State solar guide
New Jersey has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 | NREL PVWatts (verify at your assessment) | EnergySage mid-2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
New Jersey mandates full retail 1:1 net metering for residential solar systems up to 5 MW under state law, with all four investor-owned electric utilities required to participate: PSE&G, JCP&L, Atlantic City Electric, and Orange and Rockland. Each kilowatt-hour exported to the grid earns a credit at the full retail rate, applied against future utility bills. Excess generation beyond annual consumption settles at the avoided-cost rate rather than retail. Net metering credits are additive to the SuSI/ADI production payment, which applies to total generation independently. As of 2026-06, verify current policy at dsireusa.org or with your utility.
PSE&G (Public Service Electric and Gas), JCP&L (Jersey Central Power and Light), Atlantic City Electric, and Orange and Rockland are the four investor-owned electric utilities required to offer net metering under New Jersey law. Excess annual credits pay out at the avoided-cost rate rather than retail.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific New Jersey utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for New Jersey homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| Successor Solar Incentive (SuSI) / Administratively Determined Incentive (ADI) Production incentive (15-year fixed payment) The EY2025-26 rate of $85.90 per MWh applies to systems registered in this eligibility year. Future year rates are set annually by the BPU. Register within 6 months of installation to lock in the current rate. | $85.90 per MWh for 15 years (EY2025-26 rate; verify current rate at registration) Fixed payment of $85.90 per MWh (EY2025-26 rate) for all solar generation from residential net-metered systems, paid quarterly for 15 years. An 8 kW system producing 9,600 kWh per year earns approximately $824 per year ($12,360 total over 15 years). Registration required through the New Jersey BPU Clean Energy Portal within 6 months of installation. This is the primary production incentive for New Jersey solar, replacing the legacy SREC-I market for new installs. | New Jersey residential net-metered systems installed after the legacy SREC-I program cutoff. System must be registered with BPU within 6 months of installation. System must be net-metered (not participating in the REG/buy-all tariff track). | Active | DSIRE (opens in new tab) |
| New Jersey Property Tax Exemption (Renewable Energy System) Property tax exemption Confirm with your county assessor that the exemption has been applied correctly after installation. | Full assessed value increase excluded (no dollar cap) Full statewide exemption: the added market value from a residential solar installation is excluded from property tax assessments. No local municipality opt-out provision. Applies uniformly across all New Jersey municipalities. Prevents solar installation from increasing annual property tax bill. | New Jersey residential property with a qualifying solar energy system. No application required beyond standard interconnection and permitting. | Active | DSIRE (opens in new tab) |
| New Jersey Sales Tax Exemption on Solar Equipment Sales tax exemption Confirm exemption certificate is applied by your installer at the time of purchase. | Full exemption from 6.625% state sales tax Full exemption from New Jersey's 6.625% state sales tax on residential solar energy equipment and installation labor. Saves approximately $1,400 to $1,800 on a typical 8 kW system. | Residential solar energy equipment purchased and installed in New Jersey. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in New Jersey
No dedicated statewide battery storage rebate program equivalent to Connecticut Green Bank or Massachusetts ConnectedSolutions as of mid-2026. Battery storage may qualify for commercial ITC (Section 48E) if co-located with solar in a third-party-owned configuration.
Savings example
This example uses real New Jersey market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at 9,600 kWh based on 4.0 peak sun hours in New Jersey. Full retail 1:1 net metering at 23.12 cents per kWh for self-consumption and exports. SuSI/ADI income of approximately $824 per year adds to net metering savings. Rate escalation at 3% annually. System price at $2.77 per watt market average. Federal residential credit: $0 (expired). Annual savings combine net metering value and SuSI/ADI income. Figures are illustrative.
New Jersey homeowner savings example, PSE&G territory (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
New Jersey solar permitting is managed at the municipal level with no statewide permit fee cap as of 2026. Permit timelines vary by municipality: northern New Jersey communities average 3 to 6 weeks; southern New Jersey and rural areas average 2 to 4 weeks. The New Jersey Board of Public Utilities (BPU) oversees interconnection, which adds 4 to 8 weeks with investor-owned utilities after permit issuance. SolarAPP+ automated permit approval is not widely adopted in New Jersey, most municipalities use standard plan review. Contract to energization typically runs 10 to 18 weeks statewide. The BPU Clean Energy Portal is used for SuSI/ADI registration, which must be completed promptly after installation.
Homeowners using SuSI/ADI must register within 6 months of system installation to lock in the $85.90 per MWh rate for their 15-year term. Delayed registration can result in lower incentive rates if the program rate resets.
Commercial solar in New Jersey
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many New Jersey business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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