential solar leader present nationally with local teams across NJ
I always advise homeowners compare proposals across multiple reputable local companies before deciding on your best solar fit. The market remains highly fragmented state-by-state.
Key Solar Panel Considerations in New Jersey
- With the densest population nationwide, residential roof space remains at a premium in New Jersey. If your rooftop fits 6-8 panels maximum, premium efficiency panels become essential to production. Higher wattage SunPower, LG, or Panasonic panels can prove prudent.
- Given considerable variance in sunlight and temperatures across NJ, investing in robust solar equipment proves vital. Opt for Tier 1 panels and microinverter systems rather than string inverters. This safeguards system outputs and reliability over decades.
- The 30% federal tax credit coupled with SRECs provides once-in-a-generation solar savings not guaranteed beyond 2024. Existing state programs grandfather early adopters in long-term.
Researching home solar delivers more questions than answers. This section tackles the top inquiries New Jersey homeowners have around pursuing solar panels.
How much do solar panels cost installed in New Jersey?
- Complete solar panel system pricing averages ~$2.80 per watt in New Jersey currently. For a 6 kW installation, that equates to $18,360 pre-incentive. After the 30% federal tax credit, out-of-pocket drops to ~$12,850.
What factors impact solar pricing?
- Equipment tier, system size, roof complexity, installer experience and permits/labor rates for your area all contribute to cost variances. High electric rates also help rationalize elevated solar pricing for New Jersey homeowners specifically.
How much can I save with solar in New Jersey?
- By generating clean power and leveraging net metering plus incentives, NJ homeowners save ~$17,500 over 20 years on average. High electricity rates near NYC plus strong sun exposure down the shore unlock savings exceeding $26,000.
What solar incentive programs exist in NJ?
- The 30% federal Investment Tax Credit, Solar Renewable Energy Certificates (SRECs), sales tax exemption on equipment, and net metering all provide tremendous value. Bundling programs accelerates payback.
How long does solar panel payback take in New Jersey?
- Factoring prevailing electric rates and available incentives, most properly sized systems break even within 7-9 years for NJ residents. Some regions offset costs within 5-6 years.
What are the best New Jersey solar installers?
- Robbins Enterprises, Nexus Energy Home, Tesla Solar, Sunrun and Renova Energy stand out given experience, equipment quality, pricing and reviews specific to NJ homeowners.
When will New Jersey run out of SRECs?
- Current regulation ensures continued SREC generation eligibility through 2033. Additionally the state aims to ultimately transition towards a successor program providing comparable solar incentives.
Hopefully this outline provides a helpful overview of the solar landscape and opportunities unique to New Jersey.
While the incentives now prove enticing, remember that:
- The 30% federal tax credit expires at the end of 2023
- Equipment, labor and permitting costs continue rising 7-10% yearly
If you‘re interested in exploring solar, I recommend filling out this 30 second form to receive competitive installation quotes customized for your roof.
Trying to sort through various solar providers independently often proves complex and time consuming. EnergySage streamlines the information gathering process.
- No obligations, completely free quotes
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- Customized to your actual roof specs
I appreciate you taking the time to read my New Jersey solar guide. Don‘t hesitate to reach out with any lingering questions!
