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Solar Cost Per Watt in New Jersey
Average $$2.95/W • Rank #$39 of 51 • 9-year payback • Updated 2026
Urgent tax credit deadlines
- Section 48E phase-out completes December 31, 2027 — projects must be placed in service by then (469 days left).
Cost Per Watt
$2.95
avg in New Jersey
vs National
+$0.25
(+9.3%)
Payback (8kW)
9 yrs
avg
Sun Hours/Day
4.4
peak
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Cost Per Watt by System Size in New Jersey
Cost per watt typically decreases for larger systems (economies of scale).
Bars show New Jersey's $/W for each system size. Lower = better value.
| System Size | Cost Per Watt | Total Cost | vs National Avg |
|---|---|---|---|
| 4 kW | $3.25/W | $13,000 | +$0.55 |
| 5 kW | $3.10/W | $15,500 | +$0.40 |
| 6 kW | $3.01/W | $18,060 | +$0.31 |
| 7 kW | $2.95/W | $20,650 | +$0.25 |
| 8 kW | $2.89/W | $23,120 | +$0.19 |
| 10 kW | $2.80/W | $28,000 | +$0.10 |
| 15 kW | $2.71/W | $40,650 | +$0.01 |
2027 Price Outlook: Section 232 Solar Tariff
On August 6, 2026, a Section 232 proclamation under the Trade Expansion Act of 1962 imposed a15% ad valorem tariff on imported solar polysilicon derivatives (wafers, cells, and finished modules, all origins) and Minimum Import Price (MIP) floors — including a $0.38/W module floor. Raw polysilicon-only imports are subject only to the $21/kg MIP floor, not the 15% tariff. Effective December 4, 2026 and enforced by U.S. Customs and Border Protection (CBP), these rules apply to all imported modules regardless of origin or FEOC status. The cost-per-watt figures on this page reflect pre-tariff 2026 pricing; expect 2027 installed costs in New Jerseyto rise as the module floor passes through the supply chain. See ourfull tariff trade-policy guidefor the duty-stacking table and sourcing details.
Solar Cost Overview for New Jersey
In New Jersey, the average installed cost for residential solar is $2.95 per watt, with typical systems ranging from $2.95/W to $2.95/Wdepending on the installer, equipment quality, and roof complexity. New Jersey ranks #39 out of 51 states (1 = cheapest) for solar affordability — 38 states have cheaper solar.
New Jersey is below the national average — solar is competitive here.
What's Driving New Jersey's Solar Costs?
New Jersey's $$2.95/W average reflects a combination of near average equipment costs,above-average local utility rates ($0.233/kWh vs national avg $0.1844/kWh), and below-average solar resource (4.4 sun hours/day vs national avg 4.7).
Note on panel pricing:Prices shown reflect AVL/DomCon-compliant panels. The 30% residential federal tax credit (Section 25D) expired December 31, 2025 — an owned residential system installed in 2026 receives $0 in federal credit regardless of panel choice. Non-compliant panels (Mission, JA, Canadian) are available from $0.37/W panel-only and additionally disqualify the Section 48E credit (lease/PPA/commercial) and IRA bonus credits.See current ITC status →
New Jersey Solar Incentives & Policies
Net Metering
Full retail net metering
State Tax Credit
None
Property Tax Exemption
Yes
Sales Tax Exemption
Yes
⚠ 2026 Federal ITC Update
The Section 25D residential solar tax credit (30%) expired December 31, 2025. Owned residential systems installed in 2026 no longer qualify. The 48E ITC (30%) remains available for lease/PPA, commercial, and rental properties - pre-July 4, 2026 construction starts keep the standard window; later starts must be placed in service before January 1, 2028.
States With Similar Solar Costs
New Jersey Solar Cost FAQs
How much do solar panels cost in New Jersey?
Is New Jersey a cheap or expensive state for solar?
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Does New Jersey have net metering?
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How many peak sun hours does New Jersey get?
Related Tools
New Jersey cost-per-watt data based on 5 ZIP code samples. Production estimates use NREL PVWatts V8 (azimuth 180°, tilt 30°, array_type 1, module_type 1, losses 14%). Utility rate averages from NREL Utility Rate API V3. The federal Section 25D residential solar tax credit expired December 31, 2025.