It seems like the cost of everything is going up these days, especially electricity. As of November 2023, New Jersey ranks 13th in consumer electricity costs in the country.
That’s not good news, but there is a bright side! While electricity costs have been steadily increasing in recent years, solar panel installation costs have been going down. Solar panel prices in New Jersey have fallen by 42% over the past decade, and new federal incentives like the 30% solar tax credit make home solar even more affordable.
In this guide, we cover everything you should know about residential solar panel costs in New Jersey.
Average Solar Panel Installation Costs in New Jersey
The average cost of a solar panel installation in New Jersey is just under $3.00 a watt in 2024. That works out to about $24,000 for an 8 kW system before incentives. The federal solar tax credit will reduce your solar installation costs by 30%, bringing that number down to $16,800.
Of course, every house is different. Many factors impact the cost of solar panels, and installation costs can vary significantly even for houses in the same neighborhood. The best way to find out how much solar panels will cost for your house is to get an estimate from an experienced local solar installer. NJ Solar Power is a longstanding authority on solar energy in New Jersey and we would be happy to provide a free, customized estimate for your solar installation.
What Affects the Cost of Solar Panels in New Jersey?
The cost to install solar panels depends on several factors, including:
- System size – The size and complexity of a solar panel installation have the most significant impact on cost. The number of panels you need is determined by your electricity consumption, which we will assess before designing your system. The more electricity a house uses, the more solar panels it needs, leading to higher installation costs.
- Equipment type & quality – Many types of solar panels, inverters, and batteries are available. The type and quality of your chosen equipment will impact your installation costs. While higher-quality solar panels and products will cost more, the added cost is typically worth it for the improved performance and longevity. NJ Solar Power installs premium solar products and will recommend the best option for your needs and budget.
- Home location & roof complexity – The physical location of your home and the complexity of your roof will impact installation costs. It’s easier to install solar panels on houses with simple, easy-to-access roofs than on houses with steep, complex roofs, resulting in lower installation costs.
- Payment method – There are several ways to finance a solar panel installation, including a cash payment or a solar loan. Both options have their advantages and drawbacks. With a loan, for example, you won’t have to make an upfront investment but you will have to factor fees and interest into your final costs.
How to Save on Solar Panel Installation Costs
Solar panels are eligible for incentives that can both reduce the upfront cost of your solar installation and help you make money with solar panels.
Claim the Solar Tax Credit
Residential solar panels and battery storage systems are eligible for a 30% federal tax credit. You can claim the credit for the year your solar panels were installed, allowing you to quickly earn back 30% of your installation costs.
Sell Your Solar Renewable Energy Credits (SRECs)
You earn one SREC for every 1,000 kW of electricity your solar panels generate, and in New Jersey, you’ll get a guaranteed payment from the state for every SREC you earn!
Enroll in Net Metering (Before Rates are Reduced!)
Net metering is a solar incentive system that allows you to sell the excess electricity your solar panels generate to the electric grid. In return, you receive credits that can be used to purchase electricity from the grid when your solar panels are not producing power—at night, for example.
Right now, New Jersey utilities are required to pay the full retail rate for the electricity they purchase from solar owners. But changes are coming. New Jersey has announced proceedings to reform (and reduce) net metering incentives for solar owners. Go solar now to lock in the best net metering rate before it’s reduced!
The Best Solar Installers in New Jersey: NJ Solar Power
Have more questions about the cost of home solar panels in New Jersey? NJ Solar Power is here to help. We’re one of the oldest solar installation companies in New Jersey with over 2 decades of experience and have helped thousands of local homeowners go solar. We provide the best solar products, installation methods, warranty, and service under one roof and at a fair price.