Key insights
A typical residential solar system costs $12,950 to $25,900 in New Jersey.
Jump to insightIt takes solar panels approximately 8.5 years to pay for themselves in New Jersey.
Jump to insightOver 25 years, New Jersey homeowners with solar panels avoid $64,962 in total utility costs on average.
Jump to insight6 factors to consider before getting solar panels in New Jersey
ConsumerAffairs has heard from thousands of solar customers who have already gone through the installation process, including dozens from New Jersey. Here’s what to consider before making the switch.
1. Solar panel installation costs
Average solar panel costs in New Jersey are comparable to the national average. A typical residential solar panel system costs $31,753 in New Jersey. However, adding a solar storage battery can add $7,000 to $18,000 to your total system costs.
A typical New Jersey household needs a system with the capacity of 12.26 kW to offset its electricity needs with solar energy. You might need a larger or smaller system, depending on your current energy consumption.
Getting your electrical loads as low as possible before going solar is smart. That way, you can get a smaller, cheaper system. In other words, if you have older electrical appliances, upgrade those now.
Average solar panel costs by system size in New Jersey
| 5 kW | 6 kW | 7 kW | 8 kW | 9 kW | 10 kW | |
|---|---|---|---|---|---|---|
| Statewide | $12,950 | $15,540 | $18,130 | $20,720 | $23,310 | $25,900 |
| Newark | $15,050 | $18,060 | $21,070 | $24,080 | $27,090 | $30,100 |
2. How much you can save
It’s a common misconception that solar panels will completely eliminate your monthly power bill — but this is not always the case. Still, given rising energy costs in New Jersey and elsewhere, you’ll likely pay less than you would for traditional utility bills. On average, New Jersey homeowners with solar panels avoid $64,962 in total utility costs over 25 years.
Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.
For example, Eric in Jackson isn’t generating 100% of his energy needs but still saves so much money. “My utility charges me about $30 to $70 each February, but that's it,” he said. Another resident, Frances in Old Bridge, got his bill down to $80 from $680.
You get the most out of solar if the majority of your appliances are electric. If you also have an electric vehicle, solar panels will save you even more. Solar panels generate electricity, so they unfortunately won't help you save on gas bills.
» EXPLORE: Where your solar savings go the furthest
3. New Jersey solar incentives
The 30% federal residential solar tax credit has expired, but New Jersey offers several incentives that can help lower costs and improve your solar savings:
No sales tax: Solar equipment is exempt from state sales tax.
Property tax break: Qualifying solar systems generally won’t raise your property tax bill. You’ll need to file Form CRES.
SREC-II payments: Eligible systems earn payments based on how much solar power they produce. New systems earn $77 per SREC-II for 15 years.
Net metering credits: Extra solar power sent to the grid generally earns retail-rate bill credits during the year. Leftover annual credits are paid at a lower rate.
What to know about net metering in New Jersey
The state’s major investor-owned utilities, including PSE&G, JCP&L, Atlantic City Electric and Rockland Electric, offer net metering.
Credits generally offset electricity at the full retail rate during the year. Any unused credits left at the end of the annual period are paid out at a lower wholesale-based rate.
» MORE: Solar incentives in New Jersey
4. How long you plan to stay in your house
It takes years for electric bill savings to make up for the initial cost — about 8.5 years on average in New Jersey. If you sell your house and move before then, you might not fully realize the financial benefits of your solar investment.
Solar panels last 25 to 30 years.
A 2019 Zillow study found that, on average, houses with solar panels sell for 4.1% more.
But don't get solar panels just because you want to sell your house soon. Consider a home improvement project with a better return on investment, like remodeling the bathroom or kitchen, instead.
5. How you pay
How you pay has a lot to do with your total costs, as Brenda in Dover found out: “I thought it would run me around $20,000. It ended up $40,000-something with financing.”
Ideally, your electric bill savings and solar incentives offset much or all of your monthly loan payment.
“I'm financing the system, and what I'm producing covers the price every month,” Marisol in Perth Amboy told us. “Plus, I'm making a little extra. My electric bill is $4.99 now.”
Solar loans and leases can help you go solar with little to no upfront cost.
Marisol pays $107 per month on a 25-year loan. “But for every extra 1,000 kilowatts of electricity that I produce, I get paid $91.20,” she said. “And I’m producing more. It’s 2,500 kilowatts I'm producing. So, I'm making $182 or $200. So, it’s paying for itself plus two tanks of gas.”
