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Quick Answer
NJ solar costs $2.75-$3.15 per watt in 2026. An average 8 kW system runs $22,000-$25,200 before incentives. There is no federal tax credit for cash or loan purchases (Section 25D expired December 31, 2025). Net cost after SREC-II income + NJ tax exemptions makes the payback period 7-9 years.
Federal Solar Tax Credit (Section 25D) Expired
Homeowners who buy solar with cash or a loan receive $0 in federal tax credits in 2026. Section 25D expired December 31, 2025 under the OBBBA (signed July 4, 2025).
Cost/Watt
$2.75-$3.15
8kW System
$22K-$25K
Federal ITC
$0
25D expired
Payback
7-9 yrs
Pricing for NJ residential solar systems in 2026. All prices are before state incentives. No federal 25D tax credit is available.
| System Size | Panels | Price Range |
|---|---|---|
| 6 kW | 15-18 | $16,500 - $18,900 |
| 8 kWPOPULAR | 20-24 | $22,000 - $25,200 |
| 10 kW | 25-30 | $27,500 - $31,500 |
| 12 kW | 30-36 | $33,000 - $37,800 |
| 15 kW | 38-45 | $41,250 - $47,250 |
Prices reflect average 2026 NJ installed costs ($2.75-$3.15/W). Do not include any federal tax credit (25D expired). Actual system size depends on electricity consumption, roof orientation, and shading.
Pricing varies by location due to labor costs, roof complexity, and local market conditions.
| City | Price/Watt | Utility |
|---|---|---|
| Newark | $2.85 - $3.20/W | PSE&G |
| Jersey City | $2.90 - $3.25/W | PSE&G |
| Cherry Hill | $2.60 - $3.00/W | PSE&G / ACE |
| Princeton | $2.75 - $3.10/W | PSE&G |
Suburban and southern NJ areas tend to have lower pricing ($2.60-$2.90/W) compared to northern urban areas ($2.85-$3.25/W).
All NJ prices above are total installed costs. Here is what is included:
Not included: Roof repairs, electrical panel upgrades (if needed), tree removal, battery storage. These are quoted separately and vary by home.
Even though the federal 25D tax credit is dead, NJ state incentives still make solar worthwhile. Here is how an 8 kW system breaks down:
Would have been $7,500 at 30%. Now $0.
Immediate savings at purchase
$85.90/MWh x ~9 MWh/yr x 15 years
~$560-$750/yr saved (NJ has highest property taxes in US)
1:1 retail rate credit (~$0.26/kWh)
Payback Period
7-9
years
25-Year Savings
$45K-$65K
estimated total
Monthly Benefit
$270+
per month
PPA/Lease note: If you choose a solar PPA or lease, the financing company claims the 30% Section 48 ITC (still available through July 4, 2026). The ITC savings are passed through to you as a below-retail electricity rate.
Five ways to go solar in NJ in 2026. Each has different benefits and trade-offs.
Upfront Cost
$22,000-$25,200 (8 kW)
Monthly Payment
$0
Payback
7-9 years
Ownership
You own the system
SREC-II Income
You keep 100% SREC-II income
Federal Credit
None (25D expired)
Best for: Homeowners with savings wanting max long-term return
Upfront Cost
$0 down typical
Monthly Payment
$200-$350/mo
Payback
9-12 years (with loan interest)
Ownership
You own the system
SREC-II Income
You keep 100% SREC-II income
Federal Credit
None (25D expired)
Best for: Homeowners wanting ownership without large upfront cost
Upfront Cost
$0
Monthly Payment
Per-kWh rate (10-20% below retail)
Payback
Immediate savings
Ownership
Third-party financing company
SREC-II Income
Third party keeps (passed as lower rate)
Federal Credit
Section 48 ITC (30%) claimed by owner
Best for: No upfront cost, immediate bill savings
Upfront Cost
$0
Monthly Payment
Fixed monthly (may escalate 1-3%/yr)
Payback
Immediate savings
Ownership
Third-party financing company
SREC-II Income
Third party keeps
Federal Credit
Section 48 ITC (30%) claimed by owner
Best for: Predictable monthly costs, no maintenance
Upfront Cost
$0
Monthly Payment
Subscription (offset by credits)
Payback
Immediate (10-40% bill savings)
Ownership
No equipment on your property
SREC-II Income
N/A
Federal Credit
N/A
Best for: Renters, condos, shaded roofs, anyone who cannot install rooftop
Customize system size, cost, and utility to see your real-world return. Includes SREC-II income, net metering, and NJ tax exemptions.
