New Jersey is a leading solar state with more than 4 gigawatts of total installed solar PV capacity. The Solar Manufacturing Association ranks eighth in the state of New Jersey in total installed photovoltaic capacity. About 7% of electricity in the country is obtained from solar power plants, which will increase in the coming years.
According to CNET corporate partner SaveOnEnergy, the Garden State has the 12th highest consumer electricity costs in the nation. The average cost of electricity in New Jersey was $112.81 in October, or $1,353.72 for the year. Investing in solar panels could save residents more than $1,353.72 a year after the New Jersey Board of Public Utilities unanimously approved a September 2022 electric rate hike due to higher fuel prices. Rising electricity rates make solar energy an attractive option for New Jersey consumers looking to lower their energy costs.
Going solar is more possible and affordable for many Americans than it was a decade ago. According to a report by the National Renewable Energy Laboratory, the cost of residential solar panels has dropped 64% since 2010. Federal, state and local incentives can significantly reduce the initial cost of solar panels. Solar panels can help you save on your energy bills , reduce your home's carbon footprint, and increase your home's value.
Cost of solar panels in New Jersey
The cost of a home solar system will depend on the number and type of panels used, component selection, installation costs and local permit fees. Prices vary from country to country due to different local fees, system size and incentives. The average size of a residential solar system in New Jersey is about 8 kW, which is slightly higher than the national average of 6 kilowatts. Distribution of solar panel cost and average system size in New Jersey, based on data from Lawrence Berkeley National Laboratory.
Typical New Jersey Solar Installation Costs
| | System Size (kW) | Price per watt | total cost |
|---|---|---|---|
| Tall | 11:9 | $4.31 | $51,323 |
| medium | 8.1: | $3.54 | $28,908 |
| Short | 5.4: | $2.82 | $15,352 |
New Jersey v. United States
| | System Size (kW) | Price per watt | total cost |
|---|---|---|---|
| New forms | 8.1: | $3.54 | $28,908 |
| we | 6:5 | $3.82 | 24742 dollars |
If you are interested in installing solar panels on your property, it will cost thousands of dollars. While the easiest way to buy is with cash, not all homeowners have the money to pay for a solar system upfront. Other ways to purchase solar panels include solar financing or a power lease or purchase agreement. All of these options are available in New Jersey. Note, however, that signing a solar lease agreement, or PPA, does not qualify you for tax credits and other financial incentives because you will not own the system.
Disclosure of the advertiser . CNET corporate partner SaveOnEnergy can help you find the right energy for your home. SaveOnEnergy Marketplace helps you find, compare, record and save the energy you need for your home, all for free. If you're interested in solar power, answer a few questions to get an accurate quote from our solar consultants.
New Jersey Solar Promotions and Discounts
Despite significant cost reductions since 2010, solar panels still cost thousands of dollars. You can lower your rates further with federal tax credits and other benefits available only in New Jersey.
The federal Clean Energy Housing Credit (formerly known as the Investment Tax Credit) allows you to deduct 30% of the cost of your solar system from your federal tax return after you purchase solar panels. Federal loans alone can save more than $8,600 on the average cost of installing a solar system in New Jersey. Most solar panels also qualify for federal tax credits when combined with a solar panel.
The Inflation Reduction Act, a major federal climate law passed in August 2022, increases and extends the solar tax credit through 2034. The loan will decrease to 26% in 2033 and to 22% in 2034. You can complete and file Form 5695 (PDF). ) ) to the IRS for clean energy credits. Follow the IRS instructions to complete this form. Once the IRS approves your paperwork, you'll receive a credit for your solar savings when you file your federal income tax return for the year.
New Jersey also offers several incentives for residential buildings to help reduce solar costs. While you can find a comprehensive list of state park incentives in the government's Renewable Energy and Efficiency Incentives Database, here are the best ones to look out for.
| Program: | information |
|---|---|
| Net size | New Jersey's Net Meter Law requires state utilities to provide net metering to residential, commercial and industrial customers. Solar system owners can sell excess production to the grid at retail prices. |
| Property Tax Exemption for Solar Investments | In 2008, the state of New Jersey passed a law exempting solar systems from property taxes. Owners of solar panels must obtain a certificate from a local assessor to obtain an exemption. The amount of the campaign is 100% of the added value of the solar system. |
| Sales tax exemption for solar panel systems | New Jersey solar owners are eligible for a state tax credit on all solar equipment. All taxpayers in the state deserve relief. |
| A follower of the Solar Energy Incentive Program | The SuSI program replaces the New Jersey Renewable Solar Credit Program. SREC is a commercial certification that demonstrates the positive environmental impact of your solar system. With the SuSI program, you can earn one SREC for every megawatt hour your solar system produces. Residential solar systems of all sizes receive a $90 SREC over 15 years. |
New Jersey Solar Panel Company
According to SEIA, there are 370 solar companies operating in New Jersey. With so many options, it's hard to narrow down your choices. Here is a list of the best solar panel installers in New Jersey.
Green energy energy
Since 2009, Green Power Energy has installed more than 130,000 residential solar systems in New Jersey. The company also installs battery storage systems and chargers for electric vehicles. Green Power Energy offers a 25-year limited performance warranty, and most of its equipment comes with a 25-year product and performance warranty. The company offers financing and solar leasing to customers who cannot pay cash for solar systems.
