By Solar Expert
March 11, 2026
If you own a home in Howell Township, Monmouth County, choosing the best solar option in 2026 looks different than it did even a year ago. The federal residential solar tax credit is gone, state incentives have shifted, and the decision between buying, leasing, or signing a power purchase agreement now carries higher stakes. Howell homeowners served by JCP&L (FirstEnergy) still have strong paths to lower electric bills -- but picking the right one depends on your budget, your roof, and your goals.
As of March 11, 2026: This article reflects the current status of NJ solar incentives, the federal residential tax credit repeal, and JCP&L interconnection requirements for Howell Township homeowners.
At a Glance: Best Solar Options for Howell, NJ Homeowners in 2026
Official sources (last checked: March 11, 2026):
Howell homeowners have four main solar paths in 2026: cash purchase, solar loan, solar lease, or a power purchase agreement (PPA). Each model structures costs, ownership, and incentive eligibility differently -- and the choice matters more now that the federal residential tax credit has been repealed for homeowner-owned systems.
You pay the full system cost upfront and own the panels outright. You keep all NJ SuSI incentive payments and JCP&L net metering credits. There is no federal tax credit available for this option in 2026, but the long-term savings are the highest because you have no ongoing payments and full ownership of the energy your system produces.
A solar loan lets you own the system with zero or low money down. You make monthly loan payments instead of paying upfront, but you still qualify for NJ state incentives (SuSI payments and net metering credits) as the system owner. The trade-off is interest cost over the loan term, which extends your payback period compared to a cash purchase.
A solar lease means a third-party company owns, installs, and maintains the system on your roof. You pay a fixed monthly lease payment that is typically lower than your current electric bill. Because the lease company owns the system commercially, it can claim the federal Investment Tax Credit (ITC) and often passes that benefit to you through a lower monthly rate.
A PPA is similar to a lease, but instead of a fixed monthly payment, you pay a per-kilowatt-hour rate for the energy the system produces. The PPA provider owns the system and handles maintenance. Like a lease, the provider can claim the commercial ITC, which helps keep your per-kWh rate competitive.
Claim: A solar lease or PPA in New Jersey can still benefit from the federal Investment Tax Credit even though the homeowner residential credit was repealed.
Evidence: The Big Beautiful Bill (2025) repealed only Section 25D (the residential clean energy credit for homeowner-owned systems). The commercial ITC under Section 48 remains in effect. Because lease and PPA providers own the system commercially, they qualify for the ITC and typically pass savings to the homeowner through lower monthly rates or per-kWh pricing. The IRS residential clean energy credit page confirms the repeal of the homeowner credit.
A typical 8-10 kW purchased solar system in Howell costs roughly $24,000-$35,000 installed before state incentives. That range reflects differences in panel brand, inverter type, roof complexity, and installer pricing. With the federal residential credit no longer available, this is the net cost homeowners should plan around when evaluating a purchase.
The $24,000-$35,000 range covers most Howell homes with standard asphalt shingle roofs and straightforward electrical panels. Systems on the lower end typically use mainstream monocrystalline panels with string inverters. Higher-end systems may feature premium panels with microinverters or optimizers, which add cost but can improve performance on roofs with partial shading.
Lease and PPA monthly costs vary by system size and provider, but they are typically structured to be lower than your current JCP&L electric bill from day one. Fixed lease payments or PPA per-kWh rates are set at signing and may include modest annual escalators. Homeowners pay nothing upfront and avoid maintenance costs.
Several factors influence what you will actually pay: roof condition and age (a roof near end-of-life may need replacement first), system size based on your JCP&L usage, panel and inverter selection, electrical panel upgrades if needed, and local permitting fees in Howell Township. Getting multiple quotes is the most reliable way to understand your true cost.
Claim: Howell homeowners who purchase solar no longer receive any federal tax credit to offset the upfront cost, making state incentives and financing terms more important than ever.
Evidence: Before the Big Beautiful Bill (2025), a homeowner buying a $30,000 system could claim roughly $9,000 back via the 30% Section 25D credit. That credit no longer exists for residential ownership. The only offsets now available to purchasers are NJ state-level incentives (SuSI payments over time) and the NJ solar property tax exemption -- making the net upfront cost higher than it was in prior years and placing greater weight on loan terms and state program participation.
NJ's Successor Solar Incentive (SuSI) program and the state solar property tax exemption both remain active in 2026. These two programs, combined with JCP&L net metering, form the backbone of savings for Howell homeowners going solar now that the federal residential credit is gone.
The SuSI program pays solar system owners a per-kWh incentive for every kilowatt-hour of energy their system produces. Payments are made over a fixed term and are administered through the NJ Clean Energy Program. For homeowners who purchase or finance their system, these payments go directly to you. For leased or PPA systems, the payments go to the system owner (the lease or PPA company). Check the NJ Clean Energy Program for current SuSI incentive rates, as they are subject to periodic adjustment.
New Jersey law (N.J.S.A. 54:4-3.113a) exempts the added value of a solar energy system from local property tax assessments. If a solar installation increases your home's market value, your property taxes in Howell will not go up as a result. This is an automatic benefit that applies regardless of whether you purchase, lease, or use a PPA.
