Newark, NJ Solar Panels
Solar Power in Newark
If you’re a Newark homeowner curious about solar installation, you’re in the right place. New Jersey has the 11th highest utility prices per kWh in the nation — and with electricity rates up 21% from 2020 to 2024, more residents are looking for ways to reduce their energy costs.
Solar can be a smart, long-term solution. Our guide to home solar panels covers everything you need to know — from how panels work to what installation looks like in Newark.
NEW JERSEY by the Numbers
How Much Do Solar Panels Cost in Newark, NJ?
Using real installation data from Newark and surrounding areas — including Irvington, Belleville, Bloomfield, and Nutley — this calculator gives you an honest, local estimate of what solar installation actually costs for homes like yours.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Newark electricity rates have risen 18% since 2021 — solar can help lock in your energy costs and reduce how much you depend on the grid.
- New Jersey offers some of the strongest solar incentives in the country, including production payments, net metering credits, and both a sales tax and property tax exemption.
- A typical Newark home can save around $91,000 over 25 years with solar — and you can get started with no upfront cost through Palmetto’s LightReach lease program.
Newark Electricity Prices
Newark homeowners are paying more for electricity every year — and the numbers tell a clear story.
As the chart shows, New Jersey electricity rates climbed from 16.4 cents per kWh in 2021 to 19.4 cents per kWh in 2024 — an increase of about 18.3%. That’s well above the national average increase over the same period.
When electricity costs rise steadily, some Newark homeowners explore home solar panels as a way to generate their own power and reduce how much electricity they pull from the grid each month.
Because solar locks in a portion of your energy production at a fixed cost, it can offer a buffer against future rate increases — giving Newark homeowners more predictability in their monthly energy expenses over the long run.
Price of Energy: New Jersey vs National Average
Newark Area Utility Providers
In Newark, PSE&G (Public Service Electric and Gas) is the primary electric utility provider. As of 2023 — the most recent data available — PSE&G’s residential electricity rate was 18.8¢ per kWh.
That 2023 rate of 18.8¢/kWh sits above both the New Jersey state average (17.70¢/kWh) and the national average (16.0¢/kWh). NJ’s higher costs reflect dense infrastructure, transmission demands, and the region’s complex energy mix.
When utility rates run consistently above national averages, generating your own electricity through solar can help reduce how much you depend on the grid — making it worth understanding your options as a Newark homeowner.
Newark Utilities Electricity Rates
New Jersey Solar Incentives
Newark homeowners have access to several solar incentives in New Jersey that can meaningfully reduce the upfront and long-term costs of going solar.
New Jersey offers a range of state and local programs — including production payments, net metering credits, a sales tax exemption, a property tax exemption, community solar options, and an upcoming battery storage incentive.
Note that the federal residential solar tax credit is no longer available for new installations. For homeowners who choose solar leasing through LightReach, Palmetto manages commercial incentives on the back end and reflects those savings in lower monthly payments.
