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Solar Basics and Incentives

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Solar Basics and Incentives for New Jersey Homeowners

New Jersey offers a sunny financial climate for going solar, with federal tax credits, state incentives like SRECs, and long-term savings on electricity costs, making it a smart investment for homeowners.

How do solar panels work?

How do solar panels work?

Solar energy harnesses sunlight through photovoltaic cells in solar panels, converting it into electricity via inverters, and offers numerous benefits such as reduced carbon footprints, lower energy costs, increased energy independence, and seamless grid integration for optimized and sustainable power usage.

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What are the incentives to go solar in New Jersey?

What are the incentives to go solar in New Jersey?

New Jersey is ideal for going solar, offering a 30% federal tax credit, state SREC incentives, and protection against rising electricity rates. With a 25+ year lifespan, solar power saves thousands while maximizing energy production and reliability.
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Is my house a good candidate for solar?

Is my house a good candidate for solar?

To determine if your house is suitable for solar, consider factors like roof condition, orientation, shading, and available sunlight. A professional solar installer can assess these elements and your energy usage to design an efficient system tailored to your needs.

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How do Solar Panels Work?

If you've ever wondered about the inner workings of solar power, you've come to the right place. Solar energy is a clean, abundant, and renewable source of power that has gained immense popularity in recent years. Let's dive into the fascinating world of solar energy and explore how it works.

Understanding the Photovoltaic Effect

At the heart of solar power is the photovoltaic effect. When sunlight, comprised of photons, strikes the surface of certain materials, such as silicon, it dislodges electrons from their atoms. This process generates a flow of electricity. Solar panels, also known as photovoltaic (PV) cells, are designed to harness this effect and convert sunlight into usable electricity.

The Journey of Sunlight to Electricity

Solar panels consist of multiple PV cells interconnected within a panel. When sunlight hits the solar panels, the PV cells absorb the photons and initiate the photovoltaic effect. As a result, the freed electrons start flowing in a specific direction, creating a direct current (DC) of electricity.

Converting DC to AC Electricity

To power our homes and businesses, we require alternating current (AC) electricity. That's where inverters come into play. The DC electricity produced by solar panels is sent through an inverter, a crucial component of the solar system. The inverter converts DC electricity into AC electricity, ensuring compatibility with the standard electrical systems used in buildings.

Grid-Connected Solar Systems

Solar power systems can be connected to the local electric grid, enabling a two-way flow of electricity. In a grid-connected system, excess electricity generated by your solar panels during the day is fed back into the grid. This not only offsets your electricity consumption but also allows you to earn credits or receive compensation for the surplus energy you contribute. At night or during times of high energy demand, you can draw electricity from the grid to meet your needs. It's a reliable and seamless solution that optimizes your energy usage and reduces your reliance on fossil fuels.

What are the incentives to go solar in New Jersey?

New Jersey is ideal for going solar, offering a 30% federal tax credit, state SREC incentives, and protection against rising electricity rates. With a 25+ year lifespan, solar power saves thousands while maximizing energy production and reliability.

30% Renewable Energy Tax Credit

The Solar Investment Tax Credit (ITC) offers a dollar-for-dollar reduction in federal income taxes based on the cost of installing solar systems. If you own and install a solar system at your residence, you may claim the credit for qualified expenses, including labor and installation costs — but only if your system is placed in service on or before December 31, 2025. After that date, the residential ITC will no longer be available.

Beginning in 2026, the federal solar tax credit will only remain available for commercial solar projects and for third-party ownership models such as solar leases and Power Purchase Agreements (PPAs). Homeowners who lease or enter into a PPA will not receive the tax credit directly; instead, the credit will be claimed by the third-party owner, who may factor it into pricing.

There is no maximum credit for qualifying systems, and unused residential credits earned in 2025 can still be carried forward to future tax years. The Inflation Reduction Act of 2022 also made stand-alone energy storage systems eligible, provided they are installed and placed in service by December 31, 2025.

Energy Savings through New Jersey Net Metering

New Jersey Net Metering allows homeowners to sell excess electricity back to the grid at the retail rate, which is higher than the wholesale rate that power plants receive. This helps you balance your electricity use and production, ensuring that any excess energy doesn’t go to waste. The top utility net metering programs in New Jersey include Jersey Central Power & Light (JCP&L), Public Service Electric & Gas (PSE&G), and Atlantic City Electric (ACE).

Property Tax Exemption for Renewable Energy Systems

In October 2008, New Jersey enacted legislation exempting renewable energy systems used to meet on-site electricity, heating, cooling, or general energy needs from local property taxes.

The New Jersey Solar Renewable Energy Credit-II (SREC-II) program

Approved by the New Jersey Board of Public Utilities, this program supports the growth of solar energy in the state, and will help New Jersey generate 3,750 MW of solar power by 2026, aiming to meet 10% of the state's electricity needs. SREC-IIs are earned for every 1,000 kWh your solar system generates and can be sold separately from electricity through the net metering program. Homeowners with residential systems can earn $85 per SREC-II, providing additional income on top of energy savings. SREC-IIs are available for 15 years from the system’s activation date.

