Summary of New Jersey solar incentives 2021
The future looks bright for home solar energy in New Jersey, but things are a bit in flux right now with the state’s primary solar incentive offered to homeowners.
The Garden State has transitioned away from its long-term Solar Renewable Energy Certificate (SREC) incentive program, and has now finalized the transitional solar incentive program that will provide solar incentives until a final program is designed. While policymakers design a successor, new solar projects are eligible for a Transition Renewable Energy Certificate (TRECs), which will allow the average homeowner to earn around $800 per year from their solar energy, in addition to savings on electricity bills.
That's a pretty decent benefit just for owning a solar system, and it's enough to make us recommend you use our solar calculator and get quotes from local installers now before the TREC program is superseded by whatever successor the Board of Public Utilities comes up with.
In other news, The New Jersey Board of Public Utilities also just approved landmark funding for dozens of community solar projects for low income households to make solar much more accessible. That commitment to helping folks go solar is what keeps New Jersey one of the best places in the country to go solar.
On this page, you can:
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Learn what solar incentives are available to New Jersey homeowners
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See what New Jersey solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or New Jersey solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New Jersey
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% off the entire cost of the system including equipment, labor and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in New Jersey
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
Net Metering requires your utility to monitor how much energy your solar power system produces and how much energy you actually consume, and make sure you get credit for the surplus.
New Jersey’s net metering rules ensure the utility company tracks your excess power generation and credits it to your next bill at the full retail rate. If you run a surplus for an entire year, the utility will cut you a check for the surplus at the company's avoided-cost (wholesale) rate. All investor owned utilities and certain competitive municipal utilities and electric cooperatives are required to provide net metering.
This is a huge boon to you as a solar owner in New Jersey, and a strong policy we’d like to see in more states across the country.
New Jersey solar rebates
New Jersey's renewable energy program does offer rebates for some clean energy types. Unfortunately legislators made the decision to back solar power exclusively with the SREC/TREC market. That means the cost of solar panels in NJ may be a bit higher at the outset, but those tremendous long-term payments still more than make up for it.
But, there is a way to get some rebates if you're building a new home and using renewable energy to power it. New Jersey has a program called "The NJ Clean Energy Residential New Construction Program," which offers rebates to incentivize the construction of new homes that meet the New Jersey ENERGY STAR standards.
Do some reading at the link above, and you'll see that it's possible to get thousands back if you build a home that meets or exceeds those standards.
The New Jersey TREC program
New Jersey is a state that has placed strict requirements on utility companies to include renewable energy and specifically home solar in their energy mix. Part of the way the state has achieved such strong results in transitioning to clean energy has been through issuance and sale of renewable energy certificates (RECs). Clean energy generators like home solar owners own these credits and can sell them to the utilities so they can meet their renewable energy targets.
Previously, New Jersey had allowed the free market to set rates for solar renewable energy certificates, which at times sold for up to $600 apiece. This provided homeowners near $5,000 in annual rewards, just for owning solar systems. The market for SRECs became unstable however, and the New Jersey Board of Public Utilities (BPU) have issued guidance on a transitional program.
Transitional renewable energy credits (TRECs) are now offered to New Jersey solar owners instead, and they are set at about $92 apiece for every megawatt-hour (MWh) of solar produced over 15 years. For an average sized 7.2kW home solar system, that amounts to 9MWh per year, or $830 annually. Over 15 years, that amounts to over $12,000!
Learn more: New Jersey’s transition to the TREC program
Sales and property tax exemptions for solar in New Jersey
When the property tax assessor comes a knockin’ at your front door, by law, they are not allowed to charge you any more property taxes in New Jersey because you’ve got a new valuable solar system on your roof. At the same time, your home WILL be worth significantly more when you sell, because, hey, what home buyer doesn't like free electricity?
Also, unlike other home upgrades like new kitchen appliances or bathroom fixtures, with solar panels in NJ, you will not have to pay any sales taxes on your system. That's 7% you're saving right upfront, even without any statewide solar power rebates.
Low income solar programs
In 2019, New Jersey began a 3 year community solar pilot program that is aimed partly at low- and moderate-income folks.
The program allocates points to project proposals including both low-medium income communities and environmental justice communities. At least 51% of approved projects for advantageous financing need to include these groups. The New Jersey community solar program has seen a huge demand, and is on pace to install over 75 MW of solar annually by 2022.
Cost of solar panels in your part of New Jersey after all applicable solar incentives
Showing data for:
Prices based on a 9.6kW system, after 26% federal tax credit
Solar prices near you
Payback period
3.2-3.9 years
Net profit (savings less system cost)
$89,800-$109,756
Average size system installed in NJ in 2021
9.6kW
Solar panel cost calculator
Best 10 solar companies in New Jersey
87 solar companies in New Jersey provide pricing on SolarReviews. Here are the best rated companies near you.
