Princeton, NJ Solar Panels
Solar Power in Princeton
Princeton homeowners are increasingly turning to solar — and the numbers help explain why. New Jersey ranks 5th in the nation for residential solar installations, and with electricity rates climbing 21% since 2020, it’s a trend that’s hard to overlook.
This guide covers what you need to know about solar panels for your home — from how installation works to what it looks like for a home in Princeton’s Mercer County community.
NEW JERSEY by the Numbers
How Much Do Solar Panels Cost in Princeton, NJ?
Based on real installation data from Princeton and nearby communities like Plainsboro, Lawrenceville, and Montgomery Township, 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
- Princeton homeowners can save an average of $93,000 over 25 years with solar — thanks to above-average electricity rates and strong New Jersey incentives.
- New Jersey ranks 5th in the nation for residential solar and offers programs like net metering, SuSI production payments, and a full property tax exemption.
- Princeton gets 4.8 peak sun hours per day — enough to make solar a reliable, year-round energy source for most homes in the area.
Princeton Electricity Prices
Electricity in Princeton, NJ costs more than most Americans pay — and that gap has been growing every year.
New Jersey residents paid 19.4 cents per kWh in 2024, compared to the national average of 16.5 cents. That’s nearly 18% higher than the U.S. average, and NJ rates have climbed roughly 18% since 2021 alone.
Solar panel installation in Princeton, NJ can help homeowners reduce how much electricity they draw from the grid. That means less exposure to rising utility rates — not a complete elimination of your bill, but a meaningful way to stabilize your energy costs.
Over the long term, solar acts as a hedge against future rate increases. As grid electricity continues to rise, homeowners with solar are better positioned to keep their energy costs predictable — year after year.
Price of Energy: New Jersey vs National Average
Princeton Area Utility Providers
Princeton, NJ homeowners are served by PSE&G for electricity. Based on 2023 data — the most recent available — PSE&G’s residential rate was 18.8¢ per kWh, above both state and national averages.
In 2023, PSE&G’s rate of 18.8¢/kWh exceeded New Jersey’s state average of 17.70¢/kWh and the national average of 16.0¢/kWh. Higher regional infrastructure and transmission costs are key factors behind PSE&G’s elevated rates.
When local electricity costs run above national averages, solar panels in Princeton, NJ can offset more of your bill. Understanding your rate per kWh is a useful starting point for evaluating solar installation.
Princeton Utilities Electricity Rates
New Jersey Solar Incentives
Princeton homeowners can tap into several solar incentives in New Jersey that help reduce the upfront and long-term cost of solar installation.
New Jersey offers six key programs: production payments through the SuSI Program, net metering credits, a sales tax exemption, a property tax exemption, community solar subscriptions, and an upcoming battery storage rebate.
Note that the federal residential solar tax credit has been eliminated. Palmetto’s LightReach lease option simplifies this landscape — Palmetto handles the commercial tax credit and passes savings through via 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. | 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 Princeton 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, depending on your utility. Princeton is primarily served by PSE&G. 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 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 homeowners in Princeton. 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 Mercer County where Princeton is located.
Unlike the sales tax exemption, this benefit is not automatic. After installation, you must file the appropriate documentation (such as Form CRES or equivalent) with your local municipal tax assessor. Princeton homeowners should contact the local assessor’s office to confirm the exact process, as requirements may vary slightly by municipality. For more information, visit nj.gov/treasury/taxation.
The Community Solar Energy Program (CSEP) is ideal for Princeton 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 QuotePrinceton 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.
Princeton, NJ gets about 206 sunny days yearly. Cold winters actually boost panel efficiency, and four distinct seasons create reliable year-round solar production — making Princeton a surprisingly strong solar market.
Solar Production in Princeton 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 Princeton
We mapped every solar installation in Princeton, NJ so you can see just how many of your neighbors have already made the switch. Click any hexagon on the map to explore solar adoption in your neighborhood and community.
