Are Solar Panels Worth It in New Jersey?
Last updated July 1, 2026 · based on New Jersey energy prices
In New Jersey, where residential electricity averages about 18¢/kWh and rooftop solar yields roughly 1,300 kWh per kW per year, solar has a longer payback here (about 17.1 years) because sunlight is more limited — it makes the most sense if your rate is rising or you value energy independence.
New Jersey solar cost & savings (typical 7 kW system)
| Metric | Estimate |
|---|---|
| Annual production | 9,100 kWh |
| Installed cost (before incentives) | $21,000 |
| Estimated annual savings | $1,229 |
| Payback period | 17.1 years |
| 25-year net savings | +$7,938 |
Figures use New Jersey average prices, a 7 kW system at $3.00/watt, 50% self-consumption at retail plus a conservative 9¢/kWh net-metering credit, and ~0.5%/yr panel degradation. Sources: EIA electricity prices and NREL PVWatts production modeling.
What this means for New Jersey homeowners in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025, so a 2026 installation in New Jersey carries the full upfront cost unless a state or utility incentive applies. Because New Jersey electricity costs around the national average, the payback case is more marginal — strongest for high electricity users, south-facing roofs, and homeowners who plan to stay long term.
Frequently asked questions
Are solar panels worth it in New Jersey in 2026?
At New Jersey's electricity price of 18¢/kWh, a typical 7 kW system saves about $1,229 per year and pays for itself in roughly 17.1 years. There is no federal solar tax credit in 2026 (Section 25D expired December 31, 2025), so these figures reflect bill savings and net metering only.
How much do solar panels cost in New Jersey?
A 7 kW system costs roughly $21,000 installed at about $3.00/watt before any state or utility incentive. Costs vary by installer, equipment, and roof complexity.
How much electricity will solar produce in New Jersey?
About 1,300 kWh per year per kW installed in New Jersey, so a 7 kW system produces roughly 9,100 kWh/year. Your exact output depends on roof orientation, tilt, and shading.
Estimates based on New Jersey average energy prices and a simplified model; your results will vary. Energy prices and incentives change frequently. Not financial advice.