Solar in New Jersey: is it worth it in 2026?
New Jersey is a good state for solar: most homes that buy a system get their money back in about a decade. Three things decide that: electricity prices rank 11th of 51, its sun ranks 38th, and exported power earns full retail credit. Of the 51 states and DC, New Jersey has the 9th-fastest payback for a typical home.
The average home here pays about $151 a month for 670 kWh. A 5.5 kW system sized for that home would knock about $1,614 off the first year's bills, 89% of the total.
Checked November 12, 2026
What makes solar pay off in New Jersey
- Size the system to cover your yearly use. With full net metering, power you export is worth as much as power you use, so timing matters less than in most states.
- High electricity prices do the heavy lifting. At 22.5¢ per kWh, even a modest system saves real money, but the price still matters. At $3.34 per watt, the high end of what companies quote, payback for a typical system here stretches to 11 years.
Payback by system size
An average New Jersey home uses about 8,040 kWh a year. Here's how systems sized to cover part or all of that work out, bought with cash at $2.57 per watt:
| Covers | Size | Price | Makes a year | Payback | 25-year savings |
|---|---|---|---|---|---|
| 49% | 3 kW | $7,710 | 3,915 kWh | 9 years | $17,810 |
| 73% | 4.5 kW | $11,565 | 5,873 kWh | 9 years | $28,028 |
| 97% | 6 kW | $15,420 | 7,830 kWh | 9 years | $38,245 |
| 122% | 7.5 kW | $19,275 | 9,788 kWh | 10 years | $41,994 |
The 3 kW system pays back fastest, but the 7.5 kW system saves the most over 25 years. Assumes exported power earns full credit, prices rise 2.5% a year and one inverter replacement.
How New Jersey credits power you send to the grid
Full credit (net metering)
Full retail credits with no cap, plus production-based payments.
By utility
- PSE&G: Full retail credits with no cap, plus production-based payments through New Jersey's solar incentive program.
- Jersey Central Power & Light (JCP&L): Full retail net metering under New Jersey's rules, plus state production-based incentive payments.
Before you sign in New Jersey
Check the license. Look the company up with the New Jersey Division of Consumer Affairs (home improvement contractors), by its legal name or license number, and ask for the electrician's license number too.
New Jersey has no solar-specific sales law that we know of, so its general consumer protection law applies.
In every state, the FTC Cooling-Off Rule lets you cancel a contract signed at your home until midnight of the third business day.
How to choose a solar company · Contract checklist · Before you sign
New Jersey compared with its neighbors
| State | Electricity | kWh per kW | Typical payback | Exported power |
|---|---|---|---|---|
| New Jersey | 22.5¢ | 1,305 | 9 years | Full credit (net metering) |
| New York | 26.4¢ | 1,291 | 8 years | Full credit (net metering) |
| Pennsylvania | 19.3¢ | 1,356 | 10 years | Full credit (net metering) |
| Delaware | 17.1¢ | 1,364 | 11 years | Full credit (net metering) |
Questions about solar in New Jersey
How long does solar take to pay for itself in New Jersey?
About 9 years for a typical 5.5 kW system bought with cash at the 2026 median price of $2.57 per watt, with no federal tax credit and one inverter replacement. A bigger or smaller system, a different price, or your own usage will change that; the table above shows other sizes.
Does New Jersey have net metering?
Yes. Full retail credits with no cap, plus production-based payments.
Is there a solar tax credit in New Jersey in 2026?
Not from the federal government for buyers: the 30% homeowner credit ended for systems installed after December 31, 2025. For a typical 5.5 kW system in New Jersey, that credit was worth about $4,241 and brought payback down to 6 years, instead of 9 years now. Leasing companies can still claim a business credit, so ask for a lease or PPA price too. Your state energy office lists any state rebates.
Is a solar battery worth it in New Jersey?
Not for savings. New Jersey credits exported power at the full retail rate, and storing power in a battery loses about 10% of it, so a battery saves nothing on the bill. It can still be worth it for backup during outages: a 13.5 kWh battery costs about $15,650 installed in 2026.
Is plug-in solar legal in New Jersey?
Yes, starting March 1, 2027, under S 2368, up to 1,200 watts per home. Landlords and HOAs can't ban kits; renters who pay their own electric bill give 14 days' written notice.
How do I check a solar company's license in New Jersey?
Look the company up with the New Jersey Division of Consumer Affairs (home improvement contractors) (njconsumeraffairs.gov/hic) by its legal name or license number, and ask for the electrician's license too.
More guides: What changed for solar in 2026 · Lease or buy? · Plug-in solar · Is my solar system working?
Sources: U.S. Energy Information Administration (EIA), final 2025 data: Annual State Historical Spreadsheets (Form EIA-861, released October 7, 2026) and Electric Power Annual (October 21, 2026); NREL PVWatts (National Solar Radiation Database), statewide averages; SolarReviews: Net metering in 2026; Solar.com: Plug-in solar, the 2026 guide; EnergySage: median quoted price, first half of 2026.