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New Jersey solar at a glance
Estimates use the inputs above and the assumptions in our methodology: New Jersey net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ). Prices rise 2.5% a year; panels lose 0.5% a year.
Solar cost in New Jersey by system size
Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in New Jersey.
| System | Price before incentives[3] | After incentives | kWh in year 1[2] | Year-1 savings[4][5] | Payback (years) |
|---|---|---|---|---|---|
| 4 kW | $14,800 | $14,800 | 5,220 | $1,260 | 11 |
| 6 kW | $22,200 | $22,200 | 7,840 | $1,890 | 11 |
| 8 kW | $29,600 | $29,600 | 10,450 | $1,910 | 13 |
| 10 kW | $37,000 | $37,000 | 13,060 | $1,910 | 16 |
| 12 kW | $44,400 | $44,400 | 15,670 | $1,910 | 19 |
Incentives that lower the price in New Jersey
Business credit for leased and PPA systems (48E)
Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]
If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.
- Who
- Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
- Deadline
- December 31, 2027
- Checked
- November 5, 2026
Administratively Determined Incentive (ADI) Program - SREC-II
$77 per MWh (one SREC-II per MWh) for net-metered residential registrations received on or after July 27, 2026 (Energy Year 2027); $85/MWh for earlier residential registrations[7]
Net-metered residential solar in New Jersey registered in the ADI Program; registrations accepted first-come, first-served until the segment's MW block fills or June 1, 2027.
- Who
- Net-metered residential solar in New Jersey registered in the ADI Program; registrations accepted first-come, first-served until the segment's MW block fills or June 1, 2027.
- Deadline
- June 1, 2027
- Checked
- November 5, 2026
All New Jersey incentives, including utility and local programs →
How New Jersey utilities credit your solar
New Jersey utilities must offer net metering to systems sized no larger than the customer's annual usage; customers get full retail kWh credit, banked kWh are netted annually, and any excess left at the end of the annualized period is credited at the wholesale value of electricity.[5]
We have not added every New Jersey utility yet, so the estimates on this page use the state-level rule: New Jersey net metering: exports credited at the retail rate (statewide rule; your utility's tariff may differ).
Next steps
FAQ
Frequently asked questions
How much do solar panels cost in New Jersey?
How long does solar take to pay for itself in New Jersey?
Is there still a federal solar tax credit?
Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[8] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.
sources
[ 8 ]Every number on this page links to one of these sources. Dates show when we last checked each one.
- EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
- NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
- U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
- EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
- Net Metering and Interconnection - New Jersey's Clean Energy Program (NJ BPU)cleanenergy.nj.gov · checked Nov 5, 2026
- Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
- Administratively Determined Incentive (ADI) Program - New Jersey's Clean Energy Programcleanenergy.nj.gov · checked Nov 5, 2026
- IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026
State data last re-checked November 5, 2026.
Change log
- Administratively Determined Incentive (ADI) Program - SREC-II: now "$77 per MWh (one SREC-II per MWh) for net-metered residential registrations received on or after July 27, 2026 (Energy Year 2027); $85/MWh for earlier residential registrations" (active).
- What the rule says updated to “At the end of an annualized period, the customer-generator will receive credit on their utility bill at the wholesale value of electricity for any excess generation that remains” (Net Metering and Interconnection - New Jersey's Clean Energy Program (NJ BPU)).