New Jersey Solar Power Facts in 2023
The Garden State is one of the best places to go solar in the USA. With significant state rebates and incentives to help you put solar on your rooftop, access to the Federal Solar Tax Credits, and plenty of Sun, New Jersey is the place to go solar. If you would like to see significant savings in your electric bill, earn some cash by selling the SRECs you generate and reduce your carbon footprint, stay tuned for more on New Jersey Solar Systems.
New Jersey Solar Energy Data
With 206 sunny days a year and almost 2,500 hours of sunlight annually, New Jersey solar power potential is as high as it gets for a New England state. The Garden State is currently 7th in the USA by solar capacity installed. The total capacity of solar systems in NJ is estimated at 3,653.1 MW and is a handful of states with over 1GW installed.
The solar energy produced in these solar systems is enough to power more than 586,000 + NJ households. With 416 solar companies, it is also a large employer, and the 6.64% of total energy production in the state coming from solar renewable energy it is also a very green state.
NJ is solar heaven, not only for its position and a lot of hours of solar radiation but also because it offers significant rebates and solar incentives to its residents. With an average price of a 5kWh system starting from $13,300 and more than 83% of energy savings on your electricity bill, your home solar system is sure to pay off much quicker than in some other states.
In comparison to some other states, NJ can produce around 6.64% of its utility needs through solar. Solar panels in Colorado, for example, produce some 30% less of state electricity needed. Furthermore, solar panels in Florida, although there is more of them than in New Jersey, can satisfy around 4.12% of Florida’s energy needs.
New Jersey Solar Statistics
|New Jersey National Ranking||7th|
|Solar Installed(MW)||3,653.1 MW|
|Can Supply Power to: (No. of Homes)||+586,000|
|% of State's Electricity from Solar||6.64%|
|Solar Companies in the State||416 (72 Manufacturers, 249 Developers and Installers and 95 Others)|
|Solar Jobs Created||5,384|
|Total Solar Investment in the State||$14.8 Billion|
|Out of Pocket Cost for a 5kWh system||$13,300|
|Net 20-year savings||$43,300-58,700|
|Average Payback Period||4.8-6.4 years|
|Electricity Bill Offset for a 5kWh system||+83%|
|Number of Solar Installations||+137,000|
Notable Solar Installations in New Jersey
There are several large-scale solar farms in New Jersey:
- Ben Moreell Solar Farm – This solar farm has 28.5MW of solar power installed,
- Six Flags Solar – 23.5MW,
- DSM Solar – 20.2MW,
- Tinton Falls Solar Farm – 19.9MW and
- Pilesgrove Solar Farm – 14.1MW.
New Jersey Solar Programs
New Jersey is the 7th state in the USA by solar energy production. New Jersey solar panel price has fallen by some 45% over the last five years and this state has an ambitious plan to have 50% of its electricity produced from renewable sources by 2030. To achieve this amazing goal, New Jersey has introduced great solar incentives and tax incentives.
Net metering is the way to calculate the total energy produced and consumed on a single energy monitor. Basically, whenever you produce the same amount of solar energy you consume, your energy monitor stays the same. When you produce more than you consume, and you send excess electricity to the electric grid or the electricity suppliers, your energy monitor counts backwards.
Alternatively, when you spend more energy than you produce, such as during the night or cloudy days, your energy monitor counts every kWh you spend. This way, your utility company acts as a solar battery for your system and you can save significant amounts of money by installing a smaller rooftop solar system and through savings in the solar electric system (no battery required).
Transition Renewable Energy Certificates (TRECs)
Transition Renewable Energy Certificates (TRECs) are similar to solar renewable energy certificates for solar projects that operate in the USA. You get these certificates by producing renewable energy and you can choose to keep them or sell them. If you sell them, they go towards meeting the carbon goals of the business that has bought them.
TRECs have a fixed price, so you can rely on them for a steady income. For example, if your household generates 10MW of clean energy, you will be awarded 10TRECs. If you decide to sell them, you can earn $91.2 per TREC, so $921 for all 10 of them. Sometimes, you can even sell your TRECs to the solar facility and get paid for them as a part of the solar alternative compliance payment.
Solar Investment Property Tax Exemption
Any renewable solutions in New Jersey increase the value of your property. With solar energy, each kW of solar power you install can bring up your property’s value by around $6,000. Under the solar investment property tax exemption, this added property value does not count towards your property tax. This can result in significant savings every year.
Solar Panel System Sales Tax Exemption
Solar Panel System Sales Tax Exemption reduces the price of your solar system by 6.625%. This solar incentive should further bring down the price of your solar system and incentivize more people to install solar energy panels on their rooftops.
