US residential solar · 2026 data

Solar Panels in New Jersey in 2026: Cost, Incentives and Payback

Q: Is there still a federal tax credit for solar panels in New Jersey?

No, not for homeowners who buy with cash or a loan. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures after December 31, 2025, under the One Big Beautiful Bill Act signed July 4, 2025. It also ended for home batteries. Systems finished in 2025 can still claim it on a 2025 return, and unused credit can carry forward. Lease and power-purchase-agreement providers may still claim a separate commercial credit, subject to deadlines, so ask the provider how any savings are passed to you.

Q: What does New Jersey pay for solar power under SuSI?

New Jersey's Successor Solar Incentive (SuSI) pays residential net-metered systems a fixed $77 per MWh (1,000 kWh) for registrations received on or after July 27, 2026, guaranteed for 15 years, per the Board of Public Utilities order dated May 21, 2026. The previous rate was $85 per MWh. For an 8 kW system producing about 9,600 kWh in year one, that is roughly $740 in the first year and about $10,700 over 15 years, assuming 0.5% annual panel degradation.

Q: What is the payback period for solar panels in New Jersey?

For an 8 kW system costing $20,480, estimated payback is about 7.1 years at an electricity price of 23 cents per kWh, and ranges from 6.6 to 8.4 years across prices of 25 to 18 cents. The model counts $77/MWh SuSI income for 15 years, assumes flat electricity prices and no federal credit, and excludes financing and maintenance. Shaded or east- and west-facing roofs produce less and take longer, so get a site-specific production estimate before deciding.

Q: Does New Jersey still have net metering?

Yes. New Jersey utilities credit solar exports at the full retail rate, one kilowatt-hour for one kilowatt-hour, with an annual true-up. The Board of Public Utilities has been evaluating net metering reforms since a stakeholder process began in November 2024, so terms for future customers could change. Ask your installer and utility (PSE&G, JCP&L, Atlantic City Electric or Rockland Electric) which rules apply to your interconnection date, and do not rely on any promised grandfathering period unless it is in writing.

Est. net savings

$42,240

Over 25 Years (at 23¢/kWh) · no federal credit

$20,480 Avg. installed cost

7.1 yrs Est. payback

8.0 kW Typical system

Typical result:

8.0 kW system (about 20 panels at 400 W)
$20,480 average installed cost, no federal credit
$77/MWh SuSI income for 15 years
7.1-year estimated payback

✓ EIA rates & NREL sun data ✓ 2026 federal policy applied ✓ Open methodology

Updated October 4, 2026 · 11 min read ·By Green Energy Calculators Editorial Team

Calculate My Savings View New Jersey Data

25 years without solar vs with solar

Assumes 3%/yr rate increases, 0.5%/yr panel degradation and no federal tax credit (the 30% §25D credit ended for systems installed after Dec 31, 2025). How we calculate

Without solar

25-year utility bills

$52,012

Rates rise ~3% per year

With solar

System cost + remaining bills

$20,480

Installed cost, no federal credit

Difference

Estimated 25-year net

+$42,240

Before any state or utility incentives

Author Green Energy Calculators Editorial Team

Editorial policy No paid placements

Last updated Oct 4, 2026

Data approach EIA rates · NREL sun hours · 2026 federal policy · methodology

A typical 8 kW rooftop solar system in New Jersey costs about $20,500 in 2026 — an average of $2.56 per watt, according to EnergySage’s New Jersey cost data — and homeowners who buy with cash or a loan no longer get a federal tax credit. What still makes New Jersey one of the stronger solar states is its state-level stack: fixed Successor Solar Incentive (SuSI) payments of $77 per MWh for 15 years, full retail-rate net metering, a 6.625% sales tax exemption, and a 100% property tax exemption on the value solar adds to your home.

Put together, our model puts payback at roughly 7 years at a 23¢/kWh electricity price (6.6 to 8.4 years across 18¢ to 25¢). Whether your home lands inside that range depends on four things: roof orientation and shading, your electricity rate, how you pay for the system, and which incentives you can still claim.

Electricity prices are a big part of the case. New Jersey regulators reported that prices jumped roughly 17 to 20 percent in the summer of 2025, and 2026 sources put the residential average between about 18 and 25 cents per kWh depending on the month and method: 18.3¢ in April 2026 EIA data, 24.95¢ in June 2026, and 23¢ in August 2026 from EnergySage. Check your own bill for your actual rate.

Last reviewed October 2026. Figures are estimates for planning; confirm your own numbers with written quotes.

How Much Do Solar Panels Cost in New Jersey in 2026?

