There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
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to make us recommend you use our solar calculator and get quotes from local installers now before the TREC program is superseded by whatever successor the Board of Public Utilities comes up with.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.
Learn what solar incentives are available to New Jersey homeowners
See what New Jersey solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or New Jersey solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New Jersey
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% 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 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
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'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.
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
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.
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.
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Prices based on a 9.6kW system, after 30% federal tax credit
98 solar companies in New Jersey provide pricing on SolarReviews. Here are the best rated companies near you.
4.88 423 Reviews
Arnold Wallenstein , 3 days ago
Had a wonderful experience with SEW - particularly with Nick. Everything was explained very clearly and the scheduling of the project was as anticipated.
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Arnold Wallenstein , 3 days ago
Had a wonderful experience with SEW - particularly with Nick. Everything was explained very clearly and the scheduling of the project was as anticipated.
4.84 213 Reviews
Michael and Andrea , over 1 month
I worked with Joe Galluzzo at Harvest and had a great experience. Joe treated me like a best friend from the start. Very professional and knowledgeable. He was always available to answer my questions and helped me every step of the way. We recommend working with Joe Galluzzo.
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Michael and Andrea , over 1 month
I worked with Joe Galluzzo at Harvest and had a great experience. Joe treated me like a best friend from the start. Very professional and knowledgeable. He was always available to answer my questions and helped me every step of the way. We recommend working with Joe Galluzzo.
4.81 88 Reviews
Irina Lysenko, over 1 month
We installed solar panels in December of 2021. I decided to give time to the system to work to have a real valuable review. At this point I can sincerely tell that the company we used Solar ME did a great job.We don't have an easy simple situation. We have a lot of huge oak trees around the house and we did not want to cut them. Also our roof has a lot of different sections with different steep angles. So the trick was to find different parts of the roof which would be the most exposed to the sun and the house would still have a nice appearance. But we tried with Brian few different layouts until we came out with the most optimal version.All documentation approval and installation went very smoothly and fast. Jennifer was on the top of everything and coordinated communications with township and state certification.We paid upfront for our system and we are getting back payments from the state incentive program.The System works without any issues and we already produced in 2022 in 10 month 88% of our total yearly production. Our monthly bills are around $3, charged only for account maintenance.I Highly recommend Solar ME!
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Irina Lysenko, over 1 month
We installed solar panels in December of 2021. I decided to give time to the system to work to have a real valuable review. At this point I can sincerely tell that the company we used Solar ME did a great job.We don't have an easy simple situation. We have a lot of huge oak trees around the house and we did not want to cut them. Also our roof has a lot of different sections with different steep angles. So the trick was to find different parts of the roof which would be the most exposed to the sun and the house would still have a nice appearance. But we tried with Brian few different layouts until we came out with the most optimal version.All documentation approval and installation went very smoothly and fast. Jennifer was on the top of everything and coordinated communications with township and state certification.We paid upfront for our system and we are getting back payments from the state incentive program.The System works without any issues and we already produced in 2022 in 10 month 88% of our total yearly production. Our monthly bills are around $3, charged only for account maintenance.I Highly recommend Solar ME!
4.80 276 Reviews
Jon J., 2 weeks ago
I am very happy choosing Green Solar Energy. From the initial sales call to the followup meetings, the company kept me informed the entire time. Any questions I had were answered promptly and the entire experience was stress free. I would recommend this company to anyone considering having solar panels installed on their house.
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Jon J., 2 weeks ago
I am very happy choosing Green Solar Energy. From the initial sales call to the followup meetings, the company kept me informed the entire time. Any questions I had were answered promptly and the entire experience was stress free. I would recommend this company to anyone considering having solar panels installed on their house.
4.78 49 Reviews
Bryan, over 1 month
Impact Solar recently finished a solar array installation for my home. I highly recommend them. The whole process was seamless from initial quote to finished install. Jeff, Rob, and Sam were all communicative and professional. Prices are very reasonable and they do not utilize pushy sales tactics that I witnessed with some other solar companies. They did an awesome job with the installation and made sure that the wires were run cleanly with minimal impact to the façade of the house. Definitely give them a call!
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Bryan, over 1 month
Impact Solar recently finished a solar array installation for my home. I highly recommend them. The whole process was seamless from initial quote to finished install. Jeff, Rob, and Sam were all communicative and professional. Prices are very reasonable and they do not utilize pushy sales tactics that I witnessed with some other solar companies. They did an awesome job with the installation and made sure that the wires were run cleanly with minimal impact to the façade of the house. Definitely give them a call!
4.71 26 Reviews
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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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
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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Calvin Clements, over 1 month
Excellent installation and had a problem with inverter one year later and 100% prompt replacement and stood behind warranty.
4.65 51 Reviews
Robert L, over 1 month
This team worked seamlessly with the hand-offs during the various phases of the whole process. Communications were passed right down to the installation crew where it really mattered. Minor glitches were honestly and quickly addressed. City and utility company approvals came quicker than anticipated. The finished product was delivered as promised. I am totally convinced that I made the right decision going with Sea Bright and SunPower.
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Average cost (5kW system)
$23,050 ($4.61 per watt)
Robert L, over 1 month
This team worked seamlessly with the hand-offs during the various phases of the whole process. Communications were passed right down to the installation crew where it really mattered. Minor glitches were honestly and quickly addressed. City and utility company approvals came quicker than anticipated. The finished product was delivered as promised. I am totally convinced that I made the right decision going with Sea Bright and SunPower.
4.63 39 Reviews
Irene, over 1 month
SAVKAT is a phenomenal company, phenomenal personnel, and phenomenal products and solar panels! I am so thrilled to be a SAVKAT customer, and give my highest recommendations to everybody I know to get on board with solar power, SunPower, and SAVKAT!
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Irene, over 1 month
SAVKAT is a phenomenal company, phenomenal personnel, and phenomenal products and solar panels! I am so thrilled to be a SAVKAT customer, and give my highest recommendations to everybody I know to get on board with solar power, SunPower, and SAVKAT!
4.61 14 Reviews
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.
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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.
For more information about going solar near where you live, check out the following resources:
PSE&G Solar Loan Program - Covers 30-50% of your system with on bill repayment or payment from TRECs