Switching to solar power is one of the smartest financial decisions homeowners in South Jersey can make. But just how much do solar panels save per month? The answer depends on factors like energy usage, solar system size, and local electricity rates. In cities like Cherry Hill, where utility costs are rising, solar power can provide significant monthly savings. This blog will break down the numbers, explain incentives, and show why going solar is a great investment for South Jersey homeowners.
Understanding Energy Costs in South Jersey
Electricity prices in South Jersey are higher than the national average. According to the U.S. Energy Information Administration (EIA), New Jersey residents pay around 17–19 cents per kilowatt-hour (kWh) for electricity, which is higher than most states. This means a typical household with a monthly electricity bill of $120 to $180 could see major savings with solar power.
How Much Do Solar Panels Save Per Month in Cherry Hill?
Cherry Hill homeowners who switch to solar can cut their electricity costs significantly. The average residential solar system in South Jersey generates 700–1,000 kWh per month, covering most, if not all, of a home’s electricity needs. Depending on system size and energy usage, monthly savings can range from $80 to $200 or more.
Here’s a breakdown of potential savings:
| Monthly Electricity Bill | Estimated Savings with Solar |
| $120 | $80–$120 |
| $150 | $100–$150 |
| $180 | $120–$180 |
In some cases, solar panel systems generate more electricity than a home uses. Thanks to net metering, homeowners can earn credits for excess power sent back to the grid, leading to even greater savings.
Factors That Affect Solar Savings in South Jersey
While most homeowners in Cherry Hill and surrounding areas see significant savings, actual numbers depend on several key factors:
1. Electricity Rates
The higher your electricity rates, the more you save. Since South Jersey has above-average rates, switching to solar provides a bigger financial benefit compared to states with cheaper power.
2. System Size and Energy Consumption
Larger systems generate more power, leading to higher monthly savings. A household with high energy usage benefits more from a robust solar setup.
3. Incentives and Tax Credits
New Jersey offers several financial incentives to encourage solar adoption:
- Federal Solar Tax Credit (ITC) – Homeowners can deduct 30% of their solar installation costs from federal taxes (source).
- Solar Renewable Energy Certificates (SRECs) – Homeowners can earn extra income by selling SRECs generated by their solar panels (source).
4. Sunlight Exposure
Homes with unobstructed sun exposure produce the most energy. If trees or buildings shade your roof, production may be slightly lower, but proper panel placement can help maximize output.
Solar Payback Period in Cherry Hill
One of the best ways to evaluate the financial benefits of solar power is by calculating the payback period—the time it takes for your energy savings to equal the cost of your solar system.
For a typical South Jersey home, the payback period is around 5 to 7 years. After that, homeowners enjoy pure savings for the remaining lifespan of their system (usually 25+ years).
For example, if a solar system costs $15,000 after incentives and generates $2,000 in annual savings, it would take 7.5 years to pay off. After that, every dollar saved is money back in your pocket.
Financing Options for Solar Panels in South Jersey
Not everyone pays for solar panels upfront. There are several financing options that make it easy to switch to solar while still enjoying immediate savings:
1. Solar Loans
With low-interest financing, homeowners can install solar panels with little to no upfront cost and make monthly payments that are often lower than their previous electricity bills.
2. Solar Leases & Power Purchase Agreements (PPAs)
Under a lease or PPA, a third party owns the solar panels while homeowners pay a fixed monthly rate for the electricity generated—usually at a lower cost than utility rates.
3. Cash Purchases
Homeowners who buy their system outright see the biggest long-term savings, as they avoid interest payments and own 100% of the energy savings.
Additional Benefits of Solar Panels
Increased Home Value
Homes with solar panels sell for an average of 4.1% more than those without, according to a study by the U.S. Department of Energy (source). In Cherry Hill’s competitive housing market, this added value makes solar even more appealing.
Energy Independence
With solar power, homeowners rely less on the utility grid, protecting themselves from rising energy prices. Adding battery storage can provide even greater independence.
Environmental Impact
Switching to solar reduces carbon emissions and decreases reliance on fossil fuels, helping to create a cleaner environment for future generations.
Is Solar Worth It in South Jersey?
Absolutely! With rising electricity rates, strong state incentives, and significant long-term savings, installing solar panels is a smart investment for Cherry Hill homeowners.
Homeowners can expect:
✅ $80–$200 in monthly savings
✅ Full return on investment in 5–7 years
✅ Increased home value
✅ Protection against future rate hikes
If you’re wondering, “How much do solar panels save per month in South Jersey?”, the answer is simple—a lot!
Get a Free Inspection and Start Saving Today
Thinking about switching to solar? Find out how much you could save each month! Our team at Mack Solar and Roofing is here to help you maximize your benefits.
Get a free inspection now and take the first step toward lower energy bills in South Jersey.