Another resident, Marla in Paulsboro started leasing a 26-panel system last year. “I pay one flat fee of $97 per month for my solar rental for 25 years, and the electric bill taxes, which have so far ranged between $5 to $7 per month,” she said.
» SOLAR PANELS: Lease vs. buy
6. The solar company you hire
We’ve heard from many solar customers in New Jersey. Sometimes, people get a good price on the installation, everything is fine for a couple of years, and then issues come up with equipment that requires customer support.
For example, Ryan in Voorhees told us he paid $35,000 for a solar system in 2019. In November 2022, he “found out that something was broken” with the system.
It turned out Ryan’s inverter was broken, which is supposed to be a relatively easy fix. Ryan told us he’s frustrated with the lack of customer support, which is understandable, considering solar panels are such a big investment.
The lesson here: A reliable solar company might cost more upfront, but it's worth it now if you run into future complications with your system.
Pros and cons of solar panels in New Jersey
New Jersey has decent solar potential, although not as much as some sunnier states. South Jersey has a relatively higher average solar irradiance rating compared with the northern part of the state, according to the National Solar Radiation Database.
Pros
- Long-term savings
- Better for the environment
- Low maintenance costs
- May increase home resale value
Cons
- Upfront costs
- Seasonal production variations
- Potential roof leaks
- Could make your house harder to sell
Is my house a good candidate for solar panels?
Going solar is usually worth it as long as your house is a good candidate to support the panel installation. Here’s what to think about before you commit:
- How much sunlight do I get? Solar panels need regular exposure to sunlight to produce the most energy possible. New Jersey averages 3.5 to 4 peak sun hours each day. However, lots of shading — like trees or tall buildings above your roof — could make your solar system less efficient.
- What is the size and angle of my roof? New Jersey (and the rest of the United States) is in the Northern Hemisphere, so solar panels perform best on south-facing roofs. The worst place to install would be on north-facing roofs, especially if those roofs have a high pitch. For example, if the only place you can install is a north-facing roof with a 30-degree pitch, your costs will likely go up by 30% to 40%.
- What is the condition of my roof? If you have to replace your roof, do that before you install solar panels. Solar panels are designed to last up to 30 years, so you want your roof to last just as long. Otherwise, it could cost thousands to remove the panels, fix your roof and reinstall the panels. Jamieson in Gloucester City was charged $5,000 to remove and reinstall his panels.
Find solar companies in New Jersey
A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our picks for New Jersey’s top solar companies to learn more.
| Company | Customer rating | Pro install | Payment options | Year founded | |
|---|---|---|---|---|---|
 Sunrun | Get Started | 4.3 |  | Cash, loan, lease, PPA | 2007 |
 Project Solar | Learn More | 3.4 | | Cash, loan | 2020 |
 Momentum Solar | Learn More | 1.5 | | Cash, loan, lease | 2009 |
 CleanChoice Energy | Learn More | 1.7 |  | Varies | 2012 |
 ShopSolar | Learn More | 4.3 | | Cash, loan | 2018 |
New Jersey solar FAQ
What are the benefits of going solar in New Jersey?
Going solar has a few benefits in New Jersey:
Cheaper energy bills: The average homeowner in New Jersey uses a lot of power, which adds up to a lot of savings when you switch to solar. Going solar now means that your monthly energy expenses will be more predictable (and very often significantly lower). It also protects you from future energy cost increases.
Better for the environment: Traditional energy sources like coal and natural gas release carbon dioxide and other harmful pollutants into the air. Installing solar panels on your roof helps the environment primarily by reducing greenhouse gas emissions and dependence on fossil fuels.
Higher home resale value: Installing solar panels can increase a home's value. The exact increase in value varies by location, with homes in active solar markets sometimes seeing even higher boosts.
More energy independence: Embracing solar paves the path toward true energy independence. It works especially well for people in areas susceptible to power outages.
What are the drawbacks of going solar in New Jersey?
Going solar has a few drawbacks in New Jersey:
Solar equipment is expensive: Solar panel prices typically start between $10,000 and $30,000. It’s even more expensive if you want a solar battery for energy storage. Solar battery costs are generally between $7,000 and $18,000.
