New Jersey’s Balcony Solar Bill: A Game-Changer for Renters Seeking Lower Energy Costs

New Jersey is poised to become the tenth state in the U.S. to legalize plug-in balcony solar systems, and the first to include explicit protections for renters against landlord and homeowners’ association blocks. The legislation, which passed the state legislature this week, is seen as a major step toward making solar energy accessible to the nearly 35% of Americans who rent.

The bill, sponsored by Democratic state Sen. John McKeon, prohibits landlords and HOAs from preventing tenants from installing small, plug-in solar panels on balconies or other outdoor spaces. These systems, which can generate up to 1.2 kilowatts, are small enough to plug into a standard outlet and offset a portion of a household’s electricity consumption—potentially shaving tens of dollars off monthly bills for an upfront cost of less than $300.

“This is for people who live in apartments, who don’t own their roofs,” said Hannah Birnbaum, co-founder of the energy affordability nonprofit Permit Power. The New Jersey bill follows similar measures passed in Colorado and Virginia, but goes further by explicitly protecting renters.

The Garden State faces acute energy affordability challenges, having experienced the largest electricity rate increase of any state from 2024 to 2025—a 17% jump, according to a report from the U.S. Senate Joint Economic Committee. The bill now heads to Democratic Gov. Mikie Sherrill, whose office says she is reviewing it closely as it aligns with her focus on lowering electricity costs.

The plug-in solar movement has its roots in Germany, where more than 1.2 million balcony solar systems have been installed. That trend inspired Utah state Sen. Ray Ward, a Republican, to push for similar legislation in his state last year. Ward’s bill passed unanimously and was signed by Republican Gov. Spencer Cox, signaling bipartisan support for the technology.

“What’s political about cheap? Nothing,” said Cora Stryker, co-founder of Bright Saver, a nonprofit aiming to sell balcony solar panels for under $300. “We think it’s the beginning of a tipping point for consumers everywhere.”

Despite the momentum, a key hurdle remains: The UL product certification for complete plug-in solar panel systems is still pending. UL Solutions spokesperson Tyler Khan said the company is “actively testing” the panels, but the timeline for certification remains uncertain. Utilities have raised safety concerns, including the risk of electrical fires and potential harm to linemen from backfeeding power. However, a Lawrence Berkeley National Laboratory research paper notes that Germany has reported no safety incidents with balcony solar systems.

Ray Ward, who has installed two plug-in panels at his own home, is optimistic about the future. “I think this will change the way that people look at solar,” he said. “I hope it will be like in Germany—it’s not a political issue there. People buy one because they saw the guy in the apartment down the hall had one.”