As a fellow New Jersey resident, I know you‘ve probably noticed more neighborhoods going solar lately. Our small state now boasts over 4.4 gigawatts of solar energy capacity! ☀️
And while upfront costs still exceed national rates, the future looks bright for solar energy in NJ between incentives, bill savings, and environmental benefits. This guide will bring you up to speed on everything you need to know about installing solar panels locally. I‘ll skip the technical jargon and keep things simple! 💡
Why Now is the Time for Solar Power in New Jersey
Let‘s start with the key factors making solar a great investment for many NJ homeowners right now:
Electricity Prices Keep Rising – We already pay nearly 40% higher rates than the national average. And costs continue climbing 5% or more annually. Solar insulation protects against future rate hikes.
Generous Clean Energy Policies – NJ ranks in the Top 10 for state-level solar incentives nationwide. From tax breaks to performance payments, the benefits add up!
Environmental Impact – As the most densely populated state, reducing our grid dependence benefits local air quality and cuts carbon emissions.
Community Solar Growth – Over 106,000 solar installations statewide and counting! Our neighbors are leading the charge.
Increased Home Value – Going green with solar boosts resale appeal. A National Lab study showed a roughly 4% value bump.
With solar costs dropping 90% over the last decade, the incentives hardly seem necessary. But I‘ll take all the help we can get affording systems in NJ!
Speaking of costs, let‘s break down the dollars and cents next.
What Does a Solar Array Cost in New Jersey?
Here is a snapshot of average solar pricing in the Garden State over the past five years:
| Year | $/Watt | 6 kW System Cost |
|---|---|---|
| 2022 | $2.78 | $16,680 |
| 2021 | $2.99 | $17,940 |
| 2020 | $3.06 | $18,360 |
| 2019 | $3.11 | $18,660 |
| 2018 | $3.27 | $19,620 |
As you can see, equipment and installation costs consistently exceed national averages. But have decreased nearly 15% over 5 years.
The key metric is dollars per watt – currently averaging $2.78 statewide. However, prices range from $2.50 on the low end up to $3.25 on the high side depending on your installer, equipment package, and project specifics.
Compared to other Northeastern states, New Jersey falls somewhere in the middle on pricing:
- New York – $3.28 per Watt
- Connecticut – $2.87 per Watt
- Pennsylvania – $2.71 per Watt
The good news? No matter your installer‘s price per Watt, incentives can reduce out-of-pocket costs by 50% or more!
How Much Will Solar Save You?
Obviously what matters most is what solar can save. Let‘s explore the bill savings and payoff potential.
For starters, remember that electricity rates continue rising 5% or more each year in New Jersey. So projecting future savings at today‘s rates undervalues solar energy‘s impact.
But using current pricing, here is what a 6 kW solar system could save you monthly by offsetting power purchases:
With incentives factored in, this drops out-of-pocket solar costs to around $12,000. At $130+/month savings, that 6 kW system pays for itself in under 10 years!
Bump up to a 8 kW array covering all household needs, and monthly offsets hit $175. Plus, payback happens even faster at 7-8 years.
No matter the system size, you can expect at least 20 more years of essentially free electricity thanks to the 25+ year lifespan of solar panels!
And don‘t forget about increasing home value, ongoing tax incentives, and even generating income through selling back unused power to the grid. It all adds up!
Let‘s recap the incentive specifics next.
Which Solar Incentives Should New Jersey Homeowners Know About?
I won‘t sugar coat it – equipment prices run high locally. But generous clean energy incentives help curb overall solar costs in New Jersey substantially.
You‘re probably aware of the 26% federal tax credit on total project costs through 2032. Although rumors in Congress point to an extension beyond that! 🤞
However, complementing the federal break is a robust menu of state-level solar incentives for New Jersey residents:
SREC Program – For every 1,000 kWh your system generates beyond your needs, you‘ll earn one Solar Renewable Energy Certificate. These get sold on the open market to utility companies looking to meet renewable portfolio standards. Current rates sit around $225 per credit!
Net Metering – Got extra sunshine? When your solar panels produce more power than your house is using, the excess electricity gets fed back into the main utility grid. Your power meter literally spins backwards! And the utility company then credits your account at full retail electricity rates.
Sales Tax Exemption – 100% of solar equipment and installation costs are sales tax free here in New Jersey. Saving you another ~7% off the top.
Property Tax Exemption – Local governments cannot increase your property tax assessment to account for the added home value derived from a solar array installation. Translation = more savings as energy rates rise!
I don‘t know about you, but I‘m feeling solar-powered after learning about all these perks. And we‘ve really just scratched the surface of the benefits!
Next let‘s uncover the top solar installation companies nearby.
Who Are the Best Solar Installers in New Jersey?
With over 250 regional solar companies hungry for your business, it‘s essential to vet providers carefully. While no lack of options exists, quality, transparency, and service can vary dramatically.
I recommend Cross Creek Solar as my top pick for blended value and workmanship. As a local family-owned outfit with 4.9/5 Google reviews, you can expect tailored service while keeping dollars in the NJ economy.
For larger statewide providers, industry leaders like Trinity Solar, EMPOWER Solar, and Blue Sol stand out for experience, equipment quality, and warranties. Though costs sometimes edge above average.
I evaluated my top 5 recommended installers in New Jersey across a few key factors:
As you can see, you‘ve got solid options to choose from. My advice? Get 2-3 quotes to find the optimal match for your property and budget.
Going Solar in New Jersey – Key Takeaways
I know that was a data dump! But the main points to remember:
💡 With incentives included, solar arrays in NJ now pay for themselves in 7-12 years through electricity savings
💡 You need around 5 kW of solar to fully offset the average home‘s power usage here
💡 Leveraging a reputable local installer like Cross Creek Solar unlocks the maximum value
💡 All said, households can save $15,000 to $30,000 over a solar system‘s 25+ year lifespan
And as your neighbor, I cannot overstate the value of reducing our grid dependence, air pollution, and carbon footprint either. We all benefit when more clean energy connects right in our communities.
So what do you think? Ready to catch some rays and cash in on solar savings?!
Reach out anytime if you have additional questions. Happy to chat 1-on-1 about whether solar works for your situation.
Your friend,
[Your name]