Potential roof leaks: The installation process involves drilling holes into the roof to anchor the panel mounting systems. If not done correctly, this can lead to leaks or structural damage.
Could make your house harder to sell: Solar panels can make a home harder to sell if they’re leased or financed, since the buyer may have to take over the agreement. Some buyers may also worry about roof repairs, maintenance or whether the system will actually save them money.
Energy production varies: Solar panels are dependent on weather conditions and seasonality. Solar panels still work on cloudy days, but less available sunlight does affect how efficiently they produce energy. Snow cover may also temporarily reduce efficiency until it's removed or melts off.
» MORE: Solar energy pros and cons
Do solar panels increase property taxes in New Jersey?
No, solar panels do not increase the property taxes in New Jersey. There has been a property tax exemption in place in the state for solar panel systems since 1998.
How can I pay for solar panels?
Solar loans and leases are popular in New jersey:
Solar loans work like any other type of home improvement loan. There’s an application and approval process. You pay it back over time (with interest) each month.
Leasing solar panels lets you set up a system without the high upfront costs. Monthly payments usually range $150 to $250. Agreements last 20 to 25 years.
New Jersey homeowners can also use a power purchase agreement. With a PPA, a third party owns and maintains the solar system, and you buy the electricity it produces at an agreed-upon rate. PPAs usually require little to no upfront cost, but you won’t own the system or qualify for solar incentives tied to ownership.
What does “cost per watt” mean?
Most installers set the price according to the system's wattage, with a typical cost between $2.50 and $5 per watt. “Cost per watt” is a little like looking at the price per square foot when you buy a house. It helps you compare the value of solar energy systems in different sizes. In New Jersey, the average cost per watt is $2.59.
Do I need any permits to go solar?
New Jersey has a straightforward solar permitting process, but occasional delays happen. For instance, Wanda in Teaneck told us about “a little bit of a snag … The installers had to make some corrections during the initial turn-on process, where they didn't pass the utility company inspection. So, they had to go back and redo all that and that was a little bit of a setback as well.”
After installation, a representative of the local permitting agency (a building or electrical inspector) and your utility company that holds your interconnection agreement (Atlantic City Electric Company, Orange & Rockland Utilities, Public Service Electric & Gas, etc.) must approve your system.
Is it cheaper if I install solar panels myself?
It’s potentially cheaper to install your solar energy system yourself, but it’s difficult and dangerous if you don’t know what you’re doing, especially for a large residential project.
» DIY SOLAR PANELS: Pros and cons and installation guide
Bottom line: Is going solar in New Jersey worth it for you?
In the best-case scenario, it’s easy to make the switch, and you’re happy with your system’s performance. In the worst-case scenario, you end up paying thousands for mid-tier solar equipment from a company with poor customer service and no follow-up or support.
One of the most common complaints is related to pushy sales reps who make promises that can’t be delivered. That’s why it’s so important to thoroughly research and verify claims made by sales teams before making a decision.
Solar costs vs. savings: New Jersey and nearby states
| 6-kW system cost (before incentives) | 10-kW system cost (before incentives) | Typical system size needed* | Average cost per watt | Total utility power cost savings** | |
|---|---|---|---|---|---|
| Delaware | $15,840 | $26,400 | 13.12 kW | $2.64 | $61,442 |
| New Jersey | $15,540 | $25,900 | 12.26 kW | $2.59 | $64,962 |
| New York | $16,560 | $27,600 | 12.24 kW | $2.76 | $71,770 |
| Pennsylvania | $15,480 | $25,800 | 12.85 kW | $2.58 | $61,682 |
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
DSIRE, "New Jersey Programs.” Accessed Sept. 9, 2026.
EnergySage, "The cost of solar panels in New Jersey.” Accessed Sept. 9, 2026.
Solar Energy Industries Association, "New Jersey Solar." Accessed Sept. 9, 2026.
SolarReviews, "How much do solar panels cost in New Jersey?" Accessed Sept. 9, 2026.
U.S. Environmental Protection Agency, “Solar Power Purchase Agreements.” Accessed Sept. 9, 2026.
Official Site of the state of New Jersey, “Notice in the Matter of the Establishment Of A Remote Net Metering Application and Approval Process Pursuant to L. 2023, C. 190.” Accessed Sept. 9, 2026.
