New Jersey homeowners weighing solar want real numbers, not a sales pitch, so this page gathers the ones that matter in one place, each dated and sourced. The average residential electricity rate here is about 23.5 cents per kWh (EIA, as of March 2026), and a typical 7 kW rooftop system produces about 9,100 kWh a year. Below you will find installed cost, simple payback, per-city production, how each utility handles net metering, and the current state incentives, updated for 2026.
Updated for 2026.
Key statistics: New Jersey solar at a glance (2026)
Key numbers (New Jersey, 2026)
- Average residential rate: 23.5 cents per kWh
- Typical system size: 7 kW
- Typical annual production: 9,100 kWh per year
- Typical installed cost: $2.85 to $3.50 per watt
- Estimated system cost: $19,950 to $24,500
- Simple payback: about 7.5 years
According to MySolarFY’s analysis (July 2026), a typical 7 kW system in New Jersey produces about 9,100 kWh a year, offsetting power that costs about 23.5 cents per kWh. These are our own compiled figures for New Jersey; see Methodology below for exactly how each was produced. For the statewide rules behind these numbers, see our New Jersey solar guide.
| Metric | Value | Source (dated) |
|---|---|---|
| Average residential rate | 23.5 cents per kWh | EIA, as of March 2026 |
| Typical system size | 7 kW | MySolarFY, typical residential array |
| Typical annual production | 9,100 kWh per year | NREL PVWatts v8, as of July 2026 |
| Typical installed cost | $2.85 to $3.50 per watt | MySolarFY cost range, as of July 2026 |
| Estimated system cost | $19,950 to $24,500 | MySolarFY, 7 kW, as of July 2026 |
| Simple payback | about 7.5 years | MySolarFY analysis, as of July 2026 |
Every figure is dated and attributed. Rate is the EIA residential average for New Jersey; production is a modeled NREL PVWatts v8 run for a 7 kW array; cost and payback are MySolarFY estimates for planning, not a quote. Confirm current terms before you decide.
Solar cost and payback by city in New Jersey
Production and payback vary within a state because the solar resource and the local rate shift by location. The table below models a 7 kW system for representative New Jersey cities using NREL PVWatts v8.
| City | System size | Annual production | Est. system cost | Simple payback |
|---|---|---|---|---|
| Newark | 7 kW | 9,138 kWh per year | $22,000 | about 7.5 years |
| Jersey City | 7 kW | 9,134 kWh per year | $22,000 | about 7.5 years |
| Cherry Hill | 7 kW | 9,667 kWh per year | $22,000 | about 7.1 years |
| Toms River | 7 kW | 9,591 kWh per year | $22,000 | about 7.2 years |
Production is a modeled NREL PVWatts v8 run per city ZIP; cost and payback are MySolarFY estimates that hold today’s rate flat and ignore financing. A written quote for your roof beats any table.
Here is the math behind those payback figures. Take Newark: a $22,000 net system cost (the federal 25D residential credit ended December 31, 2025, so a 2026 buyer gets none of it), divided by a first-year value of about $2,924. That first-year value is the net-metering bill savings, roughly 9,138 kWh times the 23.5 cents per kWh retail rate (about $2,147), plus the first-year SuSI SREC-II income of about 9.1 MWh times $85 per MWh (about $777). $22,000 divided by $2,924 is about 7.5 years, and the SREC-II keeps paying for its full 15-year term.
Utility rate and net metering comparison
Your utility sets the delivery rate and administers net metering, which is the credit you earn for the power your roof sends back to the grid. See how net metering credits your solar exports for the mechanics.
| Utility | Residential rate | Net metering treatment |
|---|---|---|
| PSE&G | Largest NJ electric utility; residential all-in near the state average of about 23.5 cents per kWh | Full-retail net metering under NJ law: monthly kWh netting, excess credits carried forward and trued up annually |
| JCP&L (FirstEnergy) | Serves northern and western NJ; residential all-in near the state average | Full-retail net metering (statewide NJ rule): exports credited at retail, banked, annual true-up |
| Atlantic City Electric (ACE) | Serves South Jersey; residential all-in near the state average | Full-retail net metering (statewide NJ rule): exports credited at retail, banked, annual true-up |
| Rockland Electric (O&R) | Small utility in NJ’s northeast corner; residential all-in near the state average | Full-retail net metering (statewide NJ rule): exports credited at retail, banked, annual true-up |
Net metering rules are set by state law and the utility commission, not the installer. Confirm your utility’s current tariff before you size a system.
New Jersey solar incentive stack (2026)
State programs, net metering, and any rebates or SREC market make up the New Jersey incentive stack. These go to the system owner, so on a lease or PPA the company that owns the panels keeps the incentive while the net-metering bill credit follows your account.
