New Jersey vs New York Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of New Jersey and New York solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | NJ · New Jersey | NY · New York |
|---|---|---|
| Avg Monthly Bill | $165 | $165 |
| Peak Sun Hours / Day | 4.4 ◆ | 4.2 |
| Avg $/Watt Installed | $2.95 ◆ | $3.1 |
| State Tax Credit | None | 25% / $5000 ◆ |
| Net Metering | modified | modified |
| SREC Market | ~$15400 | No |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | Yes | Yes |
| Payback, pre-credit model (yrs) | 6.5 ◆ | 6.9 |
| 25-yr savings, pre-credit model | $54,700 ◆ | $49,600 |
Payback and 25-year savings were modeled while the federal residential credit applied. They are not a 2026 quote. The calculator uses $0 federal credit and state incentives only.
State Tax Credit Comparison
New Jersey offers no state income tax credit. New York offers a 25% credit (capped at $5,000).
Net Metering Policies
New Jersey: modified rate net metering active. New York: modified rate net metering active.
Net metering is often the most economically significant solar policy because it determines how excess production is valued. Retail-rate states (where you receive full retail price for exported energy) have substantially better solar economics than avoided-cost or no-net-metering states.
Average 25-Year Savings
New Jersey: $54,700 over 25 years (avg payback 6.5 yrs). New York: $49,600 over 25 years (avg payback 6.9 yrs).
Verdict: Which State Wins on Solar?
New Jersey edges out New York on lifetime savings primarily due to higher solar irradiance.
Note: state averages mask significant within-state variation. Your specific utility, roof orientation, and household electricity profile drive your actual numbers — use the calculator to model your home directly.