New Jersey vs Pennsylvania Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of New Jersey and Pennsylvania solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | NJ · New Jersey | PA · Pennsylvania |
|---|---|---|
| Avg Monthly Bill | $165 | $145 |
| Peak Sun Hours / Day | 4.4 ◆ | 4.3 |
| Avg $/Watt Installed | $2.95 | $2.9 ◆ |
| State Tax Credit | None | None |
| Net Metering | modified | retail |
| SREC Market | ~$15400 | ~$7400 |
| Property Tax Exempt | Yes | No |
| Sales Tax Exempt | Yes | No |
| Payback, pre-credit model (yrs) | 6.5 ◆ | 8 |
| 25-yr savings, pre-credit model | $54,700 ◆ | $36,400 |
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. Pennsylvania offers no state income tax credit.
Net Metering Policies
New Jersey: modified rate net metering active. Pennsylvania: retail 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). Pennsylvania: $36,400 over 25 years (avg payback 8 yrs).
Verdict: Which State Wins on Solar?
New Jersey edges out Pennsylvania 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.