## Solar in New Jersey New Jersey electricity prices jumped 21% between 2020 and 2024 — and with the state ranking 11th in the nation for utility rates, more Garden State homeowners are turning to solar to take control of their energy costs. Whether you’re just starting to explore your options or ready to make the switch, this guide covers everything you need to know about [solar panels for your home](/content/solar/solar-panels-for-home/index.html) in New Jersey — from how the process works to what it costs and what to expect. ### NEW JERSEY by the Numbers [5th](https://www.eia.gov/electricity/data/eia861/) Most residential solar in the United States [182k](https://www.eia.gov/electricity/data/eia861/) Households have installed solar panels [4.6](/content/local/peak-sun-hours/index.html) Average daily peak sun hours [~$84k](/content/local/new-jersey/#solar-cost-calculator/index.html) New Jersey average savings over 25 years ## New Jersey Solar Panel Cost Curious what solar actually costs in New Jersey? We built this calculator using real installation data from homes across the state — from Newark to Cherry Hill to Toms River. See your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost) or explore a cash purchase — side by side, in seconds. ### Lease / Cash Purchase **System Size** This system size is designed to offset approximately **100%** of the average electricity usage for a home in New Jersey. **Recommended System** 9.02 kW Typical for your home size in NJ **Your Monthly Payment** Estimated monthly cost with LightReach **$120/mo** As low as **$120/mo** ### Why Lease Solar? Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments. - No upfront investment - Palmetto handles all maintenance - 90% Production Guarantee - Comprehensive protection program included ### Cost Breakdown **Your estimated investment** **System Cost** $25,955 **Cost Per Watt** $2.88/W **Final Cost** $25,955 **Savings** Your total financial benefit **Monthly Savings** Average utility bill reduction $190 **Payback Period** Break-even point 9.9 years **25-Year Savings** $83,522 [Get Your Personalized Quote](https://luminance.palmetto.com/home/buy-solar/step-1?utm_source=localorganic) ## Key Takeaways - New Jersey electricity rates have jumped 21% since 2020, making solar a smart way to take control of your monthly energy costs. - Leasing solar through Palmetto’s LightReach program means no upfront cost, no maintenance, and a 90% Production Guarantee — solar made simple. - New Jersey offers strong solar incentives, including a 15-year production payment, full net metering, and both sales and property tax exemptions. ## New Jersey Electricity Prices New Jersey homeowners pay some of the highest electricity rates in the country — and prices keep climbing. Since 2021, the average cost of electricity in New Jersey has risen from 16.4¢ to 19.4¢ per kWh — nearly 18% in just four years, and well above the national average of 16.5¢. Solar panels can help offset that cost by generating your own clean electricity at home. ### Price of Energy: New Jersey vs National Average 0¢ 10¢ 20¢ 30¢ 13.7¢ 16.4¢ 15.0¢ 16.7¢ 16.0¢ 17.7¢ 16.5¢ 19.4¢ ### New Jersey Area Utility Providers New Jersey has three main electric utilities: PSE&G, JCP&L, and Atlantic City Electric. Based on 2023 data — the most recent available — most rates sit above the national average of 16.0¢ per kWh. ### New Jersey Solar Incentives New Jersey homeowners have access to several [solar incentives in New Jersey](/content/local/new-jersey/#incentives-table/index.html) — at both the state and utility level — that can meaningfully reduce the cost of going solar. | Incentive | Type | Description | Source | | --- | --- | --- | --- | | Successor Solar Incentive (SuSI) / SREC-II Program | SREC | New Jersey’s state solar production incentive pays residential solar owners a fixed $85.00 per megawatt-hour (MWh) generated, guaranteed for 15 years from system registration. | [Learn More](https://cleanenergy.nj.gov/programs/solar/susi-program/) | | Net Metering | Net Metering | New Jersey mandates full 1:1 retail-rate net metering for all residential solar customers across all four investor-owned utilities, allowing homeowners to offset their electricity bills with excess solar generation. | [Learn More](https://nj.pseg.com/saveenergyandmoney/solarandrenewableenergy/netmetering) | | New Jersey Solar Sales Tax Exemption | Sales Tax Exemption | Solar energy systems and battery storage equipment are 100% exempt from New Jersey’s 6.625% state sales and use tax, saving homeowners $1,300–$2,200 at the point of purchase. | [Learn More](https://www.nj.gov/treasury/taxation/) | | New Jersey Solar Property Tax Exemption | Property Tax Exemption | Under N.J.S.A. 54:4-3.113a, the added home value from a solar installation is permanently excluded from New Jersey property tax assessments, saving homeowners $330–$1,000 or more per year. | [Learn More](https://www.nj.gov/treasury/taxation/) | | Community Solar Energy Program (CSEP) | Rebate | New Jersey’s Community Solar Energy Program allows renters, condo owners, and homeowners with shaded or unsuitable roofs to subscribe to a share of an off-site solar farm and receive a guaranteed discount of at least 20% on their electricity bill. | [Learn More](https://cleanenergy.nj.gov/programs/solar/community-solar-energy-program-csep/) | Successor Solar Incentive (SuSI) / SREC-II Program The Successor Solar Incentive (SuSI) Program — also called the Administratively Determined Incentive (ADI) — is New Jersey’s flagship solar incentive. For every 1,000 kWh (one megawatt-hour) your solar system generates, you earn one SREC-II, which the state purchases at a fixed rate of **$85.00/MWh for the 2025–26 energy year**. Eligibility covers all residential net-metered solar systems up to 5 MW that are interconnected to the grid. Registration is free and is typically handled by your solar installer after interconnection; however, it is critical that you confirm registration is completed. ### Net Metering New Jersey offers some of the strongest net metering protections in the country. When your solar panels produce more electricity than your home uses at any given moment, the excess is sent to the grid and your utility credits your account at the **full retail rate**. ### New Jersey Solar Irradiance Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. New Jersey gets about 4.5 peak sun hours daily. ### What Can the Average New Jersey Solar System Power? #### Summer Production (July) **44.7 kWh/day** In July, your 10 kW system could power: - **3.6 average New Jersey homes** (15 kWh/day per home) - or Run central AC for **18 hours** AND power all other appliances - or Fully charge **5.4 Tesla Model 3** electric vehicles #### Winter Production (December) **21.9 kWh/day** In December, your 10 kW system could power: - **2 average New Jersey homes** (15 kWh/day per home) - or Keep your home heating system running for **15 hours** - or Fully charge **3 Tesla Model 3** electric vehicles #### Annual Production **13105 kWh/year** Over a year, your 10 kW system could: - **Offset 10 tons** of carbon dioxide emissions - or Equal the environmental benefit of **planting 175 trees** - or Save approximately **$4,234** in electricity costs ## Go Solar with LightReach — No Upfront Cost For New Jersey homeowners, Palmetto’s [LightReach program](/content/products/lightreach/index.html) offers a **Power Purchase Agreement (PPA)** — available through Orange & Rockland (Rockland Electric), PSE&G, Atlantic City Electric, and Jersey Central Power & Light. With a PPA, you pay a set rate per kilowatt-hour (kWh) for the electricity your panels produce, rather than a fixed monthly amount.