Estimate your solar return on investment with SREC-II income, net metering credits, and NJ tax exemptions.
Federal Residential Solar Tax Credit (Section 25D) Expired
Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. Section 25D expired December 31, 2025.
Northern and central NJ (largest utility)
Electric Rate
$0.26/kWh
Net Metering
1:1 retail credit
SREC-II Rate
$85.90/MWh
Interconnection
2-4 weeks typical
NJ has the highest property taxes in the US
Payback Period
6.1
years
25-Year Savings
$118,441
total
Monthly Benefit
$486
per month
Estimates based on average 2026 NJ solar pricing, ADI rate of $85.90/MWh (EY2025-26), 1:1 retail net metering, 6.625% sales tax exemption, and 100% property tax exemption. Section 25D residential ITC expired Dec 31, 2025 — $0 federal tax credit for cash/loan purchases.
Proven strategies to lower what you pay for solar in New Jersey.
Prices vary 20-30% between installers. Compare proposals side by side to ensure best pricing.
NJ installers offer 5-15% discounts Nov-Feb when demand drops. Same equipment, lower price.
NJ has active Solarize programs in multiple municipalities. Group purchasing power lowers per-watt pricing by 10-20%.
Premium panels (REC, SunPower) cost more than Tier 1 alternatives (Qcells, Canadian Solar) with similar warranties.
Larger systems have lower per-watt costs. A 12 kW system costs less per watt than a 6 kW system.
The ADI rate may drop 10% after March 13, 2026. Systems installed before then lock in the current $85.90/MWh rate for 15 years.
All incentives available to NJ homeowners in 2026. The federal tax credit is dead, but NJ has some of the strongest state programs in the country.
The Section 25D residential solar tax credit expired December 31, 2025 under the OBBBA (signed July 4, 2025). Homeowners who purchase solar with cash or a loan receive $0 in federal tax credits. However, third-party PPA/lease providers can still claim the 30% Section 48/48E ITC for projects beginning construction before July 4, 2026.
Despite losing the federal tax credit, NJ remains one of the best states for solar in the country.
NJ pays $0.25-$0.27/kWh — 60% above the national average. Every kWh you produce saves more than in most states, making net metering extremely valuable.
No other investment pays you $765+/year for 15 years on top of saving you money. NJ SREC-II program is one of the strongest state solar incentives in the country.
The 6.625% sales tax exemption saves ~$1,656 immediately on an 8 kW system. The 100% property tax exemption is critical in NJ where property taxes average $9,500/yr — without it, solar would add ~$560-$750/yr to your tax bill.
Systems installed under current rules are grandfathered into 1:1 net metering even if policy changes. NJ is discussing potential restructuring — installing now locks in your rate.
Studies show solar adds ~4% to home value. On an average $500K NJ home, that is ~$20,000 in added value — more than the net cost of most systems. And with the property tax exemption, you pay zero additional taxes on that added value.
All four NJ utilities offer 1:1 net metering, but rates and interconnection timelines vary.
| Utility | Avg Rate | Net Metering |
|---|---|---|
| PSE&G | $0.26/kWh | 1:1 retail |
| JCP&L (FirstEnergy) | $0.26/kWh | 1:1 retail |
| Atlantic City Electric | $0.25/kWh | 1:1 retail |
| Rockland Electric (RECO) | $0.27/kWh | 1:1 retail |
Answers to the most common questions about solar panel costs in New Jersey in 2026.
Solar panels in New Jersey cost $2.75-$3.15 per watt in 2026. An average 8 kW residential system costs $22,000-$25,200 before incentives. After NJ SREC-II income, sales tax exemption, and property tax exemption, the effective payback period is 7-9 years. The federal 25D residential solar tax credit expired December 31, 2025 and is no longer available for cash or loan purchases.
