Is solar worth it in New Jersey?
A 7.0 kW rooftop system near Newark produces about 9,138 kWh a year. Priced against the 22 residential tariffs currently on file in New Jersey, payback runs from 8 years on the best of them to 83 on the worst.
Why the tariff matters more than the panels
Two households in New Jersey with identical roofs and identical systems can see paybacks 8 and 83 years apart, purely because they are on different tariffs. Solar produces at midday; households consume in the evening. Only 55% of what these panels make is used as it is made — the rest is exported, and what an exported kWh earns is set by the tariff and by state net metering rules, not by the hardware.
That is why the figures here are computed hour by hour against each real tariff rather than by taking a bill and assuming solar removes a share of it. How this is modeled →
Payback by tariff in New Jersey
7.0 kW system at $3.00/W, household using 1000 kWh a month, no incentives. A range means the export credit is not filed with the tariff and the outcome depends on net metering rules — 20 of 22 tariffs here belong to a utility that reports residential net metering.
| Utility | Tariff | Structure | Annual saving | Payback |
|---|---|---|---|---|
| Atlantic City Electric Co | RS | Time-of-use + tiered | $1,459–$2,624 | 8–14y |
| Public Service Elec & Gas Co | RS-TOU-3P - Residential TOU 3 Period Service | Time-of-use | $1,293–$2,539 | 8–16y |
| Public Service Elec & Gas Co | RS - Residential Service | Time-of-use + tiered | $1,390–$2,487 | 8–15y |
| Public Service Elec & Gas Co | RLM - Residential Load Management (TOU) | Time-of-use | $1,130–$2,011 | 10–19y |
| Public Service Elec & Gas Co | RHS - Residential Heating Service | Time-of-use + tiered | $1,072–$1,943 | 11–20y |
| Jersey Central Power & Lt Co (New Jersey) | Residential Service | Time-of-use + tiered | $1,061–$1,843 | 11–20y |
| Jersey Central Power & Lt Co (New Jersey) | Residential Geothermal and Heat Pump Service | Time-of-use | $1,014–$1,814 | 12–21y |
| Jersey Central Power & Lt Co (New Jersey) | Residential TOD Service | Time-of-use | $1,024–$1,793 | 12–21y |
| Jersey Central Power & Lt Co (New Jersey) | Residential Service for Controlled Water Heating | Time-of-use | $934–$1,691 | 12–22y |
| Jersey Central Power & Lt Co (New Jersey) | Residential Service for Off-Peak Water Heating | Time-of-use | $899–$1,627 | 13–23y |
| City of Vineland, New Jersey (Utility Company) | Residential | Time-of-use + tiered | $770–$1,452 | 14–27y |
| Atlantic City Electric Co | RS Delivery Service | Time-of-use + tiered | $765–$1,370 | 15–27y |
| Borough of Madison, New Jersey (Utility Company) | Residential Service | Tiered | $1,125 | 19y |
| Borough of Madison, New Jersey (Utility Company) | Residential Service TOU Option | Time-of-use | $1,011 | 21y |
| Public Service Elec & Gas Co | WHS - Water Heating Storage Service | Flat | $479–$867 | 24–44y |
Price it for your own usage and system size →
What would change this
Your roof. Production is modeled for Newark on a south-facing array at 20° tilt. Shading, orientation and pitch all move it, and solar resource varies within New Jersey itself.
Your usage pattern. A household at home during the day self-consumes more and exports less, which shortens payback wherever export credit is poor.
Rising rates. These figures hold today's prices flat. Electricity prices have been rising, and every rise shortens payback — so treat these as a conservative bound.
State and local incentives. Not included here, and in some states they are worth more than the federal credit was. Check your state energy office before deciding.