Solar impulse
Momentum Solar is one of the fastest growing solar energy companies based in New Jersey with services in 10 other states. The company employs professionals in the field of sales, design, operation, installation and connection of solar energy systems for residential and commercial customers. Momentum Solar also installs batteries, which are currently limited to five states, including New Jersey. The company offers a 25-year labor warranty and a 25-year product warranty. Momentum Solar customers can purchase outright, finance solar panels or enter into a lease or PPA.
New Jersey Sun
Founded in 2003, New Jersey Solar Power is one of the oldest solar facilities in the state. The company's services include solar panel installation, solar panel and electric vehicle chargers, real-time remote monitoring, solar panel financing, repair and maintenance. New Jersey Solar Power partners with leading solar power manufacturers such as Enphase Energy, SolarEdge Technologies, Tesla, Q Cells and Generac. The company offers a 25-year labor warranty and a 25-year product and performance warranty on all solar equipment. It does not offer APP and solar panels for rent.
Sun Palmetto
Palmetto Solar is one of the nation's largest solar panels and battery installers. Palmetto has built a strong customer support team since its inception in 2010. The company answers all your solar energy questions via phone, 24/7 online chat and email. It also offers after-sales support, such as the optional Palmetto Peace of Mind package, which includes monitoring of your solar system and discounts on solar panel maintenance, repair and cleaning. It promises a 25-year labor warranty, a 25-year labor warranty and a 12-year product warranty. If you can't afford a solar system with cash, Palmetto offers solar loans, leasing and PPA options to its customers.
Sun
Founded in 1985, SunPower is one of the world's leading solar energy companies. One of the leading solar panel manufacturers, SunPower Maxeon solar panels have the highest commercial efficiency of nearly 23%. The company also offers solar installation services across the United States through an extensive network of certified installers who manage the entire customer lifecycle, including design, permitting, installation, cabling and maintenance. SunPower offers a 25-year complete reliability warranty, a 25-year performance warranty, and a 25-year labor warranty. SunPower offers solar, leasing and PPA financing options to its customers. In 2021, SunPower launched its own financial institution, SunPower Financial, which offers attractive solar loans to low-income people.
Mounting factors to remember
Using solar energy is not cheap. There are many factors to consider when deciding whether solar power is right for your home, including:
- The condition and slope of your roof. Before installing solar panels, your roof must be in good condition. Installing a new solar system on an old roof can cost more in the long run because you will have to remove the panels and cables if the roof is replaced or repaired. Roofing professionals will inspect the condition of your roof before installing solar panels. many The slope of the roof will affect the performance of your solar panels . The Department of Energy has determined that solar panels work most efficiently at an angle of 15 to 40 degrees.
- HOA and environmental regulations. New Jersey prohibits homeowner associations from blocking solar installations for their members. The state's solar easement law gives residents the right to negotiate solar easement licenses with their neighbors to get the best solar exposure from their solar system.
- Insurance protection. It is recommended that you include solar panels in your home owner's insurance policy . Most homeowner's policies cover rooftop solar panels, but you should check your policy information with your insurance company.
- Climate. New Jersey gets a lot of snow in the winter. Although less solar energy is produced in the winter than in the summer due to the shorter days, as long as the sun reaches the panel surface, your solar panels will convert photons of sunlight into electricity. Solar panels can achieve maximum efficiency even in cold weather, as their optimum temperature is between 40 and 55 degrees Fahrenheit. Although heavy snow can temporarily reduce solar power, solar panels are typically installed at an angle to allow snow to fall and continue to form.
- Cost and time. For most people, going solar is a significant investment. But before you take out a solar loan, lease or PPA, you should consider how long you plan to live in your home. You won't get any long-term savings from a solar generator if you have to move in a few years. However, if you intend to stay in your home for a long time, solar panels may be the right solution. The average payback period for solar panels is six to nine years, but this varies from state to state.
Frequently asked questions about solar power in New Jersey
How did New Jersey become the leading producer of solar energy in the US?
New Jersey's Clean Power Plan is a major reason. Established in 2001, it includes elements of strong solar growth, such as the elimination of annual solar output in the government's renewable portfolio standards and the development of the SREC program. Additionally, it includes a net metering standard to encourage residential solar investment. These moves have created a robust market for solar energy, where investors are compensated for producing clean, renewable energy.
What is the variable portfolio standard?
The Renewable Portfolio Standard, or RPS, is a government regulation that requires utilities to generate a certain percentage of electricity from renewable sources. The APP aims to increase the share of renewable energy sources in energy production and diversify energy sources. New Jersey, one of 31 states with RPS targets, has the most ambitious RPS in the US. It calls for 35% of energy sales to come from renewable sources by 2025 and 50% by 2030. In New Jersey, the RPS aims to expand the state's use of clean energy technologies and provide economic and environmental benefits.
You can sell SRECs to electricity providers and suppliers who want to comply with their government's RPS requirements. Since SREC is an electronic certificate with name, location, fuel type, SREC quantity and SREC price, you can sell it on the GATS bulletin board (free) or through a broker or aggregator (fee applies). Like Sol Systems.
What happens to my SREC if I sell my home?
If you sell your home, you can transfer ownership of your solar system and SREC to the new owner. You and the new owner must upload and complete paperwork through the PJM-EIS Generation Attribute Tracking System to transfer ownership of the solar system and SREC.
