New Jersey Solar Panels

The Successor Solar Incentive (SuSI) Program — also called the Administratively Determined Incentive (ADI) — is New Jersey’s flagship solar incentive. For every 1,000 kWh (one megawatt-hour) your solar system generates, you earn one SREC-II, which the state purchases at a fixed rate of $85.00/MWh for the 2025–26 energy year. That rate is locked in for 15 years from the date your system is registered with the NJ Clean Energy Program, giving you a predictable, long-term income stream on top of your utility bill savings.

A typical 8 kW residential system in New Jersey produces roughly 9–10 MWh per year, earning approximately $765–$850 annually in SREC-II payments — or nearly $11,500–$12,750 over the full 15-year term. Eligibility covers all residential net-metered solar systems up to 5 MW that are interconnected to the grid. Registration is free and is typically handled by your solar installer after interconnection; however, it is critical that you confirm registration is completed, as certificates cannot be backdated and unregistered production is lost permanently.

The program is administered by the NJ Board of Public Utilities (NJBPU) through the NJ Clean Energy Program, with InClime serving as the SREC-II program administrator. Always verify the current per-MWh rate at the official NJ Clean Energy Program website before signing a contract, as rates are reviewed annually.

New Jersey offers some of the strongest net metering protections in the country. When your solar panels produce more electricity than your home uses at any given moment, the excess is sent to the grid and your utility credits your account at the full retail rate — the same rate you pay for electricity. In 2026, that means credits of approximately $0.26/kWh (PSE&G), $0.24/kWh (JCP&L), or $0.23/kWh (Atlantic City Electric / RECO), depending on your utility. These credits roll over month to month throughout the year.

At your annual true-up, any remaining excess credits (generation above 100% of your annual usage) are paid out at the lower wholesale rate (approximately $0.03–$0.05/kWh). For most homeowners who size their system to cover their annual usage, this rarely applies. Net metering is available to all residential solar customers on PSE&G, Jersey Central Power & Light (JCP&L), Atlantic City Electric, and Rockland Electric (RECO) systems up to 5 MW in capacity.

Net metering is mandated by state law and is separate from — and stackable with — the SREC-II production payments you earn through the SuSI program. Together, these two programs form the financial backbone of residential solar in New Jersey. Contact your specific utility for details on interconnection requirements and net metering enrollment in your service territory.

New Jersey exempts solar energy systems — including panels, inverters, racking, wiring, installation labor, and battery storage installed as part of a solar system — from the state’s 6.625% sales and use tax. On a typical residential solar installation costing $20,000–$33,000, this exemption saves homeowners approximately $1,300–$2,200 upfront, with no action required on your part.

The exemption is automatic and applied at the point of sale by your solar installer. You do not need to file any paperwork, submit an application, or claim anything on your state tax return. Simply confirm with your installer before signing a contract that they are applying the sales tax exemption — a reputable NJ installer will do this as a matter of course.

This exemption applies statewide to all residential solar purchases and is one of the simplest and most immediate financial benefits available to NJ solar buyers. It is fully stackable with the SREC-II program, net metering credits, and the property tax exemption.

Installing solar panels typically increases a home’s market value by $15,000–$25,000. In most states, that increase would raise your annual property tax bill. In New Jersey, it does not. Under N.J.S.A. 54:4-3.113a (P.L. 2008, c.90), the added assessed value attributable to a solar energy system is permanently excluded from your property tax calculation for as long as the system remains on the property. There is no expiration date and no 10-year cap.

Given that New Jersey has the highest average property taxes in the nation (approximately $9,500/year), this exemption is especially valuable. If solar adds $20,000 to your home’s assessed value, the exemption saves you an estimated $440–$690 per year depending on your county’s effective tax rate — that’s $6,600–$10,350 in savings over 15 years.

Unlike the sales tax exemption, the property tax exemption is not automatic. After your system is installed and operational, you must notify your local municipal tax assessor’s office and provide documentation including your final installation invoice, building permit, and inspection certificate. The assessor will then ensure the solar system’s added value is excluded from your property assessment going forward. Contact your town’s tax assessor office promptly after installation to secure this benefit.

