Solar Calculator for New Jersey: Costs, Incentives & ROI
New Jersey punches well above its weight in rooftop solar despite sitting in the northeastern United States, where moderate peak sun hours might seem like a disadvantage. The state has historically ranked among the top five residential solar markets by cumulative installed capacity, driven by some of the highest electricity rates on the East Coast, aggressive incentive programs administered by the New Jersey Board of Public Utilities, and a dense suburban landscape of single-family homes ideal for rooftop systems. The cornerstone of New Jersey's current incentive framework is the Successor Solar Incentive program, which replaced the Renewable Portfolio Standard-based SREC market in 2021. Under the SuSI program, residential systems up to 10 kilowatts are eligible for Administratively Determined Incentive payments — a fixed per-kilowatt-hour rate paid monthly for fifteen years by the program administrator. This predictable, long-term payment stream stacks on top of net metering credits, a full property tax exemption for the added assessed value of the solar installation, and a sales tax exemption on solar equipment; the federal thirty-percent Investment Tax Credit used to sit in that stack too, but it expired December 31, 2025 and no longer reduces the cost of a new system. New Jersey's three largest investor-owned utilities — PSEG (Public Service Electric and Gas), Jersey Central Power & Light, and Atlantic City Electric — all participate in the state's net metering program under rules set by the BPU. Use the calculator below to estimate your specific payback period and 25-year savings based on your ZIP code, utility territory, system size, and electricity consumption.
Incentive data updated: September 2026
Average Solar Cost in New Jersey
Average installed solar costs in New Jersey typically range from $2.70 to $3.30 per watt for residential systems before incentives, based on Lawrence Berkeley National Laboratory Tracking the Sun data and EnergySage marketplace pricing. A typical six-kilowatt system therefore costs roughly $16,200 to $19,800 out of pocket — slightly above the national residential average of around $3.00 per watt, reflecting New Jersey's higher labor and permitting costs, the prevalence of complex roof architectures common in older suburban housing stock, and installer markups in the densely populated northeast corridor. The thirty-percent federal ITC used to bring a typical six-kilowatt net cost down to approximately $11,300 to $13,900; it expired December 31, 2025, so that discount is no longer available and the gross figure is what a homeowner pays. The SuSI ADI program provides an additional stream of per-kilowatt-hour payments for fifteen years, further improving project economics. New Jersey imposes no sales tax on solar energy equipment or installation labor, and the full installed value of the system is exempt from property tax reassessment under the New Jersey Solar Energy Property Tax Exemption. The six-to-nine-year payback range NJ homeowners saw historically assumed the federal credit; with the state-level package alone, expect the upper end of that range or beyond, depending on system size, utility territory, and electricity consumption.
- Avg. installed cost
- $3.00/W
- Typical 6 kW system
- $16,200–$19,800
Top Solar Incentives in New Jersey
- New Jersey Successor Solar Incentive (SuSI) SREC-II Programsrec
Electricity Rates in New Jersey
New Jersey residential electricity rates are among the higher in the Mid-Atlantic region, with the 2025 statewide average near 17 to 18 cents per kilowatt-hour according to EIA data — above the national average but below the extremes of California or Massachusetts. PSEG customers in northern and central New Jersey pay a blended rate that typically falls between 18 and 20 cents per kilowatt-hour when standard delivery charges are included, while Jersey Central Power & Light and Atlantic City Electric customers generally land slightly below that in the 15 to 17 cent range. All three utilities offer net metering programs governed by the New Jersey Board of Public Utilities, which credits excess solar production at the full retail rate for new interconnections. The relatively high retail rate makes self-consumed solar electricity particularly valuable — each kilowatt-hour produced and used on-site avoids the full retail purchase price rather than being credited at a lower export rate. Time-of-use rate schedules have been introduced by some New Jersey utilities, and selecting a rate plan that aligns solar production timing with peak demand windows can further improve the economics of a rooftop system.
Latest residential average: 24.9¢/kWh (period 2026-06, EIA).
