Paterson, NJ

New Jersey’s Property Tax Exemption offers homeowners a valuable financial benefit when installing renewable energy systems. This state tax exemption allows you to avoid paying additional property taxes on the value that solar panels, wind turbines, fuel cells, or other renewable energy systems add to your home. When you install qualifying equipment, your property tax assessment will remain at the pre-installation value, essentially making the renewable energy system tax-free.

To qualify, you must have your system certified by your local enforcing agency, which will verify that it’s designed primarily as a renewable energy system according to state regulations. You’ll need to submit a written application under oath using a form prescribed by the tax director. The exemption becomes effective for the tax year following certification and continues as long as the system is primarily used for renewable energy purposes. There’s no expiration date for this incentive, but be aware that your certification can be revoked if the system is no longer used primarily for renewable energy, if the application contained misrepresentations, or if the system has been significantly altered from its certified design.

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, batteries, and other components for your residential solar system, you won’t pay any sales tax—potentially saving 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 automatically at the point of sale when working with a qualified solar installer. The exemption has no expiration date and is part of New Jersey’s ongoing commitment to renewable energy. When combined with the federal solar tax credit and other state incentives, 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 adoption 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 double the state’s solar capacity by adding 3,750 megawatts of new solar generation by 2026.

The program has two main components: the Administratively Determined Incentive (ADI) for smaller projects and the Competitive Solar Incentive (CSI) for larger installations. Under the ADI, residential solar systems receive $90 for each megawatt-hour (MWh) of electricity produced, guaranteed for 15 years. This represents significant savings compared to the previous SREC value of approximately $220, while still providing meaningful financial support for homeowners investing in solar energy.

Homeowners with any size residential solar installation are eligible for the ADI program. The incentive is delivered through New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II) credits, with one certificate earned for each MWh of solar electricity produced. There are no income restrictions for residential participants, making this program accessible to most New Jersey homeowners.

The program began in August 2021 and is designed to support the state’s goal of 100% clean energy by 2050. There is no specified end date, though the total program capacity is capped at 3,750 MW. Homeowners interested in participating should consult with a qualified solar installer to understand how the incentives apply to their specific situation and to ensure their system qualifies for the program benefits.

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, offsetting the cost of power you draw from the grid when your system isn’t producing enough.

All major New Jersey utilities participate in this program, including PSE&G, Atlantic City Electric, Jersey Central Power & Light, and Orange & Rockland (Rockland Electric). Any excess credits you earn can be carried over from month to month, helping you save during less sunny periods. At your annual anniversary date (typically your Permission to Operate date), any remaining credits are “trued-up” and paid out at the avoided cost rate (approximately 3-5 cents per kWh), and your balance resets to zero. You can change this anniversary date once by contacting your utility directly. This program makes solar more affordable for New Jersey homeowners while supporting the state’s clean energy goals.