A real cost breakdown for a typical 6kW system in New Jersey, not just a national $/watt figure.
New Jersey has a fairly typical electricity rate nationally at approximately $0.18/kWh, and a solid, average solar resource at 4.2 peak sun hours a day. Combined with a regional installed-cost estimate of $2.90/watt, a standard 6kW residential system runs approximately $17,400 before any incentives.
| Line item | Estimated cost | Share of total |
|---|---|---|
| Equipment (panels, inverter, racking) | $9,570 | 55% |
| Labor / installation | $5,220 | 30% |
| Permitting & inspection | $2,610 | 15% |
| Total (before incentives) | $17,400 | 100% |
A 6kW system in New Jersey costs 3% more than the average across the 50 states we track ($16,872), and the electricity rate it offsets is 11% higher than the 0.16 USD/kWh average across those same states. That combination is what actually determines whether New Jersey is a faster- or slower-than-average place to go solar — a lower system cost alone doesn't help if the rate you're offsetting is also low, and vice versa. See how every state stacks up on the Electricity & Solar Rate Tracker.
At $1,325 in estimated annual value from 7,358 kWh of yearly production, this system pays back in roughly 13 years — a longer payback period than the national average. New Jersey: Statewide net metering at retail rate plus SREC-II incentive. On incentives specifically: New Jersey's SREC-II (Successor Solar Incentive) program is one of the strongest ongoing state incentive structures in the US. The federal residential tax credit (Section 25D) expired for owned systems after December 31, 2025 — see our 2026 tax credit guide for what that means for your net price.
Same assumptions as above — $2.90/watt installed, 4.2 peak sun hours, 80% system efficiency, $0.18/kWh, no federal credit — scaled to common system sizes. Real quotes usually come in slightly cheaper per watt for larger systems, and the 25-year figure assumes flat electricity prices and 0.5% yearly panel degradation (rate increases would improve it).
| System | Installed cost | Yearly output | Yearly savings | Payback | 25-yr net savings |
|---|---|---|---|---|---|
| 4 kW | $11,600 | 4,906 kWh | $883 | 13.1 yrs | $9,200 |
| 6 kW | $17,400 | 7,358 kWh | $1,325 | 13.1 yrs | $13,800 |
| 8 kW | $23,200 | 9,811 kWh | $1,766 | 13.1 yrs | $18,400 |
| 10 kW | $29,000 | 12,264 kWh | $2,208 | 13.1 yrs | $23,000 |
| 12 kW | $34,800 | 14,717 kWh | $2,649 | 13.1 yrs | $27,600 |
Payback barely changes with system size here, because cost and savings both scale with the number of panels — what moves it is the rate you offset and your price per watt. For a 10-year payback on a 6 kW system at New Jersey's $2.90/watt, you would need to be offsetting about $0.24/kWh; the average rate here is $0.18/kWh, which is below that line. Treat the table as a starting point: use the calculator below with your own usage and quotes. To see how your utility's export credit and how much solar you use at home change payback, try the <a href="/tools/solar-payback-export-credit-calculator.html?state=NJ">payback calculator with export credit</a>.
A typical 6kW residential solar system in New Jersey costs approximately $17,400 installed in 2026, based on a regional estimate of $2.90/watt — equipment usually makes up about 55% of that, labor about 30%, with the rest in permitting.
At New Jersey's average rate of $0.18/kWh, a 6kW system pays back in roughly 13 years — a longer payback period than the national average. Your actual number depends on your usage and roof; check it precisely with the Solar Panel Cost Calculator.
A 6kW system in New Jersey costs 3% more than the 50-state average of $16,872, while the electricity rate it offsets is 11% higher than the 0.16 USD/kWh average across those states.