How Much Do Solar Panels Cost in New Jersey in 2023
One of the best states for solar energy is New Jersey. The Solar Energy Information Association (SEIA) says that it produces the eighth most solar energy in the United States. Installing a solar panel system can be expensive, though, and you may be wondering how much such a big project will cost.
The Guides Home Team looked into the best solar companies in the U.S. and found out how much solar panels cost on average in New Jersey. This guide also talks about solar incentives in the Garden State that can lower your costs.
Solar power systems cost a lot to set up, and the size of the system is one of the biggest factors in the cost. Most homes in New Jersey need a 5 kW system, which costs an average of $2.75 per watt. This comes to $13,750, or $9,625 after the 30% federal tax credit is taken into account. The more expensive your system is, the bigger it is.
Equipment: You’ll need to install more than just solar panels. For example, you’ll need an inverter to turn the energy your panels produce into electricity that you can use. Depending on how much sun your roof gets, you may also need extra tools. If your roof gets some shade during the day,
you might want to put in a solar battery to store extra energy for use when there isn’t as much sun. You can also add chargers for electric cars.
Setting up solar panels: There are many ways to do this. Most installations use roof mounts and racking, but some installations need extra parts, like ground or carport mounts, which add to labor and material costs.
Interconnection: Connecting your solar panel system to the power grid is the process of interconnection. Each local utility has different rules about how to connect that could affect how much your project costs.
Solar panels can be put on flat roofs, metal roofs, or shingle roofs. Each type of roof needs different materials and work, which affects the total cost. For example, building angled platforms for flat roofs adds to the cost of labor.
Solar panel type: There are different kinds of solar panels, and each has its own costs and benefits. Monocrystalline panels cost the most, but they also work the best. Polycrystalline panels are more affordable but less efficient. If your roof is small, you might need monocrystalline panels to make up for the lack of space.
New Jersey’s solar incentives
Even though the initial cost of putting in a solar power system is high, there are a number of federal and state tax incentives that can help cut costs. In the long run, you’ll save money on your energy bills, and solar panels usually pay for themselves in five to seven years.
The federal solar tax credit lets homeowners deduct 30% of the cost of installing solar panels from their taxes. In 2033, this rate will drop to 26%.
How to Use:
To get the federal tax credit, you must own your solar panels and live in the United States. This is for people who bought their solar systems outright or got a loan. People who lease or have a power purchase agreement (PPA) are not eligible. To get the credit, you need to send in IRS Form 5695 with your tax return. On the IRS website, you can find out more about what you need to do to get the tax credit.
Net-Metering in New Jersey
New Jersey is one of many states with a program called “net-metering,” which lets you sell any extra energy your system makes back to the grid. For every kilowatt-hour (kWh) you make, you get a credit on your next electric bill.
How to Use:
Each utility company has its own set of programs. On the website for New Jersey’s Clean Energy program, you can find both specific rules for each utility company and more general information about the state’s net-metering program.
Tax breaks for property
Solar systems make your home worth more, but homeowners in the Garden State don’t have to pay more taxes because the state exempts solar systems from property taxes.
How to Apply: Solar owners in New Jersey must ask their local property assessor for a certificate. With this certificate, the value of your home’s taxable property will go down to what it would be without the renewable energy system.
Solar Sales Tax Exemption
The New Jersey sales tax of 6.625% does not apply to items you buy for your solar power system. This incentive is open to all taxpayers and includes passive solar equipment like a sunspace or solar greenhouse.
Successor Solar Incentive (SuSI)
The popular Solar Renewable Energy Certificate (SREC) program has been replaced by this one. Under SuSI or SREC-II, you get one credit for every megawatt-hour (MWh) of energy your system makes. You get $90 for each SREC-II credit, and you can sell them to make more money.