If you’re skeptical about whether solar panels really save money, you’re not alone—you’ve probably heard claims about “free electricity” and wondered if they’re too good to be true. The reality? Solar panels don’t just save you money—they can also make you money. And with electricity rates in New Jersey continuing to rise, every month without solar means throwing money down the drain.
The Rising Cost of Electricity in New Jersey
In New Jersey, the average electric rate near the end of 2024 is just under $0.20 per kWh for residential customers. That’s 15% higher than the national average. Over the past decade, these rates have steadily increased, and experts predict they will only climb higher. You may have even read news reports about how high electric bills in South Jersey led to state lawmaker hearings!
This trend isn’t just frustrating—it’s expensive. The longer you rely solely on the grid, the more you’ll pay as rates rise. Residential solar installation offers a reliable way to lock in lower energy costs and shield yourself from these relentless increases.
How Solar Panels Save You Money
Solar panels work by generating electricity from sunlight, reducing or even eliminating your reliance on the grid. They harness clean, renewable energy directly from the sun, allowing you to produce free power to run your home. By offsetting your energy use with solar power, you significantly cut your monthly utility bills while also protecting yourself from the volatility of rising electricity rates. Over time, the savings from solar can compound, offering financial relief and energy independence for years to come.
What Happens to Your Monthly Bill After Solar?
After installing solar panels, your monthly utility bill will look very different. For example, a household with an average monthly bill of $175 could see their bill drop to $25 or less. Saving $2,100 a year adds up quickly when you remember that solar panels will last 25-30+ years!
If you finance your system with a loan, your loan payments often replace your previous electricity bill. In many cases, these payments are lower than your former utility costs, so you’re cash flow positive from day one.
Financial Incentives That Boost Your Savings
One of the biggest advantages of going solar in NJ are the financial incentives available to homeowners:
- Federal Solar Investment Tax Credit (ITC): The solar tax credit allows you to deduct 30% of your solar installation costs from your federal taxes. This can significantly reduce your upfront expenses—often by thousands of dollars!
- Solar Renewable Energy Credits (SRECs): For every megawatt-hour (MWh) of electricity your solar panels generate, you earn an SREC. These credits can be sold to utility companies, creating an additional income stream. In New Jersey, you’re guaranteed a payment of $85 per SREC, providing a reliable and predictable source of income from your solar system.
- Net Metering: New Jersey’s net metering policies mean you’ll earn credits for any excess energy your system sends back to the grid. These credits can be used to offset your energy use during times when your panels aren’t producing power, like at night.
These incentives not only make solar more affordable but also enhance its long-term financial benefits.
Additional Savings with Solar Battery Installation
A solar battery enhances your energy savings by storing excess energy from your panels, letting you use solar power even when the sun isn’t shining. This reduces reliance on the grid and avoids high peak-hour electricity rates.
Solar batteries qualify for the 30% federal tax credit, making them affordable and increasing long-term returns. Paired with solar panels, they ensure optimal efficiency.
Also Consider: The Cost of Waiting ($$$)
Every month you delay going solar, you’re losing money. High electricity rates ensure that your utility bills will remain a significant burden. Meanwhile, delaying your switch means missing out on the full potential of solar incentives like the ITC and SRECs.
Consider this: if your monthly utility bill is $175, that’s $2,100 a year going toward rising electricity costs. Over 10 years, that’s $21,000 spent—money that could have gone toward owning a solar system and saving even more in the long run.
Make the Smart Financial Move with NJ Solar Power
Solar panels are more than just an eco-friendly option—they’re a sound financial investment. By reducing your monthly bills, earning money through SRECs, and taking advantage of tax credits, you’ll see immediate and long-term savings. And as electricity rates in New Jersey continue to rise, the decision to go solar becomes even clearer.
Don’t wait to start saving. Contact NJ Solar Power today to learn how solar can work for your home and budget. Let us help you take control of your energy costs and secure a brighter financial future.