The Community Solar Energy Program (CSEP), established under P.L. 2018, c.17 and made permanent in August 2023, allows New Jersey residents who cannot install rooftop solar — including renters, condo owners, and homeowners with shaded or structurally unsuitable roofs — to benefit from solar energy by subscribing to a share of a community solar facility. Subscribers receive bill credits from their utility based on the electricity their subscribed share produces, with a guaranteed minimum discount of at least 20% on their subscribed share. Low- and Moderate-Income (LMI) subscribers receive a minimum 25% discount.

The NJBPU approved a historic 3,000 MW expansion of the CSEP on March 5, 2026 — the largest community solar expansion in state history — with project registrations open through December 31, 2029. Community solar projects receive an incentive rate of $60/MWh (for registrations received on or after March 6, 2026). At least 51% of all CSEP capacity is reserved for LMI households, prioritizing access for lower-income New Jerseyans. The CSEP online registration portal opened to new project registrations on March 6, 2026.

CSEP is available to customers of all four NJ investor-owned utilities: PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric (RECO). Typical subscriber savings range from 10–40% on the electricity portion of your utility bill. There is no equipment to install and no upfront cost to subscribe. Visit the official NJ Clean Energy Program portal to find available community solar projects in your utility territory.

The Competitive Solar Incentive (CSI) Program is New Jersey’s market-based complement to the residential SuSI/ADI program. Rather than a fixed administratively set rate, the CSI Program uses competitive solicitations (reverse auctions) to award Solar Renewable Energy Certificates (SREC-IIs) to eligible large-scale solar projects, ensuring the state secures new solar generation at the most cost-effective incentive levels. Eligible project types include grid-supply solar, solar-plus-storage systems, and large non-residential net-metered projects.

The program has completed three solicitation rounds to date, with the most recent awarding incentives to three projects totaling 24.1 MW of new solar generation. The fourth CSI solicitation launched in early 2026, with pre-qualification beginning March 11, 2026, and bids due by April 24, 2026. The fourth round introduced a new tranche specifically for projects of 20 MW and above, reflecting the program’s evolution toward utility-scale solar development.

The CSI Program is primarily relevant to commercial, industrial, and large-scale solar developers rather than individual residential homeowners. Residential homeowners with systems under 5 MW are served by the SuSI/ADI program instead. For the latest solicitation details, eligibility requirements, and bid documents, visit the official NJ Clean Energy Program website or the NJBPU portal.

The Garden State Energy Storage Program (GSESP), approved by the NJBPU on June 18, 2025, is New Jersey’s primary vehicle for meeting its goal of 2,000 MW of energy storage by 2030 under the Clean Energy Act of 2018. Phase 2 of the program — covering residential behind-the-meter battery storage for homeowners — is expected to launch later in 2026 and will be New Jersey’s first dedicated residential battery incentive program. (Phase 1, focused on large transmission-scale storage, awarded incentives for 355 MW of projects in March 2026.)

Phase 2 is anticipated to include two types of incentives: a Distributed Fixed Incentive (an upfront cash rebate to offset the purchase and installation cost of your home battery) and a Distributed Performance Incentive (ongoing annual payments from your utility based on how much power your battery contributes to the grid during peak demand events). Early proposed rules suggest upfront rebates in the range of $1,250–$1,625, though official Phase 2 program rules and final incentive amounts have not yet been published by the NJBPU as of mid-2026. Funding will be released in annual capacity blocks on a first-come, first-served basis by application date.

Important: Do not purchase a battery based solely on installer claims about rebate amounts. Verify all incentive figures against the official NJBPU order and program rules at the NJ Clean Energy Program website before making a decision. Adding a battery to a solar system does not affect your SREC-II eligibility — you continue to earn $85.00/MWh for 15 years on all solar generation regardless of whether a battery is paired with the system.