Solar Panels in New Jersey | 2021 Cost and Incentives | SaveOnEnergy®

New Jersey Solar Panels: Pricing and Incentives

New Jersey solar panels

Solar power continues to grow in popularity across New Jersey as more homeowners recognize the benefits of installing solar panels on their property. With various installation incentives and an ambitious Renewable Portfolio Standard (RPS), the Garden State is well-positioned to become one of the top solar-powered states in the country.

There are plenty of reasons to consider installing solar panels in New Jersey, from lowering your energy costs to reducing your carbon footprint. Read on for more information about your solar options, including the estimated cost of solar panels in New Jersey, as well as government incentives, benefits, and frequently asked questions.

New Jersey solar panel cost

When you’re thinking about buying solar panels for your home, price will probably be one of your first considerations. It’s essential to understand how solar costs are calculated to have a realistic expectation of the investment required.

The cost of a solar system will vary depending on a few factors, including the size of your system and installation prices. In general, however, the price of solar panels is measured in dollars per watt, with the average residential system costing between $3 – $5 per watt. In total, this equates to an average cost of $15,000 – $25,000 per system (before any applicable rebates or tax credits). 

Although this might seem like a significant up-front investment, it’s important to remember that solar pays for itself over time. On average, there’s a 6 – 9 year payback period for home solar systems.

Why choose New Jersey solar power?

As we’ve mentioned, there are many compelling reasons to invest in solar power in New Jersey. Let’s take a look at three of the top benefits of going green with solar energy.

Lower energy costs

For many people, the biggest perk of solar energy is the reduced energy costs. When you install solar panels for your home, you’ll be able to generate your own electricity. This presents a cost-effective alternative to purchasing power from an electric company. As time goes on, your solar panel purchase will pay for itself and continue to increase your return on investment each year.

At the same time, solar panels add value to your home if you plan on selling it in the future. That’s because solar-powered houses are more attractive to potential buyers since they’ll be able to reap the perks of solar without needing to install the panels themselves.

Establish energy independence

When you generate your electricity through solar panels, you won’t have to rely on the public grid to power your home. While this may not feel like a big deal, it can be a game-changer during periods of high energy demand or if the mainstream electric companies are experiencing issues. At some points, producing solar energy at home can mean the difference between having and not having power.

Go green

Finally, using solar power and other forms of green energy allows you to reduce your dependence on traditional energy sources. In turn, you’ll minimize your carbon footprint and contribute to the fight against climate change. Not only does this benefit you, but it’s also a positive outcome for society as a whole.

New Jersey solar panel incentives or rebates

At the state and federal level, the government recognizes that some homeowners want to invest in solar but are concerned about the costs. For that reason, they’ve established incentive and rebate programs to help cover the upfront costs. Here’s how to take advantage of federal and New Jersey solar incentives to make installation more affordable.

Across the country, the U.S. government offers a 22 percent tax credit for homeowners who add a solar system to their primary or secondary residence. This credit is available for systems installed in 2021 and was set to expire in 2022, but Congress recently renewed it. That being said, it’s a good idea to install your home solar panels soon to ensure you are able to take full advantage of the federal refund.

In terms of New Jersey solar incentives, Garden State residents that install solar panels at their homes are entitled to some favorable tax benefits. First, solar equipment is exempt from sales tax in New Jersey. And even though solar panels increase a home’s value, homeowners won’t need to pay any additional local property taxes.

In addition to these incentives, New Jersey residents also have the option to sell their excess solar power back to the grid (also known as net metering). Similarly, residential solar systems earn renewable energy credits, which homeowners can sell back to local utilities to help them fulfill the state’s Renewable Portfolio Standard (RPS).

Should I buy or lease my solar panels?

Before installing solar panels at your home, you’ll need to decide whether you want to lease the equipment or purchase it outright. There are pros and cons of each option (as outlined below), but the bottom line is that you will save more money over time if you buy your solar panels.

Here’s why purchasing your panels is the more advantageous option. As we’ve already covered, adding a solar system increases the resale value of your home by $15,000 – but this only applies if you purchase the panels and not if you lease them. Not to mention, you can only take advantage of government incentives and rebates if you buy your panels. Also, if you rent your panels from a solar company, you will have to pay a monthly rental fee, which offsets the savings you would otherwise experience.

However, solar companies understand that buying panels isn’t a financially viable option for everyone. In that case, leasing panels is a good alternative. Some communities even have shared solar programs, allowing residents to benefit from green energy without the high upfront costs.

New Jersey solar panel companies

As a New Jersey resident, you can choose from a number of companies for your solar needs. But before you choose a solar panel company in your area, you should do your research. Ask about each company’s history, read reviews, and search for customer testimonials. SaveOnEnergy is also here with a wealth of guides and resources to help you navigate the solar energy industry.

The history of solar power in New Jersey

Solar power is an important part of the New Jersey energy landscape. The Garden State has an aggressive Renewable Portfolio Standard, which mandates that 50 percent of the state’s energy come from renewable sources by 2030. Thanks to its generous tax incentives, solar is quite popular with homeowners around the state.

Across all 50 states, New Jersey ranks eighth in the nation for solar electricity production. There are numerous solar farms in operation across the state, such as the Tinton Falls Solar Farm and the Pilesgrove Solar Farm. Outside of these dedicated facilities, several businesses have their own solar farms (including McGraw-Hill and Berry Plastics).

Important solar installation factors to consider

When it comes to solar panels in New Jersey, a few key factors influence how effective solar energy will be at your home. Consider the following factors to understand how solar will work for you: 

  • The condition and angle of your roof. The U.S. Department of Energy says that your roof should ideally be south-facing and at a 15-40 degree slope to generate the most solar power.
  • The amount of sunshine that your roof receives. It might seem obvious, but you’ll get the most out of your solar system if it receives a high amount of sun. Solar panels perform best in sunny regions and on properties without a lot of tree cover.
  • Your neighborhood or HOA rules. In some places, you’ll need approval to add anything to your home. Check with your homeowner’s association before installing your solar system.

Solar power FAQs

How much would solar cost in New Jersey?

Before incentives and rebates, the typical residential solar system will cost $3 to $5 per watt. That would mean that the cost of solar panels in New Jersey ranges between $15,000 and $25,000 for an entire system. 

Is solar power a good investment in New Jersey?

As discussed in the last section, there are a handful of factors that impact how much success you’ll have with solar. For the best results, your roof should be in good condition, get plenty of sun, and be sloped southward at a 15-40 degree angle. If these factors work for your home, solar power could be a great investment and help you cut down on energy costs.

How much could I save by investing in solar?

It depends on several factors, including the ones listed above. However, home solar can be a fantastic long-term investment since it allows you to generate your own power, sell your excess power to the grid, and increase the value of your home. Some homeowners are able to reduce their electricity bills by half.

Where can I find a good solar panel installer in New Jersey? 

With many solar panel installers to choose from, it can be difficult to sort through them on your own. That’s where SaveOnEnergy comes in. We can help you learn more about the solar industry and finding a trusted New Jersey solar company, so you can start generating renewable energy for your home. SaveOnEnergy’s marketplace can help you find competitive green electricity rates today

How does solar power help the environment?

Unlike traditional sources of energy, solar power is renewable and doesn’t emit carbon dioxide. When you use solar, you can reduce your carbon emissions and minimize your environmental impact.

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Updated: 07/07/2021