Is Solar Worth It in New Jersey? (2026)

New Jersey is one of the strongest solar states in the Northeast — not because of sun, but because of high rates, net metering and solar incentives. For many NJ homes it’s clearly worth it. Here’s the honest take.

The New Jersey basics

• Electricity rate: above average, around 17–18¢/kWh, so each kWh of solar saves more than in most states.
• Sun: modest — roughly 4.2 peak sun hours/day — but the strong rates and incentives more than make up for it.
• Solar-friendly policy: NJ has long supported residential solar with incentives on top of the federal credit.

See a worked example on our New Jersey solar cost page or the Solar Savings Calculator.

Net metering and incentives in New Jersey

New Jersey has generally offered net metering plus a state incentive program that pays for the solar energy your system generates (in addition to bill savings). These programs and their values change, so confirm the current NJ incentive and net metering terms before buying. Browse programs on DSIRE, and see what is net metering.

When solar is worth it in New Jersey

• Above-average bills (most NJ homes) and a reasonably sunny, unshaded roof.
• You capture the state incentive plus the federal tax credit.
• You’ll stay long enough to reach payback (often ~7–11 years thanks to incentives).
• You own the system to claim everything.

When to be cautious

• Heavily shaded roofs — NJ’s modest sun leaves less margin for shade losses.
• Confirm incentive availability, since program capacity and values shift.

Bottom line

New Jersey is a top-tier solar state despite modest sun, thanks to high rates and strong incentives. Lock in the current NJ incentive terms, then estimate your numbers with the Solar Savings Calculator.

Educational estimates only. Verify current NJ incentives and net metering.