New Jersey Solar Panels

The Successor Solar Incentive (SuSI) Program — specifically its Administratively Determined Incentive (ADI) track — is New Jersey’s flagship solar incentive. For every 1,000 kWh (1 MWh) of electricity your solar system produces, you earn one SREC-II certificate currently valued at approximately $85. These payments are guaranteed for 15 years from your system’s interconnection date, providing a long-term, predictable income stream on top of your utility bill savings.

For a typical 7.5 kW residential solar system in New Jersey, you can expect to generate roughly 9 SREC-IIs per year, earning about $765 annually — adding up to nearly $11,500 over the full 15-year program. Note that SREC-II values are subject to periodic review by the NJBPU and are expected to step down over time, so earlier enrollment locks in the current rate. The program is first-come, first-served, so registering promptly is important.

To participate, you must register your system through the SuSI Program portal before construction begins. After installation, submit a post-construction packet to receive a NJ Certification Number, then open a GATS account (PJM-EIS) to track generation and register with InClime (the SREC-II Administrator) to receive payments. Contact the NJ Clean Energy Program at 866-NJ-SMART or visit njcleanenergy.com for details.

Under New Jersey’s net metering policy, mandated by the NJ Board of Public Utilities (NJBPU), your utility must credit you at the full retail rate of electricity for every kilowatt-hour (kWh) your solar panels send back to the grid — up to 100% of your annual electricity consumption. This means the energy you export is worth exactly the same as the energy you buy, maximizing your solar savings and often reducing your electricity bill to near zero.

If your solar system produces more electricity than you consume over the course of a full year, any remaining excess is credited at the wholesale electricity rate rather than the retail rate. Net metering is available through New Jersey’s major investor-owned utilities, including PSE&G, Jersey Central Power & Light (JCP&L), Atlantic City Electric, and Orange & Rockland. The program is capped at 2.9% of each utility’s total annual kWh sales.

Net metering works automatically once your solar system is interconnected with your utility — no separate application is required beyond the standard interconnection process. Combined with the SuSI/SREC-II program, net metering makes New Jersey one of the most financially rewarding states in the country for residential solar owners.

New Jersey provides a 100% sales tax exemption on the purchase of solar energy equipment for both homeowners and businesses. The state’s standard sales tax rate is 6.625%, meaning on a typical $25,000 solar installation, you avoid paying approximately $1,656 in sales tax — a straightforward, upfront reduction in the cost of going solar.

Eligible equipment includes anything that generates heating, cooling, electrical, or mechanical power through the conversion of solar energy, covering solar panels, inverters, racking, and related components. This exemption applies at the point of sale, so you simply won’t be charged sales tax when your installer purchases or bills you for the equipment.

To claim the exemption, your installer or supplier should be provided with a fully completed New Jersey Form ST-4 (Exempt Use Certificate). This is typically handled by your solar installation company as part of the standard purchasing process. Contact the New Jersey Division of Taxation for additional guidance.

Under New Jersey law (N.J.S.A. 54:4-3.113a et seq.), the added value that a solar energy system contributes to your home is completely exempt from property tax assessment. Solar panels typically increase a home’s market value, but in New Jersey, that increase is not factored into your property tax bill — saving the average homeowner an estimated $1,000 or more per year in property taxes.

The exemption applies to residential and commercial properties and covers solar photovoltaic (PV) and solar thermal systems. It is a permanent exemption for as long as the qualifying renewable energy system remains on the property, providing ongoing annual savings throughout the life of your solar installation.

To take advantage of this exemption, you should apply for a solar panel system certification and notify your local property tax assessor after your system is installed. The process is straightforward and is often assisted by your solar installer. This exemption stacks with other New Jersey incentives like the SuSI/SREC-II program and net metering to make solar ownership even more financially attractive.

The New Jersey Community Solar Energy Program (CSEP) makes solar accessible to residents who cannot install panels on their own property — including renters, condo owners, and homeowners with shaded or structurally unsuitable roofs. Participants subscribe to a share of an off-site community solar farm and receive credits directly on their regular utility bill for the electricity that share generates, reducing their monthly energy costs without any rooftop installation.

Low- and moderate-income (LMI) customers receive guaranteed savings of 15% or more on their solar subscription compared to standard utility rates, making this one of the most impactful programs for income-qualifying New Jersey residents. The program is open to meter customers of New Jersey’s investor-owned utilities, including renters, businesses, schools, and homeowners. New registrations opened in April 2025.

