Newark, NJ

New Jersey’s Property Tax Exemption program offers significant financial benefits to homeowners who install renewable energy systems. When you add solar panels or other qualifying renewable energy equipment to your property, the added value of that system is exempt from property taxes. This means if your home’s assessed value increases due to your solar installation, you won’t pay additional property taxes on that increased value.

To qualify, your system must be certified by your local enforcing agency as a renewable energy system that provides electricity, heating, cooling, or other energy needs for your building. Eligible technologies include solar (both photovoltaic and thermal), wind energy, fuel cells, geothermal, and certain biomass systems. The exemption becomes effective for the tax year following certification and continues as long as the system remains in use for its intended purpose. To apply, you’ll need to submit a written application to your local enforcing agency, who will inspect your system and provide certification if it meets the requirements. There is no expiration date for this incentive, making it a long-term benefit for New Jersey homeowners investing in clean energy.

New Jersey’s Solar Sales Tax Exemption provides a 100% exemption from the state’s 6.625% sales tax on all solar energy equipment purchases. This means when you buy solar panels, inverters, mounting hardware, and other components for your home solar system, you won’t pay any sales tax—potentially saving you thousands of dollars on your installation.

This incentive is available to all New Jersey homeowners and businesses purchasing solar energy equipment. There’s no application process—the exemption is applied at the point of sale when you purchase qualifying equipment from a registered seller. Simply inform your solar installer or equipment provider that you’re purchasing solar energy equipment that qualifies for the state sales tax exemption. This incentive has no expiration date and can be combined with other solar incentives like the federal tax credit and NJ SREC-II program to maximize your savings.

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 with a new structure that provides financial incentives for solar installations across the state. The program aims to add 3,750 megawatts of new solar generation by 2026, effectively doubling New Jersey’s solar capacity.

For homeowners, the program offers $90 per SREC-II (New Jersey Solar Renewable Energy Certificate-II) generated by residential solar systems. Each SREC-II represents one megawatt-hour (MWh) of solar electricity produced, and these incentives are guaranteed for 15 years. This provides significant long-term value while being more cost-effective than the previous program’s approximately $220 per certificate. Public entities receive an additional $20/MWh bonus, and the program includes temporary incentives for projects built on contaminated lands. The program is administered by the New Jersey Board of Public Utilities (NJBPU) as part of the state’s commitment to achieving 100% clean energy by 2050.

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. At your annual anniversary date (typically the date your system received permission to operate), any remaining unused credits are paid out at the avoided cost rate of approximately 3-5 cents per kilowatt-hour, and your credit balance resets to zero. Importantly, you can change your anniversary month once by contacting your utility, which may help maximize your financial benefits depending on your production and usage patterns.