New Jersey Solar Costs at a Glance
Installed solar in New Jersey costs $2.80–$3.20 per watt in 2026, putting a typical 8kW system at $22,400–$25,600. NJ is roughly in line with the national average on installed cost — a competitive market with hundreds of active installers keeps prices from running too high.
What makes New Jersey exceptional isn’t the cost — it’s the incentive stack. TRECs and SuSI income, high electricity rates, full retail net metering, and complete sales tax and property tax exemptions combine to produce 5–7 year payback periods, among the shortest of any state. New Jersey has the 3rd most solar installations in the US for a reason.
New Jersey Solar Cost by System Size (2026)
Here’s the full cost breakdown for the most common residential system sizes in NJ, including estimated SuSI income and payback:
| System Size | Installed Cost (NJ) | Annual SuSI Income | Monthly Bill Savings* | Payback Period |
|---|---|---|---|---|
| 6 kW | $16,800 – $19,200 | $608 – $675/yr | $95 – $135/mo | 5–7 years |
| 8 kW | $22,400 – $25,600 | $810 – $900/yr | $125 – $175/mo | 5–7 years |
| 10 kW | $28,000 – $32,000 | $1,013 – $1,125/yr | $155 – $215/mo | 5–7 years |
| 12 kW | $33,600 – $38,400 | $1,215 – $1,350/yr | $185 – $255/mo | 6–8 years |
* Monthly savings at $0.16–$0.21/kWh with net metering. PSE&G customers (northern NJ) see higher savings due to higher rates. Payback includes SuSI income but excludes federal ITC (expired Dec 31, 2025). SuSI rate of $90/MWh locked in for 15 years.
Not sure what size you need? Our NJ solar sizing calculator gives you a specific kW recommendation based on your monthly bill and zip code.
Calculate Your NJ Solar Savings →
Enter your New Jersey electric bill and zip code. Get your personalized monthly savings estimate, SuSI income, and payback period in under 2 minutes.
Calculate My NJ Savings →New Jersey Solar Incentives in 2026
New Jersey has one of the most comprehensive state-level solar incentive packages in the country. Here’s exactly what’s available in 2026:
1. TRECs: The Legacy SREC Program
Homeowners who installed solar before the SuSI program launched are enrolled in the Transition Renewable Energy Certificate (TREC) program. TRECs pay a fixed $91.20 per MWh for 15 years — slightly above the new SuSI rate — and are administered through the NJ Clean Energy Program. If your system was installed under the old SREC program, you’ve been transitioned to TRECs.
For a reference 8kW system generating 9,000–10,000 kWh annually, TREC income equals $820–$912 per year, locked in for 15 years from installation date. That predictability is worth as much as the income itself.
2. SuSI Program: New Installations in 2026
New solar installations in 2026 enroll in the Successor Solar Incentive (SuSI) program — NJ’s replacement for the SREC market. SuSI pays a fixed $90 per MWh (9 cents per kWh) generated for 15 years. The application goes through your installer — you don’t need to manage it yourself.
| System Size | Annual Generation (NJ avg) | SuSI Credits/Year | Annual SuSI Income |
|---|---|---|---|
| 6 kW | 6,750–7,500 kWh | 6.75–7.5 MWh | $608 – $675 |
| 8 kW | 9,000–10,000 kWh | 9–10 MWh | $810 – $900 |
| 10 kW | 11,250–12,500 kWh | 11.25–12.5 MWh | $1,013 – $1,125 |
SuSI income is paid quarterly. Payments are based on actual metered generation, not estimates. 15-year term runs from Permission to Operate date.
3. Net Metering in New Jersey
New Jersey offers net metering, but with an important nuance: as of 2024, NJ switched from full retail-rate net metering to an avoided-cost crediting structure for new residential customers in some utility territories. The practical effect varies by utility:
- PSE&G: Net metering credits at the avoided-cost rate (typically 70–80% of retail). Excess annual credits paid out at avoided-cost at year-end.
- JCP&L: Similar avoided-cost net metering structure.
- Atlantic City Electric: Transitioning to avoided-cost net metering in line with BPU rules.
Even at avoided-cost rates, NJ net metering is valuable given the state’s high electricity prices. The SuSI income largely compensates for the shift away from full retail net metering — together, the two income streams still produce strong overall economics.
4. New Jersey Sales Tax Exemption
Solar energy equipment is 100% exempt from New Jersey’s 6.625% sales tax. On a $24,000 system, that’s $1,590 saved at purchase — no paperwork, no application, applied automatically at the time of sale. If your installer doesn’t apply this exemption, ask.