| Incentive | Type | Description | Source |
|---|---|---|---|
| Successor Solar Incentive (SuSI) Program – SREC-II / ADI | SREC Production Payment | New Jersey’s SuSI Program pays homeowners a fixed rate per megawatt-hour of solar energy generated for 15 years via the Administratively Determined Incentive (ADI) pathway. | |
| Net Metering Program | Net Metering | New Jersey requires all investor-owned utilities to credit solar customers at the full retail electricity rate for excess energy sent to the grid, with monthly rollover and an annual true-up. Newark is served by PSE&G, which participates in this program. | Learn More |
| NJ Sales Tax Exemption for Solar Energy Equipment | Sales Tax Exemption | All solar energy equipment and installation labor purchased in New Jersey is 100% exempt from the state’s 6.625% sales and use tax, saving homeowners $1,600–$2,200 on a typical system. | Learn More |
| NJ Property Tax Exemption for Solar Energy Systems | Property Tax Exemption | Solar installations in New Jersey are permanently exempt from increasing your property tax assessment, saving a typical homeowner approximately $1,000 per year in property taxes. | Learn More |
| Community Solar Energy Program (CSEP) | Shared Solar / Community Solar | New Jersey’s Community Solar Energy Program allows renters, condo owners, and homeowners with shaded roofs to subscribe to a local solar farm and receive a guaranteed minimum 20% discount on their electric bill — no rooftop installation required. | |
| Garden State Energy Storage Program (GSESP) – Phase 2 Residential Battery Incentive | Rebate | New Jersey’s Garden State Energy Storage Program Phase 2 will provide upfront and performance-based incentives for residential and commercial behind-the-meter battery storage systems, with launch expected in 2026. |
The Successor Solar Incentive (SuSI) Program is New Jersey’s primary solar production incentive. For every 1,000 kWh (1 MWh) of solar energy your system generates, you earn one SREC-II credit. Through the Administratively Determined Incentive (ADI) pathway — which covers virtually all residential systems up to 5 MW — these credits are sold at a fixed, administratively set rate. As of early 2026, the residential ADI rate is approximately $76.50–$90 per MWh (rates are subject to periodic BPU review; confirm the current rate at njcleanenergy.com before signing a contract). Payments are made quarterly for 15 years from your system’s interconnection date.
A typical 7.5 kW residential system in New Jersey generates roughly 9 MWh per year, earning approximately $688–$810 annually in SREC-II payments — totaling over $10,000–$12,000 over the 15-year program term. This income stacks on top of your net metering bill savings and is separate from your utility credits.
To participate, residents of Newark must register their system through the SuSI Program portal before construction begins. After installation, submit a post-construction packet to receive a NJ Certification Number, open a GATS account to track generation, and register with InClime (the SREC-II Administrator) to receive payments. Visit njcleanenergy.com/renewable-energy/programs/susi-program/ for the current ADI rate and registration portal.
New Jersey’s net metering policy is one of the most favorable in the country. For every kilowatt-hour (kWh) your solar system sends back to the grid, you receive a credit equal to the full retail rate of electricity — approximately $0.26/kWh for most NJ customers. Newark is served by PSE&G, one of New Jersey’s major investor-owned utilities covered under this program. This means your solar production directly offsets what you would otherwise pay for electricity, maximizing your bill savings. Systems up to 5 MW in capacity are eligible.
Excess credits roll forward month-to-month at full retail value throughout your annual billing cycle. At your annual true-up date, any remaining surplus credits are paid out at the lower wholesale rate (approximately $0.03–$0.05/kWh). Because of this, it’s best to size your system to match — but not significantly exceed — your annual electricity consumption.
Net metering is available through all three major New Jersey investor-owned utilities and is mandated by the NJ Board of Public Utilities (NJBPU). There are ongoing policy discussions about potential future restructuring; systems installed under current rules are expected to be grandfathered. Locking in today’s 1:1 retail-rate net metering terms is a strong reason for homeowners in Newark to install sooner rather than later. For more information, visit nj.gov/bpu.
New Jersey exempts all solar energy equipment and installation labor from the state’s 6.625% sales and use tax. This exemption applies to the full system cost, including solar panels, inverters, racking hardware, wiring, and the labor to install them. On a typical residential solar system costing around $25,000, this saves homeowners approximately $1,600–$2,200 upfront.
The exemption is automatic — your solar installer applies it at the point of sale, so you do not need to file any paperwork, apply to a program, or claim anything separately. Simply confirm with your installer that the exemption is reflected in your contract and final invoice.
This is a permanent exemption with no expiration date, and it applies to all residential solar installations statewide, including those in Newark. It is one of the simplest and most immediate financial benefits of going solar in New Jersey. For official details, visit the NJ Division of Taxation at nj.gov/treasury/taxation.
