New York vs New Jersey Solar Incentives: Which State Gets the Better Deal?
Side-by-side comparison of New York and New Jersey solar incentive programs in 2026: state tax credits, net metering rules, exemptions, payback period, and projected 25-year savings.
| Metric | NY · New York | NJ · New Jersey |
|---|---|---|
| Avg Monthly Bill | $165 | $165 |
| Peak Sun Hours / Day | 4.2 | 4.4 ◆ |
| Avg $/Watt Installed | $3.1 | $2.95 ◆ |
| State Tax Credit | 25% / $5000 ◆ | None |
| Net Metering | modified | modified |
| SREC Market | No | ~$15400 |
| Property Tax Exempt | Yes | Yes |
| Sales Tax Exempt | Yes | Yes |
| Avg Payback (yrs) | 6.9 | 6.5 ◆ |
| Avg 25-Year Savings | $49,600 | $54,700 ◆ |
State Tax Credit Comparison
New York offers a 25% state income tax credit (capped at $5,000). New Jersey offers no state income tax credit.
Net Metering Policies
New York: modified rate net metering active. New Jersey: 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 York: $49,600 over 25 years (avg payback 6.9 yrs). New Jersey: $54,700 over 25 years (avg payback 6.5 yrs).
Verdict: Which State Wins on Solar?
New Jersey delivers stronger lifetime solar economics than New York 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.