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Newark offers affordable solar with SREC-II income and a full property tax exemption. A typical 7 kW system costs ~$22,000 — with no federal tax credit in 2026.
2026 Reality: The 30% federal tax credit expired for homeowners. All Newark solar costs in this guide reflect $0 federal credit. Details
A typical 7 kW solar system in Newark costs ~$22,000 before incentives. Newark is in PSE&G territory at $0.26/kWh. With SREC-II income of ~$720/yr and full retail net metering, solar pays for itself in ~8.2 years and saves ~$82,000 over 25 years.
Cost Range
$2.85–$3.2/W
Fully installed
Payback
8.2 yrs
Cash purchase
SREC-II
$720/yr
Annual income
PSE&G Rate
$0.26
Per kWh
Costs for different system sizes in Newark. Prices reflect the urban premium for higher labor and roof access complexity.
| System Size | Low Cost | High Cost | SREC-II | Best For |
|---|---|---|---|---|
| 5 kW | $14,250 | $16,000 | ~$515/yr | Small rowhouse |
| 7 kW | $19,950 | $22,400 | ~$720/yr | Average urban home |
| 9 kW | $25,650 | $28,800 | ~$925/yr | Larger single-family |
| 10 kW | $28,500 | $32,000 | ~$1,030/yr | High usage / EV owner |
New Jersey's SREC-II program pays solar system owners for every MWh generated. Payments last 15 years from system activation.
Annual SREC-II (7 kW)
~$720
Based on ~9.1 MWh/yr production
15-Year SREC-II Total
~$10,800
Guaranteed program income
Annual Production
~9,100 kWh
~4.5 peak sun hours/day
PSE&G credits excess solar at the full retail rate of $0.26/kWh. Credits roll over monthly and true up annually.
~$2,370/yr
Annual electricity savings
Newark averages ~$6,000 in property taxes. NJ exempts 100% of solar-added value from property taxes for the system lifetime.
Up to $22,000 of added home value exempt
Lifetime exemption
NJ exempts solar energy systems from the 6.625% state sales tax. Immediate savings at purchase.
~$1,452
Sales tax savings on $22K system
Four ways to pay for solar in Newark. PPAs and leases offer $0 down because the system owner (not you) claims the commercial tax credit.
Upfront
~$22,000
Monthly
$0
25-yr Savings
~$82K
Ownership
You own it
Best long-term ROI. Payback ~8.2 years.
Upfront
$0
Monthly
~$175–225/mo
25-yr Savings
~$55–65K
Ownership
You own it
10–25 year terms. Net positive from month one with SREC-II.
Upfront
$0
Monthly
Fixed rate ~$0.14–0.18/kWh
25-yr Savings
~$25–35K
Ownership
Third party owns
Third-party owner claims Section 48 ITC. You buy power at a discount.
Upfront
$0
Monthly
~$90–130/mo
25-yr Savings
~$20–30K
Ownership
Third party owns
Fixed monthly payment. Less savings but no maintenance.
Section 25D (the 30% residential solar tax credit) expired December 31, 2025. Newark homeowners buying cash or loan receive $0 in federal credit. Third-party system owners (PPA/lease) can still claim the commercial Section 48 ITC — which translates to lower PPA rates for you.
Read: What happened to the solar tax creditMany Newark residents live in rowhouses, condos, and apartments where rooftop installation is not feasible. Community solar is the alternative.
No rooftop installation — subscribe to a local solar farm
Save 10-20% on your PSE&G bill
$0 upfront, no long-term contract required
Ideal for renters, condos, and rowhouses
NJ CSEP ensures equitable access
If you rent, live in a condo, have a shaded roof, or simply do not want panels on your roof — community solar delivers savings without installation.
Explore NJ optionsSolar panels in Newark cost $2.85-3.20 per watt installed in 2026, reflecting an urban premium for higher labor costs and complex roof access. For a typical 7 kW system, that is approximately $22,000 before state incentives. There is no federal tax credit for homeowners — the 30% Section 25D credit expired December 31, 2025.
SREC-II (Solar Renewable Energy Certificate II) is New Jersey's successor incentive program. A 7 kW system in Newark generates approximately $720 per year in SREC-II income for 15 years, totaling roughly $10,800. This income is in addition to your electricity savings and is a major driver of solar ROI in New Jersey.
Yes. New Jersey law provides a 100% property tax exemption for the added home value from solar panels. In Newark, where the average property tax bill is approximately $6,000, this means you avoid paying higher taxes on the $22,000+ in added property value. The exemption lasts for the life of the system.
Community solar is an excellent alternative for Newark residents who cannot install rooftop solar — especially those in rowhouses, condos, or apartments. You subscribe to a portion of a local solar farm and receive credits on your PSE&G bill, typically saving 10-20% on electricity costs with no installation, no roof requirements, and no upfront cost.
Newark is in PSE&G territory. PSE&G offers net metering at the full retail rate ($0.26/kWh) for residential systems up to 25 kW. Excess generation rolls over monthly and is trued up annually. PSE&G also handles interconnection approval, which typically takes 2-4 weeks after installation.
Yes, but rowhouse installations have unique considerations. Shared walls may limit mounting options, and smaller roof areas often mean 5-7 kW systems instead of larger suburban arrays. Flat-roof rowhouses in the Ironbound and other neighborhoods are actually excellent candidates for flush-mount panels. If rooftop is not feasible, community solar is a strong alternative.
Solar in Newark has a payback period of approximately 8.2 years for a cash purchase. This factors in PSE&G electricity savings at $0.26/kWh, SREC-II income of ~$720/year, and the property tax exemption. Over 25 years, a typical 7 kW system saves approximately $82,000 when accounting for rising electricity rates.
No. The 30% federal solar tax credit (Section 25D) expired for homeowners on December 31, 2025. All cost and savings figures in this guide reflect $0 federal credit. However, if you finance through a PPA or lease, the third-party system owner may claim the commercial Section 48 ITC, which can result in lower PPA rates for you.
We will assess your specific roof, neighborhood, and PSE&G rate to show you exactly what solar costs and saves for your Newark home.
Pricing: EnergySage Solar Marketplace (January 2026), NuWatt Energy NJ installations.
Utility rates: PSE&G residential rate schedule, effective January 2026.
SREC-II: NJ Board of Public Utilities, SuSI/ADI program guidelines.
Tax exemptions: NJ Division of Taxation, property tax exemption for renewable energy systems.