Key takeaways


ew Jersey stands proudly as a shining example of solar progress in the United States. With an impressive 4.5 gigawatts (GW) harnessed from over 182 photovoltaic (PV) installations, this state has positioned itself as one of the solar leaders. According to data from the Solar Energy Industries Association (SEIA), New Jersey ranks eighth in the nation for total installed PV capacity. This achievement is particularly significant when you consider the states that come before it, such as California, Texas, Florida, North Carolina, Arizona, Nevada, and Georgia.

Introduction: The Rise of Solar Energy in New Jersey

As of 2023, solar energy constitutes over 7% of the state's entire electricity consumption. However, how did a state not typically associated with abundant sunshine like California or Florida, achieve such an impressive stride in PV adoption?

A crucial aspect of the state's solar journey is its renewable portfolio standard. This ambitious requirement mandates that by 2030, half of electricity must come from renewable sources. Additionally, to further promote the adoption of PV installations, the state introduced several incentives aimed at boosting solar power generation.

Solar Viability: Understanding Solar Panels in New Jersey and Their Potential

Solar Resources and Climate Factors

With its moderate climate showcasing four well-defined seasons, the state emerges as a prime spot for harnessing the sun’s power. It enjoys an average of 4.2 hours of peak sunlight each day, a figure in proximity to the national average. What sets New Jersey apart, though, are its elevated electricity costs and robust solar incentives, rendering it an excellent choice for considering solar investments.

Evaluating Your Solar Needs

Understanding the potential of solar panels is only part of the equation. Before investing in a PV installation, homeowners and business owners need to evaluate their unique needs.

Factors to consider include:

  • Energy Consumption: Understanding your average monthly energy usage is crucial to determine the appropriate size of the installation. This assessment assists with tailoring a system that can either offset a part of your energy demand or meet it entirely.
  • Roof Orientation and Condition: The direction and condition of your roof can significantly influence the performance of the solar system. South-facing roofs are often ideal, but even east or west-facing roofs can be effective with proper system design.
  • Incentives and Financing: The state offers various incentives that can reduce the initial costs of PV panel installation. Analyzing these incentives and exploring financing options can make solar adoption more affordable and practical.

Solar Incentives in NJ: What They Offer to Encourage Solar Adoption

New Jersey has boldly established itself as a trendsetter in embracing solar power, all thanks to a diverse range of financial perks that are making solar energy an accessible choice for its residents. Let's take a dive into Garden State's vibrant lineup of incentives.

  • Federal Investment Tax Credit (ITC): The federal Solar Investment Tax Credit provides substantial financial support to those embracing solar. Valued at 30% of the total expense of your solar installation, the ITC can significantly reduce your federal tax obligations by several thousand dollars. If the credit surpasses your tax liability, the remaining balance can be carried over for up to five years.
  • New Jersey Property and Sales Tax Exemptions: The state offers considerable incentives at the state level as well. The Property Tax Exemption for Renewable Energy Systems ensures that installing PV panels won't lead to an increase in property taxes due to higher home value. Additionally, the Solar Energy Sales Tax Exemption lets residents skip paying state sales tax on solar energy equipment. By submitting the Exempt Use Certificate (Form ST-4) to your equipment provider, you can take advantage of this money-saving benefit.
  • Solar Easement and Access Laws: Forward-looking Solar Easement and Access Laws safeguard homeowners' access to sunlight, preventing homeowners’ associations (HOAs) from prohibiting rooftop installations.
  • Successor Solar Incentive (SuSI): Replacing the previous SREC program in 2021, a new SuSI program enables property and business owners to earn income by selling SREC-II credits, reflecting the environmental value of the generated renewable energy. Residential net-metered systems earn $90 for each SREC-II, equivalent to 1,000 kWh produced by a photovoltaic installation.

Breaking Down the Costs of Solar Panel Installation New Jersey

When thinking about transitioning to solar energy, grasping the financial aspects of installing PV panels becomes vital. From the initial investment to continuous upkeep, let's delve into the related expenses to help you make an informed decision.

