A worked example: 8 kW in New Jersey
An 8 kW system — about 19 × 425-watt panels — at New Jersey's assumed installed cost of $2.65–$3.45 per watt runs roughly $21,200–$27,600 before incentives. At about 1,260 kWh of production per installed kW, it would generate around 10,080 kWh per year. Valuing self-consumed electricity at the assumed $0.19/kWh retail rate and exports conservatively, first-year savings land near $1,578 — a simple payback of roughly 13–17 years.
There is no federal tax credit in that math: the Section 25D residential credit ended for systems installed after December 31, 2025. State or utility incentives, where they exist, would shorten payback from here.
Average cost of solar panels in New Jersey by system size
Most New Jersey quotes land between 6 and 12 kW. At the state's assumed $2.65–$3.45 per watt, here is what each size costs to install, what it produces, and how long it takes to pay for itself on electricity savings alone — no incentives applied.
| System size | Panels | Installed cost | Annual production | Est. payback |
|---|---|---|---|---|
| 6 kW | 15 | $15,900–$20,700 | 7,560 kWh | 13–17 yrs |
| 8 kW | 19 | $21,200–$27,600 | 10,080 kWh | 13–17 yrs |
| 10 kW | 24 | $26,500–$34,500 | 12,600 kWh | 13–17 yrs |
| 12 kW | 29 | $31,800–$41,400 | 15,120 kWh | 13–17 yrs |
Size should follow your electricity usage, not a round number — these are reference points, not a recommendation. Note that cost per watt rises on smaller systems, because permitting, labor and the inverter do not shrink with the array.
What solar costs per kWh in New Jersey
Spread across a 25-year life, with 0.5%/yr panel degradation and no financing cost, solar electricity in New Jersey works out to roughly 8.9¢–11.6¢ per kilowatt-hour. The New Jersey retail rate this page assumes is 19.0¢. That gap — not the sticker price — is what determines whether solar pays here, and it is why a sunnier state with cheap electricity can be a worse investment than a cloudier one with expensive electricity. See how every state compares on cost per kWh.
Net metering and export rates in New Jersey
New Jersey requires full retail net metering with annual true-up at avoided cost — one of the strongest export policies in the country.
Export rules are worth reading as an incentive, because they set what every kilowatt-hour you do not use on site is worth — see how New Jersey compares with every other state on net metering.
New Jersey solar incentives
The SuSI/SREC-II program pays a fixed amount (on the order of $85–90) per MWh generated for 15 years for registered residential systems, plus sales tax exemption. Verify current registration terms.
The most valuable program is susi / srec-ii payments for 15 years. With no federal credit for 2026 installs, state and utility programs are now the whole picture — see the full New Jersey incentives guide.
What changes a New Jersey solar quote?
Equipment, roof condition, electrical upgrades, permitting, labor, system size, batteries and financing can all change the installed price. Savings also depend on the specific utility rate, how much solar electricity the home uses directly, and what the utility pays for exports.
Frequently asked questions
What is the average cost of solar panels in New Jersey?
The average installed cost in New Jersey runs $2.65–$3.45 per watt before incentives, which puts a 6 kW system at $15,900–$20,700, an 8 kW at $21,200–$27,600, and a 10 kW at $26,500–$34,500. Spread over a 25-year life, that works out to about 8.9¢–11.6¢ per kilowatt-hour, against a New Jersey retail rate assumed at 19.0¢.
How much does it cost to install solar panels in New Jersey?
Installation is not priced separately — the $2.65–$3.45 per watt above is a turnkey figure covering panels, inverter, racking, labor, permitting and interconnection. What moves it most in NJ is roof complexity, whether the main panel needs upgrading, and whether a battery is included. Expect a site visit to change any online estimate, including this one.
How much do solar panels cost in New Jersey?
Using an assumed installed cost of $2.65–$3.45 per watt, a typical 8 kW home system in New Jersey costs roughly $21,200–$27,600 before incentives. Smaller and larger systems scale roughly with size, though small systems cost more per watt.
Is solar worth it in New Jersey?
With New Jersey electricity around $0.19/kWh and production around 1,260 kWh per installed kW per year, an 8 kW system could save roughly $1,578 in year one, for a simple payback of about 13–17 years with no federal credit. Whether that is "worth it" depends on your rate plan, export compensation, roof, and how long you plan to stay in the home.
How many solar panels do I need in New Jersey?
It depends on your electricity usage, not your roof. At New Jersey's assumed 1,260 kWh per installed kW, a 6 kW system (about 15 panels at 425 watts) generates roughly 7,560 kWh a year, and a 10 kW system (about 24 panels) roughly 12,600 kWh. Compare that against your annual kWh from a utility bill — our calculator sizes it from your monthly bill in about a minute.
Does New Jersey have net metering?
New Jersey requires full retail net metering with annual true-up at avoided cost — one of the strongest export policies in the country.
What solar incentives does New Jersey offer in 2026?
The SuSI/SREC-II program pays a fixed amount (on the order of $85–90) per MWh generated for 15 years for registered residential systems, plus sales tax exemption. Verify current registration terms. Note that the federal Section 25D residential credit ended for systems installed after December 31, 2025, so state, local and utility programs are now the main incentives for purchased systems.
Is there still a federal solar tax credit in New Jersey?
No — the 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Leased or PPA systems may still benefit indirectly because the system owner can claim the commercial 48E credit through 2027.
Use this as a starting point
This page provides broad state assumptions, not a current market survey or binding quote. Before purchasing, verify applicable incentives, utility rules, installer licensing, warranties and financing terms.
Where these numbers come from
State assumptions are informed by public data and reviewed periodically (September 2026):