New Jersey Solar Guide 2026

SRECs are back (sort of). PSE&G and JCP&L territories have different economics. Let me show you the actual numbers.

Updated March 2026 · Sources: NJ BPU, DSIRE, EnergySage · Research by Dana Mercer
#7 solar state SREC-II active
Avg install cost $2.75/W Before incentives · Q1 2026
Electricity rate 18¢/kWh Statewide avg · EIA Jan 2026
Peak sun hrs/day 4.2 hrs State avg · NREL data
Typical payback 5-7 yrs After ITC & SRECs
Solar rank #7 Installed capacity · SEIA

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New Jersey confession: I initially dismissed the state's new SREC-II program as watered-down nonsense. I was wrong. While it's not the cash cow that SREC-I was (those were the days), it still adds $2,000-4,000 to your solar value over 15 years. Combined with solid net metering and no sales tax, New Jersey quietly remains a top-10 solar state.

The problem? Half the installers I mystery-shopped couldn't properly explain how SRECs work. That's money left on the table.

New Jersey solar incentives (2026)

Incentive Type Amount Status Expires
Federal ITC Federal tax credit 30% of system cost Active Dec 2032
SREC-II Program (ADI) Performance payment $70-90/MWh for 15 years Active Capacity-limited
Net Metering Export credit Full retail rate Active Under review 2026
Property Tax Exemption Tax exemption 100% of added value Active Ongoing
Sales Tax Exemption Tax exemption 100% on equipment Active Ongoing

SREC-II pays fixed rate for 15 years. Rate depends on system size and project type.


SREC-II: what they actually pay you

Key change from old SRECs: Instead of volatile market prices ($200-300 per SREC), you now get a fixed payment for 15 years. Less upside, but predictable income.

How much you'll earn

For residential systems under 10 kW:

  • Fixed rate: $85/MWh ($0.085/kWh) generated
  • Typical 8 kW system: ~$850/year
  • 15-year total: ~$12,750
  • Payments made monthly via your utility bill

The registration trap

Critical: Your installer must register you for SREC-II within 180 days of interconnection. Miss this window, you lose the incentive forever. I've seen three cases where installers "forgot" and homeowners lost thousands. Get registration confirmation in writing.

Old SREC-I vs new SREC-II

  • SREC-I (closed): Market-based, $200-300 per certificate, 10-year eligibility
  • SREC-II (current): Fixed $85/MWh, 15-year guarantee, administratively set

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New Jersey solar costs (Q1 2026)

System size Gross cost After 30% ITC Annual savings Payback
4 kW $11,000 $7,700 ~$1,100/yr ~7.0 years
6 kW $16,500 $11,550 ~$1,650/yr ~7.0 years
8 kW (typical) $22,000 $15,400 ~$2,200/yr ~7.0 years
10 kW $27,500 $19,250 ~$2,750/yr ~7.0 years

Savings include SREC-II payments and avoided electricity costs at 18¢/kWh.

Top New Jersey solar installers

Installer Coverage Rating Notes
Sunrun Statewide 4.1/5 Largest installer, handles SREC registration
Trinity Solar Statewide 4.5/5 NJ-based, excellent SREC track record
Solar Landscape Central/North NJ 4.6/5 Local favorite, strong commercial too
Tesla Energy Select areas 3.8/5 Good pricing, mixed service reviews
Green Power Energy Statewide 4.7/5 Family-owned, 20+ years in NJ

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New Jersey net metering status

New Jersey maintains full retail-rate net metering, meaning you get credited at the same rate you pay for electricity (currently ~18¢/kWh). Credits roll over monthly, with annual reconciliation.

Warning: The BPU is reviewing net metering rules in 2026. California already gutted theirs. Massachusetts reduced theirs. New Jersey might be next. If you're considering solar, moving sooner protects you via grandfathering.

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Research methodology

Cost data from EnergySage Q1 2026 report. SREC-II rates from NJ BPU filings. Installer reviews aggregated from Google, BBB, and EnergySage. Updated March 20, 2026.

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