I want to be direct about something that costs NJ homeowners real money every year. Sunrun and Sunnova are the two largest residential solar companies in the country. They advertise heavily, they have professional sales teams, and they close a lot of deals in New Jersey. They are also, in my professional opinion after 15 years and 1,675+ installations, the wrong choice for most NJ homeowners. Here’s exactly why.

For New Jersey homeowners specifically: NJ’s SuSI program, full retail net metering, and high utility rates create one of the strongest ownership cases in the country. The financial gap between owning your system and leasing it through a company like Sunrun or Sunnova is significantly larger in NJ than in most other states — roughly $15,000–$20,000 over the life of a system. That gap is why these companies push so hard in NJ.

The Business Model Problem

Sunrun and Sunnova are not solar installation companies. They are solar finance companies that happen to install panels. Their core business is owning solar assets on residential rooftops and collecting payments — either through leases, PPAs, or loan products with large dealer fees built in. The actual installation work is frequently subcontracted to local crews.

This distinction matters because it shapes every decision they make. Their financial incentives are to maximize the number of systems they own (which means pushing leases and PPAs), maximize the asset value of those systems (which means using equipment that’s easy to service at scale, not necessarily the best equipment for your roof), and minimize customer acquisition cost (which means high-pressure sales tactics and fast closes).

None of those incentives align with yours as a NJ homeowner whose goal is to maximize financial return from solar over 25 years.

The Lease Problem in NJ Specifically

Sunrun’s primary product in NJ is a lease or PPA. They pitch it as “no money down, lower electric bill, no maintenance worries.” What they don’t pitch is this:

You give up all NJ SuSI SREC-II income. A 10kW system in NJ earns roughly 12 SREC-II certificates per year at $85 each — $1,020/year for 15 years. That’s approximately $15,300 in SuSI income that goes directly to Sunrun when you sign a lease. They own the system. They collect the certificates. You get a discounted electricity rate.

The annual escalator erodes that discount. Most Sunrun leases include an annual payment escalator of 1–3%. What starts as a meaningful discount on your PSE&G or JCP&L bill becomes a much smaller discount by year 10, and may actually exceed your current rate by year 15–20 depending on how utility rates move.

The home sale problem is real. I have personally seen home sales in Toms River, Hamilton, and Woodbridge complicated or derailed by Sunrun leases on the roof. When you sell your home, the buyer must either assume your lease (which their lender may not approve), or you must buy out the remaining lease balance (which can run $10,000–$25,000 depending on where you are in the contract term). A leased system that was supposed to make your home more attractive can become a liability.

The Subcontractor Problem

Sunrun and Sunnova do not employ most of the people who will actually install your solar panels. They use subcontracted installation crews, often sourced through third-party labor networks. The sales rep who closes your deal works for Sunrun. The project manager who handles permitting may work for Sunrun. The person on your roof drilling through your shingles may be a subcontractor who installs for multiple companies across multiple states.

This creates several problems. First, accountability. When something goes wrong post-installation — a roof leak at a penetration point, a panel that’s underperforming, an interconnection issue — you call Sunrun’s customer service number. They contact the regional office. The regional office contacts the subcontractor. The subcontractor may or may not still be in business, may or may not have the same crew, and has no particular incentive to prioritize your service call over a new installation job.

Second, quality. A subcontracted crew installing 5–8 systems per day under production pressure is not incentivized to spend the extra 20 minutes ensuring your roof penetrations are correctly sealed, your wire management is clean, or your system is perfectly optimized for your specific roof geometry. I do every install myself with my own crew. That’s a different standard of work.

Third, licensing. In NJ, solar installation requires an active Electrical Contractor (EEA) license from the NJ Division of Consumer Affairs. Ask Sunrun who will be installing your system, what their NJ license numbers are, and whether they are Sunrun employees or subcontractors. Get that in writing.

The SuSI Registration Problem

NJ’s SuSI program requires GATS registration to earn SREC-II certificates. With a lease, Sunrun handles registration because they own the system and collect the SRECs. But with Sunrun’s loan products, homeowners technically own the system — and GATS registration sometimes falls through the cracks in the handoff between Sunrun’s installation and administrative teams.

I have reviewed situations where Sunrun loan customers owned their systems but were never registered in GATS. Every month without registration is SREC-II income permanently lost. At $85/SREC-II, six months of missed registration on a 10kW system costs roughly $510 — gone forever. This isn’t universal with Sunrun, but it happens often enough that you should explicitly confirm registration status within 60 days of your system going live.

The Pricing Problem

Sunrun and Sunnova are among the most expensive installers in NJ on a price-per-watt basis. Their high overhead (national marketing, large sales teams, customer acquisition costs, subcontractor margins) results in installed prices that are frequently $0.50–$1.00 per watt above what a quality local installer charges for the same or better equipment.

On a 10kW system, that’s $5,000–$10,000 more for the same panels and the same microinverters installed by a subcontracted crew rather than by a licensed local installer who stands behind the work personally. When you combine that premium price with the loss of SuSI SREC-II income (if leasing), the total financial gap between a Sunrun deal and a quality local ownership deal can reach $20,000–$30,000 over the system life.

What I Recommend Instead

I’m not saying every local installer is better than Sunrun. There are bad local installers too — undertrained crews, thin warranties, no GATS registration, poor system design. The answer isn’t just “go local” — it’s “go with a licensed, experienced installer who does their own work, provides written warranties, and handles SuSI registration as part of the job.”