Short answer: An 8 kW system costs about $20,480 at the New Jersey average of $2.56 per watt, with quotes typically spanning $17,440 to $23,600 ($2.18 to $2.95 per watt). That is the price with no federal credit applied.

EnergySage’s July 2026 data puts the New Jersey average at $2.56 per watt installed, and the average New Jersey installation is larger than 8 kW: 12.33 kW, or about $31,587 before incentives, with a range of $26,849 to $36,325. We use 8 kW below because it is a common mid-sized home system, roughly 20 panels at 400 watts each, and it is easy to scale up or down.

System size	Cost at $2.56/W	Low–high range ($2.18–$2.95/W)
5 kW	$12,800	$10,900–$14,750
8 kW	$20,480	$17,440–$23,600
12.33 kW (NJ average install)	$31,565*	$26,879–$36,374*

*Calculated from per-watt figures; EnergySage reports $31,587 and a $26,849–$36,325 range for the 12.33 kW average.

One New Jersey-specific saving does apply at purchase: solar equipment is exempt from the 6.625% state sales tax, which on a $20,480 system avoids about $1,357 that would otherwise be added.

Panel quality affects long-term output. Panels typically lose around 0.5 percent of output per year, so a 400-watt panel would produce roughly 350 watts (about 88 percent) after 25 years. Ask each installer for a projected year-25 output figure and the warranty terms alongside the first-year estimate, so quotes compare on lifetime value and not only upfront price. Use the solar savings calculator to test how your roof size and electricity rate change the result.

8 kW New Jersey system: installed cost vs. 15-year SuSI income. The average $2.56/W puts the system at $20,480, with about $10,708 of SuSI payments over 15 years at $77/MWh. Sources: EnergySage NJ cost data (Jul 2026); NJ BPU order of May 21, 2026.

Chart summary: At the average price of $2.56 per watt, an 8 kW system costs $20,480, with quotes from $17,440 to $23,600. Over 15 years, SuSI payments of about $10,700 would return roughly half of the average system cost, before counting any electricity bill savings. The $6,160 gap between the low and high quote is more than half of that SuSI income, which is why comparing multiple quotes matters.

Compare with neighboring states: Pennsylvania, New York, Connecticut and Massachusetts each have different incentive structures and electricity prices.

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New Jersey Solar Incentives in 2026 After the Federal Tax Credit

Short answer: The 30% federal credit is gone for cash and loan buyers. New Jersey’s remaining incentives are SuSI income ($77/MWh for 15 years), 1:1 net metering, a sales tax exemption and a property tax exemption.

Federal credit: ended. The One Big Beautiful Bill Act, signed July 4, 2025, ended the Section 25D Residential Clean Energy Credit for expenditures after December 31, 2025, including the credit for home batteries (Virginia legislative memo summarizing the Act). Homeowners whose systems were in service by the end of 2025 can still claim it on their 2025 return and carry unused credit forward. If you lease a system or sign a power purchase agreement, the company that owns it may still be able to claim a separate commercial credit subject to its own deadlines; ask the provider how, or whether, that is reflected in your price. Be skeptical of any 2026 quote for a purchased system that still subtracts 30 percent.

SuSI / ADI: the main state incentive. New Jersey’s Successor Solar Incentive program replaced the TREC program, which closed to new residential registrations in August 2021. Under the Administratively Determined Incentive (ADI) track, residential net-metered systems earn one SREC-II for every 1,000 kWh produced, at a fixed price guaranteed for 15 years. The Board of Public Utilities’ May 21, 2026 order lowered the residential rate from $85 to $77 per MWh for registrations received on or after July 27, 2026. For an 8 kW system, that is about 9.6 SREC-IIs (roughly $740) in year one and about $10,700 over 15 years under our assumptions. Your installer normally handles registration; confirm the registration date and rate in writing, because the rate locks at registration.

Net metering: full retail credit. New Jersey utilities credit electricity your panels send to the grid at the retail rate, one kilowatt-hour for one kilowatt-hour, which is far more valuable than the wholesale-style export rates used in some other states. Surplus left at the annual true-up is paid at a much lower predetermined rate, so size the system to your usage rather than far above it. The Board of Public Utilities has been evaluating net metering reforms, and state law allows utilities to stop offering net metering to new customers once statewide net-metered capacity exceeds 5.8 percent of annual kilowatt-hours sold. Terms for future customers could change, as they did in California, where the 2023 revision is commonly reported to have cut export compensation by roughly 75 percent. Ask your installer which rules apply to your interconnection date and do not rely on any verbal promise of long-term grandfathering. The net metering calculator shows how credits offset your bill across seasons.

