Solar 101

Introduction to Solar Energy: How It Works and Why It Matters.

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Complete Guide to Solar in New Jersey

Solar power has emerged as a leading renewable energy source, offering numerous environmental and economic benefits. As the world continues to transition towards sustainable energy solutions, several U.S. states have taken impressive strides in promoting solar power generation.

The Comprehensive Guide to Solar Energy in New Jersey: Empowering the Garden State with Solar Power


New Jersey, the Garden State, is not only renowned for its lush greenery but also for its commitment to renewable energy. As one of the leading states in solar energy adoption, New Jersey has embraced solar power as a key component of its clean energy agenda. With strong support from state policies and incentives, residents and businesses have the opportunity to harness the sun’s power and contribute to a sustainable future. In this comprehensive guide, we will explore everything you need to know about solar energy in New Jersey, including the cost of solar installations, available tax breaks and incentives, the number of solar companies, and the state’s vision for a greener tomorrow.

Solar Potential in New Jersey

Despite its relatively small size and northern latitude, New Jersey boasts a favorable solar potential. The state receives a substantial amount of sunlight throughout the year, making it conducive to solar energy generation. Additionally, New Jersey’s commitment to renewable energy and its strong support for solar installations make it an ideal location for residents and businesses seeking to embrace clean and sustainable energy solutions.

The Cost of Solar Installations in New Jersey

The cost of solar installations in New Jersey can vary depending on several factors, such as the size of the system, the type of solar panels used, and the complexity of the installation. As of my last update in September 2021, the average cost of a residential solar PV system in New Jersey ranged from $2.50 to $3.50 per watt before any financial incentives. For a typical 6 kW solar system, this would amount to around $15,000 to $21,000 before incentives.

It’s important to note that solar costs have been steadily declining over the years, making solar energy more financially accessible for New Jersey residents and businesses. Moreover, a variety of federal and state incentives are available to help reduce the upfront costs and encourage solar adoption.

Solar Tax Breaks and Incentives

New Jersey offers a robust set of tax breaks and incentives to encourage solar energy adoption and accelerate the transition to clean energy. Some of the key incentives include:

Federal Solar Investment Tax Credit (ITC):

The Federal ITC provides a tax credit for a percentage of the total solar system cost for both residential and commercial installations. As of my last update, the ITC offered a 26% tax credit, but this percentage may have changed since then. It’s essential to check the latest updates to determine the current percentage.

New Jersey Solar Renewable Energy Certificates (SRECs):

The SREC program allows solar system owners to earn certificates for every megawatt-hour (MWh) of electricity their solar systems generate. These certificates can be sold to utilities or other entities to meet their renewable energy targets, providing an additional stream of revenue for solar system owners.

Property Tax Exemption:

Solar installations in New Jersey are exempt from property tax assessments, ensuring that homeowners and businesses do not face an increase in property taxes due to their solar systems.

Sales Tax Exemption:

New Jersey provides a sales tax exemption for solar equipment purchases, reducing the overall cost of going solar.

Net Metering:

New Jersey has a strong net metering policy that allows solar system owners to receive credits for any excess electricity they generate and feed back into the grid. These credits can offset the electricity consumed from the grid during periods of low solar generation, effectively reducing electricity bills.

Low-Interest Solar Loans:

The state offers low-interest solar loans to assist residents and businesses in financing their solar installations, making solar energy more accessible and affordable.

The Rise of Solar Companies in New Jersey

New Jersey has experienced significant growth in the number of solar companies operating within the state. These companies offer a wide range of services, including solar system design, installation, maintenance, and monitoring. The increasing number of solar companies in New Jersey creates a competitive market, offering consumers a variety of options to choose from for their solar needs.

When selecting a solar company, consider factors such as experience, customer reviews, certifications, and warranties. Opting for a reputable and experienced installer ensures the proper design, installation, and maintenance of your solar system, maximizing its performance and longevity.

New Jersey’s Vision for a Greener Tomorrow

New Jersey has demonstrated a strong commitment to a sustainable future through its ambitious clean energy goals and initiatives. The state’s Renewable Portfolio Standard (RPS) sets targets for the percentage of electricity generated from renewable sources, including solar power. New Jersey’s Energy Master Plan (EMP) outlines a roadmap to achieve 100% clean energy by 2050, emphasizing the role of solar energy in achieving this vision.

The New Jersey Board of Public Utilities (NJBPU) plays a pivotal role in advancing the state’s clean energy agenda. The NJBPU administers various solar programs, including the SREC program and net metering, to support the growth of solar installations and promote renewable energy adoption.


New Jersey’s solar potential, coupled with a range of tax breaks and incentives, positions the Garden State as a leader in solar energy adoption. The decreasing costs of solar installations and the rise of solar companies further contribute to making solar energy more accessible and appealing to residents and businesses alike.

By embracing solar energy, New Jersey residents can reduce their reliance on traditional fossil fuels, lower energy costs, and contribute to a more sustainable and cleaner environment. As the state continues to prioritize renewable energy and promote solar installations, the Garden State can continue to shine as a model for other regions seeking to embrace a greener and more sustainable future.

Through collective efforts and a shared commitment to solar power, New Jersey can illuminate its path towards a brighter and more sustainable tomorrow, setting an example for other states to follow in the transition to clean energy.