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By Solar Expert

January 27, 2025

Comprehensive Guide to Going Solar in New Jersey

House in passaic new jersey with solar panels

Comprehensive Guide to Going Solar in New Jersey (and Beyond)

New Jersey has taken significant strides in promoting clean, renewable energy. From ambitious state targets to generous incentives, there has never been a better time for homeowners and businesses to consider solar power. Growing demand for battery storage solutions underscores a rising trend: more people want energy independence, cost savings, and resilience against grid outages. This guide outlines everything you need to know about going solar in New Jersey (and New York) and why it’s one of the smartest investments you can make.


State of Solar in New Jersey

New Jersey’s Commitment to Renewable Energy

New Jersey’s government has consistently pushed for cleaner energy sources. The state’s Energy Master Plan sets forth goals for shifting away from fossil fuels, reducing greenhouse gas emissions, and expanding the use of solar, wind, and other renewable resources. These initiatives place New Jersey among the top states for solar adoption in the United States.

New Jersey Clean Energy Program

A cornerstone of the state’s renewable efforts is the New Jersey Clean Energy Program (NJCEP). Funded through a societal benefits charge on utility bills, the NJCEP offers a range of incentives for energy efficiency measures and renewable energy installations. Whether you’re a homeowner or a business owner, NJCEP resources can help offset the initial costs of going solar.

Net Metering and Solar Incentive Frameworks

  • Net Metering: New Jersey’s net metering policy allows solar system owners to receive credits on their utility bill for excess electricity sent back to the grid. If your system generates more power than you consume, you won’t lose that unused energy—it’s credited to you, effectively reducing future bills.
  • Transition Renewable Energy Certificates (TRECs) and Beyond: For every 1,000 kilowatt-hours (kWh) of solar power produced, you earn a Renewable Energy Certificate (REC). These certificates can be sold or traded, providing an additional financial benefit. New Jersey moved from the SREC system (Solar Renewable Energy Certificates) to the TREC program, and more recent updates include the Successor Solar Incentive (SuSI) program, which is designed to ensure long-term stability in solar incentives. It’s important to consult current guidelines to determine which program applies to you, as incentive structures can evolve over time.

Why Solar Momentum Continues to Rise

Thanks to declining equipment costs, improved technology, and robust state support, more individuals and businesses have been motivated to install solar panels. These factors combine to accelerate adoption, making solar one of the fastest-growing energy sources in the Garden State.


Financial Incentives and Savings

Federal Investment Tax Credit (ITC)

The federal solar Investment Tax Credit (ITC) allows you to deduct a percentage of your solar installation cost from your federal taxes. This credit has made solar much more affordable over the years. Currently, the ITC offers up to 30% for residential systems, and similar rates apply to commercial installations. Check the exact percentage for your installation year to ensure accurate calculations.

State-Level Incentives

Aside from NJCEP and renewable energy certificate programs like TRECs or the newer SuSI mechanism, New Jersey also offers property tax exemptions for solar improvements. While this can vary by municipality, many homeowners find that adding solar doesn’t increase their property tax—even though it often increases the home’s resale value.

Net Metering’s Financial Benefits

Net metering plays a critical role in boosting solar’s financial viability. When your system generates excess power, you essentially lend it to the grid and earn credits for future electricity usage. This can significantly reduce or even eliminate your monthly utility bills. Over time, the savings can be substantial, especially if you size your system correctly and take advantage of time-of-use rates where applicable.

Property Value Impact

Studies show that homes equipped with solar systems can command a higher market price. In New Jersey’s competitive real estate environment, having a solar installation already in place can be a significant selling point, as the new owner can benefit from lower utility bills right away.

Payback Period and ROI

The payback period for a solar installation in New Jersey often ranges from four to six years, depending on factors such as:

  • System size and equipment costs
  • Available incentives and tax credits
  • Household or business energy consumption
  • Financing terms (if applicable)

After the payback period, the electricity your system generates is essentially free, and you continue to earn credits for excess production. Over a 25-year system life, ROI can be substantial—often two to three times the initial investment.

Rough Cost vs. Long-Term Savings

A typical residential solar system in New Jersey might range from $12,000 to $20,000 after incentives, depending on size and component quality. Over its life, the system could generate utility bill savings of $20,000 to $40,000 or more. Commercial systems can have larger upfront costs but similarly higher returns, especially when factoring in federal and state benefits, potential accelerated depreciation (for businesses), and any corporate sustainability goals.


Battery Storage Benefits

Why Batteries Matter

Battery storage systems have gained popularity for multiple reasons:

  • Energy Security and Resilience: With battery storage, you can power essential loads even when the grid goes down. This is crucial if you rely on medical equipment, work from home, or simply want peace of mind during severe weather events.
  • Peak-Demand Management: Some utilities charge higher rates during peak demand periods. Stored energy lets you strategically offset or avoid these high rates by using your own power when it’s most expensive.
  • Maximized Self-Consumption: Batteries help you use more of the solar energy you generate, increasing your return on investment by reducing reliance on the grid.