Tax exemptions. New Jersey exempts solar equipment from the 6.625% sales tax (about $1,357 on a $20,480 system), and it exempts the value solar adds from property tax assessment. Homeowners generally need to notify or file a certificate with their local tax assessor to claim the property tax exemption (solar.com’s New Jersey guide explains the process), so ask your installer to confirm the steps for your municipality.

Incentive	Status in October 2026	Value
Federal residential credit (25D)	Ended Dec 31, 2025	$0 for cash/loan purchases
SuSI / ADI (SREC-II)	Active	$77/MWh for 15 years (registrations on/after Jul 27, 2026)
Net metering	Active; under BPU review	Retail rate for exports
Sales tax exemption	Active	6.625% (about $1,357 on $20,480)
Property tax exemption	Active; filing with assessor	100% of value added by solar

Solar Payback Period and 25-Year Savings in New Jersey

Short answer: Our estimate is 6.6 to 8.4 years across electricity prices of 25¢ to 18¢ per kWh, and 7.1 years at 23¢, for an 8 kW system costing $20,480. Over 25 years, that works out to roughly $31,600 to $46,600 in net savings.

We modeled an 8 kW system producing 9,600 kWh in year one (1,200 kWh per kW, an assumption; check your roof with NREL’s PVWatts), losing 0.5 percent of output per year. Savings come from avoided electricity purchases at a flat price (no future rate increases, which makes the model conservative) plus SuSI income of $77/MWh for the first 15 years. The model assumes all production is credited at the retail rate and excludes financing costs, maintenance and equipment replacement.

Electricity price	Year-one savings (incl. SuSI)	Estimated payback	Net 25-year savings
18.3¢/kWh (Apr 2026 EIA data)	$2,496	8.4 years	$31,611
23¢/kWh (EnergySage, Aug 2026)	$2,947	7.1 years	$42,240
25¢/kWh (Jun 2026 average)	$3,134	6.6 years	$46,649

Cumulative net cash for an 8 kW New Jersey system at three electricity prices. At 23¢/kWh the $20,480 system pays back in 7.1 years and reaches about $42,240 net by year 25, assuming flat electricity prices (0% escalation), 0.5% annual degradation and no federal credit. Sources: EnergySage (Jul-Aug 2026); EIA data via VoltFlow; ElectricityRates.com; NJ BPU.

Chart summary: The three lines cross zero between year 6.6 and year 8.4, and every line bends slightly downward after year 15 when SuSI payments end. The gap between the lines comes entirely from the electricity price: moving from 18.3¢ to 25¢ per kWh shortens payback by about 1.8 years and adds roughly $15,000 to 25-year savings. In New Jersey, your actual rate is the single biggest driver of how fast solar pays back. To see how your state compares, our guide to Solar Panel Payback Period by State has the full data.

Roof conditions move these numbers too. East- or west-facing roofs and shaded roofs produce less than a clear south-facing one, which lengthens payback, so ask installers for a shade analysis and a production estimate based on your exact roof. A year-by-year projection with your own quote and usage is available in the solar ROI calculator and the payback calculator.

Solar vs utility company · 25-year comparison

25-year totals: 3%/yr rate increases, 0.5%/yr degradation, no federal credit. Methodology

Total utility payments

$52,012

Total solar cost (installed + remaining bills)

$20,480

Net savings

+$42,240

Avg. monthly difference

+$141/mo

See my savings →

Home Batteries in New Jersey: Is Storage Worth Adding?

Short answer: For most homeowners, a battery is mainly a backup-power purchase today. The federal battery credit ended with 25D on December 31, 2025, and New Jersey’s residential battery incentive is still a draft proposal.

The Board of Public Utilities released a Straw Proposal on August 19, 2026 for the next phase of its Garden State Energy Storage Program: roughly 150 MW of storage statewide, including behind-the-meter residential batteries, with utilities (Atlantic City Electric, JCP&L, PSE&G and Rockland Electric) administering enrollment and performance-based payments. NJ21st reports a proposed maximum of $200 per kW per year, funded by a charge on all electric customers, and notes the Board’s own analysis suggested about $300 per kW would be needed to fully close the revenue gap. Because this is a proposal, terms may change before any program opens. Utility and Tesla responses indicate that 8,500 to 11,000 batteries were already installed in New Jersey, largely for backup and resilience without this incentive.

Before buying a battery, get written quotes (battery prices vary widely by capacity and brand), ask whether the system can be enrolled in a future utility program, and decide whether outage protection is worth the cost to you, because the financial payback is far less certain than for solar panels alone.

