Solar Payback Calculator

State guide

Solar payback in New Jersey (NJ) — 2026

How New Jersey compares with the other 50 records in this dataset
MeasureNew JerseyDataset medianRank of 51
Avg residential rate18.4¢/kWh14.8¢/kWh12th highest
Annual insolation4.4 kWh/m²/day4.6 kWh/m²/day34th highest
Modeled payback12.1 years13.5 years14th fastest

Rates from the EIA; insolation from NREL's NSRDB. Ranks and medians are computed across the 50 states and DC covered by this site. Payback is modeled for a 7 kW system at $3.20/W with no federal credit applied — see the disclaimer for the full assumption set.

New Jersey pays about 18.4¢ per kilowatt-hour for residential electricity and receives about 4.4 kWh per square metre per day of sunlight — 12th and 34th respectively among the 50 states and DC tracked here. Those two numbers set the ceiling on what rooftop solar returns in New Jersey, and they point in opposite directions.

Where New Jersey sits against the rest of the country

New Jersey is 3.6¢/kWh above the median residential rate across this dataset (14.8¢/kWh) and 0.2 kWh/m²/day below the median insolation (4.6 kWh/m²/day). Under this site's standard assumptions, that combination puts New Jersey 14th of 51 for modeled payback speed, at 12.1 years against a dataset median of 13.5 years.

What actually drives payback in New Jersey

New Jersey is rate-led: upper half of the dataset for electricity price (12th), lower half for sunlight (34th). Swap New Jersey's sunlight for the dataset median and payback moves to 11.6 years (0.5 years of swing). Swap its electricity rate instead and payback moves to 14.5 years (2.5 years of swing). The rate swap is the larger of the two, so what a kilowatt-hour costs is the input deciding the outcome in New Jersey.

State incentives on record

Recorded for New Jersey: Successor Solar Incentive (SuSI) program issues SREC-II credits at fixed price; sales tax exemption; property tax exemption; net metering.

No federal credit is applied above (Section 25D expired 31 December 2025), and export terms often matter more than the headline rate (net metering guide).

The modeled system, in numbers

At New Jersey's sunlight level a 7 kW array produces roughly 8,769 kWh a year, worth about $1,613 in first-year bill savings at 18.4¢/kWh against an assumed $22,400 installed cost. A ten-year payback at this sunlight level would require a residential rate of about 22.9¢/kWh, which is 4.5¢ above what New Jersey households pay today.

States with comparable economics

New Jersey's closest analogues by modeled payback are Florida (12.1 years), Texas (12.3 years), Michigan (12.3 years). They arrive there from different rate and sunlight combinations, so their incentive rows are the useful comparison.

  • Florida — modeled payback 12.1 years
  • Texas — modeled payback 12.3 years
  • Michigan — modeled payback 12.3 years

Estimate your solar payback

Enter your ZIP and the system size you're considering. We'll pull your state's average residential electricity rate and an annual sun-hour figure to estimate production and break-even years.

Estimate only — not a quote. Verify with a licensed installer and your utility. Federal Section 25D 30% credit is not included (expired 2025-12-31). Not tax advice — consult a tax professional.

State (NJ)
New Jersey
Avg residential electricity rate
18.4¢ / kWh
Estimated annual production
8,769 kWh
Year 1 bill savings
$1,613
Estimated payback
12.1 years
Installed cost before incentives*
$22,400

*A $3.20/W installed cost assumption valued against your state's average residential electricity rate (EIA, most recent 12-month average available as of 2026 Q1). No federal, state, or utility incentive is deducted from this figure — state incentives that may reduce it are listed on your state page for details.

Estimate only. Numbers shown are modeled projections, not quotes or guarantees. Actual production, electricity rates, financing terms, and available incentives vary by household, utility, roof condition, shading, and policy changes. The Residential Clean Energy Credit (Section 25D, the 30% federal tax credit) expired for systems placed in service after December 31, 2025. Verify all numbers with a licensed installer and your utility before making a purchase decision. See full disclaimer.
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