New Jersey is possibly the best state in America in which to install solar panels for your home and we hope to give you great insight into solar pricing in New Jersey. The combination of net metering, SRECS, and the 30% federal solar tax credit as well as having one of the highest utility power costs in the country makes residential solar energy a great investment. Our blog article, New Jersey Solar Panel Programs and Tax Credits, provides a full explanation of New Jersey’s solar incentives.
How Much Do Solar Panels Cost in New Jersey?
Solar panel pricing is based on cost per kilowatt, rebates and incentives, and several other factors. It is important to understand that having a solar energy system installed on your roof is not the same for every home. Costs vary and your upfront cost will depend on how much electricity your system will produce and what finance options you qualify for. Listed below is a very basic breakdown of residential solar panel system costs according to your method of payment.
Cash purchased Solar System. Based on a 5kw solar power system in 2018 the approximate cost would be $3.78 per watt before the 30% solar tax credit. (1kW = 1,000 watts, 5kW x $3.78 = $18,900)
Financed purchased Solar System. Based on a 5kw solar power system in 2018 the approximate cost would be $4.18 per watt before the 30% solar tax credit. (1kW = 1,000 watts, 5kW x $4.18 = $20,900)
Lease or Power Purchase Agreement (PPA). Based on a 5kw solar power system in 2018 the approximate cost would be 16.3 cents for a 15-year term, 2.5% price escalator.
It is believed that the average payback time for a 5kw residential solar panel system is slightly under five years. Note that the payback period and your return on investment will depend on your specific energy usage and the size of the system you install. Utility rates are the most important factor pushing many to go solar. They are constantly changing and tend to increase over time. The average cost of solar power is 9 cents per kWh hour versus 40 cents per kWh hour (based on the forecast average utility price over the next 25 years). This combined with the fact that solar panel systems increase your property value are two very good reasons to go with solar energy for your home.
Don’t wait any longer! Let the experts at Infiniti Energy Services give you some specific information about solar pricing in New Jersey and get you started with residential solar energy. We make solar simple. Contact us so that we may answer all of your questions and give you a free quote.