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to make us recommend you use our solar calculator and get quotes from local installers now before the TREC program is superseded by whatever successor the Board of Public Utilities comes up with.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
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.
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 26% federal tax credit
93 solar companies in New Jersey provide pricing on SolarReviews. Here are the best rated companies near you.
4.87 353 Reviews
Javier, 6 days ago
I just wanted to say 'THANK You' for sending such a great crew to my house. I must highlight that their timeliness, attention to detail, disposition, and care for the property were outstanding. The installation crew made sure to answer my questions and did not hesitate to explain what they were doing at different stages of the process. When finished, they did an amazing job making sure the house premises were clean and in order! They went far and beyond explaining the next steps of the process. Dealing with the installation crew validated that I made a great decision when choosing your team to do business with.
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Javier, 6 days ago
I just wanted to say 'THANK You' for sending such a great crew to my house. I must highlight that their timeliness, attention to detail, disposition, and care for the property were outstanding. The installation crew made sure to answer my questions and did not hesitate to explain what they were doing at different stages of the process. When finished, they did an amazing job making sure the house premises were clean and in order! They went far and beyond explaining the next steps of the process. Dealing with the installation crew validated that I made a great decision when choosing your team to do business with.
4.84 253 Reviews
Jennifer F, 5 hours ago
We are very happy with our experience so far with Green Power Energy. We've had a couple of hiccups in the process (some panels not working) and they've been communicative and have explained the issues to us to make sure we get up and running. They explained the incentives well and have been a great partner.
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Jennifer F, 5 hours ago
We are very happy with our experience so far with Green Power Energy. We've had a couple of hiccups in the process (some panels not working) and they've been communicative and have explained the issues to us to make sure we get up and running. They explained the incentives well and have been a great partner.
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.
4.80 82 Reviews
Jake S. , over 1 month
Working with Bill, from initial quote to final installation was a pleasure. Work was done in on schedule, was able to accommodate our work schedule, and did a great job. Now I will look to see if putting solar panels on my shore house, is possible. Consider Solar Me for your solar project.
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Jake S. , over 1 month
Working with Bill, from initial quote to final installation was a pleasure. Work was done in on schedule, was able to accommodate our work schedule, and did a great job. Now I will look to see if putting solar panels on my shore house, is possible. Consider Solar Me for your solar project.
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.
4.63 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.
4.60 50 Reviews
Frank Camberos, 1 week ago
I thought I would have to clean up with some of the mess they would leave behind after installing but guess what? No mess! In fact, I think they actually clean up to leave home in a better state than when they did the install. Thank you!
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Average cost (5kW system)
$23,050 ($4.61 per watt)
Frank Camberos, 1 week ago
I thought I would have to clean up with some of the mess they would leave behind after installing but guess what? No mess! In fact, I think they actually clean up to leave home in a better state than when they did the install. Thank you!
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