How solar works in New Jersey in 2026
The federal tax credit changed
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you buy a system outright or with a loan in 2026, you cannot claim it. With a lease or power purchase agreement the solar company owns the system and may still qualify for business credits, which can affect the price you are offered. Ask any provider how this applies to your quote.
SREC-IIs under the SuSI program
New Jersey's Successor Solar Incentive (SuSI) program pays registered residential systems in Solar Renewable Energy Certificates (SREC-IIs) for the power they produce, for a fixed period. The value per certificate is set by the New Jersey Board of Public Utilities and is adjusted from time to time, so the figure in any quote should match the current published rate.
Net metering
When your panels produce more than your home uses, the extra power goes to the grid and your utility credits your account. Those credits reduce what you pay when your panels produce less, such as at night.
Community solar for renters and shaded roofs
If you rent, live in a condo, or your roof isn't suitable, New Jersey's community solar program lets you subscribe to a local solar project and receive bill credits, with no installation at your home.
Tax exemptions
Solar equipment in New Jersey is exempt from state sales tax, and a solar system's added value is exempt from property tax.
Utilities: PSE&G, JCP&L, Atlantic City Electric and Rockland Electric.
Common questions
What is an SREC-II?
Under New Jersey's SuSI program, a registered residential system earns Solar Renewable Energy Certificates (SREC-IIs) for the electricity it produces, for a fixed number of years. The value is set by the Board of Public Utilities and changes over time, so check the current rate before you sign.
Can renters in New Jersey get solar?
Often, yes, through New Jersey's community solar program. You subscribe to a local solar project and receive credits on your electric bill, with no panels on your roof.
Official sources
- New Jersey Clean Energy Program: SuSI program
- New Jersey Board of Public Utilities
- IRS: Residential Clean Energy Credit
This guide is general information, not financial or tax advice. Program rules and rates change; confirm current terms with the program administrator or a tax professional.