New Jersey Solar Information
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#32New Jersey ranks #32 in the USA for savings from installing solar panels
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5849.03 kWhAnnual AC energy output of a 4 kW solar system installed in New Jersey
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4.92 kWhSolar Radiation (kWh / m2 / day)
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15 ¢ /kWhThe cost of electricity today in Public Service Electric & Gas Co
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31 ¢ /kWhIf you don't go solar. The forecast average utility price over the next 25 years
New Jersey Solar Facts
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$1.37Average cost of a 4kw solar power system in 2019.
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3 yearsAverage system payback period.
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$66,559.06Average lifetime savings.
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5 ¢ /kWhLevelized cost of solar energy.
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5 kWRecommended system size.
- Solar Power System Cost in New Jersey
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$1.37 per watt
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$6,081.18 total
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3 years
New Jersey might not be the sunniest state in the country, but the state is surely the leader in renewable energy production. New Jersey gets on average 4.21 hours of peak sunlight, which ranks it pretty low compared to some other states, but there is still plenty of sunshine to make solar work very efficient here. Thanks to the state government’s involvement and great solar incentives that save people a lot of money on new solar installations, New Jersey ranks very high in solar capacity and production.
New Jersey Solar Facts
- The state requires that 22.5% of its energy should come from renewable sources by the year 2021. Moreover, by the year 2030, 50% of all its energy should be coming from renewable sources.
- Up to date, there have been installed almost 3,000 MW of solar in New Jersey, which is enough to power nearly 480,000 homes.
- New Jersey is ranked third in installed solar capacity in the country.
- New Jersey’s electricity prices are among the highest in the country. The higher the price of electricity, the bigger the savings would be from generating solar power.
The Cost of Solar Panels in New Jersey
As of October 2019, the typical solar panel cost in the state is $3.05/W.
On average, a 5 kW solar power system installation in New Jersey would cost anywhere from $13,000 to $17,500. After taking into account 30% Federal Investment Tax Credit (ITC) and other state and local solar incentives, the price will decrease significantly.
New Jersey Solar Tax Credits
The Federal Investment Tax Credit – is a government program that gives you an opportunity to deduct 30% of the entire cost of the solar equipment and its installation on your federal income taxes and has no limit on its value.
New Jersey Solar State Credit – everyone who installs a solar system on their home in New Jersey is exempt from 7% sales taxes on that solar equipment.
Property Tax Exemption – Solar panel installation will increase the value of the house. However, the residents of New Jersey are exempt from the higher property taxes on the increased value of the house due to solar system installation.
New Jersey Solar Incentives and Rebates
Net Metering Program – In New Jersey, all utility companies and electric cooperatives must provide Net Metering to its customers. Net Metering tracks your excess energy generation and credits it back to your bill at the full retail price. In New Jersey, if you had surplus for the entire year, the utility company will pay you for that surplus at the wholesale rate at the end of the year.
New Jersey Solar Performance Payments – Homeowners receive performance payments on an ongoing basis for energy that their solar systems generate. In New Jersey, these payments are given in a form of Solar Renewable Energy Certificate (SREC). Every time your PV system produces 1,000 kWh of electricity, you will get a SREC, which can be sold for money. SRECs are usually traded on an open exchange and their value can fluctuate. On average, people see savings of about $1,400 a year with the 5kW solar system.
Pros and Cons of Buying Solar Panels in New Jersey
Pros:
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Relatively short payback period
The solar payback period is calculated by establishing the length of time it will take you to completely pay off the initial price of your solar power system. Currently, New Jersey has a phenomenal payback of only 6 years thanks to solid solar programs and incentives, lower solar equipment costs, and high utility rates. -
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After the payback period, solar power is nearly free
In New Jersey, utility companies are not allowed to charge you a connection fee to plug your solar power system into the grid if it is smaller than 10kW. It means that once your solar energy system is paid off, the electricity it produces will be free for you to use. -
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Great savings on a monthly electric bill
The financial benefits of going solar will be evident on your monthly electric bill from day one. You begin generating your own electricity once you install a solar energy system in your home. Solar adoption will help you be less dependent on your local utilities and their high utility rates, which are extremely affected by inflation. -
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Helping the environment since solar energy is clean, sustainable, and renewable
Sunlight is plentiful anywhere on Earth and can be harvested without damaging the environment. Solar power is a clean, renewable and sustainable source of energy that can save you money on the electric bill every month. Using solar energy instead of coal and gas will reduce our carbon footprint by greatly decreasing air and water pollution. -
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Support from the government and the state
New Jersey has ranked as one of the best states for solar adoption thanks to its excellent solar state programs and incentives. Moreover, The Federal Investment Tax Credit is still available and save you 30% on the entire solar purchase and installation. Individuals will see the initial cost of their solar equipment dropped by thousands of dollars as a result of this economic assistance. -
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Very low maintenance
With solar panel usage, you do not have to worry about wear and tear since PV systems do not have any moving parts. Thanks to that, they are also completely silent when in operation. The only maintenance they need is the occasional cleaning to maintain them free from dust and dirt. -
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Excellent warranty protection
Today, the majority of solar panels manufacturers offer two forms of warranties: performance guarantee and extended product guarantee. The performance warranty guarantees efficient energy production for at least 25 years. Extended warranties ensure that faulty equipment, breakage or any performance deficit that may occur will be repaired. -
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Increase in the property value
Several recent studies by well-known real estate companies have shown that installing solar panels on your home's roof adds value to the property. Typically, the installation of a solar system will increase your home value by 4.1%. In addition, not only do homes with photovoltaic systems sell at greater rates, but they also sell quicker than homes without solar systems.
Cons:
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The possible high initial cost
The initial high cost of purchasing and installing a solar power system is a major concern for many people who are thinking about switching to solar. However, the initial cost of going solar can be significantly reduced thanks to great federal and state solar programs. In addition, there are rebates and incentives available that can increase solar savings even more. Most importantly, going solar will save you money from day one on your electric bill. -
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Must have a large, open area for installation
Solar panel installation of a typical 5kW size requires an adequate open space of about 500 sq. feet. For solar power system optimal operation, this area has to be shade-free. Unfortunately, some homeowners do not have this much open space on their roof. However, the solar panels can also be installed on the ground if they have direct access to sunlight. -
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Must be a property owner to install
Today, solar power systems can mostly be installed for homeowners with excellent credit and/or good income. For renters, low-income individuals, or individuals without a job, solar advantages are not yet available.
Is It Worth Going Solar in New Jersey?
New Jersey is a perfect state for going solar. Excellent state solar initiatives and solar programs make solar an easy decision when making a choice about your power source. It is not only the most affordable it has been in years but also a solid investment that will pay you for years to come. Going solar in New Jersey is a smart financial and environmental move.
When you install your solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is being phased out by 2022.
Most people are eligible to claim this credit (you must owe federal taxes to be eligible).
System size
- Mini
- Small
- Medium
- Large
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11 x 405 wattsolar panels - +
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11 x 300 wattmicroinverter - +
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2 x 3 800 wattinverter
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$6,081.18Estimated system cost
Excludes 26% Federal Tax Credit.
This price does not include the installation cost. -
3 yearsAverage system payback period
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$66,559.06Estimated utility savings
Example of 4 kW system calculation in Minnesota for electricity bill $100
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15 ¢ /kWhThe cost of electricity today in Public Service Electric & Gas Co
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31 ¢ /kWhIf you don't get solar. The forecast average utility price over the next 25 years
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5 ¢ /kWhlevelized cost of solar energy