How Much Do Solar Panels Cost in New Jersey in 2024? (Expert Reviewed)
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New Jersey is currently ranked eighth in the United States for solar power production. The state has an average of 206 sunny days annually, numerous solar tax incentives, and more than 200 solar companies.
We’ve broken down the average cost to install solar panels for Garden State residents interested in starting their solar journey. This guide also covers state incentives to reduce costs.
How Much Do Solar Panels Cost in New Jersey?
The biggest factor determining solar panel cost is system size. This varies based on your home’s size and energy needs.
Solar energy systems are measured in kilowatts (kW). Most New Jersey homeowners require a 5–8 kW system at an average cost of $2.75* per watt, slightly higher than the national average of $2.66 per watt. This amounts to $13,750–$22,000 to install a solar panel system in New Jersey, or $10,175–$16,280 after applying the 30% federal tax credit.
*Cost figure is based on averaged data from multiple sources.
Average Cost by System Size
We calculated the average cost for solar panels in New Jersey based on system size and put it in the table below. We included the price before and after the federal tax credit, which allows you to claim 30% of your system costs on your federal taxes.
| System Size | Price Before Tax Credit | Price After Tax Credit |
|---|---|---|
|
3 kW |
$8,250 |
$5,775 |
|
4 kW |
$11,000 |
$7,700 |
|
5 kW |
$13,750 |
$9,625 |
|
6 kW |
$16,500 |
$11,550 |
|
7 kW |
$19,250 |
$13,475 |
|
8 kW |
$22,000 |
$15,400 |
|
9 kW |
$24,750 |
$17,325 |
|
10 kW |
$27,500 |
$19,250 |
What Factors Affect Solar Installation Cost?
Several factors impact cost beyond system size. Here are the other key considerations:
- Additional equipment: You’ll need to buy other equipment besides the panels, such as racks to attach the panels to your roof and inverters to convert the energy for use. Also consider add-ons, such as solar batteries and electric vehicle (EV) chargers.
- Labor: Installing a solar system is best left to the professionals, so hire a reputable solar company to do the job.
- Panel brand: Different solar companies have different prices. High-end brands cost more.
- Panel type: There are several solar panel types, each with different efficiencies and costs. Monocrystalline solar panels are more efficient than their polycrystalline counterparts but are more expensive and difficult to produce.
How Can You Save on Solar Panels?
Solar panels are a big investment, but there are many ways to lower the financial burden.
Federal Solar Tax Credit
The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows you to claim 30% of your solar installation costs on your federal taxes. This rate is available until 2032 and will drop to 26% in 2033.
You’ll need to pay for your system in full or with a loan to take advantage of this incentive. Using a solar lease or power purchase agreement (PPA) disqualifies you.
Solar Renewable Energy Certificates
You earn a renewable energy certificate (REC)—sometimes called a solar renewable energy certificate (SREC) or transition renewable energy certificate (TREC)—for every 1,000 kilowatt hours (kWh) or 1 megawatt hours (MWh) of electricity your system produces. Companies that support clean energy will purchase these certificates at market price, essentially outsourcing electricity production to solar panel owners.
SREC prices fluctuate based on electricity rates, but they averaged $212 each in New Jersey in 2022. You must register with the REC program before installing solar panels. You’ll be eligible for 10 years and can claim up to six RECs per year, though your ability to produce this much energy is not guaranteed.
New Jersey Solar Tax Incentives
New Jersey solar panel systems are exempt from the 6.625% state sales tax. They’re also exempt from property taxes, even though solar panels increase home value.
New Jersey Net Metering Programs
Not all states have net metering programs, but New Jersey does. These programs allow you to sell your solar power system’s excess energy to the grid for either a credit on your monthly electricity bill or an annual payout. These programs vary by utility provider, so check with yours to see what it offers.
Financing Options
Your selected financing option affects how much you’ll pay for your system long-term. There are a few payment methods, each with pros and cons:
- Full purchase: This is the most cost-effective option, as you can access tax incentives and avoid interest rates. However, this is a high up-front cost that not everyone can afford.
- Solar loan: This allows you to pay for your system slowly over time. Some companies even offer $0 down for qualifying customers. You’ll pay more in the long run due to interest rates but still get access to cost-saving incentives.
- Solar lease: This option comes with little to no up-front cost, but you’ll be renting your system instead of paying toward ownership. It also disqualifies you from claiming tax incentives.
- Power purchase agreement (PPA): This agreement allows you to pay a monthly rate based on how much energy you use, similar to an electricity bill. However, you won’t own your system nor have access to tax incentives.
Top 3 Solar Installation Companies in New Jersey
There are numerous solar installation companies in New Jersey to choose from. Here are our top three recommendations.