Common Battery Technologies

Most home battery systems are based on lithium-ion chemistry due to its balance of energy density, safety, and lifespan. Systems like the Tesla Powerwall, LG Chem RESU, and other leading brands integrate seamlessly with solar panels and can be configured to meet specific power requirements.

Utility Integration

Many utilities offer programs that incentivize homeowners to install battery systems. Whether through time-of-use rates or demand response programs, your battery installation may qualify you for additional financial rewards. Check local utility guidelines for relevant details in your area.


Steps to Go Solar

1. Site Assessment

The first step involves evaluating your roof (or ground space) for solar viability. Factors like orientation, tilt, shading, and available square footage determine how efficient and cost-effective your system will be. A professional assessment ensures you get accurate projections for energy production and ROI.

2. System Design

Once the site is deemed suitable, engineers or solar specialists design a system tailored to your needs. This includes selecting the optimal panel type, inverter technology, and battery capacity. The design phase is also where you decide on aesthetics, such as all-black panels or integrated roof shingles if aesthetics are a priority.

3. Permits and Paperwork

Navigating permits can be daunting. We handle local building permits, utility interconnection applications, and any additional documentation required to secure incentives. Each municipality may have different requirements, but our familiarity with New Jersey (and New York) regulations expedites the process.

4. Installation

A qualified team installs the solar array, battery storage, and associated hardware. Installations vary in duration, but most residential projects wrap up within a few days to a couple of weeks, depending on complexity. We schedule inspections throughout the installation process to ensure compliance with local codes and safety standards.

5. Interconnection and Activation

After passing final inspections, your local utility grants permission to operate (PTO). At this point, you can officially switch on your solar system and start generating clean power. We provide guidance on monitoring tools that track energy production and consumption in real time.


Success Stories

One recent project in northern New Jersey involved a family seeking to cut their utility bills and achieve more energy independence. They opted for a 10 kW solar array paired with a 13.5 kWh lithium-ion battery. Within the first year, they saw a nearly 85% reduction in monthly electricity costs. During a mid-summer storm that knocked out power in the neighborhood, their battery system kept essential appliances running, demonstrating the true value of home energy storage. They now project a full payback in under seven years while enjoying newfound peace of mind.


Environmental Impact

Switching to solar power is one of the most effective ways to reduce carbon emissions and contribute to New Jersey’s clean energy goals. Each kilowatt of solar capacity installed can offset an estimated one-and-a-half metric tons of CO₂ per year. Battery storage further amplifies environmental benefits by reducing the need for peaker plants—fossil-fueled power stations that ramp up during high demand. Ultimately, every solar installation moves us closer to a cleaner, more sustainable future.


Why Choose PowerLutions Solar

  1. Local Expertise: Our background in New Jersey and New York solar markets ensures in-depth knowledge of local regulations, incentive programs, and best practices.
  2. Proven Track Record: We’ve helped hundreds of residential and commercial clients successfully transition to solar, with references and case studies available on request.
  3. End-to-End Service: From the initial consultation to final inspection, we manage all aspects of the process. Our streamlined approach handles site assessment, design, permitting, installation, and ongoing support.
  4. Quality Installations: We hold industry certifications and partner with reputable manufacturers, ensuring that every panel and battery meets the highest performance and safety standards.
  5. Transparent Pricing: We provide detailed proposals that break down costs, savings projections, and incentive estimates, so you know exactly what to expect.

Go for It!

If you’re ready to explore how solar and battery storage can transform your energy usage and reduce costs, contact us for a free consultation or detailed quote. Our team will assess your property, discuss financing and incentive options, and craft a system that fits your unique needs. Reach out via phone, email, or our online form to get started.


Solar in New Jersey

New Jersey’s strong commitment to renewable energy, paired with favorable federal and state incentives, makes solar power and battery storage a smart and impactful choice. From cutting monthly utility costs to fortifying your home or business against grid outages, solar solutions offer both financial and environmental rewards. Every day you wait is a day of missed savings and unclaimed incentives, so seize the opportunity now to secure a brighter, more sustainable future.

Why our clients feel we’re a ray of sunshine

  • "Extraordinary"

    Powerlution is a professional company!!! They guided me from beginning to end ... I cant believe that its already 18 months since installation of my solar system and they are still available with any help or questions and concerns I have... I would definitely recommend powerlution... They are.... Professional, Helpful, Prompt, Reliable, Responsible, Honest

    – Fried Z.
  • "Extraordinary"

    Powerlution is a professional company!!! They guided me from beginning to end ... I cant believe that its already 18 months since installation of my solar system and they are still available with any help or questions and concerns I have... I would definitely recommend powerlution... They are.... Professional, Helpful, Prompt, Reliable, Responsible, Honest

    – Fried Z.

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