4.87 202 Reviews
Latest review
Brandon G, over 1 month
Harvest Power installed a new roof and solar panel system on our home in August 2021. They did an awesome job on the install, and made sure my wife and I were both pleased with the work. Our sales rep Jeff Homire was extremely helpful, he was knowledgeable on the product and assisted my wife and I to make the best decision for our home. He kept in contact with us through each step of the process, answered any and all questions thoroughly and honestly. I would strongly recommend both Harvest Power and Jeff Homire for anyone looking to go solar.
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Latest review
Brandon G, over 1 month
Harvest Power installed a new roof and solar panel system on our home in August 2021. They did an awesome job on the install, and made sure my wife and I were both pleased with the work. Our sales rep Jeff Homire was extremely helpful, he was knowledgeable on the product and assisted my wife and I to make the best decision for our home. He kept in contact with us through each step of the process, answered any and all questions thoroughly and honestly. I would strongly recommend both Harvest Power and Jeff Homire for anyone looking to go solar.
4.84 111 Reviews
Latest review
Matt, over 1 month
We love the company - from the beginning stages to the end, we had questions about solar (not knowing much about it at the onset). Every person we worked with was knowledgeable, passionate about solar, and patiently answered our questions. We left the process understanding and LOVING our solar system. We cannot say enough positive things about Exact Solar. If you are interested in Solar for your home or business, you will be in the best hands with them! There is not a day that goes by when our family does not think about the awesome fact that we are producing clean energy and doing so with a system that was expertly installed and backed up by an exceptional company who bends over backwards to make sure you are happy.
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Average cost (5kW system)
$12,400 ($2.48 per watt)
Latest review
Matt, over 1 month
We love the company - from the beginning stages to the end, we had questions about solar (not knowing much about it at the onset). Every person we worked with was knowledgeable, passionate about solar, and patiently answered our questions. We left the process understanding and LOVING our solar system. We cannot say enough positive things about Exact Solar. If you are interested in Solar for your home or business, you will be in the best hands with them! There is not a day that goes by when our family does not think about the awesome fact that we are producing clean energy and doing so with a system that was expertly installed and backed up by an exceptional company who bends over backwards to make sure you are happy.
4.81 213 Reviews
Latest review
Jeremy P., 3 days ago
Working with Green Power Energy has been a pleasure, and I would highly recommend them to anyone that is interested in a solar project for their home. They seem to be the "Goldilocks" of solar companies. Big enough to have the expertise, technology, and staff to get the job done the right way, and small enough to really take care of their customers and make sure that everything goes smoothly throughout the entire process. I spoke with a lot of people from GPE leading up to and after my installation, and every single person was delightful and incredibly helpful. I wish more companies were like GPE! Thank you!
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Latest review
Jeremy P., 3 days ago
Working with Green Power Energy has been a pleasure, and I would highly recommend them to anyone that is interested in a solar project for their home. They seem to be the "Goldilocks" of solar companies. Big enough to have the expertise, technology, and staff to get the job done the right way, and small enough to really take care of their customers and make sure that everything goes smoothly throughout the entire process. I spoke with a lot of people from GPE leading up to and after my installation, and every single person was delightful and incredibly helpful. I wish more companies were like GPE! Thank you!
4.81 77 Reviews
Latest review
Denny P, over 1 month
Choosing SolarMe for our home Solar installation was a good decision. SolarMe quoted a price which did not have unnecessary administrative fees and or high maintenance fees. The project was well managed, with a project manager assigned right after the Sales contract was signed, to handle all the steps involved in the installation and post install service. I referred to 3 of my friends and two of them got SolarMe to install for them as well !! In short SolarMe is Reliable, Honest and best value for your investment.
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Latest review
Denny P, over 1 month
Choosing SolarMe for our home Solar installation was a good decision. SolarMe quoted a price which did not have unnecessary administrative fees and or high maintenance fees. The project was well managed, with a project manager assigned right after the Sales contract was signed, to handle all the steps involved in the installation and post install service. I referred to 3 of my friends and two of them got SolarMe to install for them as well !! In short SolarMe is Reliable, Honest and best value for your investment.
4.79 241 Reviews
Latest review
Blake Ortner, 2 days ago
I could not be happier with the service provided by Solar Energy World during my install of both solar panels and battery backup. The crews were all courteous and made sure they informed me of what was going on with the install. I had a large and complicated system installed and they were welcoming of my questions all along the way (and I had a lot of questions… I’m just that kind of guy). There were some activation issues and at each stage the crews would let me know what was going on and were diligent in getting to the bottom of everything to make sure the system worked like a charm. I could not be happier. Highly recommend Solar Energy World for anyone interested in Solar or battery backups.