JCP&L provides net metering to residential solar customers in Howell. When your panels produce more electricity than you use, the excess is sent to the grid and credited to your account at the retail rate. Credits accumulate and offset your usage during lower-production months, with an annual true-up. For homeowners who own their system, these credits go directly to reducing your JCP&L bill. For lease and PPA customers, net metering benefits are typically factored into the contract terms.
Claim: Howell homeowners who install solar do not pay additional property taxes on the value the system adds to their home.
Evidence: New Jersey's solar property tax exemption (N.J.S.A. 54:4-3.113a) specifically excludes the added value of a solar energy system from local property tax assessments. This means a home in Howell that gains market value from a solar installation will not see a corresponding increase in property taxes -- a benefit that applies to all ownership models.
The federal Residential Clean Energy Credit (Section 25D) was repealed by the Big Beautiful Bill in 2025, eliminating the 30% tax credit for homeowner-owned solar systems. This is the single biggest change to the solar incentive landscape since the credit was first established, and it directly affects how Howell homeowners should evaluate their options.
Section 25D allowed homeowners who purchased solar panels, battery storage, and other qualifying clean energy equipment to claim 30% of the system cost as a federal income tax credit. The Big Beautiful Bill eliminated this credit entirely for residential ownership. If you buy or finance a solar system on your Howell home in 2026, you will not receive any federal tax credit.
The federal Investment Tax Credit (ITC) under Section 48 remains in effect for commercially owned solar systems. This is directly relevant to leases and PPAs: the company that owns the system on your roof is a commercial entity and can still claim the ITC. Providers typically factor this credit into their pricing, which is why lease and PPA rates can remain competitive even without a homeowner tax credit.
Before the repeal, purchasing was the clear winner for almost every homeowner who could afford the upfront cost, because the 30% credit dramatically shortened the payback period. Now, the gap between purchasing and leasing has narrowed. Purchasing still delivers the highest total savings over 25 years because you own the system, keep all SuSI payments, and benefit from net metering credits. However, the payback period is longer without the federal credit. Leasing or a PPA becomes relatively more attractive for homeowners who prefer not to pay upfront or who want immediate bill savings with zero risk.
Claim: The repeal of the federal residential solar credit makes solar leases and PPAs relatively more competitive compared to purchasing than they were before 2025.
Evidence: Before the repeal, a homeowner purchasing a system could claim a 30% federal tax credit, significantly closing the gap between upfront cost and long-term savings. With that credit gone, purchasers bear the full system cost (offset only by state incentives), while lease and PPA providers still benefit from the commercial ITC and pass those savings to homeowners. This shifts the breakeven math in favor of third-party ownership for homeowners who lack the cash or financing capacity to absorb the higher net upfront cost.
Purchasing gives you the most savings over 25 years; a lease or PPA gives you immediate bill reduction with no upfront cost. The table below compares every key factor across all four solar options available to Howell homeowners in 2026.
| Feature | Cash Purchase | Solar Loan | Solar Lease | PPA |
|---|---|---|---|---|
| Upfront cost | $24,000-$35,000 (typical 8-10 kW) | $0 down (loan-financed) | $0 | $0 |
| Monthly payment | None | Loan payment (varies by term/rate) | Fixed monthly lease payment | Per-kWh rate for energy produced |
| System ownership | Homeowner | Homeowner | Lease company | PPA provider |
| Federal tax credit eligibility | None (Section 25D repealed) | None (Section 25D repealed) | Provider claims commercial ITC; may lower your rate | Provider claims commercial ITC; may lower your rate |
| NJ SuSI incentive | Homeowner receives payments | Homeowner receives payments | Lease company receives payments | PPA provider receives payments |
| Net metering (JCP&L) | Full credit to homeowner | Full credit to homeowner | Typically included in lease terms | Typically included in PPA terms |
| Home value impact | Increases home value (tax-exempt in NJ) | Increases home value (tax-exempt in NJ) | Minimal (system transfers or must be bought out) | Minimal (contract transfers or must be bought out) |
| Typical contract term | N/A (you own it) | 10-25 years | 20-25 years | 20-25 years |
| Maintenance responsibility | Homeowner (warranty covers most) | Homeowner (warranty covers most) | Lease company | PPA provider |
| Best for | Highest long-term savings; homeowners with capital | Ownership without upfront cash | Predictable monthly savings; no maintenance hassle | Pay only for energy produced; no maintenance hassle |
Key takeaway: If maximizing lifetime savings is your priority and you can afford the upfront cost (or secure favorable loan terms), purchasing is still the strongest financial choice for Howell homeowners. If you want immediate savings with zero upfront cost and no maintenance responsibility, a lease or PPA is a practical alternative -- especially now that the federal residential credit no longer benefits purchasers.
To connect a solar system to the grid in Howell, your installer submits an interconnection application to JCP&L (FirstEnergy), which typically takes 2-8 weeks for approval. This process runs alongside Howell Township building and electrical permits, and both must be completed before your system can generate power.
