New Jersey Solar Incentives 2026 — Transition Renewable Energy Certificates (TRECs)
New Jersey's Transition Renewable Energy Certificate (TREC) program pays solar owners per kWh generated. Combined with no sales or property tax on solar, NJ offers a strong clean energy ecosystem, especially for battery storage.
$18,000+
Max potential savings
4
Total incentives
20.1¢
Avg rate / kWh
7.5 yrs
Solar payback
$34,000
25-yr solar savings
2.4%
EV fleet share
Good ☀️☀️
Solar potential
Solar Incentives in New Jersey
Transition Renewable Energy Certificates (TRECs)
$0.09/kWh for 15 yrs
Quarterly payment per kWh of solar electricity generated for 15 years through NJ's TREC program.
Eligibility: NJ residents with residential solar under 10 kW.
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
NJ EV Incentive (Charge Up NJ)
Up to $4,000
Point-of-sale rebate for new BEVs with MSRP ≤ $55,000. Stackable with federal EV credit.
Eligibility: NJ residents purchasing new EVs. Income limits apply for enhanced rebate.
Heat Pump Incentives in New Jersey
HEAR Rebate (High Efficiency Electric Home Rebate)
Up to $14,000
Point-of-sale rebate up to $8,000 for heat pumps, $1,750 for HPWHs, $4,000 for panel upgrades. Income-based.
Eligibility: Households < 150% of Area Median Income. Program administered by state energy offices.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $34,000
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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 TREC program guarantees $0.09/kWh revenue for 15 years, full sales tax exemption, and strong net metering create a multi-layered incentive stack with payback around 7–9 years.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
The TREC (Transition Renewable Energy Certificate) program provides guaranteed solar revenue for 15 years — longer than any other state program — reducing investment risk significantly.
Watch Out For
High cost of living also means higher installer labor rates ($2.90/W average vs. $2.65 in Texas). 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 | $23,200 |
| Net install cost | $23,200 |
| Annual energy savings | $2,113 |
| Simple payback period | 7.5 years |
| 25-year net savings | $34,000 |
The federal residential solar tax credit (Section 25D) expired Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Estimates based on 2.9/W avg install cost, 4.5 peak sun hrs/day, and 20.1¢/kWh rate with 2.5%/yr escalation. Individual results vary.
Get Free Solar Quotes for Your Home
Compare bids from pre-screened local installers through EnergySage — the nation's largest online solar marketplace.
Your estimated 25-year savings: $34,000
We may earn a referral commission through EnergySage, at no cost to you.
How to Go Solar in New Jersey: Step-by-Step
- 1
Register for TRECs through PJM-EIS
Your installer typically handles TREC registration. Ensure they register your system in the PJM Generation Attribute Tracking System (GATS) within 90 days of installation.
- 2
Confirm NJ BPU approval
The NJ Board of Public Utilities administers TREC. Approved installers must complete the online application — verify your installer is on the approved list.
Frequently Asked Questions — Solar & Clean Energy in New Jersey
Is solar worth it in New Jersey in 2026?
Yes. The TREC program pays NJ solar owners $0.09/kWh for 15 years, adding $1,200–1,800/year in revenue. Combined with no sales tax and 20.1¢/kWh electricity rates, payback is typically 7–9 years with $30,000–40,000 in lifetime savings. Note: The federal 25D ITC expired Dec 31, 2025.
How does the NJ TREC program work?
TRECs (Transition Renewable Energy Certificates) are earned at one TREC per 1,000 kWh generated. NJ utilities purchase TRECs at a fixed $90/TREC ($0.09/kWh) for 15 years. An 8 kW system generates roughly 10,000–12,000 kWh/year, earning $900–1,080/year in additional income.
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
Charge Up NJ $4,000 EV rebate · Garden State Storage Prog Phase 2 coming
Calculate Your New Jersey Savings
Use our free calculators with New Jersey's electricity rate (20.1¢/kWh) and gas prices ($1.88/therm) automatically applied.
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Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE, IRS, and state energy offices. Electricity rates: EIA Electric Power Monthly (Feb 2026). Solar production: NREL PVWatts v8. Install costs: EnergySage National Market Report Q4 2025. Rate escalation: 2.5%/yr (20-yr EIA avg). Last updated February 2026. Always verify current amounts with the administering agency.