Summary of New Jersey solar incentives 2020
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 is transitioning away from its long-term Solar Renewable Energy Certificate (SREC) incentive program. While policymakers choose a successor, new solar projects are eligible for a new kind of Transition Renewable Energy Certificate (TREC). The program design will allow the average homeowner to earn around $800 per year in addition to their savings on electricity.
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to make us recommend you use our solar calculator and get quotes from local installers now before the TREC program is superseded by whatever successor the Board of Public Utilities comes up with.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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 2020
9.6kW
Solar panel cost calculator
Best 10 solar companies in New Jersey
62 solar companies in New Jersey provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 107 Reviews
Latest review
Josh B, over 1 month
I am very happy we chose Exact Solar for our solar installation. I got several quotes (several via EnergySage). I ultimately chose Exact Solar primarily because of their reputation, especially after I spoke with several people who used Exact Solar for their solar installation. Choosing the right installer is about getting the installation done right and having the same high level of service after the installation is complete. This is why I chose Exact Solar. It's somewhat analogous to buying a car where you're required to service the vehicle at the dealership where you bought it. You should be really happy with the dealership. The entire process of quote, contract signing, scheduling and install was smooth and professional. The installation team was great. On the second morning of the install, my car battery was dead and the guys gave me a jump right away. Post installation, Exact Solar responded to my numerous questions promptly and professionally (and I had many, many questions). And they facilitated the process of signing me up with an SREC broker. Our solar production is already ahead of forecast. We're still in our first year and our production so far is ~11% above our estimated production for the entire first year.
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Latest review
Josh B, over 1 month
I am very happy we chose Exact Solar for our solar installation. I got several quotes (several via EnergySage). I ultimately chose Exact Solar primarily because of their reputation, especially after I spoke with several people who used Exact Solar for their solar installation. Choosing the right installer is about getting the installation done right and having the same high level of service after the installation is complete. This is why I chose Exact Solar. It's somewhat analogous to buying a car where you're required to service the vehicle at the dealership where you bought it. You should be really happy with the dealership. The entire process of quote, contract signing, scheduling and install was smooth and professional. The installation team was great. On the second morning of the install, my car battery was dead and the guys gave me a jump right away. Post installation, Exact Solar responded to my numerous questions promptly and professionally (and I had many, many questions). And they facilitated the process of signing me up with an SREC broker. Our solar production is already ahead of forecast. We're still in our first year and our production so far is ~11% above our estimated production for the entire first year.
4.77 42 Reviews
Latest review
Pete W, over 1 month
When shopping for solar, I requested quotes from multiple companies. SolarMe wasn't the cheapest, but I could tell that they were using higher-quality products and installation methods. The design was very well planned, explained, and laid-out for my property. The installation went very smoothly, and has been operational for well over a year now without any issues. Highly recommended.
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Latest review
Pete W, over 1 month
When shopping for solar, I requested quotes from multiple companies. SolarMe wasn't the cheapest, but I could tell that they were using higher-quality products and installation methods. The design was very well planned, explained, and laid-out for my property. The installation went very smoothly, and has been operational for well over a year now without any issues. Highly recommended.
4.77 133 Reviews
Latest review
Eric, 1 week ago
I shopped around but the positive reviews and prompt pre-sales responses to my questions made me decide to go with Green Power Energy. They kept me in the loop on the install status. Met all of their commitments (most of them ahead of schedule). Install team was fantastic, on time, clean and professional. Very happy with the experience.
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Latest review
Eric, 1 week ago
I shopped around but the positive reviews and prompt pre-sales responses to my questions made me decide to go with Green Power Energy. They kept me in the loop on the install status. Met all of their commitments (most of them ahead of schedule). Install team was fantastic, on time, clean and professional. Very happy with the experience.
4.73 35 Reviews
Latest review
Samantha, 2 weeks ago
Our path to was lead to Impact Solar when two of the homes in our neighborhood said they used them. They were not one of the pushy solar companies that had been seeking out our business. The experience with the sales individual was friendly and informative without ever feeling pressured, rushed or under informed. We have little to say about the installation because it was as seamless as it gets. There were no hiccups, the crew was polite and kept me informed of anything I needed to know. Post installation, I was kept updated on all of the formalities of getting my system connected to the grid and they readily answered technical questions I needed to get my system registered for inputing my generation and selling on my own. Impact Solar should be highly considered for anyone looking for a solar company.
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Latest review
Samantha, 2 weeks ago
Our path to was lead to Impact Solar when two of the homes in our neighborhood said they used them. They were not one of the pushy solar companies that had been seeking out our business. The experience with the sales individual was friendly and informative without ever feeling pressured, rushed or under informed. We have little to say about the installation because it was as seamless as it gets. There were no hiccups, the crew was polite and kept me informed of anything I needed to know. Post installation, I was kept updated on all of the formalities of getting my system connected to the grid and they readily answered technical questions I needed to get my system registered for inputing my generation and selling on my own. Impact Solar should be highly considered for anyone looking for a solar company.
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.