Read more
Latest review
Blake Ortner, 2 days ago
I could not be happier with the service provided by Solar Energy World during my install of both solar panels and battery backup. The crews were all courteous and made sure they informed me of what was going on with the install. I had a large and complicated system installed and they were welcoming of my questions all along the way (and I had a lot of questions… I’m just that kind of guy). There were some activation issues and at each stage the crews would let me know what was going on and were diligent in getting to the bottom of everything to make sure the system worked like a charm. I could not be happier. Highly recommend Solar Energy World for anyone interested in Solar or battery backups.
4.76 45 Reviews
Latest review
Jeremy Rech, over 1 month
Working with Impact Solar on my home solar project was a great experience. From the initial introductory phone call, to the quoting process, and all the way through the installation and setup, Impact Solar made the whole process easy and hassle free. Jeff, Rob and Sam walked me through everything, answered all of my questions, and were very friendly as well. I highly recommend Impact Solar for anyone looking to make the switch to solar energy!
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Latest review
Jeremy Rech, over 1 month
Working with Impact Solar on my home solar project was a great experience. From the initial introductory phone call, to the quoting process, and all the way through the installation and setup, Impact Solar made the whole process easy and hassle free. Jeff, Rob and Sam walked me through everything, answered all of my questions, and were very friendly as well. I highly recommend Impact Solar for anyone looking to make the switch to solar energy!
4.71 26 Reviews
Latest review
cheryl, over 1 month
I spoke with Dov at Powerlutions regarding our solar contract. He was very knowledgeable, patient and extremely pleasant to work with. The installation team was very respectful and professional, it was very impressive to watch them do the job. I am looking forward to geeting good use out of our new solar panels. Thank you Dov and Powerlutions for an excellent experience.
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Latest review
cheryl, over 1 month
I spoke with Dov at Powerlutions regarding our solar contract. He was very knowledgeable, patient and extremely pleasant to work with. The installation team was very respectful and professional, it was very impressive to watch them do the job. I am looking forward to geeting good use out of our new solar panels. Thank you Dov and Powerlutions for an excellent experience.
4.66 38 Reviews
Latest review
Calvin Clements, over 1 month
Excellent installation and had a problem with inverter one year later and 100% prompt replacement and stood behind warranty.
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Latest review
Calvin Clements, over 1 month
Excellent installation and had a problem with inverter one year later and 100% prompt replacement and stood behind warranty.
4.61 14 Reviews
Latest review
Anonymous, over 1 month
The crew at Ace Solar worked to explain everything about solar panels. Installation was delayed by having to get permits from the town but once that was done everything was installed in one day. We have had them for 2 years now and are very happy.
Read more
Latest review
Anonymous, over 1 month
The crew at Ace Solar worked to explain everything about solar panels. Installation was delayed by having to get permits from the town but once that was done everything was installed in one day. We have had them for 2 years now and are very happy.
4.61 14 Reviews
Latest review
RSH, over 1 month
I inquired multiple solar installation contractors, small & big, local & national. After reviewing all the proposals and comparing the equipments, the services and the warranty they offer, I finalized with Public Service Solar. I was initially skeptical, so I researched further to do my due diligence. Overall, I got a good feeling. Along with solar installation, I also got my roof installed with them. They gave a great combo offer. While reviewing the contract, they took time to explain all that would be done in their job. They followed through their time-line. They did a great job for roof and solar installation. No project is without any issue, so when there was a minor issue (my personal Wi-Fi signal was not strong enough to connect to Enphase system) during the process, Tony and his team were fully willing to resolve the issue and they provided Wi-Fi range extender at no cost. Even after the system is turned on, they are still equally supportive and responsive. Especially Sean, he is very prompt to get back and to address all valid and invalid concerns. They completely lived up to my expectation, so I recommended them to some of my friends and would continue recommending others.
Read more
Latest review
RSH, over 1 month
I inquired multiple solar installation contractors, small & big, local & national. After reviewing all the proposals and comparing the equipments, the services and the warranty they offer, I finalized with Public Service Solar. I was initially skeptical, so I researched further to do my due diligence. Overall, I got a good feeling. Along with solar installation, I also got my roof installed with them. They gave a great combo offer. While reviewing the contract, they took time to explain all that would be done in their job. They followed through their time-line. They did a great job for roof and solar installation. No project is without any issue, so when there was a minor issue (my personal Wi-Fi signal was not strong enough to connect to Enphase system) during the process, Tony and his team were fully willing to resolve the issue and they provided Wi-Fi range extender at no cost. Even after the system is turned on, they are still equally supportive and responsive. Especially Sean, he is very prompt to get back and to address all valid and invalid concerns. They completely lived up to my expectation, so I recommended them to some of my friends and would continue recommending others.
Solar guides for your New Jersey city
For more information about going solar near where you live, check out the following resources:
Useful links
PSE&G Solar Loan Program - Covers 30-50% of your system with on bill repayment or payment from TRECs
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