Federal Solar Investment Tax Credit
With the Federal Tax Incentives, you should be able to save up to 26% of your solar equipment price by simply paying less in taxes. Federal Tax Credit is deducted from the total federal taxes you owe to the USA. If you pay for your taxes by withholding the taxes from your paycheck, you are eligible for a tax return in the value of 26% of your solar electric system installation.
If you owe fewer taxes than the 26%, you can take whatever is left over to pay to the states for the next year. The federal tax credit is also available if you take out a solar loan. Tax Credits are not possible if you have solar over a solar lease.
Average Cost of Solar Energy Systems
A 5kWh solar system in NJ will cost you anywhere between $13,300 to $18,000. This is the out-of-pocket solar cost and is subject to significant rebates. The rebates come both from the state of NJ and from the Federal Government. NJ solar for new homeowners price also depends on energy needs. A new homeowner may also have additional expenses with house maintenance and installation of enough kilowatt-hour solar power to meet their demand while keeping their new NJ solar cost-effective.
Solar Panel Energy Production in New Jersey
New Jersey is seeing an upward trend in Solar Panel Home Energy production. With only 2.8MW of solar installation back in 2001, 252.2MW in 2010 and over 3,592.8 in 2020, NJ should be proud of the green efforts they have made. The Garden state also plans to install an additional 3,750MW of solar generation capacity by 2026 and to generate 50% of its utility by 2050.
Solar Incentives, Rebates, and Tax Credits
New Jersey Solar Incentives are very generous and you can expect your initial investment to return in as little as six years. The state of New Jersey boasts Sales Tax Exemption for solar equipment, and the ability to acquire TRECs which you can transfer or sell to another person or company. Furthermore, the federal solar incentive lets you recover up to 26% of the total value of your PV system.
All these savings easily add up, so that the solar payback period is as short as 6 years. The rest of the money goes straight to your pocket, and net 20-year savings for a 5kWh system can go as high as $58,700. This easily beats other forms of investment, such as savings or stock investments.
|The Cost of PV - 10kWh at the average of $2.77 per Watt DC||$27,700|
|Solar Panel System Sales Tax Exemption @6.625%||$1,835|
|The Federal Solar Tax Credit @26% by the end of 2022||$7,202|
|Transition Renewable Energy Certificates (TRECs) for 11MW @ $152/MW||$1,672|
|Total Energy Bill Savings||$990.00 (@83% offset)|
|Total cost for a 10kWh solar system at the end of year 1||$16,000|
|Years before a 10kWh system pays off if all of New Jersey solar incentives are taken||6 years (with TRECs sold at $152)|
Top Solar Companies in New Jersey
There are 249 solar installers and solar developers in New Jersey. Finding the best solar installer in NJ can be a challenge, so here is a list of the 10 best solar installers in NJ and where they operate:
- Green Power Energy, LLC – Stafford Twp,
- Public Service Solar, LLC – Sewell,
- Ampericon – Monmouth Junction,
- Green House Solar – Madison,
- NJ Solar Power – Bayville,
- Ad Energy – West Berlin,
- Impact Solar LLC – Haddonfield,
- Lucent Solar/Hilton Head Solar – Hawthorne,
- Solar ME – South Amboy, and
- Green Revolution Solar – Lakewood.
What happens if lightning strikes a solar panel?
Although this is an unlikely event, lightning striking a solar panel is a possibility. In this case, one or more solar modules may get damaged. In extreme events, the entire solar electric system could get destroyed. Always check for insurance and the possibility of installing a lightning rod.
Is Solar Power taxed?
No, solar power is not taxed. In New Jersey, you can get three levels of tax exemption on the solar PV system you install:
1. The Federal Solar Tax Credit – 26%,
2. The State Solar Sales Tax Exemption – 6.625%, and
3. The State Solar Property Tax – the value added to your home by installing solar is not counted towards your Property Taxes (up to $6,000 per kWh of installed solar).
Can solar panel work without inverter?
No, solar systems cannot work without an inverter. Solar PV produces DC current, which an inverter converts to AC current that your appliances can use. This is also the current that can safely be fed back into the network. A certain amount of losses is to be expected.
Do you really save money with solar panels?
Yes, you can save significant amounts of money with your solar energy system. NJ residential solar homeowners can expect at least an 83% savings on their electricity bill, depending on a variety of factors. To best understand your solar PV savings, contact a solar advisor and discuss your needs and expectations. You may have different savings based on your electricity rates as well as the public utility service you may use.
With great plans for expansion of their solar PV systems and great state solar rebates and solar incentives, now is the best time to go solar in New Jersey. With a relatively low solar system installation price and a short pay-off period of only 6 years, residential solar in NJ is the future of residential power production. Solar system owners in NJ can also have new income possibilities, as you can sell your TRECs for extra income.