Leasing Solar Panels
If you’d rather avoid a large upfront cash purchase — and the ongoing maintenance that comes with owning a system outright — Palmetto offers an alternative through its LightReach program. For Princeton homeowners served by PSE&G, a Power Purchase Agreement (PPA) is available. With a PPA, you pay only for the solar energy your system produces, at a fixed rate per kilowatt-hour (kWh), rather than paying a lump sum for the equipment itself.
With a PPA, your monthly payment varies slightly with the seasons — higher in summer when panels produce more, lower in winter when production dips. This is different from a solar lease, where you’d pay a flat monthly amount regardless of production. Either way, your average annual cost works out similarly. The key advantage over a cash purchase is straightforward: no large investment upfront, no maintenance responsibilities, and no surprise repair bills. Palmetto owns and maintains the system throughout the agreement. You simply use the solar energy it generates. To understand the full difference between these two options, Palmetto’s buy vs. lease guide is a helpful resource.
For Princeton homeowners, a PPA through LightReach can be a practical way to start reducing your electricity costs — especially given that PSE&G rates run above both state and national averages. You get predictable, lower-cost energy without taking on the risks or responsibilities of system ownership.
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 sense for Princeton homeowners. With 4.8 peak sun hours per day, electricity rates nearly 18% above the national average through PSE&G, and New Jersey’s robust incentives — including net metering and SuSI production payments — the average Princeton home can save approximately $93,000 over 25 years.
If upfront cost is a concern, Palmetto’s LightReach lease program removes that barrier entirely. Homeowners can go solar with no money down and start saving from day one — with no maintenance responsibilities.
Yes, Princeton homeowners have access to 1:1 net metering through PSE&G, the primary utility serving the area. For every kilowatt-hour (kWh) your solar panels send back to the grid, you receive a credit at the full retail electricity rate. Unused credits roll over month to month throughout the year.
At your anniversary month (which defaults to your Permission to Operate date), any remaining surplus credits are paid out at the avoided cost rate — approximately 3–5 cents per kWh — and your account resets to zero. You can change your anniversary month once by contacting PSE&G directly.
Yes, solar panels can increase home value in Princeton. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them. For a home at Princeton’s median price point, that can represent a meaningful increase in resale value.
New Jersey also offers a full property tax exemption for solar installations, meaning the added home value from your system won’t raise your property tax bill — a significant benefit for Princeton homeowners in Mercer County.
For Princeton homeowners, the most accessible option is Palmetto’s LightReach lease — go solar for a low fixed monthly payment with no upfront cost. A typical medium-sized home starts at around $130/month. Palmetto owns and maintains the system, and savings begin immediately.
For those who prefer to own their system outright, a cash purchase runs approximately $28,916 for an average home. Note that 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 Princeton homeowners, solar can make strong financial sense — especially with PSE&G rates running above state and national averages. A typical home can save approximately $93,000 over 25 years through reduced electricity costs and New Jersey’s net metering and SuSI production payment programs.
If upfront cost is a concern, Palmetto’s LightReach lease lets you start saving immediately — with no money down. The monthly lease payment is typically less than your current electricity bill, so most homeowners see savings from day one with zero upfront investment required.
Palmetto Solar is a strong choice for Princeton homeowners. We’ve completed 612 installations across New Jersey since 2020, and we bring that local experience to every project in Mercer County. Our vetted install network ensures quality workmanship, and we offer some of the most flexible financing options available.
For homeowners who prefer no upfront cost, our LightReach lease program lets you go solar with $0 down — starting at around $130/month for a typical Princeton home. Palmetto handles all maintenance, so you can simply enjoy the savings.
With Palmetto’s LightReach lease, Princeton homeowners pay one simple monthly payment that covers the solar panel system, installation, monitoring, maintenance, and a 90% Production Guarantee — with no upfront cost. For a typical 9.78 kW system, the estimated monthly payment is approximately $130/month. Because Palmetto owns the system, the commercial solar tax credit still applies and is passed through to you as lower payments.
Most Princeton homeowners find the lease payment is less than their current PSE&G electricity bill, meaning savings can start from day one. It’s a straightforward way to reduce energy costs without taking on ownership responsibilities.