Cost Of Solar Panels In NJ (2024)
As a homeowner, you want to save money on energy costs. But with rising electricity prices, how can you keep your bills low? One of the most popular options is to invest in solar power technology, and if you live in New Jersey, you’ll especially benefit from cost-effective solar panel installation. Based on recent data, the average cost of solar panels in NJ is approximately $2.95 per watt, making it a competitive option for sustainable energy solutions.
While switching to solar may require some upfront investment, it can save you money over time by drastically reducing or eliminating your monthly electricity bills.
Here a Zircon Solar, we will discuss the various costs associated with installing solar panels in NJ and what you can expect when investing in this energy source for yourself.
Solar Panels Cost In NJ
The cost of solar panels in New Jersey varies, but on average, homeowners can expect to pay around $2.75 – $2.9 per watt for a solar panel system. This translates to an average total cost of $13,750 for a system and its installation before applying any incentives or tax credits. However, after factoring in the federal solar investment tax credit (ITC), the cost can fall between $7,756 and $19,390.. These costs are slightly higher than the national average but are considered an excellent long-term investment due to the significant savings on energy bills over the life of the system.
| System Size | System Cost* | Cost After Federal Tax Credit |
| 5 kW | $14,750 | $10,325 |
| 6 kW | $17,700 | $12,390 |
| 7 kW | $20,650 | $14,455 |
| 8 kW | $23,600 | $16,520 |
| 9 kW | $26,550 | $18,585 |
| 10 kW | $29,500 | $20,650 |
What Affects Solar Panel Costs in New Jersey?
Several factors affect the cost of solar panel systems in New Jersey. The average cost of installing solar panels in this state is around $2.95 per watt, slightly higher than the national average. A standard 5-kilowatt system can cost an average of $14,480 before incentives, and after the federal solar investment tax credit (ITC) is considered, homeowners might pay around $16,513.
However, individual costs can vary significantly, ranging from $10,000 to $30,000 or more, depending on the location, roof, power usage, and current market rates. It’s also worth noting that it’s generally more cost-effective to install new Jersey solar panels when re-doing a roof or shortly after a new roof is added. Therefore, the timing of installation can also impact the solar panel cost.
How Does the Current Cost of Solar in New Jersey Compare to the National Average?
When it comes to solar panel costs in New Jersey, the figures show a slightly higher rate than the national average. While the national average stands at $2.85 per watt, in New Jersey, the cost is around $2.95 per watt. This means that for a 5-kilowatt system, you could be looking at an average cost of $14,480 before incentives are applied.
However, this initial cost shouldn’t deter potential solar panel owners. In fact, New Jersey offers attractive solar incentives that can significantly offset these costs. One of these is the federal solar investment tax credit (ITC), which can take a substantial chunk out of the total cost. After applying the ITC, the average homeowner in New Jersey might pay around $16,513 for a solar panel system. For a typical 6000 watt (6 kW) solar system, the cost after claiming the ITC could be as low as $11,676.
While the cost per watt may be higher in New Jersey than the national average, it’s worth considering the overall benefits of solar energy. Investing in solar panels could result in major savings on your energy bills over time. Moreover, with solar power, you’re opting for a greener, more sustainable source of energy, which is beneficial for the environment.
Factors That Affect Solar Installation Costs
Costs of systems and infrastructure are different from system size. This is another important consideration. The cost of installing a solar power system in New Jersey can vary greatly depending on several factors. Primarily, the type and size of the solar power system play a significant role in determining the overall cost.
Additionally, solar installers also consider the complexity of the installation process, which may be affected by the design and condition of your roof. Furthermore, residential solar owners should be aware that the cost can also be influenced by any additional features or services they opt for, such as battery storage or maintenance packages. It’s crucial to obtain detailed quotes from various solar installers to understand what’s included in the price and make an informed decision.
Taking Advantage Of New Jersey Solar Incentives
New Jersey’s solar incentives offer a great opportunity to save money while switching to a renewable energy source. With Solar Renewable Energy Certificates (SRECs), homeowners can earn extra income by selling these certificates on the open market. Plus, there’s the Federal Solar Tax Credit, which can help offset some of the initial solar panel cost. When you factor in the competitive New Jersey solar panel costs, it’s clear that now is a great time to make the switch to solar. Here are incentives used to reduce solar system costs:
Federal Solar Tax Credit
The Federal Solar Investment Tax Credit is a 30 percent tax credit for residential and commercial solar systems. Taxpayers claim a federal tax credit equal to 30 percent of the cost of installing a solar energy system, including all labor costs. This incentive has no cap on the total amount that can be claimed.
New Jersey Net Metering
New Jersey’s net metering program allows residential and commercial customers to offset the cost of their electricity bills by connecting solar systems to the utility grid. This program provides credits for excess energy produced by the customer, which can be used to reduce future electricity costs.
Solar customers earn solar renewable energy certificates (SREC) or transition renewable energy certificate (TREC)for every 1,000 kilowatt hours (kWh).
Property Tax Exemption
New Jersey offers a 100 percent exemption from local property taxes on the added value to a property due to installing an energy-producing solar system. This incentive is limited to systems installed for residential and commercial use.
Solar Sales Tax Exemption
New Jersey offers a sales tax exemption for solar energy systems and components purchased in the state. This incentive applies to residential and commercial projects, making it easier for businesses and homeowners to look into solar power system as an available option for their energy needs.
Successor Solar Incentive (SuSi)
The Successor Solar Incentive Program (Susi) offers incentives for large-scale solar projects in New Jersey. This program offers rebates and other incentives to businesses and organizations that install solar systems for their own use. The program is designed to reduce the cost of installing a solar system, making it more affordable for larger customers.
Install Solar Panels With Zircon Solar!
In conclusion, the initial cost of solar panels in NJ can certainly feel hefty. However, when you consider the long-term energy savings and the significant contribution to a more sustainable future, residential solar panels are a worthy investment.
With Zircon Solar, your solar installation process will be as smooth as possible. We offer top-notch service, high-quality panels, and we’re dedicated to helping you maximize your savings. Don’t wait any longer to start your journey towards energy independence and sustainability. Contact Zircon Solar today and take the first step in maximizing your savings.
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