New Jersey
New Jersey Solar Incentives 2026 — ADI SREC-IIs, Net Metering & Sales Tax Exemption
New Jersey's Administratively Determined Incentive pays net-metered residential solar a fixed $90 per SREC-II (one per MWh) for 15 years. Full-retail net metering up to annual use and a sales tax exemption on solar equipment add to the value.
3
Incentive categories
4
Program entries
24.95¢
Avg rate / kWh
12.1 yrs
Simple solar payback
$52,033
25-yr net solar savings
Good
Solar potential
Solar Incentives in New Jersey
Administratively Determined Incentive (ADI) SREC-IIs
$90 per SREC-II for 15 yrs
Net-metered residential systems earn one SREC-II per MWh generated under the Successor Solar Incentive program, at a fixed $90 for 15 years (about $0.09/kWh).
Eligibility: Net-metered residential solar in New Jersey registered in the ADI program.
Solar Sales Tax Exemption
100% (6.625% NJ tax)
All solar energy equipment is fully exempt from NJ sales tax.
Eligibility: All NJ residents.
EV Incentives in New Jersey
Charge Up New Jersey
$1,500 (up to $4,000 income-qualified)
FY27 point-of-sale incentive of $1,500 for eligible vehicles with MSRP up to $55,000; income-qualified applicants can receive an additional $2,500 through Charge Up+. Funding is limited.
Eligibility: New Jersey residents buying or leasing an eligible EV from a participating dealer.
Heat Pump Incentives in New Jersey
Federal HEAR Framework (State Availability Varies)
Statutory household cap up to $14,000
Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.
Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $52,033
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
Solar Policy & Local Utilities in New Jersey
Net Metering
Full retail net meteringNew Jersey requires full retail-rate net metering. Homeowners also earn ongoing income through the Successor Solar Incentive (SuSI) program, which pays per megawatt-hour of generation.
Source: New Jersey Board of Public Utilities (BPU)
Major Utilities
- PSE&G
- Jersey Central Power & Light (JCP&L)
- Atlantic City Electric
New Jersey Solar Facts
- New Jersey ranks among the top states for installed solar despite modest sun, driven by strong state incentives. (SEIA)
- The SuSI / SREC-II program pays New Jersey solar owners a fixed value per megawatt-hour generated. (NJ BPU)
Last verified: 2026-06. Always confirm current terms with your utility or at DSIRE.
Is Solar Worth It in New Jersey?
New Jersey offers a compelling solar investment. The Administratively Determined Incentive (ADI) pays a fixed $90 per SREC-II (one per MWh) for 15 years for net-metered residential systems, and full-retail net metering plus a sales tax exemption add to an 12.1-year modeled payback that does not yet count SREC-II income.
Nationally, EnergySage reports the average U.S. homeowner saves about $60,500 over 25 years by going solar, without the expired federal credit (page updated June 2026). Actual savings vary by state, electricity rate, export rules, and system size.
Key Advantage
The ADI's fixed SREC-II value gives residential owners predictable solar income for 15 years instead of a fluctuating market price.
Watch Out For
No New Jersey-specific installed-price median is available in LBNL's public data, so this guide uses LBNL's 2024 national median of about $3.98/W; local quotes may differ. Some utilities are moving away from full net metering retail rates.
Solar Cost & Savings in New Jersey (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $31,840 |
| Net install cost | $31,840 |
| Annual energy savings | $2,623 |
| Simple payback period | 12.1 years |
| 25-year net savings | $52,033 |
The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Planning example for an 8 kW system: $3.98/W installed (LBNL 2024 national median; no state-specific sample), 4.5 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 24.95¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $52,033
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
How to Go Solar in New Jersey: Step-by-Step
- 1
Register for the ADI program
Your installer typically submits the ADI registration. Confirm in your contract who handles registration and who receives the SREC-II payments.
- 2
Confirm NJ BPU program rules
The NJ Board of Public Utilities administers the ADI program. Check the current registration requirements on the NJ Clean Energy Program website before you sign.
Frequently Asked Questions — Solar & Clean Energy in New Jersey
Is solar worth it in New Jersey in 2026?
Yes. New Jersey's ADI pays $90 per SREC-II (about $0.09/kWh) for 15 years, roughly $950 a year for an 8 kW system producing about 10,500 kWh. Combined with no sales tax and 24.95¢/kWh electricity rates, our planning model shows about 12.1 years to payback and $52,033 in 25-year net savings before SREC-II income is counted. Note: The federal 25D ITC expired Dec 31, 2025.
How does New Jersey's ADI solar incentive work?
Under the Board of Public Utilities' Successor Solar Incentive program, net-metered residential systems register for the Administratively Determined Incentive (ADI) and earn one SREC-II per 1,000 kWh generated, valued at a fixed $90 for 15 years. An 8 kW system producing about 10,500 kWh a year would earn about $950 a year.
Does New Jersey have net metering in 2026?
New Jersey net metering status: Full retail net metering. New Jersey requires full retail-rate net metering. Homeowners also earn ongoing income through the Successor Solar Incentive (SuSI) program, which pays per megawatt-hour of generation. (Source: New Jersey Board of Public Utilities (BPU).)
Which utilities in New Jersey offer solar programs?
The main electric utilities in New Jersey are PSE&G, Jersey Central Power & Light (JCP&L), Atlantic City Electric. Confirm current offers with your utility and check DSIRE.org for New Jersey programs.
Recommended Products for New Jersey
Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.
Calculate Your New Jersey Savings
The Solar ROI link preselects New Jersey's planning inputs, including the listed electricity rate (24.95¢/kWh). Other tools open with their own defaults; review every input before calculating.
Browse Other States
Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (June 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installed price: LBNL Tracking the Sun (Residential systems installed in 2024), a median rather than a quote. The 2.5% annual rate change is a model assumption, not a forecast. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.