Solar power in Trenton, New Jersey
There has never been a better time to install solar on your home in Trenton with several amazing incentives making solar a must have for your home or business. Whats more, the main federal solar tax credit has already dropped from 30% to 26% in 2020, meaning the time to act is now.
New Jersey is one of a few states to have an excellent market for SRECs.
What are New Jersey SRECs?
SREC means Solar Renewable Energy Certificate. New Jersey has a law that all utilities must source a certain percentage of their power from renewable sources and a percentage of that must come from solar PV. If utilities don't meet their requirements they are heavily fined creating a market for SREC certificates. One REC is equal to 1,000 kWh of solar generation, a standard 5kW system will produce about 6,000kWh per year resulting in 6 SREC's. The current value for New Jersey SREC's is about $180-$240 meaning a 5kW system will receive $1,080-$1,440 every year!
Transition to TRECs
SREC's in New Jersey are being repalced by TRECs that will have a fixed value. Regulators have not yet set the final value of TREC's but have suggested two options. One of these options is a fixed $152 per mWh. However, there will be factorization of this amount meaning a residential solar power project will only get .5 TREC's per mWh. This will mean additional annual revenue to an owner of a 6kw solar system from TREC's will be around $600, half the level as it was previously with the SREC system. However, this amount will be fixed and bankable and so may lead to better finance options being available in the market. It should also be remembered this payment is on top of net metering and the electric bill savings your system will generate.
Despite already having two brilliant incentives New Jersey residents can also receive the federal solar tax credit, covering 26% of the system cost in 2020.
These incentives are considered by many to be far too generous and may be shut down very soon!
Net Metering Broken Down
Those living in Trenton also have net metering available from their utility company. This gives you a credit the same as retail power prices for energy exported to the grid by your solar system.
Most people during the middle of the day are out the house when their solar is producing the most power making this incentive especially important.
The average cost of installing residential solar panels in Trenton,
New Jersey in 2024 is
$2.78 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Trenton, NJ
is $13,900.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in New Jersey is only 691kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Trenton solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our New Jersey solar savings calculator can do this because it contains a database of the electric rates charged by Atlantic City Electric Co, Borough of Pemberton, Jersey Central Power & Lt Co, Public Service Elec & Gas Co
How much can solar panels save you in Trenton
What does the cost of a real solar system look like?
Facts about installing a 9.8kW solar system in Trenton, NJ
This system would offset 100% of your energy usage if your typical monthly bill is $220, however your situation may vary so try our Trenton solar calculator to get a result tailored to you.
$18,928
Net cost of system
3 Years 6 Months
Average payback time
11,785 kWh
Annual power production
6¢/kWh
Levelized cost of solar energy
40¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 9.8kW system
Life-time savings on this system over the next 25 years
$129,020
(Prices shown after repayments of capital)
48
Solar companies in Trenton, NJ that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Trenton
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,460 | $6,977 |
| 4kw | $8,495 | $9,175 |
| 5kw | $10,434 | $11,269 |
| 6kw | $12,343 | $13,331 |
| 7kw | $14,141 | $15,273 |
| 8kw | $15,925 | $17,199 |
| 9kw | $17,582 | $18,989 |
| 10kw | $19,240 | $20,779 |
Find out what system size you need for your home
Going solar in New Jersey
Check out all of the ways energy providers of New Jersey can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Solar Renewable Energy Certificates (SRECs) Registration Program | State | Solar Renewable Energy Credit Program |
| NJ Clean Energy- Residential New Construction Program | State | Rebate Program |
| Net Metering | State | Net metering |
| Solar Energy Sales Tax Exemption | State | Sales Tax Incentive |
| Property Tax Exemption for Renewable Energy System | State | Property Tax Incentive |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
