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New Jersey · NJ

Solar Panels in New Jersey:
Is It Worth It in 2026?

New Jersey averages 1308.4 kWh per kWp per year with 4.7 peak sun hours per day. At 23.13¢/kWh, an 8 kW system saves roughly $2,421/year and pays back in about 6.2 years.

💡 New Jersey's TREC program pays you quarterly for every MWh your system produces — completely separate from electricity bill savings.

New Jersey Solar at a Glance

Peak sun hours / day4.7 hrs
Avg solar yield1308.4 kWh/kWp/yr
Electricity rate23.13¢ / kWh
Avg payback (8 kW)6.2 years
Annual savings (8 kW)$2,421/yr
Net meteringFull retail net metering ✓

EIA data updated: April 11, 2026 · EIA, PVGIS v5.3

Solar Incentives in New Jersey

Federal ITC
30%

The 30% federal solar tax credit (Section 25D) expired December 31, 2025. Cash and loan purchases no longer qualify. State incentives below still apply.

State Programs
Rebates & Exemptions

TREC quarterly income ($90–110/MWh), 1:1 net metering, NJ Clean Energy loans, sales tax exempt

Total Savings
Varies

Utility rebates, exemptions, and net metering still apply. Federal ITC expired Dec 2025. Plus sales tax exemption. Property value increase is tax-exempt.

All Available Incentives in New Jersey

Federal ITC (Section 25D) — Expired December 31, 2025 — no longer available for residential cash/loan
Sales Tax Exemption — Solar equipment is sales-tax exempt
Property Tax Exemption — Solar-added home value not taxed
SREC Market — Earn certificates for energy produced
Net Metering — Full retail net metering ✓

How Much Solar Power Do New Jersey Cities Get?

Real PVGIS yield data and EIA electricity rates for all 4 cities. Click any city for detailed payback calculations.

Newark
1316.6 kWh/kWp · 6.2 yr payback
Jersey City
1309.7 kWh/kWp · 6.2 yr payback
Paterson
1297 kWh/kWp · 6.3 yr payback
Elizabeth
1310.3 kWh/kWp · 6.2 yr payback
Personalized estimate

Enter your monthly bill — get exact payback numbers for New Jersey.

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All New Jersey incentives

Full breakdown of credits, rebates, net metering, and SREC programs.

Incentives

Solar in New Jersey: Frequently Asked Questions

What is the NJ TREC solar program?
New Jersey's Transition Renewable Energy Certificate (TREC) program pays solar owners for every megawatt-hour (MWh) of electricity their system produces. Payments are made quarterly by your utility, regardless of whether you consume or export the power. In 2024, TREC values were approximately $90–$110 per MWh, adding $700–$1,100/year for an average 8 kW system.
Does New Jersey have net metering?
Yes — New Jersey has one of the best net metering policies in the US. It's a 1:1 system, meaning you earn credits at the full retail electricity rate (~$0.17–$0.22/kWh) for every kWh you export. Unused credits roll over monthly and settle at year-end at the annual average rate.
How long is the solar payback period in New Jersey?
New Jersey's average solar payback period is 6–8 years, combining electricity bill savings and TREC income. Over 25 years, a typical 8 kW system saves $40,000–$60,000 in total — making NJ one of the highest-ROI solar markets in the Northeast.

Going Solar in New Jersey: Step by Step

From first quote to first kilowatt — here is the typical timeline for a residential solar installation in New Jersey. Most homeowners complete this process in 6–12 weeks.

  1. 1
    Get 3 quotes

    Prices in New Jersey average $22,400 for an 8 kW system before incentives. Getting three quotes typically saves 10–15%. Use the same system size so you can compare apples to apples.

  2. 2
    Review your electricity bill

    Your last 12 months of usage determines the right system size. At 23.13¢/kWh in New Jersey, a system that offsets 90% of your bill hits the best cost-per-kWh sweet spot.

  3. 3
    Check state incentives

    New Jersey does not have a statewide solar tax credit, but utility rebates and net metering may still apply. TREC quarterly income ($90–110/MWh).

  4. 4
    Sign contract & apply for permits

    Your installer pulls the building permit and files interconnection paperwork with your utility. Permit approval in New Jersey typically takes 1–4 weeks depending on your county.

  5. 5
    Installation day

    A standard 8 kW residential installation takes 1–2 days. Racking goes on first, then panels, then the inverter is wired to your main panel. The crew usually keeps the power on throughout.

  6. 6
    Utility inspection & interconnection

    After installation your utility inspects the system and approves grid connection. This final step can take 1–3 weeks. Once approved, your meter tracks both import and export.

Data summary for New Jersey: New Jersey averages 1308.4 kWh/kWp/year with 4.7 peak sun hours/day. Electricity costs 23.13¢/kWh. An 8 kW solar system saves ~$2,421/year and pays back in 6.2 years. TREC quarterly income ($90–110/MWh), 1:1 net metering, NJ Clean Energy loans, sales tax exempt.