Solar energy has been a big success in New Jersey. With 205 sunny to partly sunny days a year and a rigorous Renewable Portfolio Standard, the state is primed to continue its push for growth in the renewable energy industry, particularly where solar is involved. See how residential solar panels stack up in New Jersey.

New Jersey’s Solar
Panel Report Card


To determine a grade for each state, our researchers and solar experts analyzed data on crucial solar-advancement criteria from the following sources:

We determined a rank from one to 10 for each state in each category. We then combined the scores with the following weights and assigned an overall grade for each state. Our goal is to encourage those considering solar for their homes to get a basic understanding of solar potential in their areas and discover the best opportunities for clean energy available.

Incentives & Rebates, 40%

Electricity Rate, 15%

Renewable Energy Policy, 30%

Interconnection Ease, 5%

Photovoltaic Potential, 10%

New Jersey Electricity Rates

The high cost of electricity is a major factor contributing to solar energy’s success in New Jersey. Residential customers pay an average of $0.15 per kWh for electricity. These rates and other factors have caused New Jersey to rank in the top 10 states for installed solar capacity with more than 3,000 MWs as of 2019, enough to power nearly 500,000 homes. The state is also in the top 10 for projected solar growth with another 2,000 MWs expected over the next five years.

Cost of Residential Electricity in N.J.

Data from U.S. Energy Information Administration
*as of Q3 2015

New Jersey
Library of Resources

New Jersey Solar Panel Incentives

New Jersey offers 35 different federal, state and local policies, programs and incentives to encourage residents to invest in solar energy. Besides the federal solar investment tax credit (ITC), programs such as utility-bill PACE financing enhance returns and lower the cost of investing in residential solar installation. New Jersey plans to double the percentage of solar energy used to meet the state’s Renewable Portfolio Standard (RPS) from 2.05 percent in 2014 to 4.1 percent by 2028.


NJ Clean Energy – Residential New Construction Program

Several financial incentives are offered depending on how energy efficient a newly constructed home is. Single-family homes can receive up to $24,250. Multi-family homes can receive up to $2,250 per unit.

None for residential specifically

Edison Innovation Clean Energy Manufacturing Fund – Grants and Loans

Grants and loans are available to assist with the manufacturing of products that will help solar PV energy technologies compete with traditional electric generation sources. Grants as high as $300,000 and loans as high as $3 million are available.


Net Metering

Net metering allows New Jersey residents with solar energy systems to get a credit on their utility bill for each unused kWh of electricity their systems produce. The credit can’t exceed 100 percent of the homeowner’s electricity usage in a year, but any solar PV system is eligible.

Solar Permitting Laws

Facilities that produce electricity via solar energy are allowed on industrial-zoned land, as long the land is at least 20 connecting acres that are owned by the same person or entity.

Societal Benefits Charge

State legislation led to the creation of a societal benefits charge for supporting investments in solar PV energy. The total public benefits fund was $344 million for the fiscal year of 2014.

Solar Easements

Agreements can be made allowing solar energy systems to cross into land not owned by the owner of the solar system if it’s for the purpose of accessing direct sunlight. Easement agreements must include specific information about the nature of the solar equipment, like its size and angles, how the equipment will affect the property in question and what compensation will be made to the property owner.

Interconnection Standards

New Jersey electric companies must allow solar energy systems to connect to the grid without a fee.

Residential Solar Rights:

Homeowners associations cannot prohibit homeowners from installing rooftop solar energy systems on their houses.

Solar Energy Option Requirement for Residential Developments:

Residential developers whose developments have at least 25 units must offer PV installation to prospective buyers. The buyer has to pay for the solar energy system but is eligible for any applicable credits and incentives.

None for commercial specifically


None for residential/commercial specifically

None for residential specifically

None for commercial specifically


Property Tax Exemption for Renewable Energy Systems

Solar energy systems that are used for meeting on-site general energy/electricity needs are exempt from local property taxes. The incentive caps at 100 percent of the value added by the solar PV system.

