Calculate how much you can save on your PSE&G bill with solar panels

Average 25 year solar savings for a PSE&G customer: $106,786

Average solar panel cost: $18,806 - $22,985*

Estimate solar panel cost and savings based on your location, roof and power use.

*Solar panel cost varies by location, solar panel mqanufacturer, system size and the amount of electricity your home uses.

Adding solar panels and switching rate plans can lower your Public Service Electric & Gas Co (PSE&G) electric bill

Updated: October 22, 2020

There are three ways you can reduce your PSE&G bill: changing your habits, switching your rate plan, and adding solar panels.

You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.

The second thing you can do is switch your rate plan. PSE&G offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.

Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.

Solar panel cost calculator

How much can I reduce my Public Service Electric & Gas Co (PSE&G) bill by switching to a different rate plan

For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Public Service Electric & Gas Co (PSE&G) each year for no reason.

Finding out what's available to you is as simple as a phone call or email to Public Service Electric & Gas Co (PSE&G). Even a small savings can be worth it.

Are solar panels worth it for Public Service Electric & Gas Co (PSE&G) customers?

Definitely. With transitional renewable energy credits (TRECs), and solar sales and property tax exemptions in New Jersey, solar panels make a whole bunch of sense here, especially for Public Service Electric & Gas customers! PSE&G’s net metering policy also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.

Does Public Service Electric & Gas Co (PSE&G) offer full 1 for 1 net metering credits for exported solar power

Yes, Public Service Electric & Gas Co (PSE&G) offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.

In the case of Public Service Electric & Gas Co (PSE&G), Time of Use (TOU) pricing applies. You will earn an average of $0.32 for power exported at peak rate times, and an average of $0.07 for power exported at off-peak times.

Tirered rates determine exactly how much you can save by using solar energy. People with very high electricity bills will save more for each kilowatt-hour because they will be pushed to a lower pricing tier for any energy they use that doesn't come from their solar panels. 

What incentives, tax credits and rebates are available to PSE&G customers for installing solar?

The major financial incentive currently available until the end of 2020 is the 26% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.

Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.

Here is every incentive you may be eligible for as a PSE&G customer:

Table 1: Incentives
Upfront Incentives Value*
Residential Renewable Energy Tax Credit (Federal) -$7,342
NJ Clean Energy- Residential New Construction Program (State) Varies
Property Tax Exemption for Renewable Energy System (State)

Excludes assessed costs of a solar system from a homeowner's property taxes

Varies
Net Metering (State)

Utilities regulated by the New Jersey Board of Public Utilities must offer net metering.

Varies
Solar Renewable Energy Certificates (SRECs) Registration Program (State) Varies
Transition Renewable Energy Credit Program (superseded SREC program on 4/30/2020) (State)

New residential solar projects are eligible for payments of $91.20 for every MWh generated by their systems. Payments continue for 15 years.

Varies
Solar Energy Sales Tax Exemption (State)

solar energy equipment fully exempted from state sales tax

Varies
TOTAL -$7,342

*Based on 10.01 kW system, average installation cost $28,237

How much does installing solar panels save the average Public Service Electric & Gas Co (PSE&G) residential customer?

If you input the details for a PSE&G customer with a power bill of $180 per month into the best online solar panels calculator, it tells you that you need a 10.01 kW solar system that will produce 13,459 kWh per year and that this system will return the owner a $106,786 profit after repaying the cost of the system.

The solar savings possible for you as a PSE&G customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.

Here is a monthly and lifetime solar savings estimate for the same relatively typical PSE&G customer with a $180 per month electric bill prior to solar and who installs a 10.01 kW solar system.

How much do residential solar panels cost for PSE&G customers?

Showing data for:

Prices based on a 9.2kW system, after 26% federal tax credit

Solar prices near you

Cost range of local prices

$16,459-$20,116

Net profit (savings less system cost)

$85,076-$103,982

Payback period

3.4-4.1 years

Recommended size for the selected utility bill

9.2kW

Solar panel cost calculator

Detailed information about your estimate

Table 2: Estimate details

System Size (for 100% usage offset)

10.01 kW

Annual Power Generation

13,459 kWh

Pay-back time (assuming Cash purchase)

3.8 Years

Internal Rate of Return (IRR) on Investment

21.4%

Gross cost

$28,237

Total Upfront Incentives and Rebates

-$7,342

Net Cost of System after rebates and incentives

$20,895

Total Cost of Utility Power Avoided over 25 years

$83,267

Please note that the investment return figures do not include the possible increase in property value.

What are the environmental impacts of Public Service Electric & Gas Co (PSE&G) customers installing solar panels?

While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Public Service Electric & Gas Co (PSE&G) customer installing a 10.01 kW solar system on their property:

A solar system generating 13,459 kWh per year will save you money AND make the world a nicer place

Saves you

$4,271

on average per year

Reduces CO2 emissions

6.66

tons per year

Equivalent to planting

47 trees

per year

Equivalent to driving

14,738 mi

less per year

CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.

What factors affect the price of solar panels for Public Service Electric & Gas Co (PSE&G) customers?

The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.

It is common to see really good systems, using quality brands of equipment, being sold for around $2.82 per watt or $20,895 for a standard 10.01 kW solar system after the customer claims the 26% federal solar tax credit.

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