Under N.J.S.A. 54:4-3.113a (P.L. 2008, c.90), the added assessed value that a solar energy system contributes to your home is permanently excluded from your property tax calculation for as long as the system remains on the property. Solar panels typically add meaningful value to a home, but in New Jersey, that added value will never result in a higher property tax bill. There is no expiration date and no 10-year cap on this exemption.
Based on the median home value in New Jersey and the average value solar panels add, this exemption saves a typical homeowner approximately $1,000 per year in property taxes — a benefit that compounds over the lifetime of the system. The exemption applies across all 21 counties statewide, including Essex County where Newark is located.
Unlike the sales tax exemption, this benefit is not automatic. After installation, homeowners in Newark must file the appropriate documentation (such as Form CRES or equivalent) with the local municipal tax assessor. Requirements may vary slightly by municipality, so contact your local assessor’s office to confirm the exact process. For more information, visit nj.gov/treasury/taxation.
The Community Solar Energy Program (CSEP) is ideal for Newark residents who cannot install rooftop solar — including renters, condo owners, and homeowners with shaded or unsuitable roofs. By subscribing to a share of a local community solar farm, you receive credits directly on your monthly utility bill for the electricity your subscribed share produces. The program guarantees a minimum bill credit discount of at least 20% for standard subscribers and at least 25% for low-to-moderate income (LMI) subscribers, with typical savings ranging from 10–40% on the electricity portion of your bill.
The program was made permanent in August 2023 and significantly expanded — the NJBPU approved a 3,000 MW total allocation in March 2026, with registrations open through December 31, 2029. Notably, 51% of program capacity is reserved for LMI households, and 300 MW is set aside for landfill and brownfield projects. Community solar facilities receive an incentive of $60 per MWh through the program structure.
There is no equipment to purchase, no installation required, and no roof needed. You simply subscribe to an available project in your utility territory and begin receiving bill credits. To find available community solar projects and subscribe, visit njcleanenergy.com/renewable-energy/programs/susi-program/csep.
The Garden State Energy Storage Program (GSESP) was approved by the NJBPU on June 18, 2025, and is New Jersey’s dedicated incentive program for battery storage systems. Phase 1 focused on large transmission-scale storage (355 MW awarded in March 2026). Phase 2 — the residential and distributed segment — is expected to launch later in 2026 and will provide incentives directly to homeowners and businesses adding battery storage.
Based on the NJBPU Board Order, Phase 2 is anticipated to offer both a Distributed Fixed Incentive (an upfront payment) and a Distributed Performance Incentive (payments tied to grid dispatch performance). Preliminary figures cited in the Board Order suggest incentives in the range of $150–$300 per kW depending on system size, with an additional $50–$100 per kW adder for systems installed in designated overburdened communities. However, official Phase 2 program rules have not yet been published as of early 2026.
This program is specifically designed to fill the gap left by the repeal of the federal Section 25D battery storage tax credit. Do not make a battery purchase decision based solely on installer claims about rebate amounts — verify all figures against the official NJBPU program rules once published. Check njcleanenergy.com/storage for the latest Phase 2 updates and official program documentation before signing any contract.
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 cold winters and warm summers. Despite cloudy stretches, Newark receives enough annual sunlight for solar panels to generate meaningful savings 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 mapped every solar installation in Newark, NJ so you can see just how many of your neighbors have made the switch. Explore the map below to discover which communities — from the Ironbound to Forest Hill — are leading the way in clean energy adoption.
Leasing Solar Panels
If you’re not ready to purchase a solar system outright, Palmetto offers a Power Purchase Agreement (PPA) for Newark homeowners through its LightReach program. A PPA is available to customers served by PSE&G, Orange & Rockland (Rockland Electric), Atlantic City Electric, and Jersey Central Power & Light — covering the vast majority of New Jersey utility customers.
With a solar PPA, you don’t pay for the system itself. Instead, you agree to buy the electricity your panels produce at a set price per kilowatt-hour (kWh). Because solar panels produce more energy in summer than winter, your monthly PPA payment will naturally be a bit higher in summer — but so will your utility bill savings. Averaged over the year, total costs are comparable to a fixed monthly lease. You can learn more about how a PPA compares to a lease or cash purchase here.
