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How Much Do Solar Panels Cost in NJ?
As solar energy has become increasingly more affordable in New Jersey over the past several years, home and business owners are transitioning at a rapid rate.
If you're considering investing in renewable solar energy, you might be curious about the price and up front costs. Here, well lay out everything you need to know about solar panel prices in the State of New Jersey.
Average Cost of Solar Panels in NJ
Before applying NJ solar incentives, the average cost of a solar panel installation in New Jersey ranges from $8,000-$20,000, according to official industry data for 2022. Accordingly, the average price per watt for installing solar panels in New Jersey is roughly $3.00 per watt.
Here is a breakdown based on the needed system size
|
Size of system |
Average Cost |
Average Cost |
|
3 kW |
$7,680 |
$5,683 |
|
4 kW |
$10,240 |
$7,578 |
|
5 kW |
$12,800 |
$9,472 |
|
6 kW |
$15,360 |
$11,366 |
|
7 kW |
$17,920 |
$13,261 |
|
8 kW |
$20,480 |
$15,155 |
The figures in the graph above are a good starting point for estimating the expenses, but the price of solar in New Jersey can change depending on a variety of variables, including your annual electricity usage, the type of solar panels you select, any available solar subsidies, and many others.
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NJ Solar Incentives
Federal Solar Investment Tax Credit (ITC)
One of the biggest incentives is the Federal Solar Tax Credit, which is also the most well-known. It may also be referred to as the Solar Investment Tax Credit or The Clean Energy Tax Credit (ITC). You can claim a credit of 26%–30% for the costs of your solar panels, and batteries, as well as certain labor and installation fees. Due to a congressional vote, the Federal Solar Tax Credit was extended in 2022.
Equipment placed in service between 2020 and 2021 receive a 26% tax credit.
Equipment placed in service between 2017-2019 and 2022-2032 receive a 30% tax credit.
Equipment placed in service after 2033 receive a 26% tax credit.
Property Taxes
Solar panels are exempt from the additional property taxes when your home increases in value with your new solar energy system. So you can enjoy the benefit of selling your home at a higher price, but not pay the extra taxes on the higher home value. On average, a new solar energy stem will increase your home value by around 4% (via Zillow.com).
Sales Tax
Solar panels are also exempt from New Jersey's 7% sales tax. This exemption includes the purchase of your entire solar energy system, including batteries and installation. Given the NJ Sales Tax in the USA is about 7%, that’s a $1,750 saving on a $25,000 Solar Energy System, instantly.
Solar Renewable Energy Credits in New Jersey
Residents of New Jersey are able to sell the energy generated by their solar systems back to the state's electrical grid thanks to solar renewable energy credits (SRECs). When it comes time to pay your electricity account each month, homeowners can utilize these credits just like cash. Simply deduct the number of SRECs that were produced during the course of the month from your electricity bill. This is calculated using Net Energy Metering by your utility or solar company.
Personalize Your Savings
There are many ways to save on your solar panel investment and options to reduce or eliminate your up front costs. By speaking with an NJ Solar Expert, you can ensure all of your questions are answered. Whether you're ready to invest now or later, set up a free consultation with our solar experts to begin your journey, today!
See how much you can save!
Let our New Jersey solar experts help you get the best deals and incentives!
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