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How Much Do Solar Panels Cost in New Jersey in 2024? (Expert Reviewed)

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Author Image Written by Tamara Jude + 1 other Reviewer Icon Reviewed by Roger Horowitz Updated 04/17/2024

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.

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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 SizePrice Before Tax CreditPrice 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

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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 one of our top 6 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.

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 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

Best High-Efficiency System
4.8
BBB Rating A+
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SunPower

Best High-Efficiency System
4.8
SunPower Review

Sunrun

Best Solar Panel Leasing
4.5

Sunrun

Best Solar Panel Leasing
4.5
Sunrun Solar Review

Momentum

Best Installation Process
4.4

Momentum

Best Installation Process
4.4
Momentum Solar Review

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.

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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.

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