⚠️ The federal clean-energy tax credits were rolled back in 2026 (solar/battery credits ended Dec 31, 2025; the EV-charger credit June 30, 2026). State & utility rebates are now the main savings.
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Solar Panel Cost in Paterson, New Jersey

Local pricing, savings, and net metering data for Paterson homeowners.

$1,614
Annual Savings
14.6 yrs
Payback Period
$23,600
Net Cost
$31,521
25-Year Savings

Solar in Paterson: What Homeowners Should Know

Paterson sees an average of 4.4 peak sun hours per day, which is what ultimately determines how much electricity a rooftop system produces here. A standard 8 kW system (about 20 panels) generates roughly 10,278 kWh each year in Paterson — and paired with New Jersey's local electricity rate of $0.157/kWh, that's where the savings come from.

At those numbers, a Paterson homeowner saves about $134/month ($1,614/year). Against a $25,600 system cost (about $23,600 after New Jersey state incentives), that works out to a payback of about 14.6 years, after which the system produces essentially free power for two decades — an estimated $31,521 in lifetime savings. Note: the 30% federal tax credit expired at the end of 2025 for purchased systems, though a solar lease or PPA can still pass it through. The local grid is served by PSE&G, whose net metering policy directly affects how much credit you earn for surplus power.

Cost & Savings Breakdown

Based on a standard 8 kW system in Paterson

System Size
8 kW
Annual Production
10,278 kWh
Gross System Cost
$25,600
State Incentive
-$2,000
Net Cost
$23,600
Monthly Savings
$134
CO₂ Offset/yr
9,456 lbs

25-Year Savings Projection

-$22k-$9k$5k$18k$32kBreakeven yr 13$32kyr 1yr 5yr 10yr 15yr 20yr 25

Utility & Net Metering

Local UtilityPSE&G
Net Metering PolicyFull Retail
Compensation RateFull retail rate
Capacity LimitNo overall limit
Electricity Rate$0.157/kWh
Peak Sun Hours4.4 hrs/day

Available Incentives

$2,000
New Jersey State IncentiveNew Jersey offers Transition Renewable Energy Certificates (TRECs).
Federal Tax Credit — The 30% federal credit expired Dec 31, 2025 for purchased systems. A solar lease or PPA can still pass it through 2027.
View all New Jersey incentives →

Choosing a Solar Installer in Paterson

  • 1.Get at least 3 quotes. Prices in New Jersey vary widely between installers — comparing bids on the same 8 kW system is the fastest way to avoid overpaying.
  • 2.Confirm PSE&G interconnection experience. An installer who regularly files with your local utility will move your permit and net-metering paperwork through faster.
  • 3.Check licensing & the warranty. Look for NABCEP-certified installers and a workmanship warranty of 10+ years on top of the standard 25-year panel warranty.
  • 4.Size for your actual usage. With 4.4 sun hours/day in Paterson, make sure the proposed system matches your kWh history — not just your roof space.

Common Questions

How much does solar cost in Paterson?

Solar in Paterson, New Jersey costs approximately $25,600 for a 8 kW system, or about $23,600 after state incentives. The 30% federal tax credit expired December 31, 2025 for purchased systems, though solar leases and PPAs can still pass it through.

What is the solar payback period in Paterson?

The estimated payback period for solar in Paterson is 14.6 years for a standard 8 kW system, based on local sun hours of 4.4 hrs/day and a rate of $0.157/kWh.

Is solar worth it in Paterson?

For most Paterson homeowners, yes. With 4.4 peak sun hours per day and an electricity rate of $0.157/kWh, a typical system saves $1,614 per year and around $31,521 over 25 years after paying for itself in 14.6 years.

How many solar panels do I need in Paterson?

A standard 8 kW home solar system is about 20 panels, producing roughly 10,278 kWh per year in Paterson at 4.4 sun hours/day. Your exact size depends on your household's electricity use.

Does PSE&G offer net metering?

PSE&G offers Full Retail net metering. Full retail rate.

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