None for residential specifically

None for commercial specifically

New Jersey: Solar Panel Contractors & Installers

In total, nearly $9.8 billion has been invested in solar energy installations. In addition, more than 700 solar companies were operating in New Jersey in 2019, employing 6,410 people. Below is a brief list that can help you narrow down your search for a solar contractor or installer in New Jersey.

Direct Energy Solar

Direct Energy Solar is a full-service solar installer that provides fast, custom-built PV systems according to customers’ budgets and energy needs. They guarantee system performance and offer lifetime systems support.

Where it operatesBased in Maryland; serves New Jersey statewide and the Northeast United States

Year of opening2008

Green Sun Energy Services

Green Sun Energy Services offers a variety of energy efficiency products and services including solar PV installation, emergency generators, roofing, meter installation and retrofit, insulation and air leak sealing, appliance and lighting upgrades, windows and more. Services clients throughout Monmouth, Ocean, Middlesex, Somerset, Mercer and Union Counties.

Where it operatesMiddletown, NJ

Year of opening2010

Jersey Solar

Jersey Solar is a SunPower Authorized Dealer that specializes in installing PV systems.

Where it operatesLambertville

Year of opening1983

New Jersey Solar Power

Founded in conjunction with New Jersey’s Clean Energy Rebate Program, New Jersey Solar Power provides full-service, high-quality solar energy installation and services.

Where it operatesBayville

Year of opening2003

RGS Energy

One of the most experienced solar energy businesses in the U.S., RGS takes pride in providing economic and aesthetic solar and sustainable energy solutions for residences, communities and businesses. Services encompass financing, systems design, engineering, installation, monitoring and maintenance.

Where it operatesBased in California; serves New Jersey statewide

Year of opening1978

Sunrun New Jersey

The New Jersey arm of Sunrun, one of the U.S.’ leading third-party residential solar companies, offers a comprehensive turnkey PV systems solution.

Where it operatesBased in California; serves New Jersey statewide

Year of opening2011

N.J. Solar Panel Resources

There is a lot of information on solar energy in New Jersey. Below is a brief list to help you get started or refine your search.

Mid-Atlantic Solar Energy Industries Association (MSEIA)

MSEIA is public education, outreach and advocacy group for solar energy policies that remove market and access barriers, promote local job creation, manufacturing and R&D across New Jersey, Pennsylvania and Delaware.

New Jersey Board of Public Utilities

This is the state agency responsible for oversight of regulated utilities that provide electricity, natural gas, water, telecoms and cable TV. It’s charged with ensuring public services are safe, efficient and affordable.

New Jersey Clean Energy Program

New Jersey Clean Energy is a state program that promotes increased energy efficiency and use of renewable energy to foster a stronger economy and a healthier, more sustainable society.

PSE&G Solar 4 All

Learn about the state’s utilities program to develop 125-MW of grid-connected solar power capacity – enough to meet the electricity needs of some 20,000 average sized homes per year.

PSE&G Solar Loan Program

The 13th solicitation for the utility’s Solar Loan III Program opens April 1, 2016. Residential and commercial customers can apply.

Solar New Jersey

Solar New Jersey’s stated mission is to connect New Jersey homeowners and businesses with certified state solar installers by creating a more efficient solar marketplace.


This resource offers consumer reviews of solar companies, panels, inverters and equipment across U.S. states, including summaries of state solar power installation requirements.


DSIRE is the Department of Energy’s (DOE) online database of solar policies and programs by state, including information on federal, state and local solar policies, programs and incentives.

National Renewable Energy Laboratory

The DOE’s flagship national solar and renewable energy R&D center, NREL’s website is a prime source of information for those interested in the latest developments in solar policies and economics, as well as technology, news and developments.

U.S. Energy Information Administration (EIA)

EIA serves as the DOE’s official source of national energy statistics. For anyone interested in energy in the U.S., EIA’s website is an essential and popular source of data and information.

Solar Energy Industries Association (SEIA)

National solar industry trade association, SEIA, and its website are valuable sources of news, opinion, data, information regarding solar energy. The site includes state fact sheets that highlight and summarize recent developments.