Is solar worth it in New Jersey?
At New Jersey’s average rate of 23.1¢/kWh and about 1250 kWh per kW of panels a year, a typical home pays back its system in roughly 9.5 years on electricity savings alone — no federal credit, which ended for buyers at the end of 2025 — then keeps saving. Run your own numbers below.
Sources: EIA · NREL · IRS. No federal credit — it ended 31 Dec 2025.
Independent estimate for guidance only — not a quote or advice. Full retail net metering plus SREC-II income make NJ a strong-payback state.
What drives solar payback in New Jersey
New Jersey homeowners pay about 23.1¢/kWh, which is 4.7¢ above the national average. A rooftop here generates roughly 1250 kWh per kW each year — below the typical US figure. On exports, New Jersey offers full retail net metering: Full retail net metering plus SREC-II income make NJ a strong-payback state.
New Jersey electricity price trend
Average residential rate, monthly, May 2023 – Apr 2026. Up 37% over the period.
Source: U.S. Energy Information Administration (EIA), Electric Power Monthly · range 17.13–23.83¢/kWh
A worked example
For a New Jersey home with a $202/month power bill (typical household usage at New Jersey’s rate):
That nets out to a payback of about 9.5 years — shorter than simply dividing net cost by year-one savings, because power prices climb ~2.5%/yr so your savings grow each year. Assumes 3.00 $/W installed before incentives and a typical 40% self-consumption; your actual cost, roof and usage will differ — adjust the calculator above.
Who supplies your power in New Jersey
New Jersey's four electric utilities — PSE&G, JCP&L, Atlantic City Electric (ACE) and Rockland Electric (RECO) — all participate in the same statewide net-metering and incentive framework, so your terms are broadly consistent wherever you are in the state.
What you’re paid for what you export
Exports in New Jersey still earn the full retail rate, one-for-one — among the best deals left in the country. Surplus credits roll over month to month, and at the annual true-up any remaining balance is paid out at the wholesale avoided-cost rate. For systems up to 5 MW, that means the grid effectively still works as a near-perfect battery — the opposite of California's NEM 3.0.
New Jersey incentives & taxes in 2026
This is where New Jersey shines, and it more than offsets the loss of the federal credit. The Successor Solar Incentive (SuSI), through its Administratively Determined Incentive, pays residential systems roughly $85 per megawatt-hour generated for 15 years — on the order of $750–$815 a year for a typical home system, locked in. Stack on a 6.625% sales-tax exemption and a 100% property-tax exemption (no small thing in the state with the nation's highest property taxes), and the incentive picture is genuinely strong. DSIRE has the current SuSI details.
The 30% federal credit ended on 31 December 2025 and can now only reach a homeowner indirectly through a lease or PPA. Check the current state and utility programs on DSIRE’s New Jersey list, then type any incentive into the calculator above to see how it shortens your payback.
What solar costs in New Jersey
Installed costs run a little above the national average — about $3.05 per watt — reflecting Northeast labour and permitting. Even so, the incentive stack does the heavy lifting on payback.
The honest verdict for New Jersey
New Jersey is the clearest "still worth it without the federal credit" case in the country. SuSI income plus full retail net metering plus both tax exemptions stack up to keep payback around 7–9 years even at a low-20s ¢/kWh rate — a combination most states simply can't match in 2026.
Sources for this page
Driving electric — or heating electric — in New Jersey?
Your home electricity rate also sets what it costs to charge an EV and whether a heat pump beats a gas furnace. See the New Jersey EV charging cost and the New Jersey heat pump vs gas comparison.