New Jersey is making significant strides in solar energy, with renewables contributing 8% to the state’s electricity generation, primarily from solar sources.
In 2022, solar energy dominated, constituting 87% of the state’s renewable generation, ranking New Jersey tenth in total installed solar photovoltaic (PV) capacity. As of September 2023, the state boasts 3,620 megawatts of solar power capacity, with over two-thirds in small-scale installations, such as rooftop panels.
With an impressive track record, the state has surpassed 100,000 solar installations, making it a true powerhouse in renewable energy. New Jersey’s commitment to a cleaner future is evident through its ambitious goal of reaching 100% clean energy by 2050, a vision that has garnered widespread acclaim.
The popularity of solar panel installation in New Jersey
New Jersey has firmly established itself as a solar powerhouse, ranking 10th nationally with 4,696 MW installed, powering 803,995 homes and contributing 7.55% to the state’s electricity.
With 6,594 solar jobs, 462 companies, and a total investment of $13.3 billion, New Jersey remains a leader in solar, experiencing a 42% price drop over the last decade.
The state’s continued strong growth, with a projected 2,337 MW over the next five years, reaffirms its position as a pioneering force in the solar industry.
Solar Financing Options in New Jersey
The three commonly chosen solar financing options in New Jersey are as follows:
- Solar loans allow homeowners to secure funding for system purchases, offering ownership, eligibility for incentives, and autonomy, with potential maintenance responsibilities.
- Solar leases offer a set monthly fee monthly payments for electricity, with minimal upfront cost and outsourcing maintenance responsibilities to the leasing company. However, potential restrictions and escalating lease amounts exist over 15 to 25 years.
- Power Purchase Agreements (PPAs) involve a developer handling system purchase and maintenance, with property owners buying generated energy through a long-term contract, initially at a lower rate than the utility’s but potentially escalating annually. Developers own associated incentives, providing a hassle-free solar option for property owners without system ownership burdens.
Solar lease vs. solar purchase options in New Jersey
Leasing solar panels in New Jersey is like renting them, making solar energy accessible for those without much money upfront.
But the catch is you don’t own the panels; someone else does.
On the flip side, buying solar panels means you own them, but there might be some upfront costs. You can pay in instalments and get extra credits from the state or the manufacturer.
Research by Forbes shows leasing costs around $50 to $250 per month, depending on how much energy you use, where you live, and your credit score.
Buying needs a more significant upfront payment. Both options can save you money on your electricity bills. Do remember to weigh the pros and cons of solar panels in NJ before deciding.
Solar panel tax credits in New Jersey
New Jersey offers various tax incentives to promote solar energy adoption. Homeowners and businesses can benefit from federal investment tax credits (ITC) and state-specific incentives, significantly reducing the overall cost of solar panel installations.
For more information, read: Office of Energy Efficiency & Renewable Energy.
Are there solar panel installation companies in New Jersey?
Several reputable solar panel installation companies operate in New Jersey. These companies have established themselves as leaders in the industry, providing high-quality installations and exceptional customer service.
Here are the top 10 solar companies in New Jersey as recommended by Forbes for 2024 :
- SunPower
- ADT Solar (Previously Sunpro Solar)
- Momentum Solar
- Palmetto Solar
- Tesla
- NJ Solar Power
- Green Power Energy
- Trinity Solar
Frequently Asked Questions (FAQs)
How much does electricity cost in New Jersey?
In 2023, the average electricity cost for New Jersey residential customers was $17.51 per kilowatt-hour. This makes the average monthly energy bill for residential customers in New Jersey total $112.39.
For commercial customers, it was $13.73 per kilowatt-hour, and for industrial customers, it was $11.42 per kilowatt-hour. Understanding this baseline cost is crucial for solar panel installation in NJ.
How much does it cost to install solar panels in NJ?
The average installation cost of solar panels in New Jersey is approximately $2.95 per watt.
For a regular household consuming an average of 691 kilowatt-hours per month in South New Jersey, the solar panel installation cost for a 6.5 kW system averages $13,750 before factoring in state incentives.
Factors influencing costs include system size, solar panel brand, solar installation company, and additional expenses like permitting and interconnecting costs.
How many solar panels do I need to power a house in New Jersey?
In New Jersey, solar systems are categorized into “Grid-Supply” and “Behind-the-Meter” systems, with a focus on Behind-the-Meter installations. You need to consider the electricity generation needs to determine the optimal size needed.
Collaborate with the installation contractor and obtain a 12-month report from the utility company detailing electricity consumption. On average, a solar system for a 1,500 square foot house in New Jersey produces around 1,200 kilowatt-hours per year for each installed kilowatt, averaging around 15-20 panels.
Is it worth going solar in NJ?
It is best to calculate the estimated panel payback period, typically ranging from 7 to 13 years, with an average of around ten years.
Considering unique household variables, achieving a payback period below 25 years indicates potential long-term savings, making it worthwhile to explore New Jersey solar panel sales and installation through local professionals who can offer a thorough home assessment and a free solar quote.
Do I need a permit to install solar panels in NJ?
Indeed, securing a permit is necessary for both residential solar panel installation in New Jersey and commercial building solar panel installation in the state. Partnering with an experienced installation company can expedite the permitting process for both homeowners and businesses.
Click here at New Jersey’s Clean Energy Program for more information.
Does NJ install solar panels for free?
No, New Jersey does not have official programs that give homeowners free solar panels. Instead, the state provides various tax exemptions and incentives to reduce the initial costs of installing solar panels in New Jersey.
What are the solar incentives in New Jersey?
New Jersey incentivizes solar adoption through tax incentives and rebates, with the Successor Solar Incentive (SuSI) program playing a pivotal role. SuSI offers solar renewable energy certificates (SREC-II), providing a guaranteed payment of $90 for each SREC-II earned over 15 years for residential solar panel installations.
The program includes the Administratively Determined Incentive (ADI) for residential and smaller non-residential projects and the Competitive Solar Incentive (CSI) for larger projects and those paired with solar batteries or energy storage systems, further driving solar energy production in the state.
How do I choose a solar installation contractor in New Jersey?
When choosing the best solar panel installation in New Jersey, compile a list of nearby contractors to minimize travel costs. Ask about their experience, specifically the number of solar electric systems they have installed, as this indicates their expertise in the field.
Ensure the New Jersey solar panel installation company is properly licensed, with an electrical contractor’s license.
What happens If I sell my home? Can I transfer my New Jersey solar lease or PPA to the new owner for the remainder of the contract?
When transferring ownership in Power Purchase Agreements (PPAs) and Leases, various provisions exist that may bring additional expenses and complex discussions with potential new owners.
The options for the customer typically include transferring the agreement to the new homeowner, moving the solar system to a new home at their expense, or opting to purchase the system or pre-pay the remaining lease/PPA payments, often incurring significant costs.
Conclusion
As the need for eco-friendly energy solutions rises in New Jersey, selecting solar panel installation becomes a practical and beneficial decision for both residents and businesses in the Garden State.
Embracing solar energy reduces environmental impact and provides long-term financial benefits, making it a win-win for New Jerseyans seeking a greener and more cost-effective energy solution.