Your solar installer handles the interconnection application on your behalf. The process involves submitting system specifications and a site plan to JCP&L, which reviews the application for grid compatibility. If your home's electrical panel or meter needs an upgrade to accommodate solar, JCP&L will identify that during the review.
Most residential interconnection applications in the JCP&L territory are processed within 2-8 weeks. After installation and local inspection, your installer requests permission to operate (PTO) from JCP&L. Once PTO is granted, you can start generating and exporting power to the grid. The total timeline from signed contract to PTO is typically 2-4 months.
The most common causes of delay are incomplete application paperwork, the need for meter or transformer upgrades, and backlog at JCP&L during peak installation seasons. Howell Township permitting can also add time if there are zoning questions or inspection scheduling delays. Working with an experienced NJ installer who knows the JCP&L process can help avoid preventable holdups.
The NJ Board of Public Utilities issued a Request for Information on distributed energy resource interconnection in February 2026, signaling regulatory attention to reducing delays and standardizing the process across all NJ utilities, including JCP&L.
Claim: The NJ Board of Public Utilities is actively working to streamline the solar interconnection process across all NJ utilities, including JCP&L.
Evidence: In February 2026, NJBPU issued a Request for Information on distributed energy resource interconnection improvements, signaling regulatory attention to reducing delays and standardizing the process. This is relevant to Howell homeowners because JCP&L interconnection timelines can vary, and regulatory reform may shorten wait times in the near future.
To go solar in Howell in 2026, follow these 7 steps:
Claim: Getting at least 2-3 quotes from different NJ solar installers can save Howell homeowners thousands of dollars on the same system.
Evidence: Solar pricing varies by installer due to differences in equipment markup, labor costs, subcontractor fees, and sales overhead. Two installers quoting the same 9 kW system with identical panels and inverters can differ by several thousand dollars. Comparing quotes also surfaces differences in warranty terms, monitoring capabilities, and post-install support that affect long-term value.
No. The federal Residential Clean Energy Credit (Section 25D) was repealed by the Big Beautiful Bill in 2025. Homeowners who purchase their own solar system no longer receive a federal tax credit. However, the commercial Investment Tax Credit still exists, which benefits solar lease and PPA providers and can translate into lower rates for homeowners who choose third-party ownership.
The NJ Successor Solar Incentive (SuSI) program pays a per-kWh incentive for solar energy produced, administered through the NJ Clean Energy Program. Additionally, NJ's solar property tax exemption prevents your property taxes from increasing due to the added value of a solar installation. Net metering through JCP&L credits you for excess energy sent to the grid at the retail rate.
Buying still yields the highest total savings over 25 years because you own the system and keep all SuSI incentive payments and net metering credits. However, leasing or a PPA now has a stronger relative advantage because the lease provider can still use the commercial ITC, while homeowner-purchasers no longer have a federal credit to offset upfront costs. The right choice depends on your available capital and how you prioritize upfront cost vs. long-term return.
From signed contract to permission to operate, expect 2-4 months total. Physical installation takes 1-3 days, but permitting through Howell Township and JCP&L interconnection approval account for most of the timeline.
Yes. JCP&L provides net metering to residential solar customers in Howell. Excess energy your panels produce is sent to the grid and credited to your account at the retail rate, with an annual true-up at the end of each billing cycle year.
No. New Jersey law (N.J.S.A. 54:4-3.113a) exempts the added value of solar energy systems from local property tax assessments. Your home's assessed value for tax purposes will not increase due to a solar installation.
NJ's Garden State Energy Storage Program was approved by the NJBPU in June 2025, creating a framework for residential battery storage incentives. Program details are still being finalized and incentive levels may evolve. Check the NJ Clean Energy Program for current eligibility and available incentives if you are considering adding battery storage to your solar system.
Powerlutions helps Howell homeowners evaluate every solar option -- purchase, lease, or PPA -- and choose the path that delivers the best savings for your home and budget. We serve Monmouth County and the JCP&L territory, and we understand the current NJ incentive landscape, including what has changed with the federal credit repeal and what state programs remain available.
Whether you want to maximize long-term ownership savings or start with a zero-down lease, the right move starts with a conversation. Reach out to Powerlutions for a no-obligation solar assessment tailored to your Howell home.
Zero $ out
of pocket
Max credits
incentives
Honest &
transparent
Proven solar experience since 2008
1. Estimate savings on your energy use 2. Leverage the best state incentives
Try our Layout Design Tool!
PowerLutions LLC
NJ Electrical Contractor
Business Permit #17356
216 River Ave Lakewood, NJ 08701
MAIN OFFICE
216 River Avenue
Lakewood, NJ 08701
732-987-3939
NEW JERSEY
2 University Plaza #100-1
Hackensack, NJ 07601
201-624-9696
NEW YORK
56 South Main St Suite #2
Spring Valley, NY 10977
845-553-7100
NYC
1310 Coney Island Ave
Brooklyn, NY 11230
718-502-3200
MIAMI FLORIDA
66 West Flagler Street
Suite 900-3747
Miami, FL 33130
786-732-3306