5. Property Tax Exemption
Under New Jersey law (N.J.S.A. 54:4-3.113a), the added value that a solar installation brings to your home is completely exempt from property tax assessment. A solar system typically adds $15,000–$25,000 to home value — without this exemption, NJ homeowners at typical property tax rates would pay an extra $300–$500/year. The exemption eliminates that entirely.
6. Federal ITC: What Changed in 2026
The federal Investment Tax Credit (ITC) — which had been 30% of system cost — expired December 31, 2025 for residential installations. In 2026, that credit is no longer available to new residential buyers.
This adds roughly $6,700–$7,700 to the effective cost of a typical NJ system. However, NJ’s state-level incentives are among the most generous in the nation — SuSI alone pays back $12,000–$15,000 over 15 years on an 8kW system. The ITC expiration hurts, but NJ still pencils out better than most states without it.
Is solar right for your NJ home? →
Answer 5 quick questions — electric bill, zip, roof direction — and get a personalized Solar Score plus payback estimate for your specific situation.
Check If Solar Is Right for Me →New Jersey Utility Rates: PSE&G, JCP&L & Atlantic City Electric
Your utility and their rates determine how much your panels save per kWh produced. NJ has some of the highest electricity rates on the East Coast — which is a key reason the state’s solar ROI is so strong. Here’s where NJ’s three major utilities stand in 2026:
PSE&G (Northern & Central NJ — Newark, Jersey City, Edison)
PSE&G is the state’s largest utility, covering most of northern and central New Jersey. Residential rates run approximately 17–21 cents/kWh in 2026. In PSE&G territory, an 8kW system in Newark or Jersey City can expect:
- $1,440–$1,800/year in direct bill savings
- $810–$900/year in SuSI income
- Effective payback: 5–7 years (no ITC)
JCP&L (Central NJ — Trenton, Edison corridor, Ocean County)
Jersey Central Power & Light serves central New Jersey including Trenton and much of the Route 1 corridor. JCP&L residential rates run 16–20 cents/kWh in 2026. The Trenton area gets strong sun exposure (4.4–4.7 peak sun hours daily), making it one of NJ’s better solar markets. An 8kW system in Trenton typically pays back in 5–7 years.
Atlantic City Electric (South Jersey — Cherry Hill, Atlantic City)
Atlantic City Electric serves southern New Jersey, including Cherry Hill, Camden, and the Shore communities. Rates run 16–20 cents/kWh. South Jersey actually gets slightly more sun than the northern part of the state (4.5–4.8 peak sun hours), which helps offset the slightly lower rates compared to PSE&G territory. Cherry Hill homeowners typically see payback in 5–7 years on a well-sited system.
| Utility | Service Area | Rate (2026) | Peak Sun Hours | 8kW Payback (est.) |
|---|---|---|---|---|
| PSE&G | Newark, Jersey City, Edison, N. NJ | 17–21¢/kWh | 4.3–4.6 | 5–7 years |
| JCP&L | Trenton, Ocean County, Central NJ | 16–20¢/kWh | 4.4–4.7 | 5–7 years |
| Atlantic City Electric | Cherry Hill, Atlantic City, South NJ | 16–20¢/kWh | 4.5–4.8 | 5–7 years |
NJ Solar ROI: The 25-Year Math
Let’s run the numbers for a typical NJ homeowner: $135/month electric bill, 8kW system, PSE&G territory (northern NJ, ~$0.19/kWh average rate).
- System cost: $24,000 (8kW at $3.00/watt, NJ average)
- Sales tax savings: −$1,590 (6.625% exemption applied at purchase)
- Effective upfront cost: $22,410
- Year 1 electric bill savings: ~$1,620/year (offset 100% of $135/mo bill)
- Year 1 SuSI income: ~$855/year (9.5 MWh × $90/MWh)
- Total Year 1 benefit: $2,475
- Payback period: ~6.5 years (accounting for 3%/year rate escalation)
- Year 25 cumulative savings: ~$82,000 (after paying off system)
The NJ math is compelling even post-ITC. After the ~6–7 year payback, 15+ years of essentially free electricity plus ongoing SuSI income for the first 15 years adds up to one of the strongest solar ROI profiles in the country. High electricity rates are a tax on homeowners who don’t go solar — NJ’s rates make every kWh your panels produce worth significantly more than the national average.
Run your specific numbers with our savings calculator — it factors in your exact zip code, electric bill, and utility to give you a personalized payback estimate.
