Estimated Savings for a Typical New Jersey Home
Based on a standard 8 kW home system
System Size
8 kW
Gross Cost
$25,600
State Incentive
-$2,000
Net Cost
$23,600
Annual Savings
$1,696
Payback Period
13.9 yrs
25-Year Savings
$34,329
CO₂ Offset/yr
9,456 lbs
New Jersey Solar Incentives
✕
Federal Tax Credit (Expired Dec 31, 2025)
The 30% federal Residential Clean Energy Credit ended for purchased systems on December 31, 2025. Homeowners buying with cash or a loan in 2026 can no longer claim it. A solar lease or PPA can still pass through a federal credit through 2027 — the installer claims it and lowers your payments.
$2,000
New Jersey State Incentive
New Jersey offers Transition Renewable Energy Certificates (TRECs).
Net Metering Policy: Full Retail
Top utility in New Jersey: PSE&G. View full incentives detail →
Solar Costs by City in New Jersey
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Newark | $1,560 | 15.1 | 311,549 | PSE&G |
| Jersey City | $1,470 | 16.1 | 292,449 | Jersey Central Power |
| Paterson | $1,614 | 14.6 | 145,233 | PSE&G |
| Elizabeth | $1,607 | 14.7 | 137,298 | PSE&G |
| Edison | $1,808 | 13.1 | 107,694 | Jersey Central Power |
| Woodbridge | $1,787 | 13.2 | 99,585 | Jersey Central Power |
| Hamilton | $1,531 | 15.4 | 92,297 | Jersey Central Power |
| Toms River | $1,966 | 12 | 91,239 | Jersey Central Power |
| Clifton | $1,786 | 13.2 | 85,973 | PSE&G |
| Trenton | $1,912 | 12.3 | 83,412 | Jersey Central Power |
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Quick Facts: New Jersey
- ⚡ Avg rate: $0.165/kWh
- 🌞 Peak sun: 4.4 hrs/day
- 🏭 Top utility: PSE&G
- 📋 Net metering: Full Retail