Solar Calc

Solar Panel Cost in Newark, NJ (2026 Estimate)

ByIndependent solar research and calculators

Data last updated

Newark averages about 4.4 peak sun hours a day (below the national average, a little sunnier than the New Jersey average of 4.3), and pairs with New Jersey's approximate residential rate near 18ยข/kWh. In the model used here, an 8 kW system produces roughly 10,280 kWh a year and trims about $1,900 off annual electricity costs, paying back its net cost in about 10.1 years (versus 10.4 years for New Jersey as a whole). Local shading, roof, and your utility's export terms move the real figure.

Estimated system cost and payback in Newark

Costs assume roughly $3.35/watt installed; the net column applies a 30% federal credit for comparison with quotes that include it. Savings use Newark's sun hours and New Jersey's rate.

Modeled solar cost, production, savings and payback in Newark by system size
System size Gross cost Net after 30% credit Yearly production Yearly savings Payback
6 kW $20,100 $14,100 7,710 kWh $1,400 10.1 yrs
8 kW $26,800 $18,800 10,280 kWh $1,900 10.1 yrs
10 kW $33,500 $23,500 12,850 kWh $2,300 10.1 yrs

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

Net metering and utilities around Newark

New Jersey offers full retail net metering: exported kilowatt-hours offset imported ones at the same rate, and any monthly surplus rolls forward as a credit. At the close of a 12-month annualized period, which the customer may choose, remaining credits are paid out at the utility avoided-cost or wholesale rate, a figure much lower than retail. Sizing a system to roughly annual consumption keeps the year-end payout small and the retail-rate offset large.

PSE&G serves the densely populated corridor from Bergen County through Newark to Trenton, Jersey Central Power & Light covers the northwest and much of the Shore, Atlantic City Electric supplies the south, and Rockland Electric serves a small area near the New York line. Residential rates rose sharply in 2025 as regional capacity costs flowed through, pushing typical all-in prices above 20 cents per kilowatt-hour, which improves the solar payback. Supply can be purchased from a third-party retailer, but net metering credits are applied through the utility, and the default flat residential rate means exports are worth the same as imports at any hour.

For the full state picture, including incentives, property and sales tax treatment and the complete net metering notes, see the New Jersey solar cost page.

Sources and methodology

Every figure on this page is computed from two published inputs (average peak sun hours and the state's average residential electricity rate) plus the documented assumptions on the methodology page. It is a transparent model, not a survey of installer quotes. Inputs last reviewed .