Elizabeth, NJ

New Jersey’s Property Tax Exemption provides significant financial benefits for homeowners who install renewable energy systems. This state tax incentive allows you to exempt the added value of your solar panels or other renewable energy equipment from your property taxes. In simple terms, when you install solar panels that increase your home’s value, you won’t pay extra property taxes on that increased value.

The exemption applies to 100% of the assessed value that your renewable energy system adds to your property. For example, if your home is valued at $300,000 without solar panels and $320,000 with them, you’ll only pay property taxes on the original $300,000 value. To qualify, you must submit a written application to your local enforcing agency, who will certify that your system is designed primarily as a renewable energy system. The exemption becomes effective for the tax year following certification and continues as long as the system is primarily used for renewable energy. There’s no expiration date for this incentive, but your certification can be revoked if the system is no longer used primarily for renewable energy purposes.

New Jersey’s Solar Sales Tax Exemption provides a 100% exemption from the state’s 6.625% sales tax when purchasing solar energy equipment. This means homeowners pay no sales tax on solar panels, inverters, mounting hardware, and other components needed for a residential solar installation, potentially saving thousands of dollars on your solar investment.

This incentive is available to all New Jersey homeowners and businesses purchasing solar energy systems. There’s no application process – simply work with a qualified solar installer who will handle the exemption paperwork at the time of purchase. The exemption has no expiration date and applies to both new installations and replacement equipment. When combined with other incentives like the federal solar tax credit and NJ’s SREC program, this sales tax exemption makes going solar in New Jersey significantly more affordable.

The Successor Solar Incentive (SuSI) Program is a New Jersey state initiative designed to expand solar energy capacity while keeping costs reasonable for ratepayers. Launched on August 28, 2021, this program replaced the previous Solar Renewable Energy Certificate (SREC) system and aims to add 3,750 megawatts of new solar generation by 2026, effectively doubling the state’s solar capacity.

The SuSI Program consists of two parts: the Administratively Determined Incentive (ADI) for smaller projects and the Competitive Solar Incentive (CSI) for larger installations. For residential homeowners, the program provides $90 per SREC-II generated (each representing one megawatt-hour of solar electricity). These incentives are guaranteed for 15 years, offering homeowners long-term financial benefits while supporting New Jersey’s goal of 100% clean energy by 2050.

Eligibility for residential homeowners is straightforward – all residential solar installations qualify for the ADI portion of the program. There are no size restrictions for residential systems, though the program generally targets systems of 5 MW or less. Public entities like schools and municipalities receive an additional $20/MWh benefit, and there’s a temporary additional incentive for projects built on contaminated lands.

The SuSI Program represents significant savings compared to the previous SREC program, which paid approximately $220 per certificate. While the new incentive is lower at $70-$120 per SREC-II (depending on project type), it still provides substantial financial support for homeowners considering solar installation while balancing cost effectiveness for all utility customers.

Net Metering in New Jersey is a valuable program that allows solar homeowners to receive full credit for the excess electricity their systems generate. Under this 1:1 net metering arrangement, when your solar panels produce more electricity than you’re using, that excess power flows back to the grid, and you receive credits on your utility bill at the same retail rate you would normally pay for electricity. This essentially allows your electric meter to run backward when you’re producing more than you’re consuming.

All major New Jersey utilities participate in this program, including PSE&G, Atlantic City Electric, Jersey Central Power & Light, and Orange & Rockland (Rockland Electric). Excess credits accumulate month to month, giving you the benefit of summer production to offset winter usage when solar generation typically decreases. At your annual anniversary date (initially set to your Permission to Operate date), any remaining unused credits are paid out at the avoided cost rate (approximately 3-5 cents per kilowatt-hour), and your credit balance resets to zero. You can change this anniversary date once by contacting your utility directly.