New Jersey Solar Panel Cost (2023)

The average solar power system cost in the Garden State is just over $15,000*, but can range from $12,792 and $17,308, which is several thousand dollars less than the national average. New Jersey is a great state to switch to solar energy because of its solar incentives, sunny weather, and lower-than-average system cost.

Learn more about cost factors, solar incentives, and which solar companies in New Jersey we recommend below.

*Cost data via EnergySage.

 

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New Jersey Solar Panel Cost

Vendors price solar panels by watt. The average solar panel cost in New Jersey is $3.01 per watt, with the average overall system cost coming in at around $15,050 for a 5-kilowatt (kW) system. EnergySage estimates that most New Jersey homeowners spend between $12,792 and $17,308. This is less than the national average solar panel cost of $20,650. Solar incentives, such as state and federal tax credits and rebates, can reduce your solar investment by thousands.

Average Cost by System Size

Your solar panel company can help you determine what system size you need for your home’s energy needs, but most homes require between a 5- and 10-kW system. See the table below for average pricing by system size before and after applying the federal solar tax credit.

System Size	Average Cost	Average Cost After Tax Credit
5 kW	$15,050	$10,535
6 kW	$18,060	$12,642
7 kW	$21,070	$14,749
8 kW	$24,080	$16,856
9 kW	$27,090	$18,963
10 kW	$30,100	$21,070

 

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Solar Installation Cost Factors

Solar costs can fluctuate greatly based on a few factors, such as:

• Brand: Solar brands vary their prices like all other industry retailers.
• Equipment: Purchasing and installing solar panels are just part of the costs to get your system up and running. You’ll also need at least one solar battery and a solar inverter to store backup energy and convert direct current (DC) power to alternating current (AC) power.
• Labor: You’ll need a team to design and install your system. The National Renewable Energy Laboratory (NREL) estimates that labor is around 7% of your overall solar expense.
• Panel type: You can choose from different solar panel types, such as monocrystalline and polycrystalline. Monocrystalline panels are the most popular and efficient but also the most expensive.
• System size: The more panels and batteries you need to power your home, the higher your total cost.

 

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How to Save on Solar Panel Installation

You can save money on a solar panel system by using solar incentives. Tax credits and rebates are available in most states at the local, state, and federal levels. Some of the best New Jersey solar incentives include:

• Solar property tax exemption: New Jersey doesn’t increase your property taxes if installing a solar energy system increases your home value.
• Solar sales tax exemption: New Jersey waives its 7% sales tax on solar equipment purchases.
• Successful Solar Incentive (SuSI) program: Under the SuSI program, you can get one renewable energy certificate for every megawatt-hour (MWh) your system generates. You earn a fixed $90 payment for each certificate you generate for 15 years. That means you could make over $700 annually if you have an 8-kW system that generates at least 8 megawatts (MW) per year.

Federal Solar Tax Credit

The federal solar investment tax credit credit shaves off 30% of what you owe on your federal income taxes. It’s not a reimbursement but rather a reduction of your tax bill. If you owe less taxes than 30% of your total solar expense, you can carry over this credit for four back-to-back years.

New Jersey Net Metering

New Jersey is a state that allows net metering, which can be a profitable way to save money on electric bills. Most utility companies offer net metering programs. If you have an on-grid system, meaning one that connects to the power grid as a backup energy source, you can send any excess energy your system generates to the grid in exchange for credits from your utility company. Then, when you need to rely on the power grid for electricity, such as at night or on cloudy days, you can use those credits to pay for the electricity instead of paying a utility bill.

Jersey Central Power & Light and the Public Service Enterprise Group are two companies that provide net metering programs in the state.

 

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New Jersey’s Top 3 Solar Installation Companies

We’ve researched the best solar companies in the country, comparing them on warranty coverage, price, customer service, reviews, years of experience, and more. Three of our recommended providers have locations in New Jersey. Learn a little bit about them below.

SunPower

SunPower is a highly respected provider in the solar industry with more than 30 years of experience and an A+* Better Business Bureau (BBB) rating. We like that the company offers a comprehensive 25-year warranty on its panels and their performance and that you have three financing options: full purchase, solar loan, and solar lease. We especially like that SunPower is known for having some of the most energy-efficient panels in the business. Its Maxeon monocrystalline solar panels are so popular even other companies sell them.

Learn more: SunPower review

*All BBB ratings are accurate as of September 2023.

Sunrun

Sunrun has an A+ BBB rating and over 15 years of experience in the industry. Many customers like that Sunrun is typically more cost-effective than competitors and has a wider selection of panel types and batteries. We like its 25-year equipment warranty, 10-year workmanship warranty, and its BrightSave insurance policy that protects your panels in case of damage or theft.

Learn more: Sunrun review

Momentum Solar

Momentum Solar has provided solar panel installations in New Jersey since 2009 and retains an A+ BBB rating. It offers 25-year warranties on equipment and workmanship and sells monocrystalline panels from various manufacturers. What stands out about Momentum is its mobile app that monitors the installation process and your panels’ performance.

Learn more: Momentum Solar review

 

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Our Recommendation

The average payback period in New Jersey is 7.8 years. When you compare total solar cost with utility cost in the state, that’s a 20-year savings of roughly $34,300. These savings, plus New Jersey’s solar incentives and a below-average system cost of $15,050, make it a worthwhile state for switching to clean energy.

Before deciding on a solar company, we recommend getting quotes from at least three providers and comparing warranty coverage, customer reviews, and online reputation. We also suggest calling or messaging solar companies’ customer service lines to get a feel for how helpful and friendly customer support representatives are.

 

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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 its 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