New Jersey Solar Incentives and Tax Credits (2024)

By Alex Hawkins Updated February 6, 2024

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The Garden State has emerged as a shining example of progressive solar incentives. With a commitment to sustainable living and a desire to reduce carbon emissions, New Jersey has implemented a range of attractive incentives to encourage homeowners to go solar. Learn more about the state’s rebates and net-metering programs in our guide. We’ve also researched the best solar companies to help you make an informed decision about installing solar panels in New Jersey.

 


 

Overview of New Jersey Solar Incentives

New Jersey offers several solar incentives to help homeowners benefit from long-term savings and reduce their carbon footprints. Below is a breakdown of the most significant New Jersey solar incentives we found during our research.

IncentiveIncentive TypeSummaryOccurrence

Successor Solar Incentive (SuSI) Program

State

Provides a $90 credit for each megawatt-hour (mWh)

One-time

Sales Tax Exemption

State

Eliminates sales tax for solar system installations

One-time

Solar Property Tax Exemption

State

Eliminates property tax for solar system installations

One-time

Net-Metering

Local

Allows you to earn energy credits in exchange for excess energy

Ongoing

Federal Solar Tax Credit

Federal

Provides a federal tax credit for up to 30% of installation costs

One-time

 


 

New Jersey Solar Incentives, Tax Credits, and Rebates

Learn more about each New Jersey solar incentive program below.

Net-Metering

Net-metering is a policy that allows you to sell excess electricity back to the grid. This program is well-suited for New Jersey residents because the retail rate for New Jersey net-metering is significantly higher than the wholesale rate that power plants receive for the energy they sell to utility companies. Based on your energy consumption habits, you could save money and even profit with this program.

Additional resources: 

Successor Solar Incentive (SuSI) Program

The SuSI program functions similarly to other locations’ solar renewable energy credit (SREC) programs. A REC represents the amount of renewable energy a resident’s system produces. Homeowners can sell RECs for monetary payment based on market value. Solar renewable energy certificates (SRECs) pay for each megawatt-hour (mWh) of electricity generated.

New Jersey’s current SuSI Program (or SREC-II) offers one energy credit for every mWh your solar system generates. While other SERC programs have fluctuating payout rates, we were pleased to learn that New Jersey has a fixed rate of $90 per credit. The SuSI program accepts a limited number of applications, so we recommend applying as soon as your solar installation is complete.

Additional resources:

Solar Property Tax Exemption

Our team found that installing a solar panel system increases your home’s value. Property value increases by $20 for every $1 your monthly energy bills decrease—or roughly 15% overall. You would typically experience a tax increase with an increase in property value; however, New Jersey offers property tax exemptions for solar energy systems. Thanks to this policy, you benefit from the increased property value without paying additional taxes.

Additional resources:

Solar Sales Tax Exemption

The New Jersey government offers a sales tax exemption to lower solar panel installation costs. With this policy, you avoid the 6.625% state sales tax on your solar energy system purchase. This policy applies to all kinds of solar projects, such as ground-mount and rooftop solar installations.

Additional resources: 

 


 

Federal Tax Credit

New Jersey homeowners also use the federal solar investment tax credit (ITC). The federal solar tax credit is a tax credit you can claim on your federal income taxes of up to 30% of the installation costs for solar photovoltaic (PV) systems. It is not a tax deduction that reduces your taxable income; It reduces the money you owe in taxes. There is no maximum for the amount you can claim, so you can apply this credit to other system parts, such as solar batteries.

 


 

New Jersey Solar Costs

We found that solar panel installation in New Jersey falls within the national average cost of solar panel installation. The Solar Energy Industries Association (SEIA) estimates that a typical solar panel system costs roughly $25,000 before applying federal tax credits or local incentives.* According to our research, you will pay around $2.77 per watt or $13,850 for a 5-kW system after applying for tax credits.**

*Based on a 2022 report.

**This cost data was based on the national average from multiple sources, including EnergySage, SolarReviews, and Ecowatch.

 


 

Is Going Solar in New Jersey Worth the Investment?

Given that New Jersey offers tax exemption programs, effective net-metering programs, and affordable solar panel prices, we concluded that solar panels are worth it in the state. However, there are a few other factors to consider to determine if your home is ideal for a renewable energy system. Read these factors in the list below.

 


 

Our Recommendation

To go solar in the Garden State, you should look into some top-rated solar panels and reputable local solar installers. We recommend getting at least three solar quotes from companies that service your address. Working with a professional solar installer also helps you obtain tax incentives more easily, as a quality installer will help you through all the paperwork.

The tool below helps you connect with local solar installers quickly.

Homeowners Save $20,000 to $97,000 with Solar Panels on Average Over Typical System Life Span
Get a Quote on Your Solar Installation in 30 Seconds

 


 

New Jersey Solar Incentives FAQ

Can you sell solar power back to the grid in NJ?

Yes, New Jersey features net-metering policies that allow you to sell excess electricity back to the grid at the retail rate.

Do solar panels affect homeowners insurance?

Most standard homeowners insurance policies cover rooftop solar energy systems. You may need to increase the amount of coverage on your home to account for the cost of the system, which can raise your premium.

Can you install your own solar panels in NJ?

There are no laws that prevent you from installing solar panels by yourself in New Jersey. However, the process is complicated with a lot of paperwork, legislation, and complex labor involved. We recommend you consider a professional installation.

 


 

How We Chose the Top Solar Companies

We researched and analyzed dozens of solar panels and solar installation companies. We then formulated a rating system based on each solar installer or manufacturer’s services and products. We weighed several significant factors, including the quality and type of solar panels offered, the customer support network, warranty lengths and limitations, and additional benefits such as mobile apps for monitoring and customer service.

Speaking directly to representatives, we determined how each solar company personalizes its solar panel installation for each home. We also analyzed each company’s warranty options to ensure their product and performance guarantees match or exceed industry standards.

We evaluated each provider based on their rating and history with the Better Business Bureau (BBB) to determine reputation. In addition, we analyzed the 100 most recent Google Reviews for each provider across various locations and branches.

Read more: Our Methodology