Here’s what to ask any installer, large or national:

1. Is this a lease, PPA, or ownership product? If lease/PPA, what are the annual escalator terms?
2. Who physically installs the system — are they employees or subcontractors? What are their NJ EEA license numbers?
3. What is the price per watt installed, all-in?
4. Do you handle SuSI GATS registration as part of the job?
5. What is the workmanship warranty on roof penetrations, and is it in writing?
6. Can you provide three NJ references from installations completed in the last 12 months?

If a national company can answer all six questions clearly and in writing, I have less objection. But in my experience, the companies that answer all six questions well are almost always local installers who do their own work — because those are the people who have to live with the answers long-term.

A Note on Sunnova

Sunnova entered bankruptcy proceedings in 2025. If you have an existing Sunnova lease or loan, your contract is likely being serviced by a bankruptcy trustee or acquired servicer. If you’re considering a new Sunnova installation, understand that you’re contracting with a company in financial distress, which creates additional risk around warranty fulfillment, SREC registration continuity, and service response. This situation may have evolved by the time you read this — verify current status before proceeding.

Frequently Asked Questions

Is Sunrun solar worth it in New Jersey?

For most NJ homeowners, no — primarily because Sunrun’s lease and PPA products transfer your SuSI SREC-II income to Sunrun, which costs you approximately $15,300 on a 10kW system over the 15-year program life. Combined with higher installed prices and annual payment escalators, most NJ homeowners come out significantly behind compared to owning a system through a quality local installer.

What’s the difference between a solar lease and a solar loan?

With a loan, you own the system, collect SuSI SREC-II income, and have no escalating payments. With a lease, the solar company owns the system, collects the SRECs, and your payments typically increase 1–3% per year. In NJ, where SuSI SREC-II income is $85/SREC-II, ownership is significantly more financially favorable.

Can I get out of a Sunrun lease if I want to sell my home?

You have two options: transfer the lease to the buyer (requires the buyer’s agreement and lender approval), or buy out the remaining lease obligation. Buyout costs depend on the system size, the original lease terms, and how far into the contract you are — typically $10,000–$25,000. This is why lease encumbrances can complicate NJ home sales.

What should I look for in a NJ solar installer instead?

An active NJ Electrical Contractor (EEA) license, a Home Improvement Contractor registration, a written workmanship warranty on roof penetrations, SuSI GATS registration included in the job, itemized pricing (not just a total), and references from recent NJ installations. If any of those can’t be provided clearly in writing, keep looking.

👉 Get Your Free Solar Savings Estimate

What to Do If You Already Have a Sunrun or Sunnova Lease

A lot of NJ homeowners who call me already have a lease on their home — usually one signed during the 2010–2017 era when Sunrun, Sunnova, SolarCity, and Vivint were blanketing the state with door-to-door sales. If that’s your situation, here’s what you need to know.

First, request a buyout price. Contact your leasing company and ask for the current purchase option price — the lump sum that transfers ownership to you. Compare that number to what owning the system actually gets you from this point forward: remaining SREC-II income if the system was registered in the SuSI program, ongoing electricity savings, and the equity value of an owned system on a home sale. If the buyout price is reasonable relative to the remaining program value, ownership often makes more sense than continuing to pay monthly lease payments for someone else’s equipment on your roof.

Second, if you’re selling your home, deal with the lease before you list. A solar lease is a liability transfer, not an asset. The buyer has to assume your lease agreement — monthly payments, escalator clauses, and all. NJ real estate agents who work in solar-dense markets will tell you that homes with owned solar sell faster and at higher premiums than homes with leased solar. Get ahead of this before it becomes a negotiation issue in a transaction.

Third, if you’re refinancing your mortgage, flag the solar lease to your lender immediately. FHA and VA loans have specific requirements around solar leases that can complicate or delay a refinance if not addressed upfront. Conventional lenders have their own policies. Bringing this up early gives you time to resolve it — waiting until closing is how you create a last-minute crisis.

Fourth, and this is the one most lease customers don’t check: find out whether your system is registered in New Jersey’s SREC program at all. Leasing companies own the SRECs generated by your system — that’s explicitly stated in most NJ lease agreements. But some systems were never registered, meaning neither the homeowner nor the leasing company is capturing that SREC income. It’s worth knowing what’s happening with the production credits from your system.

If your lease term ends in the next 3–5 years, start evaluating your end-of-lease options now. Most leases offer purchase, lease renewal, or system removal. The purchase price at end of term is typically lower than the mid-lease buyout price, but you’ll need to assess the system’s age and condition before deciding whether purchase makes sense.

The Long View: Why This Matters for NJ Specifically

New Jersey’s solar incentive structure strongly rewards ownership. The SuSI ADI program pays $85/SREC-II for a fixed 15 years — that money goes to the system owner, not the leaseholder. NJ’s full-retail net metering credits accrue to whoever owns the system. The property tax exemption applies to owned systems. Every NJ incentive is structured around ownership, which is why the lease model that made sense in states with fewer incentives has always been a worse deal in New Jersey than the companies selling it would tell you.

The calculus is simple: in NJ, owning your solar system is almost always the better financial decision. The people who ended up in leases mostly did so because ownership wasn’t presented to them correctly — the monthly payment structure and “no upfront cost” pitch was compelling in the moment. But now that most NJ homeowners can finance a solar purchase with a low-interest loan and come out ahead from day one in monthly cash flow, the lease math gets harder to justify.

📞 Call or text Jon: (609) 908-3700  |  💬 WhatsApp