| Peak sun hours per day | 4.0 – 4.6 |
|---|---|
| Annual kWh per kW installed | 1,150 – 1,350 |
| Typical system size | 6 – 9 kW |
| Electricity rates | High |
| Export credit regime | Full retail net metering plus performance payments |
How New Jersey credits the power you export
New Jersey has combined retail-rate net metering with a
performance incentive: successor programmes to the original SREC
market pay residential systems a fixed amount per megawatt-hour generated for a
defined term, regardless of whether that energy is used at home or exported.
That second income stream is the thing to understand here. It means total return
depends on how much you generate, not only on how much you avoid buying —
a meaningfully different optimisation from a net-billing state.
The general mechanics are in net metering explained; this is how they land in New Jersey.
What a system costs here
New Jersey pricing sits broadly within the national band of $2.50–$3.50 per watt before incentives, so a typical 6 – 9 kW system lands somewhere around $15,000–$32,000 before credits. Local labour rates, permitting fees and whether you need an electrical panel upgrade move that more than the panel brand does. Full breakdown in what solar panels cost.
Incentives that stack in New Jersey
| Layer | What it does |
|---|---|
| Performance payments | A fixed payment per MWh generated for a defined term under the state's successor incentive programme. Confirm the current rate and term. |
| Sales tax | Solar equipment has been fully exempt from New Jersey sales tax. |
| Property tax | The added home value from a renewable system has been exempt from property tax assessment. |
When solar is a poor fit in New Jersey
- Dense suburban tree cover is the most common practical obstacle in much of the state.
- Programme registration matters — systems generally have to be registered to earn performance payments, so confirm your installer is handling it.
- Older homes frequently need a service upgrade before an array can be connected.
The universal disqualifiers apply here too — renting, a roof near end of life, or moving within a few years. See roof age and solar and what happens when you sell.
New Jersey solar questions
How do New Jersey solar incentives work?
Two layers: retail-rate net metering reduces your bill, and a separate performance programme pays a fixed amount per megawatt-hour your system generates for a defined term. The second is what makes New Jersey unusual — confirm the current rate before you model returns.
Is solar worth it in New Jersey?
The combination of high electricity rates, retail net metering and performance payments has made New Jersey one of the stronger residential markets despite moderate sun. Tree shading is usually the deciding practical factor.
What happened to SRECs in New Jersey?
The original market-priced SREC programme closed to new registrations and was replaced by successor programmes paying a fixed rate per MWh. The concept is the same — you are paid for generation — but the price is set rather than traded.
General information for New Jersey homeowners, not financial, tax or engineering advice. Figures are planning ranges; your own quote depends on your roof, your consumption and your utility.