New Jersey Solar Panel Savings Calculator
Calculate how much you can save with solar panels in New Jersey. Based on 4.2 peak sun hours/day and 18.8¢/kWh average electricity rate.
4.2
Peak Sun Hours/Day
18.8¢
Avg Rate (¢/kWh)
6 yr
Avg Payback Period
6.5%
Solar Penetration
Calculate Your New Jersey Solar Savings
Average home: 6-10 kW
Your average monthly bill
South-facing is optimal
Annual Production
kWh/year
Annual Savings
per year
25-Year Savings
total estimated
Payback Period
break-even time
Monthly Savings
$115
System Cost (after ITC)
$14,700
CO2 Offset
3.1 tons/yr
Cumulative Savings vs System Cost
New Jersey Solar Panel Savings Overview
New Jersey receives an average of 4.2 peak sun hours per day, providing a solid foundation for residential solar energy. With electricity rates averaging 18.8¢ per kWh — near the national average — solar offers competitive savings. The typical New Jersey homeowner with a 6kW system can expect to save approximately $2,420 per year.
Solar Energy Production in New Jersey
A standard 6kW residential solar panel system in New Jersey produces approximately 7,358 kWh per year. This accounts for a system efficiency factor of 80%, which includes panel degradation, inverter losses, and temperature effects. While 4.2 peak sun hours is modest compared to sunbelt states, modern high-efficiency panels can still produce meaningful energy savings in New Jersey.
New Jersey Electricity Rates and Solar Context
The average residential electricity rate in New Jersey is 18.8¢ per kWh according to EIA data. This rate is near the national average. Combined with New Jersey's solar resources, homeowners can expect a payback period of about 6 years. With utility rates increasing annually, your solar savings grow each year.
New Jersey Solar Incentive Programs
TRECs/SRECs (Transition Renewable Energy Certificates). Sales tax exemption. Property tax exemption. Federal 30% ITC. All New Jersey residents are eligible for the federal 30% Investment Tax Credit (ITC), which reduces the cost of a solar system by 30% of the total installed price. New Jersey also offers full retail net metering, allowing homeowners to earn credits for excess solar energy sent back to the grid.
Net Metering in New Jersey
New Jersey has full retail net metering, which is a significant financial benefit for solar homeowners. Under full retail net metering, you receive credit at the full retail electricity rate for every kilowatt-hour of excess solar energy you export to the grid. This is the most favorable policy for solar homeowners.
Best Cities for Solar in New Jersey
The best cities for solar panels in New Jersey include Newark, Jersey City, Paterson, Elizabeth, Trenton. Solar production can vary by location within the state due to differences in cloud cover, local shading, and microclimates. Southern-facing roofs with minimal shading produce the most energy. Homeowners in Newark and Jersey City can typically expect production close to the state average of 4.2 peak sun hours per day.
How New Jersey Compares to Neighboring States
Compared to neighboring states, New Jersey (18.8¢/kWh, 4.2 sun hours) has comparable sun exposure and has lower electricity rates. See how solar savings compare in New York, Pennsylvania, and Delaware.
Frequently Asked Questions
How much do solar panels cost in New Jersey?
The average cost of a 6kW solar panel system in New Jersey is approximately $21,000 before incentives. After the 30% federal Investment Tax Credit (ITC), the net cost drops to about $14,700. TRECs/SRECs (Transition Renewable Energy Certificates). Sales tax exemption. Property tax exemption. Federal 30% ITC.
How much can I save with solar panels in New Jersey?
The average New Jersey homeowner saves approximately $2,420 per year with a 6kW solar system. Over 25 years, total savings can exceed $47,127, factoring in a 2.5% annual increase in electricity rates.
Does New Jersey have net metering?
Yes, New Jersey offers full retail net metering, which allows you to sell excess solar energy back to the grid. This significantly improves the financial returns of going solar.
What is the solar payback period in New Jersey?
The average payback period for solar panels in New Jersey is approximately 6 years. After that, your solar panels generate essentially free electricity for the remaining 15-20 years of their warranty life.