SunPower
Pros & Cons
- Builds customized high-efficiency residential systems
- Include 25-year comprehensive system coverage
- Manufactures in-house components, batteries, and EV chargers
- Limits customizations to SunPower-manufactured products
- Is more expensive than other providers, per online reviews
- Has received reviews mentioning equipment and customer support issues
Why We Chose SunPower
SunPower offers some of the most energy-efficient systems in the solar industry. The company uses its own solar components, a rarity in the residential market. These components, paired with Maxeon solar panels, create a streamlined system built for improved performance.
You can pair your SunPower system with the company’s SunVault energy storage for backup power. Homeowners can also add an electric vehicle (EV) charger for convenient and cheaper at-home charging. Each system includes 25 years of comprehensive coverage, ensuring your system stays protected in the long term.
Warranty & Financing
Warranty
SunPower includes a comprehensive 25-year warranty that covers all solar system components, additional equipment add-ons, and workmanship. You’ll also receive a power production guarantee that promises at least 92% of your panel’s listed output after 25 years.
Financing Options
✔ Full purchase
✔ Loan
✔ Lease
✔ Power purchase agreement (PPA)
Reputation & Awards
SunPower has received several awards for its innovation and leadership over the years. The company received PV Magazine’s 2019 Sustainability Award for its achievements in sustainability. Good Housekeeping rewarded SunPower with its 2022 Home Renovation Award in the Biggest Energy Savers category for the SunVault energy storage system.
SunPower is accredited by the Better Business Bureau (BBB) and currently holds an A+ rating with the organization. After analyzing customer reviewers, we learned that homeowners were overall pleased with their SunPower systems’ performance. Some reviews mentioned issues with customer service and faulty equipment.
Sunrun
Company Overview
Sunrun has more than a decade of experience in the solar industry. It provides unique, flexible financing options, including a monthly lease, full-amount lease, monthly loan, and full-system purchase. It also offers added protection against theft, damage, and degradation.
Pros and Cons
- Provides system monitoring that signals issues with your system
- Offers diverse financing options to suit various budgets
- Provides EV and solar battery solutions
- Limited online information on solar incentive disqualification with leases
- Requires added costs for the same coverage plans as leased and prepaid customers
- Varies solar battery availability by state
Warranty and Financing
Warranty
Sunrun backs its systems with a 10-year comprehensive warranty which includes product, roof penetration, and workmanship coverage.
Financing Options
✔ Full purchase
✔ Loan
✔ Lease
✔ Power purchase agreement (PPA)
Momentum
Company Overview
Momentum Solar operates in 10 states, including New Jersey. It stands out for its broad selection of products, including seven solar panel brands. The company offers full-service installation and helps with incentive enrollment. It also provides a comprehensive 25-year warranty and a mobile app for system tracking.
Pros and Cons
- Complimentary solar battery monitoring through Enphase
- Full-service installation process
- Solar incentives enrollment assistance
- Aggressive sales tactics, per some customer reviews
- Limited solar product selection
Warranty and Financing
Warranty
Momentum provides a 25-year manufacturer and workmanship warranty.
Financing Options
✔ Full purchase
✔ Loan
✔ Lease
✔ PPAs
Our Conclusion
Installing a solar panel system is expensive, but it will reduce your carbon footprint, raise your property value, and save you money on energy bills. New Jersey also offers net metering programs and other incentives to reduce initial costs.
We recommend getting quotes from at least three reputable installers before deciding. Use the tool below to connect to vetted companies near you.
FAQs About Solar Panel Cost in New Jersey
What is the average cost for solar panels in New Jersey?
Solar panels in New Jersey cost an average of $2.75 per watt. This amounts to $13,750 for a typical 5 kW system or $9,625 after applying the 30% federal tax credit.
Are solar panels worth it in New Jersey?
Yes, solar panels are worth it in New Jersey. The state gets enough sunlight and offers several incentive programs to reduce installation costs. Solar panel prices have also fallen 50% over the last 10 years.
How many solar panels do you need to power a house?
Most homeowners need 15–18 panels for a 1,500-square-foot house and 20–24 panels for a 2,000-square-foot house. This number varies based on your energy needs and home specifications.
Our Rating Methodology
We are committed to providing comprehensive and unbiased reviews to our readers. After over a thousand hours of research on solar companies, interviews with experts, and common customer needs, we’ve created a detailed rating system for solar providers based on six factors:
- Solar equipment, installation, and services (25%)
- Warranty and performance guarantees (25%)
- Brand reputation and certifications (15%)
- Financing options (15%)
- Experience (10%)
- Availability (10%)
Total scores are divided by 20 for a final 5-point rating scale.
To share feedback or ask a question about this article, send a note to our Reviews team at reviews@thisoldhousereviews.com.
