Solar panels in New Jersey: cost, payback and the rules that matter
New Jersey homes pay 24.0¢ per kWh for electricity, the 11th highest of 51, up 8.7% in a year. A typical home needs 15 panels. With no federal tax credit they pay for themselves in about 9.7 yrs.
Four facts that decide solar in New Jersey
1. The sun. One kilowatt of panels makes about 1,300 kWh a year in the median New Jersey city, from 1,283 in Paterson to 1,349 in Vineland.
2. The price of electricity. Every kWh your panels make is worth what you would otherwise pay: 24.0¢ in New Jersey today.
3. What your utility pays for exports. Most New Jersey utilities still credit exported solar close to the retail rate, but rules differ by utility and change often.
4. Incentives. The 30% federal Residential Clean Energy Credit (IRC §25D) ended for systems whose installation is completed after December 31, 2025 (One Big Beautiful Bill Act, P.L. We don't know of a statewide income-tax credit for home solar in New Jersey.
New Jersey's homes
3,507,701 households; 63.8% own their home. 1,956,050 owner-occupied single-family houses: the main market for rooftop solar. The median home was built in 1970; 16.2% heat with electricity.
ACS 2020–2024 5-year estimates, U.S. Census Bureau.
Plan a specific New Jersey home
Solar in every New Jersey city with 50,000+ people
| City | Sun hrs/day | kWh per kW | Best tilt | Typical kW | Payback (NM) | Payback (NB) | Solar ¢/kWh |
|---|---|---|---|---|---|---|---|
| Newark | 4.5 | 1,296 | 36° | 6.3 | 9.7 yrs | 16.0 yrs | 12.0 |
| Jersey City | 4.5 | 1,303 | 36° | 6.3 | 9.6 yrs | 15.9 yrs | 12.0 |
| Paterson | 4.5 | 1,283 | 36° | 6.3 | 9.8 yrs | 16.0 yrs | 12.2 |
| Elizabeth | 4.5 | 1,299 | 36° | 6.3 | 9.7 yrs | 15.9 yrs | 12.0 |
| Trenton | 4.6 | 1,300 | 36° | 6.3 | 9.7 yrs | 15.9 yrs | 12.0 |
| Clifton | 4.5 | 1,287 | 36° | 6.3 | 9.8 yrs | 16.0 yrs | 12.1 |
| Bayonne | 4.5 | 1,304 | 36° | 6.3 | 9.6 yrs | 15.9 yrs | 12.0 |
| East Orange | 4.5 | 1,291 | 36° | 6.3 | 9.7 yrs | 16.0 yrs | 12.1 |
| Camden | 4.6 | 1,313 | 36° | 6.3 | 9.6 yrs | 15.8 yrs | 11.9 |
| Passaic | 4.5 | 1,289 | 36° | 6.3 | 9.7 yrs | 16.0 yrs | 12.1 |
| Union City | 4.5 | 1,301 | 36° | 6.3 | 9.7 yrs | 15.9 yrs | 12.0 |
| Vineland | 4.7 | 1,349 | 35° | 6.3 | 9.3 yrs | 15.6 yrs | 11.5 |
| Hoboken | 4.5 | 1,303 | 36° | 6.3 | 9.6 yrs | 15.9 yrs | 12.0 |
| Plainfield | 4.5 | 1,287 | 36° | 6.3 | 9.8 yrs | 16.0 yrs | 12.1 |
| New Brunswick | 4.5 | 1,294 | 36° | 6.3 | 9.7 yrs | 16.0 yrs | 12.1 |
| Perth Amboy | 4.5 | 1,303 | 36° | 6.3 | 9.6 yrs | 15.9 yrs | 12.0 |
| West New York | 4.5 | 1,301 | 36° | 6.3 | 9.7 yrs | 15.9 yrs | 12.0 |
NM = exports credited at retail (net metering); NB = exports at ~30% of retail (net billing). Systems sized to the New Jersey average home. $3.00/W, cash, 25 years.
Rule changes that affect New Jersey
All changes and deadlines →- Federal: In-service deadline for the lease/PPA solar credit · Tax credits
- Federal: National data: solar prices fell to a median $3.60 per watt · Prices
- Federal: Construction-start deadline passed for the lease/PPA credit · Tax credits
- Federal: The 30% homeowner solar tax credit is gone · Tax credits
Questions about solar in New Jersey
How much do solar panels cost in New Jersey?
A 6.3 kW system, the size the average New Jersey home needs, costs about $15,750 to $23,625 before incentives in 2026.
Is solar worth it in New Jersey?
In the median New Jersey city, solar pays for itself in about 9.7 yrs if exported power earns the retail rate, or 15.9 yrs if it earns about 30% of retail. Most utilities here still offer some form of net metering; check yours.
Is there a solar tax credit in New Jersey?
We know of no statewide income-tax credit for home solar in New Jersey; utilities and cities sometimes offer rebates. The 30% federal credit ended for homeowner systems installed after December 31, 2025.
How many solar panels does a New Jersey home need?
About 15 panels of 420 watts for the state-average 662 kWh a month. Sunnier cities need fewer: Vineland gets 1,349 kWh per kW a year, Paterson 1,283.