Best Cities for Solar in New Jersey
Here’s how New Jersey’s major markets compare for solar in 2026:
Newark: Dense Market, High Rates
Newark is PSE&G territory with rates at the high end of the NJ range. Dense urban installation market means strong installer competition and competitive pricing. Row homes and two-families present some rooftop constraints, but standalone homes see excellent economics. Best-case payback: 5–6 years on a south-facing roof.
Jersey City: Premium Market, Premium Savings
Jersey City also runs on PSE&G and has some of the highest residential electricity costs in NJ due to higher-density usage patterns. The significant growth in single-family home renovations in the JC area has driven strong installer competition. Typical payback: 5–7 years.
Trenton: JCP&L Territory, Central State Benefits
Trenton and the surrounding Mercer County area benefit from strong sun exposure and a competitive installer market. JCP&L rates are solid, and the Route 1 corridor has a well-developed solar ecosystem. Typical payback: 5–7 years.
Edison: Suburban Sweet Spot
Edison (Middlesex County) is PSE&G territory with typically good roof stock — the suburban housing density means most homes have adequate south-facing roof space. Edison is one of NJ’s most active solar markets by installation volume. Typical payback: 5–7 years.
Cherry Hill: South Jersey Value
Cherry Hill (Atlantic City Electric territory) benefits from slightly more sun hours than northern NJ. The affluent suburban housing stock and competitive South Jersey installer market make it a strong solar destination. Typical payback: 5–7 years.
Find the right system size for your NJ home →
Enter your monthly electric bill and New Jersey zip code. Get a specific kW recommendation and cost range — in under 2 minutes.
Find My System Size →When Solar Doesn’t Work in New Jersey
Solar works well for most NJ homeowners — but there are still situations where the numbers don’t stack up:
- Electric bill under $90/month. Low usage means limited savings. Payback stretches and the system may not deliver strong ROI even with SuSI income.
- Heavily shaded or north-facing roof. Significant tree cover or north orientation can cut production 30–50%. In NJ’s wooded suburban areas, shade is worth checking before signing anything.
- Roof needs replacement within 10 years. Removing and reinstalling panels for a roof job costs $2,000–$5,000. Do the roof first if it’s in poor shape.
- Condo or HOA restrictions. Some NJ HOAs have rules about solar installations. NJ law (P.L. 2007, c. 153) prohibits HOAs from outright banning solar but allows reasonable aesthetic restrictions.
- Planning to sell within 3 years. You’ll likely recover solar’s value at resale (NJ buyers respond well to solar), but in a slow market or short timeline you may not capture the full payback.
Still evaluating? Our solar assessment tool walks through your specific situation and gives you a concrete go/no-go recommendation with payback math.
FAQ: Solar Panels in New Jersey
How much do solar panels cost in New Jersey in 2026?
$2.80–$3.20 per watt fully installed, averaging around $3.00/watt. A typical 8kW system runs $22,400–$25,600 before incentives. The sales tax exemption (6.625%) saves $1,485–$1,698 at purchase. The federal ITC expired December 31, 2025. Use our sizing calculator to estimate your system cost based on your NJ zip code and electric bill.
What are the best solar incentives in New Jersey in 2026?
NJ’s strongest incentives: (1) SuSI program — $90/MWh for 15 years ($810–$900/yr for a typical 8kW system); (2) net metering at avoided-cost rates through PSE&G, JCP&L, and ACE; (3) 6.625% sales tax exemption on all solar equipment; (4) property tax exemption on the added home value from solar. Legacy systems are on TRECs at $91.20/MWh. The federal ITC (30%) expired at the end of 2025.
Is solar worth it in New Jersey in 2026?
Yes — NJ is one of the top states in the country for solar ROI even without the federal ITC. High electricity rates (16–21 cents/kWh), 15 years of fixed SuSI income, and complete tax exemptions produce 5–7 year payback periods. After payback, panels generate free electricity for 15+ more years. Get your specific estimate here.
What is the NJ SuSI program for solar?
SuSI (Successor Solar Incentive) is NJ’s current solar income program, replacing the SREC market. New residential installations in 2026 receive $90 per MWh generated for 15 years — a fixed, predictable income stream on top of electric bill savings. Your installer handles enrollment. A typical 8kW system earns $810–$900/year through SuSI, totaling $12,000–$13,500 over the 15-year term.
How much does solar save on electric bills in New Jersey?
A properly sized 8–10kW system in NJ offsets 80–100% of a typical household’s electricity use. At $130/month, that’s $1,560/year in bill savings plus $810–$900/year in SuSI income — roughly $2,370–$2,460 total annual benefit. Over 25 years with 3% annual rate increases, that compounds to $70,000–$90,000 in total savings after system payoff. Run your exact numbers here.