Toms River, NJ

New Jersey’s Property Tax Exemption for renewable energy systems allows homeowners to avoid paying additional property taxes on the value that solar panels add to their home. When you install a solar system, your property value typically increases, but under this incentive, you won’t be taxed on that increased value. This means the assessed value of your property for tax purposes remains the same as it would be without the solar installation.

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 home. You’ll need to submit a written application under oath using a form prescribed by the Director of the Division of Taxation. Once approved, 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 is no expiration date for this incentive, but the local enforcing agency may revoke your certificate if the system is no longer being 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 don’t pay any sales tax on solar panels, inverters, mounting hardware, and other components needed for a residential solar installation, potentially saving thousands of dollars on a typical system.

This incentive is available to all New Jersey homeowners and businesses installing solar energy systems on their property. There’s no application process required – simply inform your solar installer that you’re claiming the exemption, and they’ll handle the paperwork with their suppliers. The exemption has no expiration date and applies to both purchased and leased solar systems. 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 SuSI Program consists of two parts: the Administratively Determined Incentive (ADI) for smaller projects (5 MW or less) including residential installations, and the Competitive Solar Incentive (CSI) for larger commercial projects. For residential homeowners, the program provides $90 per New Jersey Solar Renewable Energy Certificate-II (NJ SREC-II) generated, with each certificate representing one megawatt-hour of solar electricity produced. These incentives are guaranteed for 15 years, providing long-term financial benefits while significantly reducing the cost of going solar compared to previous incentive levels.

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 solar system isn’t producing enough energy.

All major New Jersey utilities—PSE&G, Atlantic City Electric, Jersey Central Power & Light, and Orange & Rockland (Rockland Electric)—offer this program with consistent terms. Any unused credits carry over month-to-month, giving you flexibility throughout the year. However, on your annual anniversary date (typically your Permission to Operate date), any remaining credits are “trued-up” at the avoided cost rate of approximately 3-5 cents per kilowatt-hour, and your balance resets to zero. You can change this anniversary date once by contacting your utility directly. This program is available to all residential solar customers in New Jersey with no system size limitations, making it an excellent financial incentive for going solar.