Solar panels lower your electric bills and put money directly into your pocket. Plus, they’re good for the environment. But solar panels have one downside—they’re a considerable expense. Which leaves many homeowners asking: are solar panels really worth the investment?
At NJ Solar Power, we believe the answer is “yes”. Residential solar panels can save you tens of thousands of dollars in electricity costs throughout their lifespan. In just a few years, they’ll pay for themselves, and from that point on you’ll be making money.
In this guide, we break down the cost, benefits, and incentives involved in a New Jersey solar panel installation to help you decide whether it’s worth getting solar panels installed on your home.
How Much Do Solar Panels Cost in NJ?
Rooftop solar installation costs can vary significantly depending on factors like:
- System Size – If your home uses a lot of electricity, you’ll need more solar panels to offset your usage, which increases the overall cost.
- Equipment Quality – Not all solar panels and inverters are the same. High-efficiency panels cost more but also work better and last longer. When you’re comparing estimates, make sure you look at what type of equipment is included. You’ll pay more for quality but you’ll also get more out of the investment.
- Installation Complexity – Labor costs are impacted by the complexity of the project. Standard, easy-to-access roofs are generally easier to install solar panels on, bringing costs down.
- Payment Method – How you finance your solar installation will impact your overall costs. A cash payment will be more expensive up front but save you the most over time. A solar loan or lease can significantly reduce your upfront costs but will impact your overall savings.
With so many factors influencing the cost of solar, it’s tough to give a one-size-fits-all estimate. A quick Google search will bring up estimates ranging anywhere from a few thousand dollars to $25,000 or more, but the wide price range makes it hard to determine what’s accurate for your home. The best way to get real numbers? Contact NJ Solar Power. Our team will assess your energy needs, evaluate your roof, and provide a free, personalized quote.
How Much Can You Save with Solar Panels?
Your solar savings depend heavily on how much electricity you consume. The higher your electricity bill, the more you stand to gain by switching to solar and reducing (or even eliminating) your reliance on your utility company.
For example, if your monthly electric bill is around $200, installing a solar system that offsets most of your usage could save you approximately $2,400 per year. Over a typical system’s 25-year lifespan, that adds up to $60,000 or more—and that’s without factoring in rising utility rates.
Plus, with net metering, any excess energy your system produces can earn you credits on your bill, further increasing your savings. Combined with other New Jersey solar incentives and the federal solar tax credit, solar can pay for itself in as little as 5 to 7 years, leaving you with decades of free electricity.
Benefits of Solar Panels for NJ Homes
Get Rid of High Electric Bills
Electricity rates in New Jersey are among the highest in the nation, averaging around 17–18 cents per kilowatt-hour (kWh)—and they keep rising. By installing solar panels, you can significantly cut or even eliminate your electricity bill.
Inflation-Proof Your Energy Costs
Think about how much you were paying for electricity ten years ago compared to what you pay now. Electricity prices in NJ have been rising steadily for years, with no signs of slowing down. By switching to solar, you lock in your energy costs for decades, shielding yourself from unpredictable utility rate hikes.
Protect Yourself Against Power Outages
With extreme weather and storms becoming more common in New Jersey, power outages are a real concern. A solar panel system combined with battery storage (like a Tesla Powerwall) keeps your lights on and essential appliances running during blackouts.
Increase Your Home’s Value
Homes with solar panels sell for 4.1% more on average, according to research conducted by Zillow. Buyers are willing to pay a premium for homes with low energy costs, and since New Jersey has high electricity rates, this makes solar even more attractive. Plus, NJ offers a property tax exemption for solar systems, so the added value won’t increase your property taxes.
Help the Environment
Switching to solar isn’t just good for your wallet—it’s good for the planet. By going solar, you can reduce your carbon footprint and help fight climate change by cutting down on greenhouse gas emissions. With the state and the country moving toward renewable energy, having solar panels future-proofs your home and helps you stay ahead of the curve.
Are There Solar Incentives in New Jersey?
New Jersey offers excellent solar incentives which is one of the many reasons why we’re a top state for solar energy.
Federal Solar Tax Credit
The federal government offers a 30% tax credit on the cost of your solar system, reducing your tax bill significantly.
Solar Renewable Energy Credits (SRECs)
In New Jersey, you earn one SREC for every megawatt-hour (MWh) of solar energy your system produces for 15 years. You’re guaranteed an $85 payment for every SREC, which means your solar panels are generating extra income without any effort.
Sales Tax Exemption
Solar panels and installation are completely exempt from New Jersey’s sales tax, lowering the cost of your system.
Net Metering
Net metering lets you sell excess electricity back to the grid, earning credits that lower your bill even further. Unfortunately, net metering is under attack in New Jersey. If policy changes move forward, net metering benefits could be significantly reduced for homeowners. Start your installation now if you want to lock in the highest rate while you still can.
The Bottom Line? Solar Is Worth It
So, is it worth getting solar panels on your home? It ultimately depends on your priorities, energy needs, and budget. But in our experience, solar panels are worth the investment for most homeowners in New Jersey.
If you have questions, NJ Solar Power is here to help. We’re a locally owned and operated solar company that’s been in business for over 20 years. As one of the oldest solar companies in New Jersey, we are a partner you can rely on for honest answers and expert guidance on your solar journey. Take the first step today with a free consultation and estimate.