Paterson, NJ Solar Panels
Solar Power in Paterson
If you’re a Paterson homeowner exploring solar panels, you’re in good company. New Jersey ranks 5th in the nation for residential solar installations — and with electricity prices up 21% from 2020 to 2024, more Paterson families are looking for ways to reduce their energy bills.
This guide covers everything you need to know about solar installation in Paterson, NJ — from how it works to what it costs — so you can make a confident, informed decision.
NEW JERSEY by the Numbers
How Much Do Solar Panels Cost in Paterson, NJ?
Using real installation data from Paterson and nearby communities like Clifton, Passaic, and Hawthorne, this calculator gives you an honest estimate of what solar costs in your area. See what your neighbors are actually paying — no guesswork, no fluff.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Paterson homeowners can save up to ~$90,000 over 25 years with solar — and New Jersey’s rising electricity rates make that number grow every year.
- New Jersey offers strong solar incentives including net metering, a full sales tax exemption, and a property tax exemption that protects your home’s added value.
- No upfront cost? No problem. Palmetto’s LightReach lease lets Paterson homeowners go solar with no investment — starting as low as $130/month.
Paterson Electricity Prices
Electricity in New Jersey costs more than most of the country — and for Paterson homeowners, that gap has been growing every year.
New Jersey’s electricity rate climbed from 16.4 cents per kWh in 2021 to 19.4 cents per kWh in 2024 — an increase of roughly 18%. Over that same period, the national average rose from 13.7 to just 16.5 cents per kWh.
That persistent gap is one reason solar panel installation in Paterson, NJ has grown in popularity. By generating your own electricity, you rely less on the grid — and less on rates that have consistently trended upward.
Solar panels typically have a lifespan of 25 years or more. Over that time, locking in a lower cost of energy today can offer meaningful protection against whatever rate increases come next.
Price of Energy: New Jersey vs National Average
Paterson Area Utility Providers
Paterson homeowners are served primarily by two utilities: PSE&G and JCP&L. Based on 2023 data — the most recent available — their electricity rates differ significantly, and both compare differently to state and national benchmarks.
In 2023, PSE&G charged 18.8¢ per kilowatt-hour (kWh), sitting 17.5% above the national average of 16.0¢/kWh and above New Jersey’s state average of 17.70¢/kWh. JCP&L, by contrast, came in at just 14.0¢/kWh — below both averages. That’s a 34% difference between the two providers, which can meaningfully impact what Paterson households pay annually.
For PSE&G customers especially, those above-average rates make solar installation in Paterson, NJ worth a closer look. Generating your own electricity can reduce dependence on the grid — and help insulate your household from future rate increases.
Paterson Utilities Electricity Rates
New Jersey Solar Incentives
Paterson homeowners have access to several solar incentives in New Jersey that can meaningfully reduce the cost of going solar.
New Jersey offers strong state-level programs — including a full sales tax exemption, a property tax exemption, and net metering through utilities like PSE&G — that help Paterson residents lower upfront and ongoing solar costs.
Note: the federal residential solar tax credit was recently eliminated. Solar leasing through LightReach works differently — Palmetto applies the commercial tax credit and passes savings to customers 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. Paterson residents are primarily 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 in Paterson 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 homeowners in Paterson. |
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 through New Jersey’s major investor-owned utilities, including PSE&G, Jersey Central Power & Light (JCP&L), Atlantic City Electric, and Orange & Rockland. Paterson residents are primarily served by PSE&G, which participates in the program. 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 Paterson 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 Paterson 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 New Jersey 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 Paterson 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 QuotePaterson 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.
Paterson gets about 200 sunny days yearly, with cold winters reducing output slightly. But like Boston or Seattle, a well-designed solar system still performs remarkably well year-round.
