Best Solar Companies in Newark, NJ

Here’s what Newark residents should look out for when choosing a solar panel installation company. We’ll also touch on overall costs and ways to save with local and federal incentives.

A typical solar panel installation costs anywhere from $9,450 to $27,000 in New Jersey. Prices in Newark are comparable, ranging from $9,751 to $27,861 on average.

Installers usually price systems according to their wattage. Nationally, costs per watt range from $2.50 to $5. In Newark, the average cost per watt is $2.79. The average New Jersey household needs a system with a capacity of 9.49 kW to fully offset their electricity costs. Depending on your household energy use, you might need a smaller or larger one.

Average total solar installation costs by system size in Newark

We’ve talked to hundreds of residents who have already gone through the solar panel installation process. Csaba in Belleville went solar for two reasons: to save money and increase their electric capacity. For others, like Mercedes in Elizabeth, it’s more about the environmental benefits.

Solar panels are generally worth it in New Jersey if you like the idea of lowering your monthly utility bills. The main drawback is the high upfront cost of purchasing and installing the panels and equipment.

Homeowners with solar panels typically save $20,000 to $90,000 over 25 years.

Assuming an upfront purchase, it takes about 4 years to break even (when your savings with solar panels make up for the cost). On average, New Jersey homeowners with solar panels can avoid $76,285 in total utility costs over 25 years.

With electricity costs continuing to rise, many find it’s financially worth it in the long run. Use NREL’s PVWatts Calculator to estimate how much electricity a solar panel can produce over a year on your house — just type in your address. Project Sunroof is another free solar savings estimator. As long as your house is a good candidate for solar, it’s at least worth considering.

» STILL NOT SURE? Solar energy pros and cons

Potential roof problems

As a rule of thumb, if your roof is more than 10 years old, consider fixing it before going solar. Installing solar panels on an old roof might mean you have to remove the panels, replace your roof and then reinstall the panels. This is an expensive and frustrating process.

» SHOULD YOU: Replace your roof before going solar?

In our experience, the best solar companies in New Jersey have a few things in common: lots of experience, reliable equipment and transparent contracts. Here are some hiring tips.

• Avoid scammers: A common solar scam involves falsely claiming to be affiliated with state agencies. New Jersey/New Jersey Board of Public Utilities doesn’t offer a free solar panel installation program, according to New Jersey’s Clean Energy Program.
• Check certifications: The New Jersey Board of Public Utilities keeps a list of qualified solar vendors. We also recommend choosing an installer certified through the North American Board of Certified Energy Practitioners (NABCEP).
• Read reviews: Look out for red flags — complaints about misleading sales tactics, equipment failures, billing issues and lack of communication are common themes in negative solar company reviews.
• Ask questions: Do you need a solar storage battery, electric vehicle (EV) charger or critter guards? How does this affect overall pricing? What if your system needs maintenance? If you don’t understand something about the payment terms, warranty or ongoing services, ask for clarification.

» TIPS: Get the best solar quotes

How can I pay for solar panels? 

Getting solar panels is like buying a car. Most people pay cash, finance or lease. Similar to leasing, a power purchase agreement (PPA) lets you get the benefits of solar without actually owning the equipment.

Solar loans work like any other type of loan. They have relatively low fixed interest rates. Once you pay it off, you own your system outright.

Solar leases are a good option if you have limited savings and don’t want to take on debt; you also aren’t responsible for system maintenance.

» SOLAR PANELS: Buy vs. lease

Going solar in Essex County

New Jersey is one of the nation’s pioneers in solar energy. In 2018, Gov. Phil Murphy’s landmark clean energy bill put the state on the path to achieving one of the highest standards for renewable energy in the country. The governor’s bill will require 50% of the state’s power to come from clean renewables like solar and wind by 2030.

» BEST STATES FOR SOLAR: New Jersey ranked 12th in 2024

Brick City residents can take advantage of several solar incentives in New Jersey. There’s a sales tax exemption, which saves 7% on the equipment. Plus, a property tax exemption means you won't pay property taxes on the added value of your solar panels.

Federal tax credit

You should also use the federal solar investment tax credit (ITC). It reduces your federal tax liability by 30% of how much it costs to install solar panels.

The ITC drops to 26% in 2033 and then 22% in 2034.

The ITC is a credit, meaning it directly decreases the amount of taxes you owe. This is different from a deduction, which lowers your taxable income. For example, if you spend $10,000 installing a solar panel system, the ITC is worth $3,000. If you owe $15,000 in taxes, the ITC reduces what you owe to $12,000

Additional solar incentives

Check DSIRE for the most comprehensive source of information about solar incentives and policies in New Jersey.

Our goal is to highlight companies that are best equipped to meet most Newark residents’ energy needs, considering the humid continental climate. We used a research-backed, data-driven approach to choose the best solar companies. We prefer to recommend those with a longer time in business and a solid track record of reliability in New Jersey. For this guide, we objectively weighted several key features to get our final rankings:

Reviews, ratings and testimonials: 40%
We analyzed solar company reviews by verified solar customers to gauge real-world satisfaction. Companies with generally positive feedback on our site scored highest in this aspect. Those with the most 4- and 5-star reviews by verified Newark customers were given preference.

Warranties: 20%
A long warranty is important — it shows that a company stands behind its products and services. We compared companies on both equipment and craftsmanship warranty terms. All of our top picks for professional installation have warranties or production guarantees of at least 10 to 25 years.

Equipment selection: 20%
We evaluated each company’s selection of solar panels, storage batteries and inverters. Those with proprietary technology or a wide equipment selection from trusted brands ranked highest.

Financing and payment options: 20%
We gave preference to companies that offer multiple payment and financing options for transparent terms and conditions.

ConsumerAffairs Research Team regularly evaluates customer reviews, company information and industry trends to update our top picks:

1. Sunrun
2. Verde Energy
3. ION Solar