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to make us recommend you use our solar calculator and get quotes from local installers now before the TREC program is superseded by whatever successor the Board of Public Utilities comes up with.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
63 solar companies in New Jersey provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 108 Reviews
Latest review
Alan Silverblatt, over 1 month
Exact Solar installed our solar panel system, we've been extremely pleased with them. They were very nice to deal with, and got the job done when they said they would. What's been even better is the ongoing customer service. They have always been very prompt in responding to my phone calls and emails, and have been cheerful, helpful and proactive in resolving my issues and questions.
Read more
Average cost (5kW system)
$12,400 ($2.48 per watt)
Latest review
Alan Silverblatt, over 1 month
Exact Solar installed our solar panel system, we've been extremely pleased with them. They were very nice to deal with, and got the job done when they said they would. What's been even better is the ongoing customer service. They have always been very prompt in responding to my phone calls and emails, and have been cheerful, helpful and proactive in resolving my issues and questions.
4.82 74 Reviews
Latest review
Damien Caban, 10 hours ago
Researched 4 different companies and could not be happier with my choice. Entire process was seamless and exactly as advertised.
Read more
Latest review
Damien Caban, 10 hours ago
Researched 4 different companies and could not be happier with my choice. Entire process was seamless and exactly as advertised.
4.81 151 Reviews
Latest review
D Decker, 5 days ago
Very positive experience! As an Aviation Flight Engineer I am very particular about installations and attention to detail. The installation team was well prepared and did a fantastic job. Everything was well planned right down to the clean up at the end. I am very satisfied, and would use Green Power Energy again on future projects
Read more
Latest review
D Decker, 5 days ago
Very positive experience! As an Aviation Flight Engineer I am very particular about installations and attention to detail. The installation team was well prepared and did a fantastic job. Everything was well planned right down to the clean up at the end. I am very satisfied, and would use Green Power Energy again on future projects
4.76 198 Reviews
Latest review
Bob, 10 hours ago
We chose them because of the price compared to the others we talked to, the initial presentation was more engineering than salesmanship, i.e. not overt effort at upselling.
Read more
Latest review
Bob, 10 hours ago
We chose them because of the price compared to the others we talked to, the initial presentation was more engineering than salesmanship, i.e. not overt effort at upselling.
4.76 39 Reviews
Latest review
AMinetti, 1 week ago
Impact Solar was amazing through every step of the process!! From pricing, install, setting us up with our TREC account. . .they left nothing to chance and made sure we were happy. Plus our solar panels blend so well we still get other companies knocking on our door to try and sell us!!
Read more
Latest review
AMinetti, 1 week ago
Impact Solar was amazing through every step of the process!! From pricing, install, setting us up with our TREC account. . .they left nothing to chance and made sure we were happy. Plus our solar panels blend so well we still get other companies knocking on our door to try and sell us!!
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.
Read more
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.
4.61 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.
4.58 44 Reviews
Latest review
MCT, over 1 month
The process was easy. Even though our HOA rejected the first design, the agents kept working towards obtaining an approval until it was approved. The approval took about 3-4 months and installation was about 2 days. I love how sleek our panels look and really love seeing how low our electricity bill is.
Read more
Average cost (5kW system)
$23,050 ($4.61 per watt)
Latest review
MCT, over 1 month
The process was easy. Even though our HOA rejected the first design, the agents kept working towards obtaining an approval until it was approved. The approval took about 3-4 months and installation was about 2 days. I love how sleek our panels look and really love seeing how low our electricity bill is.
4.57 210 Reviews
Latest review
fortunatefolly, 6 days ago
I had Venture come out to compete with other companies for my business in April of 2019. Their estimated production was a full 15% higher than any other company that bid on the project. They forgot about me for a full two months or so, then finally installed in August 2019. Installers were great. Fast forward to August 2020 and my production was way more in-line with the other companies that bid. It took me another 7 months to discover Venture not only didn't account for new construction that didn't show up on satellite imagery, they performed the evaluation on the wrong roof, with the wrong amount of panels (I have documentation to prove this). I had to argue with them so they'd pay out 8% of my total cost. They say nowhere on my contract does it say they guarantee production. By their rationale they could have claimed my rooftop would produce as much energy as the Sun. Not only would I not have gone with Venture, I may not have gotten solar at all had they performed their job at the start with any kind of competency.
Read more
Latest review
fortunatefolly, 6 days ago
I had Venture come out to compete with other companies for my business in April of 2019. Their estimated production was a full 15% higher than any other company that bid on the project. They forgot about me for a full two months or so, then finally installed in August 2019. Installers were great. Fast forward to August 2020 and my production was way more in-line with the other companies that bid. It took me another 7 months to discover Venture not only didn't account for new construction that didn't show up on satellite imagery, they performed the evaluation on the wrong roof, with the wrong amount of panels (I have documentation to prove this). I had to argue with them so they'd pay out 8% of my total cost. They say nowhere on my contract does it say they guarantee production. By their rationale they could have claimed my rooftop would produce as much energy as the Sun. Not only would I not have gone with Venture, I may not have gotten solar at all had they performed their job at the start with any kind of competency.
4.56 12 Reviews
Latest review
Anonymous, over 1 month
Dealing with Adam was very simple and he made the buying process so easy he knew about all of the rebates and everything worked just as he said it would. I'm very happy with my system and I give ampericon five stars.
Read more
Latest review
Anonymous, over 1 month
Dealing with Adam was very simple and he made the buying process so easy he knew about all of the rebates and everything worked just as he said it would. I'm very happy with my system and I give ampericon five stars.
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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