One key advantage of a PPA over a cash purchase is simplicity. When you buy a system outright, you’re responsible for monitoring performance, coordinating repairs, and managing any maintenance over the system’s 25+ year lifespan. With Palmetto’s LightReach PPA, Palmetto owns the system and handles maintenance — so you get the benefit of lower energy costs without the added responsibility. There’s also no large upfront investment, making solar more accessible for homeowners who want to reduce their energy bills without tying up capital.
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!
Explore LightReach LeasingFrequently Asked Questions
Yes, solar makes strong financial sense for Newark homeowners. New Jersey has the 11th highest electricity rates in the nation, and PSE&G customers in Newark pay 18.8¢/kWh — above both state and national averages. A typical Newark home can save around $91,000 over 25 years with solar, backed by state incentives like net metering, SREC-II production payments, and property tax exemptions.
Upfront cost doesn’t have to be a barrier. Palmetto’s LightReach lease program lets Newark homeowners go solar with no money down, so you can start saving from day one — no large investment required.
Yes, Newark homeowners have access to 1:1 net metering through PSE&G, the primary utility serving the area. For every kilowatt-hour your solar system sends to the grid, you receive a credit equal to the full retail electricity rate. Unused credits roll forward month to month throughout the year.
At your annual anniversary date (based on your system’s permission-to-operate date), any remaining surplus credits are settled at the avoided cost rate — roughly 3–5 cents per kWh — and your account resets. You can change your anniversary month once by contacting PSE&G directly.
Yes, solar panels can increase your home value in Newark. Research from Zillow found that homes with solar panels sell for about 4.1% more than comparable homes without them. For a median-priced home in the Newark area, that could represent a meaningful boost at resale.
Importantly, New Jersey’s property tax exemption for solar means that added home value won’t raise your property tax bill — so Newark homeowners get the financial upside of increased equity without the downside of higher taxes.
For Newark homeowners, the most accessible way to go solar is through Palmetto’s LightReach lease — with a low fixed monthly payment starting around $93–$164/month depending on home size, and no upfront cost. Palmetto owns and maintains the system, so there’s nothing to manage.
For those who prefer to own outright, a cash purchase typically runs $21,000–$36,000 depending on system size. Note that the federal 30% tax credit is no longer available for residential cash purchases following the Big Beautiful Bill. Use the calculator above for a personalized Newark estimate.
For Newark homeowners, solar can be worth it financially — especially with rising PSE&G rates and no upfront cost required. Through Palmetto’s LightReach lease, your monthly payment is typically less than your current electricity bill, meaning you can start saving from day one without any investment.
A typical Newark home can save around $91,000 over 25 years with solar. New Jersey also offers strong supporting incentives, including net metering, SREC-II production payments, and a property tax exemption — all of which strengthen the long-term financial case.
Palmetto Solar is a strong choice for Newark homeowners. We’ve completed 612 installations across New Jersey since 2020, with a trusted network of local installers and some of the most competitive financing options in the industry — including our LightReach lease with no upfront cost.
As a national company with deep local roots, we understand what Newark homeowners need — from navigating PSE&G’s net metering program to maximizing New Jersey’s SREC-II incentives. Our goal is to make solar simple, transparent, and accessible for every homeowner.
With Palmetto’s LightReach lease, Newark homeowners pay one simple monthly payment that covers everything — panels, installation, monitoring, maintenance, and a 90% Production Guarantee. There is no upfront cost. For a typical 9.78 kW system in Newark, the estimated monthly payment is approximately $130/month.
Because Palmetto owns the system, it qualifies for the commercial Investment Tax Credit (ITC) — and those savings are passed directly to you through lower monthly payments. Since the lease payment is typically less than your current electricity bill, most Newark homeowners start saving from day one.