SunPowerPeek

Alabama vs New Jersey Solar Comparison

Alabama gets more sun (4.5 hrs/day) while New Jersey has the faster payback (7.5 years).New Jersey offers higher 20-year savings at $38,200.

Alabama

4.5 hrs

11.2yr payback

$28,400

20yr savings

New Jersey

4.0 hrs

7.5yr payback

$38,200

20yr savings

Side-by-Side Comparison

MetricAlabamaNew Jersey
Peak Sun Hours4.5 hrs4.0 hrs
Cost per Watt$2.95$3.15
6kW System Cost$17,700$18,900
Federal Tax Credit30%30%
State Tax CreditNoneNone
State RebateNoneNone
Net MeteringPartial Net MeteringFull Net Metering
Electricity Rate14.87¢/kWh18.48¢/kWh
Payback Period11.2 years7.5 years
20-Year Savings$28,400$38,200

Verdict

New Jersey is the better state for solar ROI with $38,200 in 20-year savings and a 7.5-year payback period. Alabama has more sun exposure at 4.5 hrs/day, making it ideal for maximum energy production. Both states qualify for the 30% federal solar tax credit.

Frequently Asked Questions

Is solar better in Alabama or New Jersey?

Alabama gets more sun (4.5 peak hours/day vs 4). New Jersey has a faster payback (7.5 years) and New Jersey offers higher 20-year savings ($38,200).

How do solar costs compare between Alabama and New Jersey?

A 6kW system costs $17,700 in Alabama vs $18,900 in New Jersey before incentives. Both qualify for the 30% federal tax credit.

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Data verified March 2026 · Source: NREL, DSIRE, EIA