Upfront Solar Costs

When talking about solar, the initial cost is typically the first consideration. So, what's the price tag for going solar in New Jersey? On average, the cost per watt in the Garden State is set at about $3.01.

Let's imagine a standard solar installation size of 6 kilowatts (kW). For such a system, homeowners can anticipate the installation cost falling in the range of $15,350 to $20,769. To provide a more central estimate, before accounting for any state incentives or rebates, the average total cost of a solar installation comes out to roughly $18,060. It's important to keep in mind that this cost can fluctuate based on various factors like the panel brand, the reputation and experience of the installer, and any additional installation components or enhancements you might be interested in.

Delve into the vibrant solar industry of California with our in-depth exploration of Solar Installation Companies in California. Our analysis offers valuable insights into solar deployment trends across various regions of the state.

Maintenance Costs

Once your new solar installation is up and running, they won't demand too much of your attention, but they aren't entirely maintenance-free. Over the years, there will be some associated costs to keep them in optimal condition.

Regular cleaning is paramount, especially in areas where dirt, dust, or snow can accumulate on the modules. Some homeowners opt for professional cleaning services, which can range from $100 to $300 annually, depending on the system's size and the provider. Additionally, while solar installations are designed to be long-lasting, they might require occasional repairs due to wear and tear or unforeseen damages, like those from severe weather.

Finding the Right Solar Company in the Region

Navigating the solar landscape in New Jersey can be as dazzling as the sun itself. With the state's robust push for renewable energy, numerous solar companies have sprung up, each promising the best services. But how does one discern the best from the rest?

Firstly, consult the reviews. Real feedback from real customers can shed light on a company's reliability and quality. Next, understand their offerings. Not all solar solutions fit every home. The right company should offer a tailored approach, assessing your home's specific needs. Lastly, inquire about their experience with local incentives. Knowledge about state-specific benefits can lead to significant savings.

Best Solar Installers: Top Options for New Jersey Solar Setups

1. Momentum Solar

Originating from New Jersey and serving 10 other states, Momentum is a fast riser in the solar industry. They handle everything in-house, from sales and design to permitting and installation. Adding to their portfolio, they've delved into battery storage systems across five states, including NJ. Whether you're buying outright, financing, or opting for a lease or PPA, Momentum’s dual 25-year warranties (product and quality-of-work) make them a promising choice.

2. SunPower

With its founding roots going back to 1985, SunPower is a seasoned veteran in the solar arena. Their in-house products are some of the most efficient available. And with their stellar reputation comes outstanding warranties to back their offerings, making them a reliable choice for New Jersey homeowners.

3. New Jersey Solar Power

Focused exclusively on the Garden State, this local company may have handled only a few thousand installations, but their expertise is tailored to the state's unique needs. They bring an intimate knowledge of local solar incentives, ensuring their customers maximize savings. Offering products from Panasonic and QCells, their 25-year workmanship warranty is particularly appealing given the region's frequent rain.

4. Palmetto Solar

Palmetto Solar has made a mark with its exceptional customer service. Whether you're communicating through phone, email, or online, they're there to assist. Post-installation perks like the Peace of Mind Protection Plan set them apart. This plan offers active monitoring and service discounts. And with a 25-year performance warranty, they’re firmly planting their flag in the New Jersey solar landscape.

5. Trinity Solar

An East Coast specialist, Trinity Solar is a family-run business spanning nine states. They partner with reputed manufacturers like Q-cells, Tesla, and Generac. Their broad array of financing options, such as zero-down solar leasing and PPAs, is especially consumer-centric. Their warranties are comprehensive, providing a 25-year material warranty for panels and a five-year workmanship warranty. However, potential customers should note that inverter kit warranties last 12 years, requiring an extension for longer coverage.

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Conclusion: Are Solar Panels In New Jersey a Good Choice?

Undoubtedly, the growth of solar panel installation New Jersey and the state's firm positioning on the national solar stage speaks volumes. The combination of state incentives, a commitment to renewable energy, and a plethora of quality installers make going solar a wise decision. If you're considering a future-proof investment that aligns with sustainability and offers potential savings, solar panels in New Jersey should certainly be on your radar.


Key takeaways

Aug 22, 2023
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