No. The federal Section 25D residential solar tax credit expired December 31, 2025 under the One Big Beautiful Bill Act (OBBBA). Homeowners who buy solar with cash or a loan receive $0 in federal tax credits. However, third-party solar providers (PPA/lease) can still claim the Section 48/48E commercial ITC at 30% for projects beginning construction before July 4, 2026, passing savings to you as a lower rate.
NJ still offers strong state incentives: SREC-II (ADI) payments of $85.90/MWh for 15 years (approximately $765/year for an 8 kW system), 100% sales tax exemption (saving 6.625% on system cost), 100% property tax exemption (critical in NJ where property taxes average $9,500/year), and 1:1 net metering at full retail rate. These incentives make the payback 7-9 years even without the federal credit.
SREC-II (now called ADI — Administratively Determined Incentive) pays NJ solar owners $85.90 per MWh of solar electricity generated. An 8 kW system produces approximately 9,040 kWh/year, generating about $765 annually in SREC-II income. Payments last 15 years and are paid quarterly. The rate may decrease 10% after March 13, 2026, so locking in now is advantageous.
Solar panels in NJ typically pay for themselves in 7-9 years for cash purchases and 9-12 years with a loan. This accounts for SREC-II income ($765/yr), net metering credits ($2,300-$2,800/yr), sales tax savings ($1,500-$1,700 upfront), and property tax exemption savings ($500-$800/yr). After payback, you enjoy free electricity for the remaining 15-17 years of the panel warranty.
All four NJ utilities (PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric) offer 1:1 net metering at retail rates. PSE&G and RECO at $0.26-0.27/kWh provide the highest net metering value. ACE at $0.25/kWh is slightly lower. The SREC-II/ADI program is statewide and identical regardless of utility. Interconnection timelines vary: PSE&G and ACE typically 2-4 weeks, JCP&L 3-6 weeks.
Yes, PPAs and leases remain viable in NJ because the third-party system owner claims the 30% Section 48/48E commercial ITC (still available through July 4, 2026). The owner passes ITC savings to you as a below-retail electricity rate (typically 10-20% discount). You pay $0 upfront and get immediate bill savings, though you do not own the system or receive SREC-II income directly.
A standard NJ solar installation includes: Tier 1 monocrystalline panels, inverter (string or microinverters), racking and mounting hardware, electrical wiring and conduit, all permits and engineering, professional installation labor, utility interconnection application, and a production monitoring system. Most installers also include a 25-year production warranty and workmanship guarantee.
Installing now is generally better in NJ for three reasons: (1) SREC-II rates may drop 10% after March 13, 2026 — current installations lock in the higher $85.90/MWh rate for 15 years; (2) Net metering policy is under discussion and may be restructured — current systems are grandfathered under existing 1:1 rates; (3) Every month you wait is a month of electricity bills you could be offsetting. Panel prices have largely stabilized in 2026.
NJ Community Solar Energy Program (CSEP) lets you subscribe to a local solar farm without installing panels. You pay a subscription fee offset by bill credits (10-40% savings). No installation, no upfront cost, cancel anytime. 51% of capacity is reserved for low-to-moderate income households. The program has 750+ MW total capacity and 180 MW currently operational. Available through all four NJ utilities.
NJ provides a 100% property tax exemption for solar installations. This means your solar system adds $0 to your assessed property value. This is especially valuable in NJ, which has the highest property taxes in the nation (averaging $9,500/year). Without this exemption, a $25,000 solar system could add approximately $560-$750 per year to your property tax bill at NJ average effective tax rate of 2.23%.
Yes. Flat-roof solar installations are common in NJ, especially in urban areas like Newark and Jersey City. Ballasted racking systems (no roof penetrations) are typical for flat roofs. Costs may be 5-10% higher due to additional racking and tilt mounting needed for optimal angle. Production is similar to pitched roofs when properly tilted (around 30-35 degrees for NJ latitude).
Explore more New Jersey solar resources to make the best decision.
Complete guide to solar in New Jersey
Read moreHow to go solar without the 25D ITC in NJ
Read moreDetailed solar financing comparison
Read moreEverything about SREC-II and ADI income
Read moreHow net metering works in NJ
Read moreSolar without installation: CSEP program
Read moreGet exact pricing for your roof, your utility, and your financing option. Includes SREC-II income projections, tax exemption savings, and financing comparison.
No obligation. No pressure. Just honest information about NJ solar costs.