Solar panels in New Jersey: cost & savings
New Jersey averages 4.2 peak sun hours/day and $0.18/kWh electricity. Here's what solar looks like for a typical home.
Typical New Jersey home estimate
| Average electricity rate | $0.18/kWh |
| Peak sun hours (daily avg) | 4.2 |
| Recommended system size | 8.8 kW (~22 panels) |
| System cost (before incentives) | $26,419 |
| Cost after 30% federal tax credit | $18,493 |
| Estimated payback period | 8.6 years |
| 25-year net savings | $47,781 |
Incentives: SuSI program (SREC-II); sales and property-tax exemptions. The 30% federal tax credit applies in every state. Retail-rate net metering is broadly available.
How New Jersey compares to the rest of the US
Two numbers drive solar economics: your electricity rate and how much sun your roof gets. Here's where New Jersey stands against the national average.
| Electricity rate | $0.18/kWh (8% higher than the $0.17 US avg) |
| Daily peak sun hours | 4.2 (6% less than the 4.5 US avg) |
| Net metering | Broadly available |
New Jersey has above-average electricity prices but below-average sun. The high rates are exactly what make solar pay off here — every kWh you generate offsets expensive grid power, even if your panels produce a little less than they would in a sunnier state.
Calculate your own New Jersey savings
Adjust the numbers to match your actual electric bill:
Estimate your solar savings
Two quick inputs. We use your state's real electricity rate and sun hours.
Is solar worth it in New Jersey?
With New Jersey's electricity at $0.18/kWh and 4.2 daily sun hours, a typical solar system pays for itself in about 8.6 years and produces an estimated $47,781 in net savings over its 25-year life, after applying the 30% federal Investment Tax Credit. The higher your bill and the more sun your roof gets, the faster the payback.
These figures are estimates. Get free quotes from local New Jersey installers to see real pricing for your roof.
New Jersey solar FAQ
How many solar panels do I need in New Jersey?
A typical New Jersey home needs roughly 22 standard 400-watt panels (about a 8.8 kW system) to offset its electricity use, given New Jersey's 4.2 daily peak sun hours. A higher bill or shadier roof pushes that number up.
Does New Jersey have net metering?
Yes — New Jersey broadly offers net metering, so the excess power your panels send to the grid credits your bill and improves your payback. SuSI program (SREC-II); sales and property-tax exemptions. The 30% federal tax credit applies in every state.
What's the payback period for solar in New Jersey?
For a typical $162/month bill, the estimated payback is about 8.6 years, after which the power your panels produce is essentially free for the remaining ~16 years of the system's life.