Increased property value

Homes with solar panels can see a significant increase in value, as buyers increasingly prioritize energy efficiency and long-term savings, boosting property appeal.

Is my house a good candidate for solar?

The main factors to consider are shade, roof orientation, and roof type/material. A roof with minimal shade is ideal, though Power Optimizers or Micro Inverters can help if there is some shade. South-facing roofs are best for capturing sunlight, but east and west-facing roofs still perform well. Roofs with a rectangular shape and materials like asphalt shingles or standing-seam metal are the most suitable for solar panel installation. These factors will help determine how well your home can benefit from solar energy.

Solar Access

Shade

If your roof is unshaded, you're an ideal candidate for solar. However, shade doesn't rule out solar energy. Using Power Optimizers or Micro Inverters, each panel works independently, so shading on one panel won’t affect the others. Tree trimming is also an effective solution, though it should be done every couple of years to prevent branches from blocking sunlight.

Roof Orientation

Solar-Orientation

For solar in New Jersey, it's ideal for solar panels to face south.  But if your house doesn’t have a large, unshaded south-facing roof, it's still okay.   East and West-facing roofs get less sun than those that face south, but it’s not as little as you may think.  According to the Concord Consortium, a home with panels that face east or west would get about 80% of the electricity that a house with south-facing panels would.  Add in the use of Micro Inverters or Power Optimizers on a low-pitched roof and percentage increases closer to 85 or 90%.  

Roofing Size & Shape

Roof-Types

For the best solar results in New Jersey, a rectangular roof (gable roof) with standing-seam metal or asphalt shingles is ideal. Other materials, like tile, can increase installation costs. Rectangular roofs fit more panels, maximizing energy production. While hip roofs and roofs with dormers or valleys can still work for solar, they offer less space for panel installation.

Affordable, Reliable Solar—From a Company You Can Trust!

Since 2010, Green Sun Energy Services, LLC has helped homeowners and small businesses take full advantage of New Jersey’s solar incentives—reducing or even eliminating electric bills while protecting against rising utility costs.

If you’re exploring your options, our Solar Buyer’s Guide breaks down everything from system design and equipment choices to incentives and long-term savings—so you can make a well-informed decision with confidence.

Locally owned and operated

Because we’re local, we handle everything—from system design and permitting to installation, inspections, and activation—so your solar project stays simple and stress-free.

Focused on long-term relationships

Dedicated to building lasting customer relationships through trust, reliability, and long-term support.

Flexible payment solutions

Dozens of payment options—including check, financing, and leasing—to make our solar energy solutions affordable and accessible for nearly every homeowner.

Industry-leading products, workmanship, and warranty

We deliver superior solar installations with industry-leading products like Enphase, Hyundai, JA Solar, Jinko, QCells, REC, Pegasus, Unirac, and IronRidge, expert workmanship, and 5-star service—all backed by our money-back energy production guarantee. Every system is designed using the same principles outlined in our Solar Buyer’s Guide—backed by expert workmanship, 5-star service, and our money-back energy production guarantee.

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NJ utility rates jumped 17–20% in 2025—act now before they rise again. Get your free solar quote today.

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Continue Learning About Solar

Explore more about solar incentives, including federal and state tax credits, SREC-II income, and net metering, as well as insights into custom system design, flexible financing options, and our streamlined installation process. Gain the knowledge you need to make an informed decision about transitioning to clean and affordable solar energy.

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Got questions about going solar? Our highly trained team is here to provide expert answers—whether it’s a quick question or a detailed discussion. Let’s find the perfect solution for you!
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See What Our Clients Have to Say

  • GeraldMiddletown, NJ · 2026
    Reviewed us onGoogle

    Considering solar? Why not have the pros from Green Sun Energy Services provide a free analysis? That's what I did. Made the…

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    …decision easy for me and my wife and convinced us of the benefits! The whole process from conception through installation went perfectly!

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  • DeborahLawrence Township, NJ · 2026
    Reviewed us onGoogle

    Mike was on time, friendly and efficient. We have had very positive experiences with GreenSun.

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  • East Brunswick, NJ · 2025
    Reviewed us onYelpGoogle

    My experience with Glen and his company was great. I just needed to remove panels from a house I had recently purchased and redo…

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    …the roof. Glen gave me a soft pitch on more work but it was low pressure. His quote was in line with other 'reasonable' quotes I received. The main thing I appreciated was that every part of the process was professional and easy; getting a quote, picking dates, filling out online forms, payment was effortless and I could see that different parts of the process were well integrated.

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  • Desmond and FrancesMatawan, NJ · 2025
    Reviewed us onGoogle

    Green Sun Energy Services installed my solar panels over 10 years ago and I have never had any complaints with their support, as…

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    …a long-term customer. I highly recommend Green Sun if you are going to go solar. However, it was only recently that I realized they also offer the soft/pressure wash services. We scheduled Green Sun to wash our roof, panels, siding, deck/patio/pavers and fence. It all went very well and the results are a vastly improved look for our property. I'll give them a 5 star rating for their work on this, as well as their solar panels business. Whether you have solar panels or not, consider giving Green Sun a chance to do your next soft wash project on your property. It worked out great for me and I highly recommend Green Sun. They are efficient, courteous, and professional and I recommend that you give them a chance for your next project for your home and property.

