Solar power systems require a significant upfront investment, and system size is one of the biggest cost factors. Most New Jersey homeowners need a 5 kilowatt (kW) system, which costs an average of $2.95*. That 's $14,750, or $10,325 after the 30 percent federal tax credit . The bigger your system, the higher your costs.
Distribution of solar module prices by system size .
* Price provided by SunPower
In addition to system size, many factors affect the cost of solar modules. Here are some other important aspects to consider:
- Equipment: In addition to solar panels, you'll need to install other equipment, such as an inverter, to convert the energy your panels produce into usable electricity. Depending on how much sunlight your roof receives, additional equipment may be required. If your roof is partially shaded during the day, you can install more efficient panels or a solar panel to store excess energy and use it during low sunlight hours. You can also add electric vehicle (EV) chargers.
- Installation: There are many ways to install solar panels. The most common are racks and shelves, but some installations require additional components such as: B. Floor or car racks, which increases labor and material costs.
- Interconnection. Interconnection involves connecting your solar panel system to the grid. Each local utility company has specific connection requirements that can affect the cost of your project.
- Roof type: Solar panels can be installed on flat, metal or pitched roofs. Each type of roof requires different components and labor, which will affect your total cost. For example, flat roofs require construction of sloping surfaces, which increases labor costs.
- Types of solar panels. There are different types of solar panels, each with different costs and benefits. Monocrystalline panels are the most expensive, but also the most efficient. Polyuristic modules are cheaper, but less efficient. If you have a small roof, consider using monocrystalline panels to make up for the lack of space.
Although installing a solar system requires a large upfront investment, there are several federal and state tax credits that can reduce the cost. You will also save on energy costs in the long run. Solar modules typically pay for themselves within five to seven years.
Garden State residents can take advantage of the following solar incentives:
Federal Solar Investment Tax Credit (ITC)
The Federal Solar Tax Credit allows homeowners a 30% tax deduction for the cost of installing solar panels. In 2033, this figure will rise to 26%.
How to register?
To qualify for the federal tax credit, you must own your home and solar panels in the United States. This applies to solar owners who have already purchased their system or taken out a loan. Customers who lease or have a Power Purchase Agreement (PPA) will be disqualified. To claim the credit, you must file IRS Form 5695 as part of your tax return. For more information on tax credit claims, visit the IRS website .
Net metering in New Jersey
New Jersey is one of the few states that has a net metering program that allows you to sell excess energy produced by your system back to the grid. For every kilowatt hour (kWh) produced, you will receive a credit towards future electricity bills.
How to register?
These plans vary by utility provider. The New Jersey Clean Energy Program website provides guidance for individual utilities as well as more general information about the New Jersey Clean Metering Program .
Property tax exemption
Solar systems increase the value of your property, but Garden State homeowners don't have to pay additional taxes thanks to the state's solar property tax exemption .
How to register?
In New Jersey, owners of solar panels must obtain a certificate from the local property appraiser . This certificate reduces the taxable property value of your home without a renewable energy system.
Sales tax exemption for solar modules
Equipment purchased for your solar energy system is exempt from New Jersey sales tax of 6.625%. This incentive is available to all taxpayers and includes passive solar installations such as a sunroom or solar greenhouse .
How to register?
Fill out this New Jersey form and mail it to the seller instead of paying sales tax. Learn more from the New Jersey Sales Tax Department .
Next Solar Incentive (SuSI)
This program is the successor to the popular Solar Renewable Energy Certificate (SREC) program. Under SuSI or SREC-II, you generate a credit for every megawatt hour (MWh) of energy your system produces. You earn $90 per SREC II loan and can sell your loans for additional income.
How to register?
Owners of residential solar systems must complete an Administrative Designated Incentive (ADI) application . Candidates are selected on a first-come, first-served basis.
According to SEIA, New Jersey employs more than 200 solar installers. To help you narrow down your options, we've listed our top three recommendations for solar companies below.
- Momentum Solar. Momentum is committed to making the transition to solar as easy as possible. The company offers whole-home integration, including battery backups and electric car chargers. Momentum also offers several financing options. See our Momentum test for more information.
- SunPower. SunPower is a good choice for customers looking for an experienced installer. The company was founded in 1985 and is considered a leader in the solar energy industry. It offers a wide range of proprietary products, including the most efficient panels on the market , as well as exclusive warranties. See our SunPower review for more information.
- Venture Solar. Venture only operates in the Northeast, making it a good option for homeowners who want a local provider. It offers high-quality LG products, flexible payment options and easy installation.
Compare the costs of solar companies in New Jersey
Conclusion. Cost of solar panels in New Jersey
Solar panels are a significant investment, but it still pays off. They can allow you to save on utility bills, generate passive income through net metering, and increase the resale value of your home.
Before installation, make sure your home is suitable for solar power. We also recommend getting at least three quotes from different solar companies before making a decision.
