New Jersey
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.
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Incentive categories
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Program entries
20.1¢
Avg rate / kWh
11.0 yrs
Simple solar payback
$44,369
25-yr net solar savings
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
State point-of-sale incentive for eligible vehicles; federal consumer EV purchase credits ended September 30, 2025 and are not included for 2026 purchases.
Eligibility: New Jersey residents; verify current funding, vehicle price limits, eligible models, and income rules with Charge Up New Jersey.
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: $44,369
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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 on top of an 11.0-year modeled payback.
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 | 11.0 years |
| 25-year net savings | $44,369 |
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: $2.9/W installed, 4.5 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 20.1¢/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: $44,369
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 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, our planning model shows about 11.0 years to payback and $44,369 in 25-year net savings before TREC revenue is counted. 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
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 (20.1¢/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 (February 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installation cost and 2.5% annual rate change are editable-model assumptions, not quotes or forecasts. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.