Full-retail net metering
New Jersey requires full-retail net metering statewide: your exports are credited at the retail rate, banked monthly, and reconciled at an annual true-up (active) (NJBPU, as of July 2026)
SuSI / SREC-II (Administratively Determined Incentive)
A net-metered residential system earns an SREC-II worth $85 per MWh of production, paid for a 15-year term; the value steps down to $77 per MWh for applications registered on or after July 27, 2026 (the trigger is the registration date, not the energy-year boundary) (active; steps down July 27, 2026) (NJBPU SuSI program, Docket QO20020184, as of July 2026)
Sales-tax exemption
Solar energy equipment is 100% exempt from New Jersey sales tax (active) (NJ Division of Taxation, N.J.S.A. 54:32B-8.33, as of July 2026)
Property-tax exemption
The added home value from an approved solar system is exempt from local property tax, so going solar does not raise your assessment (active) (NJ P.L. 2008 c.90, N.J.S.A. 54:4-3.113, as of July 2026)
The federal homeowner credit has ended, but New Jersey’s programs have not. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a New Jersey homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS Residential Clean Energy Credit, as of 2026). State net metering and the incentives listed above were not affected by that change. For the full timeline, see what the federal solar tax credit change means and our state solar incentives overview.
Methodology and sources
- Electricity rate: the latest EIA Form residential retail price for New Jersey (EIA retail sales, as of March 2026).
- Production: modeled with NREL PVWatts v8 for a 7 kW south-facing array at the city ZIP (NREL PVWatts v8 documentation, as of July 2026).
- Cost and payback: MySolarFY estimates. Installed cost uses a cost-per-watt range informed by the DataForSEO cost SERP for New Jersey. Simple payback divides the net system cost by the first-year value, where first-year value is the net-metering bill savings (annual production times the EIA residential rate) plus the first-year SuSI SREC-II income of $85 per MWh of production. We hold today’s rate flat, count the SREC-II over its 15-year term, and ignore financing. The federal 25D residential credit ended December 31, 2025, so it is not included in these figures.
- Incentives and net metering: the New Jersey public utility commission and the DSIRE incentive database (DSIRE, as of July 2026).
- Assumptions: a 7 kW system, standard losses, and a south-facing array. Your roof, usage, and financing change the result, so treat these as planning figures, not a quote.
Citing this data
Citing this data?
Cite as: “MySolarFY, New Jersey Solar Data & Statistics 2026, accessed July 19, 2026.” Data compiled by MySolarFY from EIA (residential electricity rate), NREL PVWatts v8 (modeled production), DSIRE and the New Jersey public utility commission (incentives and net metering), and DataForSEO (cost SERP). Figures are dated in each table above.
Journalists and researchers may quote these statistics with attribution to MySolarFY and a link to https://mysolarfy.com/new-jersey-solar-data-statistics-2026/.
See what solar programs are available in your New Jersey ZIP code
Incentives, net-metering credits, installer availability, and electric rates change by utility and location. Enter your ZIP and we will match you with licensed installers who serve your area.
Free to check. About a minute. No credit pull to check.
How to choose a solar installer in New Jersey
Rather than chasing a “best installer” list, screen any company against objective criteria: NABCEP certification, a valid state license, a written workmanship and equipment warranty, real experience with your utility’s interconnection, and a transparent quote that uses today’s incentive values. For a checklist, see the right questions to ask a solar installer. MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Related New Jersey solar guides
Use these companion pages to go deeper on the numbers above:
- New Jersey solar guide: the statewide overview of costs, incentives, and how to get started.
- New Jersey net metering and SREC-II: how full-retail net metering and the SuSI SREC-II incentive credit your production.
- New Jersey solar tax credits (2026): the state sales-tax and property-tax exemptions, and why the federal 25D credit no longer applies.
- Cherry Hill solar: a local, city-level view for South Jersey homeowners.
- PSE&G solar: what to expect from interconnection and net metering with New Jersey’s largest utility.
- Rhode Island solar data and statistics: the same dated, sourced treatment for a neighboring state, for comparison.
- Our data and methodology: how MySolarFY sources and models every figure on pages like this one.
Frequently asked questions
What is the average solar cost in New Jersey in 2026? A typical residential system in New Jersey runs about $2.85 to $3.50 per watt installed before any incentives (MySolarFY cost range, as of July 2026). A 7 kW system is a common size for a single-family home. Cost varies with roof, equipment, and installer, so use a written quote for your own numbers.
How much electricity does a solar system produce in New Jersey? A modeled 7 kW array produces about 9,100 kWh a year in New Jersey (NREL PVWatts v8, as of July 2026). Production drives both your net-metering credits and your payback, so estimate your specific roof rather than a generic number.
Did the federal solar tax credit end? Yes for homeowners. The 30% federal Residential Clean Energy Credit (Section 25D) ended December 31, 2025, so a New Jersey homeowner who buys solar in 2026 cannot claim it (IRS, as of 2026). State programs and net metering were not affected by that change.
Reviewed by the SolarFY Editorial Team. Figures were verified against the linked EIA, NREL, DSIRE, and New Jersey Board of Public Utilities sources as of July 2026, following our data and methodology standards; rates, incentive values, and net-metering terms can change, so confirm current terms before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. Solar panels are not free and any monthly payments apply. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation; lease and PPA terms may include an annual escalator and total payments may exceed a cash purchase, and on a lease or PPA the incentives go to the company that owns the system. Homeowners do not get the federal residential credit that ended after December 31, 2025. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