How to Choose a Solar Installer in New Jersey

Short answer: Hire a New Jersey-licensed electrical contractor that is also a registered home improvement contractor, get at least three written quotes, and compare price per watt and total financing cost.

New Jersey treats solar PV installation as electrical work. The New Jersey Clean Energy Program notes that installers must hold a valid New Jersey electrical contractor license, and residential contractors must also be registered as home improvement contractors with the Division of Consumer Affairs. Ask each company for both license numbers and verify them before signing. Certification from the North American Board of Certified Energy Practitioners (NABCEP) is an optional industry credential that can signal experience.

Every quote should list the panel brand and model, inverter type, system size in kW, projected annual production in kWh, SuSI registration handling, and fully itemized pricing. Compare quotes by price per watt: with the 2026 average at $2.56 per watt, a quote far above $2.95 or below $2.18 deserves questions. Be cautious of quotes that lead with a monthly payment, and of any quote for a purchased system that still counts a 30 percent federal credit.

Financing can erase a large share of your savings. As an illustration only (not a rate quote), borrowing $20,480 over 20 years costs about $146.73 per month at 6% APR, or roughly $14,734 in interest, and about $171.30 per month at 8% APR, or roughly $20,633 in interest. Compare the total cost of every loan, and compare it with alternatives such as paying cash or a home equity loan before accepting installer financing. Finally, compare warranties: ask for the workmanship warranty length in years, the panel product and production warranties, and the inverter warranty, and confirm exactly what each covers.

Sources

Frequently asked questions

Direct answers for US homeowners in New Jersey.

How much do solar panels cost in New Jersey in 2026?

A typical 8 kW system costs about $20,500 in New Jersey in 2026, based on an average of $2.56 per watt (EnergySage, July 2026); quotes range from roughly $17,400 to $23,600. New Jersey's average installed system is larger, at 12.33 kW and about $31,600. There is no federal tax credit for homeowner-owned systems placed in service in 2026, so that is the price before state incentives. New Jersey exempts solar equipment from the 6.625% sales tax, so none is added on top.

Is there still a federal tax credit for solar panels in New Jersey?

What does New Jersey pay for solar power under SuSI?

What is the payback period for solar panels in New Jersey?

Does New Jersey still have net metering?

$273/month electric bill by state

System size and payback vary by electricity rate and sun hours — see your state.

CA California $273/mo · 33.25¢/kWh TX Texas $273/mo · 16.06¢/kWh FL Florida $273/mo · 15.3¢/kWh AZ Arizona $273/mo · 15.44¢/kWh NC North Carolina $273/mo · 14.94¢/kWh NY New York $273/mo · 29.38¢/kWh MA Massachusetts $273/mo · 30.14¢/kWh CO Colorado $273/mo · 16.72¢/kWh

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Popular state solar guides

Electricity rates and incentives vary — see data for your state.

CA California 33.25¢/kWh · 5.8h sun TX Texas 16.06¢/kWh · 5.6h sun FL Florida 15.3¢/kWh · 5.7h sun AZ Arizona 15.44¢/kWh · 6.5h sun NC North Carolina 14.94¢/kWh · 5.2h sun NY New York 29.38¢/kWh · 4.3h sun MA Massachusetts 30.14¢/kWh · 4.2h sun CO Colorado 16.72¢/kWh · 5.5h sun

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How these numbers were calculated

Electricity rate: 23.98¢/kWh — New Jersey average residential price. Source: EIA Electric Power Monthly, Table 5.6.B (year-to-date through July 2026), residential average retail price (July 2026) (EIA)
Solar production: 4.4 peak sun hours/day × 0.82 system derate. Approximate state-average daily solar resource (peak sun hours) based on NREL solar resource data (NSRDB); not location-specific — use NREL PVWatts for an address-level estimate. (NREL PVWatts)
Installed price: $3.00 per watt before incentives. Blended 2026 US residential installed price used by this site; EnergySage marketplace reported about $2.60/W (mid-2026); full-market medians are higher.
Federal tax credit: $0 for homeowner-owned systems installed in 2026 — the 30% §25D credit ended Dec 31, 2025 (IRS)
Net metering: Full retail net metering — solar assumed to offset 87% of the bill. New Jersey requires retail-rate net metering, plus SREC-II payments through the ADI program.
Model: Version 2026.10 · 3%/yr electricity price escalation · 0.5%/yr panel degradation · simple payback = installed cost ÷ year-1 savings
Policy checked: September 29, 2026 · Full methodology · Report an error

Estimates only — not tax, legal or financial advice. Get at least three installer quotes and confirm incentives with your utility and a tax professional.