Newark, NJ Solar Panels
Solar Power in Newark
Newark homeowners are paying some of the highest electricity rates in the country — and prices have climbed 21% since 2020. It’s no surprise that more residents are turning to solar to take control of their energy costs.
This guide covers what you need to know about solar installation in Newark, from how it works to what to expect. If you’re building a foundation of knowledge, start with Palmetto’s home solar panels guide.
NEW JERSEY by the Numbers
How Much Do Solar Panels Cost in Newark, NJ?
Using real installation data from Newark and surrounding communities — including Bloomfield, Irvington, Belleville, and Maplewood — this calculator gives you an accurate, localized estimate of what solar installation could cost for your home.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Newark electricity rates are among the highest in the country — and have risen 18% since 2021, making solar a smart way to take control of your energy costs.
- New Jersey offers strong solar incentives including full sales and property tax exemptions and net metering credits that can significantly reduce your overall costs.
- A typical Newark home can save around $91,000 over 25 years with solar — and leasing options are available with no upfront investment required.
Newark Electricity Prices
Electricity in Newark costs more than the national average — and rates have been rising steadily since 2021.
New Jersey’s electricity rate climbed from 16.4 cents per kWh in 2021 to 19.4 cents in 2024 — an increase of over 18%. Over that same period, the national average rose from 13.7 to 16.5 cents per kWh, meaning Newark residents consistently pay more than most Americans.
Solar installation in Newark, NJ gives homeowners a way to generate their own electricity and reduce their dependence on the grid. By producing power at home, you’re less exposed to the rate increases that utility companies pass on to customers each year.
Solar panels typically have a lifespan of 25 years or more. Over that time, the gap between what you pay the utility and what you generate yourself can add up significantly — making solar a practical, long-term approach to managing energy costs in New Jersey.
Price of Energy: New Jersey vs National Average
Newark Area Utility Providers
Newark is served by two main utility providers: PSE&G and JCP&L. Based on 2023 data — the most recent available — their electricity rates differ notably, and both offer useful context for understanding local energy costs.
PSE&G customers paid 18.8¢ per kWh in 2023, exceeding both New Jersey’s state average of 17.7¢ and the national average of 16.0¢. JCP&L’s rate of 14.0¢ per kWh fell below both benchmarks, making it a regional outlier.
For PSE&G customers especially, above-average rates translate directly to higher monthly bills. Solar can offset a meaningful share of household electricity use, helping homeowners reduce what they pay to their utility over time.
Newark Utilities Electricity Rates
New Jersey Solar Incentives
Newark homeowners can still access meaningful solar incentives in New Jersey — even without the federal residential tax credit, which was eliminated by the Big Beautiful Bill.
New Jersey offers strong state-level programs: full sales and property tax exemptions, net metering credits at retail rates, a community solar option for renters, and a 30% federal tax credit for standalone battery storage under Section 48E.
Homeowners who lease solar through Palmetto’s LightReach program have a simpler path — Palmetto handles the commercial tax credit and passes the savings along through lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| New Jersey Net Metering | Net Metering | New Jersey requires investor-owned utilities to credit solar customers at the full retail electricity rate for excess energy sent to the grid, effectively eliminating electricity bills for many homeowners. Newark residents are served by PSE&G, which participates in this program. | Learn More |
| New Jersey Solar Sales Tax Exemption | Sales Tax Exemption | Solar energy equipment purchased in New Jersey is fully exempt from the state’s 6.625% sales tax, saving homeowners over $1,600 on a typical $25,000 solar installation. | Learn More |
| New Jersey Solar Property Tax Exemption | Property Tax Exemption | Solar installations in New Jersey are 100% exempt from property tax assessments, meaning the added home value from your solar system will not increase your annual property tax bill. | Learn More |
| Community Solar Energy Program (CSEP) | Rebate | New Jersey’s Community Solar Energy Program allows renters, homeowners with unsuitable roofs, and others to subscribe to off-site solar farms and receive credits on their utility bills, with guaranteed savings of 15% or more for low- and moderate-income customers. | Learn More |
| Federal Investment Tax Credit (ITC) for Battery Storage – Standalone | Tax Credit | Standalone residential battery storage systems (even without solar panels) qualify for a 30% federal tax credit under Section 48E, providing significant upfront cost savings for Newark homeowners. |
Under New Jersey’s net metering policy, mandated by the NJ Board of Public Utilities (NJBPU), your utility must credit you at the full retail rate of electricity for every kilowatt-hour (kWh) your solar panels send back to the grid — up to 100% of your annual electricity consumption. This means the energy you export is worth exactly the same as the energy you buy, maximizing your solar savings and often reducing your electricity bill to near zero.
