All states · New Jersey
Updated October 2026 · ranks 6 of 50
Yes, and faster than in almost any other state
6 kW system · $17,880 after incentives · $2,576 returned in year one
0 yrs25 yrs
A break-even point of 7.0 years is short enough that the decision turns mainly on how long the owner intends to remain in the property. The system is then owned outright for roughly 18 further years of its warranted life.
Yes. At 7.0 years, a purchased system in New Jersey repays its cost faster than in almost any other state. The high retail electricity rate accounts for most of that advantage.
The case modeled here approximates an average New Jersey household on the state average rate of 25.2¢, with an unshaded roof and no financing: $17,880 of capital, $2,576 returned in the first year, and break-even near year 7.0. Above-average consumption, a south-facing roof or a competitive installed price shorten that period; shading, a loan carrying a dealer fee, or a sale within six years lengthen it. Exports earn 25.2¢, close to the retail rate, so daytime occupancy makes little difference to the result.
At 25.2¢ per kilowatt-hour, New Jersey pays 53% more for electricity than the United States average of 16.5¢. A high retail rate is the principal driver of a short payback, since each kilowatt-hour generated displaces an expensive one.
A 6 kW array in New Jersey generates approximately 7,833 kWh a year, above the national median. Irradiance is the one input that no change in policy can remove.
New Jersey operates full-retail net metering. Each exported kilowatt-hour is credited at the same 25.2¢ charged for consumption, so the grid functions as storage and there is no penalty for generating more than is consumed during daylight hours. This is the principal reason payback here is shorter than in states with comparable irradiance.
New Jersey offers no state rebate or tax credit at present, so the installed price of $17,880 stands. With Section 25D expired there is no federal credit to deduct either, the first year in over a decade in which that has been the case.
A 6 kW system, the size typical of New Jersey households, costs approximately $17,880 installed at $2.98 a watt before deductions. No deduction applies in New Jersey: there is no state rebate, no state tax credit, and no federal credit following the expiry of Section 25D on 31 December 2025. Prices vary with roof complexity, equipment selection and local installer demand; quotes $0.40 a watt either side of this figure are common. Smaller systems cost more per watt and larger ones less, although sizing beyond on-site consumption is not penalized, since exports earn 25.2¢.
| System size | 6 kW |
|---|---|
| Annual production | 7,833 kWh |
| Installed cost | $17,880 |
| Incentives | none |
| Net cost | $17,880 |
| Electricity rate | 25.2¢ / kWh |
| Export credit | 25.2¢ / kWh |
| Year-one saving | $2,576 |
| Break-even | 7.0 years |
| 25-year gain | $58,045 |
Of the 50 states published here, New Jersey ranks sixth for how quickly a bought system repays itself. Fastest right now: Hawaii, New York, Illinois, Massachusetts. Slowest: South Dakota, Louisiana, North Dakota, Tennessee. Compare them all on the map.
Solar economics change at state lines rather than at county lines, because the export tariff and the netting period do. These states share a border with New Jersey, and the figure each produces on the same assumptions.
About $17,880 installed for a 6 kW system at $2.98 a watt. No deduction applies in New Jersey: no state rebate, no state credit, and no federal credit following the expiry of Section 25D. Larger systems are not penalized here, since exports earn the full 25.2¢.
Yes, and faster than in almost any other state. A 6 kW system breaks even in 7.0 years on the assumptions used here, following the expiry of the 30% federal tax credit on 31 December 2025.
Approximately $2,576 in the first year on a 7,833 kWh system, rising thereafter as New Jersey electricity rates increase. Exports are valued the same as self-consumption at 25.2¢, so the figure holds regardless of daytime occupancy.
A 6 kW array is about 14 modules at 430 W and generates 7,833 kWh a year here, which covers a household using roughly that much. Sizing above on-site use is not penalized here, since exports earn 25.2¢. The sizing calculator works it out from a bill.
Yes, and faster than in almost any other state. The retail rate here is 25.2¢ against a national average of 16.5¢, exports earn 25.2¢, and a 6 kW system breaks even in 7.0 years. What separates New Jersey from states with similar sunshine is the rate and the export tariff, not the weather.
New Jersey operates full-retail net metering.
Generation is taken from NREL PVWatts v8 for the largest metropolitan area in New Jersey, south-facing at 20°. The retail rate is from the EIA and the export credit from the state's net metering rule. The break-even figure incorporates 0.5% annual panel degradation, 3% annual electricity price growth, $150 a year in maintenance and an inverter replacement in year 12. The federal credit is set to $0 — Section 25D expired 31 December 2025. Credits accumulate across the year, so close to 95% of generation is valued at the full retail rate. Full method and sources. Privacy. Export terms checked against the state source in August 2026.
These are estimates for comparison between states, not quotations. Roof orientation, shading, consumption pattern and installer pricing all affect the result. At least three written quotations are advisable before purchase.