Is Solar Worth It in New Jersey in 2026?
Complete analysis of solar costs, incentives, net metering, and payback for New Jersey homeowners — without the federal ITC.
Cost Per Watt
$3.50
installed
Electricity Rate
$0.152
per kWh
Payback (No ITC)
18.6 yr
current reality
Payback (With 30% ITC)
13 yr
hypothetical
25-Year ROI
34%
return on investment
Incentive Breakdown — New Jersey
Available incentives for a typical 7kW residential solar system in New Jersey
Federal ITC (25D)
ExpiredThe federal solar Investment Tax Credit expired on January 1, 2026. No federal credit available for new installations.
State Tax Credit
NoneNew Jersey does not offer a state tax credit for solar installations.
SREC Market
~$1,085/yrNew Jersey has one of the most valuable SREC markets, averaging approximately $155/SREC (SREC-II Transition Incentive).
Property Tax Exemption
Solar system value excluded from property tax assessment
Sales Tax Exemption
Solar equipment exempt from state sales tax
Low-Income Program
AvailableNew Jersey offers programs to help low-income households access solar energy.
Key Incentives: Property tax exemption for solar; Sales tax exemption on solar equipment; SREC market value ~$1,085/year; Low-income solar program available.
Solar Math — With vs Without Federal ITC
Cost breakdown for a typical 7kW residential system in New Jersey
2026 Reality (No Federal ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC
- $0
- Net Cost
- $24,500
- Annual Savings
- $1,316/yr
- Payback Period
- 18.6 years
Hypothetical (With 30% ITC)
- System Size
- 7 kW
- Cost per Watt
- $3.50/W
- Gross Cost
- $24,500
- Federal ITC (30%)
- -$7,350
- Net Cost
- $17,150
- Annual Savings
- $1,316/yr
- Payback Period
- 13 years
Impact: Without the federal ITC, New Jersey homeowners face a 5.6-year longer payback period — paying $7,350 more out of pocket.
Net Metering Policy — New Jersey
How New Jersey compensates your excess solar production
Full retail rate net metering — you earn the same rate you pay for electricity. Best case for solar savings.
New Jersey mandates full retail net metering for solar systems under BPU rules.
Cost Per Watt Benchmark — New Jersey
New Jersey Average
$3.50/W
National Average
$3.05/W
Typical 7kW System
$24,500
New Jersey's average installed cost is above the national average of $3.05/W
Breakeven Timeline
Without the federal ITC, a typical 7kW system in New Jersey breaks even in 18.6 years. With the former 30% ITC, payback would drop to 13.0 years.
Without Federal ITC
18.6
years to break even
With Former 30% ITC
13
years to break even
Production Details
Ready to Go Solar in New Jersey?
Get free, no-obligation quotes from certified solar installers in New Jersey and see real pricing for your home.
Get Free Solar Quotes