To find a community solar project near you, use the NJBPU’s Community Solar Project Finder tool available on the NJ Board of Public Utilities website. Community solar subscriptions are typically no-cost to join and can be cancelled if you move. The CSEP is administered under the SuSI program framework and is overseen by the NJBPU.

The Garden State Energy Storage Program (GSESP), approved by the NJBPU on June 18, 2025, is New Jersey’s comprehensive battery storage incentive initiative targeting 2 gigawatts (GW) of energy storage statewide by 2030. Phase 2 — the Distributed Energy Storage segment — is expected to launch in 2026 and is specifically designed for smaller, residential and commercial behind-the-meter battery systems, making it the most relevant phase for homeowners.

Phase 2 incentives are anticipated to include both fixed upfront incentives (based on installed capacity) and performance-based payments (tied to how the battery responds to utility dispatch calls, with individual call durations not exceeding four hours). Incentive capacity will be allocated in annual blocks on a first-come, first-served basis, with priority determined by the date a completed application is received by the program administrator — so early preparation is key.

Eligible systems must meet key safety and interconnection standards, including UL 9540/9540A, NFPA 855, UL 1741 SB, and IEEE 1547. Full program details, incentive levels, and the application portal will be published on the NJ Clean Energy Program website at njcleanenergy.com/storage. Homeowners interested in battery storage should monitor this site closely for the official Phase 2 launch announcement in 2026.

While the residential solar Investment Tax Credit (Section 25D) has been eliminated, standalone battery storage systems installed in 2026 may still qualify for a 30% federal tax credit under the commercial clean energy provisions (Section 48/48E), depending on how the system is structured and owned. This credit applies to the full installed cost of the battery system — even when it is not paired with rooftop solar panels — making battery storage more affordable on its own.

For a typical residential battery system costing $10,000–$15,000, a 30% tax credit translates to $3,000–$4,500 in direct federal tax savings. The credit is claimed on your federal income tax return for the year the system is placed in service. Eligible batteries must have a capacity of at least 3 kilowatt-hours (kWh) to qualify.

Because the tax credit landscape for 2026 is evolving following recent federal legislation, it is strongly recommended that you consult a qualified tax professional to confirm your eligibility and the correct credit mechanism before installation. When combined with New Jersey’s upcoming GSESP Phase 2 incentives, battery storage in New Jersey is poised to become significantly more affordable in 2026.

The Competitive Solar Incentive (CSI) Program is the large-scale counterpart to the SuSI/ADI program, targeting grid-supply solar generation projects that sell electricity into wholesale markets, as well as large non-residential net-metered solar installations with a capacity greater than 5 MW (DC). It also supports grid-supply solar projects paired with energy storage, making it relevant for commercial and utility-scale developers in New Jersey.

Unlike the ADI program’s administratively set prices, the CSI Program uses a competitive bidding process where project developers submit bids for incentive payments. The annual solicitation target is 300 MW of new solar generation and 160 MWh of energy storage paired with solar. Awards are made to the most cost-competitive projects, encouraging market efficiency while still driving significant renewable energy development in the state.

This program is primarily designed for commercial, industrial, and utility-scale solar developers rather than residential homeowners. Residential customers and small businesses are better served by the ADI/SREC-II track of the SuSI Program. For full solicitation details, eligibility requirements, and application timelines, visit the NJ Clean Energy Program’s SuSI Program page.

The NJ Clean Energy Loans (NJ CELs) program is an $80 million co-lending initiative administered by the New Jersey Economic Development Authority (NJEDA), funded through the U.S. Treasury’s State Small Business Credit Initiative (SSBCI). It is designed to help small businesses access affordable financing for clean energy projects, including solar power installations and electric battery storage systems.

The NJEDA will co-lend between $250,000 and $10 million for projects with a total loan request of $500,000 to $20 million, making it suitable for small and mid-sized commercial solar and storage deployments. Eligible technologies include solar power, battery storage, fuel-cell-based storage, and a range of other clean energy technologies. The program is not designed for individual residential homeowners but is an excellent resource for small business owners looking to finance commercial solar or storage projects.

To apply or learn more about eligibility requirements, interest rates, and the co-lending structure, visit the NJEDA’s official NJ CELs program page at njeda.gov. This program can be combined with other state and federal incentives to significantly reduce the net cost of a commercial clean energy project in New Jersey.