If your solar system produces more electricity than you consume over the course of a full year, any remaining excess is credited at the wholesale electricity rate rather than the retail rate. Net metering is available to residents of Newark through PSE&G, the investor-owned utility serving the Newark area. The program is capped at 2.9% of each utility’s total annual kWh sales.
Net metering works automatically once your solar system is interconnected with your utility — no separate application is required beyond the standard interconnection process. Combined with the SuSI/SREC-II program, net metering makes New Jersey one of the most financially rewarding states in the country for residential solar owners.
New Jersey provides a 100% sales tax exemption on the purchase of solar energy equipment for both homeowners and businesses. The state’s standard sales tax rate is 6.625%, meaning on a typical $25,000 solar installation, you avoid paying approximately $1,656 in sales tax — a straightforward, upfront reduction in the cost of going solar.
Eligible equipment includes anything that generates heating, cooling, electrical, or mechanical power through the conversion of solar energy, covering solar panels, inverters, racking, and related components. This exemption applies at the point of sale, so you simply won’t be charged sales tax when your installer purchases or bills you for the equipment.
To claim the exemption, your installer or supplier should be provided with a fully completed New Jersey Form ST-4 (Exempt Use Certificate). This is typically handled by your solar installation company as part of the standard purchasing process. Contact the New Jersey Division of Taxation for additional guidance.
Under New Jersey law (N.J.S.A. 54:4-3.113a et seq.), the added value that a solar energy system contributes to your home is completely exempt from property tax assessment. Solar panels typically increase a home’s market value, but in New Jersey, that increase is not factored into your property tax bill — saving the average homeowner an estimated $1,000 or more per year in property taxes.
The exemption applies to residential and commercial properties and covers solar photovoltaic (PV) and solar thermal systems. It is a permanent exemption for as long as the qualifying renewable energy system remains on the property, providing ongoing annual savings throughout the life of your solar installation.
To take advantage of this exemption, homeowners in Newark should apply for a solar panel system certification and notify your local property tax assessor after your system is installed. The process is straightforward and is often assisted by your solar installer. This exemption stacks with other New Jersey incentives like the SuSI/SREC-II program and net metering to make solar ownership even more financially attractive.
The New Jersey Community Solar Energy Program (CSEP) makes solar accessible to residents of Newark who cannot install panels on their own property — including renters, condo owners, and homeowners with shaded or structurally unsuitable roofs. Participants subscribe to a share of an off-site community solar farm and receive credits directly on their regular utility bill for the electricity that share generates, reducing their monthly energy costs without any rooftop installation.
Low- and moderate-income (LMI) customers receive guaranteed savings of 15% or more on their solar subscription compared to standard utility rates, making this one of the most impactful programs for income-qualifying Newark residents. The program is open to meter customers of New Jersey’s investor-owned utilities, including renters, businesses, schools, and homeowners. New registrations opened in April 2025.
To find a community solar project near you, use the NJBPU’s Community Solar Project Finder tool available on the NJ Board of Public Utilities website. Community solar subscriptions are typically no-cost to join and can be cancelled if you move. The CSEP is administered under the SuSI program framework and is overseen by the NJBPU.
While the residential solar Investment Tax Credit (Section 25D) has been eliminated, standalone battery storage systems installed in 2026 may still qualify for a 30% federal tax credit under the commercial clean energy provisions (Section 48/48E), depending on how the system is structured and owned. This credit applies to the full installed cost of the battery system — even when it is not paired with rooftop solar panels — making battery storage more affordable on its own.
For a typical residential battery system costing $10,000–$15,000, a 30% tax credit translates to $3,000–$4,500 in direct federal tax savings. The credit is claimed on your federal income tax return for the year the system is placed in service. Eligible batteries must have a capacity of at least 3 kilowatt-hours (kWh) to qualify.
Because the tax credit landscape for 2026 is evolving following recent federal legislation, it is strongly recommended that you consult a qualified tax professional to confirm your eligibility and the correct credit mechanism before installation. When combined with New Jersey’s upcoming GSESP Phase 2 incentives, battery storage in Newark is poised to become significantly more affordable in 2026.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with New Jersey incentives.
