If solar energy was only found in sunshine states like Florida, California, and Arizona, you wouldn’t see so many panels on home roofs throughout New Jersey. Solar energy is available in New Jersey. It turns out, New Jersey is a very solar-friendly state, with plenty of sunny days, state-backed incentives, good financing options, and savings that can add up over time.
New Jersey Is Sunnier Than You Think
Solar energy systems for the home need sun and New Jersey actually has plenty of it. With more than 200 sunny days in a year, New Jersey is perfectly suited for solar. But even on cloudy or rainy days, the sun can power through and still help your system produce energy.
NJ Counties Using Solar Energy
New Jersey’s solar adoption is spread across its 21 counties, with each contributing to the state’s renewable energy landscape. Middlesex, Burlington, Monmouth and Ocean counties represent the counties with the top solar capacity in The Garden State.
New Jersey’s Solar Growth and Energy Contribution
With more than 5 gigawatts of installed solar capacity, New Jersey has more than doubled its solar energy output since 2017. The state ranks #7 in electricity generated from small scale solar power and is a national leader in clean energy with solar energy suppling more than 7% of the state’s electricity. This rapid growth is driven by state policies, financial incentives, decreasing installation costs, and beneficial financing options. And if you’re interested in helping the environment, a home solar energy system is a great place to start.
NJ’s Infrastructure Supports Solar Energy
New Jersey’s commitment to solar energy is boosted by its infrastructure and supportive policies. The state’s Renewable Portfolio Standard mandates that 50% of the state’s electricity come from renewable sources by 2030, further incentivizing solar adoption. Plus, New Jersey’s dense population, favorable solar irradiance, and streamlined interconnection standards make it an ideal environment for residential solar, allowing you to efficiently connect to an increasingly modernized grid.
New Jersey’s Solar Incentives and Programs for Homeowners
New Jersey offers multiple incentives to help you affordably go solar. Here are the top programs available to Garden State residents:
1. Renewable Portfolio Standard (RPS) and Solar Renewable Energy Certificates (SRECs)
To meet these targets, the state offers Solar Renewable Energy Certificates (SRECs), which let you earn money for the solar power you generate. For every megawatt-hour (MWh) of electricity your system produces, you can sell SRECs to utilities that need to meet state-mandated renewable energy quotas, and essentially pay you back for the energy your home solar produces.
2. NJ Net Metering Benefits for Home Solar
New Jersey has a strong net metering program for its residents. This means that if your solar system generates more electricity than you use, you can sell the excess back to the grid for credits on your electric bill.
Sales and Property Tax Exemptions in NJ
New Jersey provides some additional financial relief through two tax incentives:
- Sales Tax Exemption: You don’t have to pay the 6.625% state sales tax when purchasing solar equipment.
- Property Tax Exemption: Installing solar panels won’t increase your property taxes, even though they add value to your home.
5. Residential Clean Energy Credit
The solar savings don’t just come from the state; there are federal incentives as well. The Federal Residential Clean Energy Credit covers 30% of your solar installation costs. You claim the tax credit on your return for the year your system is installed.
Does Solar Work Well in New Jersey’s Climate?
Solar energy works well in New Jersey because modern systems perform even in cloudy or snowy conditions.
- Modern solar panels absorb indirect sunlight, meaning they still generate power on overcast, cloudy days.
- Net metering programs allow you to store summer energy credits and use them during winter when your system may not be producing as much energy as the sunny months.
- Rain and snow actually help clean your panels for you, keeping them efficient with minimal maintenance.
How Much Can You Save with Solar in New Jersey?
On average, New Jersey homeowners save around $17,000 after 20 years with their solar system.
Your exact savings depend on factors like:
- Energy usage: The more electricity you consume, the more you can save with solar.
- System size: Larger systems produce more power and lead to greater savings.
- Incentives: The combination of net metering, tax credits, and SREC sales increases your financial return.
Is Your NJ Home a Good Fit for Solar?
- Certain aspects of your home can make solar work better, so consider the following:
- Roof Condition & Orientation: South-facing roofs capture the most sunlight, but east- and west-facing roofs can still be effective. If your roof is old, consider replacing it before installing solar panels.
- Shading: Trees, nearby buildings, or structures that cast shade on your roof can reduce efficiency.
- Local Regulations: Some HOAs and municipalities have specific solar guidelines, so check local requirements before installing a system.
If you’re unsure whether your New Jersey home is a good fit for solar, a free solar consultation can help you decide. With strong state incentives, net metering benefits, and long-term savings, going solar in New Jersey can be a smart financial and environmental decision.
Ready to learn more? Give us a call today at (866) 50-SOLAR or book an appointment here.