4.58 13 Reviews
Latest review
ScottO, over 1 month
I investigated solar several years ago and wasn't eligible because of shade from a large tree. With the tree gone, I started the process again and found several companies willing to overcharge me. I found Public Service Solar on Energy Sage. Their response to my inquiry was almost instant and their willingness to jump on the phone, hold frank conversations, and answer every (somewhat ridiculous) question I had was appreciated. The process started in February 2020 - less than a month before COVID-19 took over the world. Public Service Solar didn't slow down - from the roof tear off and installation to completing the process for installing and lighting up the panels - the only thing that slowed them down was bureaucracy enhanced by a pandemic that was outside their control. I was kept abreast of every step in the process - even when the process was delayed - so I was never left wondering "what next?" The roof, the panels, the installation and follow-up were top notch. Their price was the best, too. I wouldn't be more pleased. Oh, and my electric bill for several months (during peak cooling season) has been zero.
Read more
Latest review
ScottO, over 1 month
I investigated solar several years ago and wasn't eligible because of shade from a large tree. With the tree gone, I started the process again and found several companies willing to overcharge me. I found Public Service Solar on Energy Sage. Their response to my inquiry was almost instant and their willingness to jump on the phone, hold frank conversations, and answer every (somewhat ridiculous) question I had was appreciated. The process started in February 2020 - less than a month before COVID-19 took over the world. Public Service Solar didn't slow down - from the roof tear off and installation to completing the process for installing and lighting up the panels - the only thing that slowed them down was bureaucracy enhanced by a pandemic that was outside their control. I was kept abreast of every step in the process - even when the process was delayed - so I was never left wondering "what next?" The roof, the panels, the installation and follow-up were top notch. Their price was the best, too. I wouldn't be more pleased. Oh, and my electric bill for several months (during peak cooling season) has been zero.
4.57 42 Reviews
Latest review
Adam & Jan Negron, 1 week ago
Everyone at Sea Bright Solar was professional, knowledgeable and patient with us. From the sales associate to the surveyor on our roof. From the crew that did the installation to the people in the office following up. They explained things well and did exactly what they said they would do. The installation crew was courteous, quiet and polite. They worked hard and didn’t seem to take breaks.
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Average cost (5kW system)
$23,050 ($4.61 per watt)
Latest review
Adam & Jan Negron, 1 week ago
Everyone at Sea Bright Solar was professional, knowledgeable and patient with us. From the sales associate to the surveyor on our roof. From the crew that did the installation to the people in the office following up. They explained things well and did exactly what they said they would do. The installation crew was courteous, quiet and polite. They worked hard and didn’t seem to take breaks.
4.56 149 Reviews
Latest review
TerryT, over 1 month
After seeing an advertisement in instagram and doing a little research, they seemed liked the best company to go with.
Read more
Latest review
TerryT, over 1 month
After seeing an advertisement in instagram and doing a little research, they seemed liked the best company to go with.
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.
4.54 18 Reviews
Latest review
Anonymous, over 1 month
I called so many Solar Companies to understand about their offer and the specials going on. Most of the companies gave me either lease or finance options and showed less interest in full ownership option. Whereas, Mike who I worked with from NJ Solar told me that if I could go for full ownership option, then I would be saving more compared to the other options He also drafted on what my cost is going to be and how much will I be saving and when would I break even and so on. Once I like what Mike and NJ Solar offered, I signed up, but still have few more questions (on panels, inverter and so on) which Mike was able to respond quickly. The installation literally took 1 day. Half day for the electrician to do his job and next half a day for couple of guys to put the panels. All of these guys were very helpful, especially Bill in explaining to me that what they were doing and additionally guided me on what I would be required to do when the grid is turned on. Ideally it should take a month or two for the approval process and your electric company to turn on the grid, but mine took almost/close to three months since my township had so much backlog which delayed my approval on pre and post install submissions. There were so many tips and hints both Mike and Bill provided that even though I installed in late June/early July, my August Bill for electric was $ 2 and change since my electric company charges me for the basic fees. I am really impressed with the commitment and service NJ Solar and the team has provided. I have even recommended couple of folks to NJ Solar and will keep recommending more.
Read more
Latest review
Anonymous, over 1 month
I called so many Solar Companies to understand about their offer and the specials going on. Most of the companies gave me either lease or finance options and showed less interest in full ownership option. Whereas, Mike who I worked with from NJ Solar told me that if I could go for full ownership option, then I would be saving more compared to the other options He also drafted on what my cost is going to be and how much will I be saving and when would I break even and so on. Once I like what Mike and NJ Solar offered, I signed up, but still have few more questions (on panels, inverter and so on) which Mike was able to respond quickly. The installation literally took 1 day. Half day for the electrician to do his job and next half a day for couple of guys to put the panels. All of these guys were very helpful, especially Bill in explaining to me that what they were doing and additionally guided me on what I would be required to do when the grid is turned on. Ideally it should take a month or two for the approval process and your electric company to turn on the grid, but mine took almost/close to three months since my township had so much backlog which delayed my approval on pre and post install submissions. There were so many tips and hints both Mike and Bill provided that even though I installed in late June/early July, my August Bill for electric was $ 2 and change since my electric company charges me for the basic fees. I am really impressed with the commitment and service NJ Solar and the team has provided. I have even recommended couple of folks to NJ Solar and will keep recommending more.
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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