Get a Free QuoteNewark Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Newark gets four distinct seasons, with snowy winters and humid summers. Despite cloudy stretches, its sunny days and roof angles make solar a surprisingly strong fit year-round.
Solar Production in Newark by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Newark
We’ve mapped thousands of solar installations across the U.S. — including right here in Newark. Explore the heatmap below to see which neighborhoods, from Ironbound to Forest Hill, are making the switch to solar. Click any hexagon to see how many homes in that area have gone solar!
Leasing Solar Panels
In Newark, NJ, Palmetto offers a Power Purchase Agreement (PPA) through its LightReach program for customers served by PSE&G, Jersey Central Power & Light, Orange & Rockland (Rockland Electric), and Atlantic City Electric. With a PPA, you pay only for the solar energy your panels actually produce — at a set rate per kilowatt-hour — rather than a fixed monthly amount. Because solar panels generate more electricity in summer than winter, your solar bill will naturally vary by season, though your annual savings remain consistent.
Compared to buying a system outright with cash, a PPA removes the large upfront investment and eliminates the need to manage repairs or maintenance yourself. Palmetto owns and maintains the system throughout the agreement, including a 90% production guarantee and comprehensive system protection — so if something needs attention, it’s handled for you.
For Newark homeowners weighing their options, a PPA is a straightforward way to start saving on electricity without taking on the responsibilities of system ownership. To understand how a PPA compares to other financing paths, Palmetto’s buy vs. lease guide walks through the key differences in plain language.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Learn MoreFrequently Asked Questions
Yes, solar makes strong financial sense for Newark homeowners. Electricity rates in New Jersey have risen over 18% since 2021, and at 19.4¢/kWh, Newark residents pay well above the national average. A typical home can save around $91,000 over 25 years, with New Jersey’s net metering, sales tax exemption, and property tax exemption adding further value.
If upfront cost is a concern, Palmetto’s LightReach solar lease removes that barrier entirely — you can go solar with no money down and start saving from day one, with Palmetto handling all maintenance.
Yes, Newark residents have access to net metering through New Jersey’s statewide program. Newark is primarily served by PSE&G, which offers 1:1 net metering — meaning for every kilowatt-hour (kWh) your solar panels send to the grid, you receive a full retail-rate credit on your bill. Excess credits roll over month to month.
At the end of your anniversary month (which defaults to your system’s permission-to-operate date), any remaining unused credits are paid out at the avoided cost rate — roughly 3–5¢/kWh — and your credit balance resets to zero. You can change your anniversary month once by contacting PSE&G directly.
Yes, solar panels can increase your home’s value in Newark. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a median-priced Newark home, that can translate to a meaningful boost at resale.
New Jersey also makes this even more attractive — the state’s solar property tax exemption means the added home value from your solar system won’t raise your annual property tax bill, so you keep more of that gain.
For Newark homeowners, the most accessible option is Palmetto’s LightReach lease — go solar with no upfront cost and a low fixed monthly payment starting around $93–$164/month depending on your home size. Palmetto owns and maintains the system, so there’s nothing out of pocket to get started.
For those considering a cash purchase, a typical Newark system runs $21,000–$36,000. Note that the federal 30% residential tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For Newark homeowners, solar can be worth it financially — especially with a lease option. With Palmetto’s LightReach program, there’s no upfront investment required. Your monthly lease payment is typically less than your current electricity bill, so most homeowners start saving from day one.
Newark residents already pay above-average electricity rates at 19.4¢/kWh, and rates have risen over 18% since 2021. A typical home can save around $91,000 over 25 years, and New Jersey’s net metering and tax exemptions add even more long-term value.
Palmetto Solar is a top choice for Newark homeowners. We’ve completed 612 installations across New Jersey since 2020, bringing national expertise with a local focus. Our vetted install network ensures quality workmanship, and we offer some of the most flexible financing options available — including our LightReach lease with no upfront cost.
Whether you’re looking to purchase or lease, we handle everything from design to installation to ongoing maintenance — making the process straightforward for Newark residents looking to reduce their electricity costs.
Palmetto’s LightReach is an all-inclusive solar lease — one monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 9.78 kW system in Newark, NJ, the estimated monthly payment is approximately $130/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — a key advantage over a cash purchase. Most Newark homeowners start saving from day one, since the lease payment is typically less than their current electricity bill.