Peak Sun Hours in New Jersey
New Jersey averages between 4.2 and 4.8 peak sun hours per day, which is moderate by national standards but sufficient for strong solar economics given the state's high electricity rates and generous incentive programs. The southern portion of the state — including Atlantic, Cape May, Cumberland, and Salem counties — benefits from slightly more sun exposure than the densely developed urban corridors of northern New Jersey. The New York metropolitan fringe in Bergen, Essex, and Hudson counties typically logs the lower end of the range due to higher urban aerosol concentrations and more frequent overcast days during the mid-Atlantic winter. Winter months significantly reduce solar production statewide, meaning annual energy yield per kilowatt of installed capacity in New Jersey runs roughly 25 to 35 percent below that of high-irradiance states like Arizona or Nevada. NREL's PVWatts tool incorporates ZIP-code-level Typical Meteorological Year data, so the production estimate from the calculator above reflects seasonal and local variation for your specific address.
Example ROI for a 6 kW System
- Estimated annual savings
- $1,650
- Payback period
- 9.0 years
- 25-year net savings
- $29,000
Run a personalized estimate with your ZIP code using the Solar ROI Calculator.
Major Cities in New Jersey
- Newark07102
- Jersey City07302
- Trenton08608
- Atlantic City08401
- Camden08101
Common Questions About Solar in New Jersey
What is the NJ SuSI program and how much does it pay?
The Successor Solar Incentive program, launched by the New Jersey Board of Public Utilities in 2021, replaced the state's original Solar Renewable Energy Certificate market. For residential systems up to 10 kilowatts, SuSI provides Administratively Determined Incentive payments — a fixed per-kilowatt-hour rate paid monthly for fifteen years by the program administrator. The ADI rate is set by capacity block, with earlier blocks receiving higher rates; as capacity fills, later blocks receive lower payments. Homeowners apply through their installer, and payments begin once the system passes interconnection and inspection. The SuSI ADI stacks with net metering credits; it also stacked with the federal Investment Tax Credit until that credit expired December 31, 2025.
Does New Jersey have net metering for solar?
Yes. New Jersey's net metering program, regulated by the New Jersey Board of Public Utilities, allows residential solar customers to receive a kilowatt-hour credit on their utility bill for any excess electricity their system exports to the grid. Under current rules for new interconnections, credits are applied at the full retail rate — meaning a kilowatt-hour exported earns the same credit as a kilowatt-hour consumed from the grid would cost. If your system produces more than your annual consumption, excess credits may roll over monthly or be paid out at the avoided-cost rate at year-end depending on your utility. Net metering applies uniformly to PSEG, Jersey Central Power & Light, and Atlantic City Electric customers within their service territories.
Are there property tax and sales tax exemptions for solar in New Jersey?
Yes. New Jersey provides two significant tax exemptions for residential solar installations. The Solar Energy Property Tax Exemption under N.J.S.A. 54:4-3.113 prevents your municipality from increasing assessed property tax value based on the installed cost of the solar system — the value the solar adds to your home is excluded from taxable assessed value. Additionally, New Jersey imposes no sales tax on the purchase of solar energy equipment or installation labor under the NJ Sales and Use Tax Act, saving homeowners roughly 6.625 percent on the full system cost. Both exemptions are recognized automatically — the property tax exclusion applies at assessment, and the sales tax exemption is applied by the contractor at point of sale.
Can I combine the SuSI ADI with the federal Investment Tax Credit?
Not any longer. The federal thirty-percent Investment Tax Credit expired December 31, 2025, so for a system placed in service in 2026 or later there is no federal credit left to combine with SuSI — the ADI payments now stand on their own. While the credit ran the two were fully stackable, with no offset or recapture: the ITC was calculated on the full installed cost of the system, including labor and permitting, rather than the cost net of any state incentive, so a homeowner installing a six-kilowatt system for $18,000 could have claimed a $5,400 federal credit and still collect SuSI ADI production payments for fifteen years. The ADI payments are generally treated as taxable income federally and never reduced the ITC basis. New Jersey does not offer a separate state income tax credit for residential solar.
Is NJ a good solar state despite its northern location?
Yes — New Jersey consistently outperforms many southern states in solar economics per dollar invested despite its lower solar irradiance, because the combination of high electricity rates, the SuSI ADI incentive payments, full-retail-rate net metering, and robust property and sales tax protections compensates for the reduced production per installed kilowatt. A solar system in New Jersey avoids a higher-priced kilowatt-hour than the same system in a lower-rate sunbelt state, which improves the dollar-value return on each unit of production. The NREL PVWatts tool provides ZIP-code-level production estimates that account for New Jersey's actual irradiance, so the calculator above reflects realistic output rather than national averages.