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  • FrancisPiscataway, NJ · 2025
    Reviewed us onGoogle

    Glen and his team did a Generac generator and a Solar System installation for me. The team did an absolutely fantastic job…

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    …throughout the entire process. They are very reliable, walk you through all the details step by step, communicated clearly, and completed the work on time. They will help you through design, permits, inspections, various registrations. If you need it, they can help with financing and suggest best options. They are in for the long haul and are more interested in maintaining a relationship with their customers. They are easy to work with. I highly recommended that you consider Green Sun Energy for your generator and solar system acquisition, deployment and ongoing support.

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  • WayneMiddletown, NJ · 2025
    Reviewed us onAngiGoogle

    ...The install proceeded without a hitch and looked great. Inspecting the attic, I couldn’t find a single fastener penetrating…

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    …the roof deck; every screw was sunk into the rafters. As promised, no part of the array is visible from the front or sides of the house... If you are thinking about “going solar,” or even just getting a standby generator, you really ought to give Glen at Green Sun a call. "- Wayne from Middletown, NJ.  Solar Panel InstallationI recently contacted Green Sun ("GS")about power washing my house, deck, walkways, retaining walls, etc. GS obtained a detailed and up-to-date view of my property, and, along with the square footage of my home, developed a cost estimate. I obtained an estimate from another contractor, which was based on the same information as the GS estimate. GS was less expensive by a not-insignificant amount; yet, as best as I could determine, GS offered the same thorough approach using similar products as their competitor. I moved forward with GS. The 2-person team arrived on time on the scheduled day, and worked the full day, power washing all the walkways, deck, patio, retaining walls. I was scheduled for 2 days, and the team returned as scheduled and completed the job, including the roof and the rest of the house. The results were excellent- what a difference! The team quite obviously cared about what they were doing. A concern I had was the impact the power washing might have on the mature landscaping surrounding the treated areas. I was assured that as a matter of course, the team waters down the plants, trees, etc., before and after treatment. I need not have been concerned - no issues there. When it's time (again), I will definitely be using Green Sun for power washing. - Google

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  • GeraldPrinceton Junction, NJ · 2025
    Reviewed us onGoogle

    Green Sun Energy Services sent a technician out to fix my generator. The technician’s name was John. He was very polite and…

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    …professional. He was very efficient and took the time to explain to me the cause of the problem and the steps he took to resolve it. I am very happy with Green Sun Energy’s response to my generator problems and I have full confidence in their wonderful staff and technicians.

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  • CliffordPrinceton, NJ · 2025
    Reviewed us onFacebookYelpGoogle

    Facebook: "They are completely professional and easy to work with. Both the generator and solar panels they installed are working…

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    …great. It’s been more than two years now, and the financial returns on the solar are as projected."Google: "Prompt, professional, courteous

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  • JoeChesterfield, NJ · 2024
    Reviewed us onBBBYelp

    Can't say enough nice things about Green Sun. They took care of every little detail, answered every silly question and arranged…

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    …everything. Had a big solar array installed and a Generac. I got multiple quotes and whilst they weren't the lowest price they were very competitive. They offered better warrantees and a better quality product.

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Primary Solar Service Areas In New Jersey

Green Sun Energy Services delivers professional solar design and installation across Monmouth, Ocean, Middlesex, Somerset, Mercer, and Union counties. Based in Middletown, NJ, our NABCEP-certified professionals help homeowners lower their electric bills with high-performing solar systems tailored to your roof, energy usage, and local utility requirements. We handle everything—from system design and permitting to installation, activation, and ongoing support—so going solar is simple and stress-free. Explore our primary service areas below to see how we help New Jersey homes save with solar.

Monmouth County

Show all 64 Monmouth towns
  • Monmouth Beach

Ocean County

Middlesex County

Show all 55 Middlesex towns
  • Dayton
  • Dunellen
  • Edgebrook
  • Ernston
  • Gillespie
  • Heathcote
  • Highland Park
  • Lincoln Park
  • Madison Park
  • Melrose
  • Middlesex
  • Milltown
  • Morgan Heights
  • New Brunswick
  • Perth Amboy
  • Port Reading
  • Princeton Meadows
  • Raritan Gardens
  • Rossmoor
  • Sayre Woods
  • Sewaren
  • Society Hill
  • South River
  • West Carteret
  • Westons Mills

Somerset County

Show all 41 Somerset towns
  • Peapack
  • Pleasant Plains
  • Raritan
  • Rocky Hill
  • Skillman
  • Somerset
  • Ten Mile Run
  • Voorhees
  • Watchung
  • Weston
  • Zarephath

Mercer County

Union County

Other Areas Serviced

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