Solar Production in Paterson 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 Paterson
We’ve mapped thousands of solar installations across the U.S. to show you where clean energy is taking hold. Explore this interactive heatmap to see which Paterson neighborhoods — from Eastside to Totowa Heights — have neighbors who’ve already made the switch to solar.
Leasing Solar Panels
Paterson homeowners have a straightforward path to solar without paying the full cost upfront. Through Palmetto’s LightReach program, a Power Purchase Agreement (PPA) is available to customers of PSE&G, Jersey Central Power & Light, Atlantic City Electric, and Orange & Rockland — all utilities serving New Jersey.
With a PPA, you pay only for the electricity your panels produce, at a set rate per kilowatt-hour (kWh). Your bill may be slightly higher in summer when panels produce more, and lower in winter — but the annual savings typically equal what you’d see with a fixed monthly lease. Either way, you avoid a large upfront investment and Palmetto handles all maintenance and monitoring on your behalf. Learn more about how PPAs compare to buying outright.
Compared to a cash purchase, a PPA means no system cost to recoup, no repair bills, and no performance worries. Palmetto owns the system and backs it with a 90% production guarantee — so if your panels underperform, that’s on us, not you.
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 sense for Paterson homeowners. New Jersey ranks 5th in the nation for residential solar, and with electricity rates at 19.4¢/kWh — well above the national average — Paterson residents can save an estimated ~$90,000 over 25 years. The state also offers net metering, a full sales tax exemption, and a property tax exemption.
Upfront cost doesn’t have to be a barrier. Palmetto’s LightReach solar lease lets Paterson homeowners go solar with no money down, starting as low as $130/month — so you can start saving from day one.
Yes, Paterson homeowners have access to net metering through their utility provider. Paterson is primarily served by PSE&G and JCP&L, both of which offer 1:1 net metering — meaning you receive a full kilowatt-hour credit for every kilowatt-hour of excess solar energy you send to the grid.
Unused credits carry over month to month. At your anniversary month (which defaults to your Permission to Operate date), any remaining excess 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 your utility.
Yes, solar panels can increase your home value in Paterson, NJ. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. On a $350,000 Paterson home, that’s roughly $14,000 in added value.
New Jersey also offers a Solar Property Tax Exemption, meaning that added home value won’t increase your annual property tax bill — making solar one of the few home improvements that pays you back in both energy savings and resale value.
For Paterson homeowners, the most accessible option is Palmetto’s LightReach lease — go solar with no upfront cost, starting as low as $130/month for a medium-sized home. Palmetto owns the system, handles all maintenance, and passes tax credit savings directly to you through lower payments.
A cash purchase is also available. A typical 9.78 kW system in Paterson runs around $28,916. Note: the federal 30% residential solar tax credit is no longer available following the Big Beautiful Bill. Use the calculator above for a personalized estimate.
For Paterson homeowners, solar can be financially worthwhile from day one — with no upfront investment required. Through Palmetto’s LightReach lease, your monthly solar payment is typically less than your current electricity bill, meaning you start saving immediately after installation.
With New Jersey’s electricity rates at 19.4¢/kWh — above the national average — and rising, locking in a predictable lower payment makes practical sense. Paterson homeowners who purchase outright can expect roughly ~$90,000 in savings over 25 years, while lease customers benefit from no maintenance costs and a 90% production guarantee.
Palmetto Solar is a strong choice for Paterson homeowners. We’re a national company with a local focus — and we’ve completed 612 installations across New Jersey since 2020. Our vetted install network ensures quality workmanship, and we offer some of the most flexible financing options in the industry, including our LightReach lease with no upfront cost.
Whether you’re looking to lease or purchase, we handle everything from design to installation to ongoing monitoring — so Paterson residents can go solar with confidence.
With Palmetto’s LightReach lease, Paterson homeowners can go solar with no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 9.78 kW system in Paterson, the estimated monthly lease payment is approximately $130/month — often less than your current electricity bill.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — an advantage that cash purchases no longer offer following the Big Beautiful Bill.