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Solar in New Jersey
At 25.19¢ per kWh and 1305 kWh of production per kW each year, a household paying $200 a month needs a 6.86 kW system. Paid in cash, it returns its $17,706 cost in 6.1 yr.
Two prices, two answers
Payback 6.1 yr — at competitive quoted prices ($2.58/W, EnergySage 2026): net cost $17,706, 25-year net $58,881.
Payback 10.9 yr — at typical reported prices ($4.80/W, LBNL 2023): net cost $32,941, 25-year net $43,646.
The gap is methodology, not staleness: the first what you get if you shop around for competitive quotes; the second what the average buyer actually paid, as recorded in permit and incentive data. Every table below uses quoted prices. Why we show both.
By monthly bill
| Your bill | Use / yr | System | Panels | Net cost | Payback | 25-yr net (cash) | Lease, year 1 |
|---|---|---|---|---|---|---|---|
| $100/mo | 4,192 kWh | 3.21 kW | 9 | $8,288 | 6.5 yr | $24,608 | $317 |
| $150/mo | 6,574 kWh | 5.04 kW | 13 | $12,997 | 6.2 yr | $41,744 | $497 |
| $200/mo | 8,956 kWh | 6.86 kW | 18 | $17,706 | 6.1 yr | $58,881 | $677 |
| $300/mo | 13,720 kWh | 10.51 kW | 27 | $27,124 | 6 yr | $93,150 | $1,037 |
Cash, loan or lease — at $200 a month
| How you pay | 25-year net | Upfront | Year 1 | Payback / cash flow | Federal credit to you |
|---|---|---|---|---|---|
| Cash incl. $9,990 from SuSI Administratively Determined Incentive (SREC-II), paid as the system generates | $58,881 | $17,706 | $2,796 | 6.1 yr | $0 |
| Loan $137/mo · 6.99% APR · 20 yr incl. $9,990 from SuSI Administratively Determined Incentive (SREC-II), paid as the system generates | $43,667 | $0 | $1,150 | immediate (+$1,150 in year 1) | $0 |
| Lease / PPA | $18,997 | $0 | $677 | immediate (+$677 in year 1) | $0 |
The 30% federal credit goes to the system owner, not to you. It is reflected in the rate you are offered. The owner claims it at 30% under IRC 48E.
The inputs, and where they came from
| Input | Value | Source |
|---|---|---|
| Residential electricity rate | 25.19¢/kWh | U.S. EIA API v2, electricity/retail-sales, residential sector, 2026-07 |
| Specific yield | 1305 kWh/kW/yr | NLR (formerly NREL) PVWatts v8 API, 1 kW reference system (city:newark-nj) |
| Installed cost | $2.58/W | EnergySage Marketplace real-quote average, as of Sep 2026; page updated 2026-08-28 · LBNL Tracking the Sun 2023 median: $4.8/W, reference only |
| Export compensation | full retail net metering · 100% | New Jersey's Clean Energy Program states that customers receive full retail credit on their utility bill for each kilowatt-hour their system produces over the course of a year. At the end of the annualised period any remaining excess is credited at the wholesale value of electricity. A system may not be sized above the customer's annual electricity needs, which is how the engine sizes it, so annual excess is small. Follows: All electric distribution companies, under N.J.A.C. 14:8-4. Source, read 2026-09-05. |
| Federal credit, purchase | 0% | IRC 25D (expired) |
| Federal credit, third-party owner | 30% | IRC 48E (Clean Electricity Investment Credit) |
| State incentives | $0 | No upfront statewide credit or rebate for a typical owner-occupier (verified) · Not modelled: SuSI Administratively Determined Incentive (SREC-II), residential net-metered |
City-level production on file for: Newark. The figures above use Newark.