Home » Free Solar Panels » Free Solar Panels in New Jersey (2026): Zero-Down Deals and Who Keeps the SREC-II Income

Free Solar Panels in New Jersey (2026): Zero-Down Deals and Who Keeps the SREC-II Income

New Jersey households watched their electric bills climb 17% to 20% on June 1, 2025 and the 30% federal tax credit that once took thousands off a purchased system fell to $0 on January 1, 2026. Those two events are why "free solar" pitches are filling New Jersey mailboxes and social feeds this year.

No one gives away solar equipment. "Free solar" means $0 upfront, with the cost paid back through a loan, a lease, or a power purchase agreement. The panels, inverters, racking, and labor all carry a real price, and someone pays it.

New Jersey raises the stakes of that choice more than most states do. The state pairs full-retail net metering with 15 years of SREC-II income, and that money belongs to whoever owns the system. The wrong "free" offer hands a company income that could have been yours.

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Written by Dean MahmoudChief Executive OfficerDean Mahmoud is the CEO of EcoGen America. Since 2021, his work has connected homeowners with residential solar installers and involved direct rela...Learn more, Checked by Anders AlexanderEnergy consultant, Secretary of the WASEIA BoardAnders Alexander has worked in solar since 2013, from selling residential systems and directing installer sales teams to managing solar analysis software at EagleView and partnering on clean energy financing. He serves on the boards of the Washington Solar Energy Industries Association and Solar Washington.Learn more (financing and contract terms) and Layton Smith Sr.IRS Enrolled Agent and Co-Founder, HofflerSmith Financial ServicesLayton Smith Sr. is an IRS Enrolled Agent and co-founder of HofflerSmith Financial Services in Cherry Hill, New Jersey, which he started in 1999. He has worked in tax practice for more than 27 years, representing clients before the IRS and handling tax planning and preparation for individuals and small businesses. H...Learn more (tax info) Last updated

Key takeaways

  • No New Jersey program puts free panels on your roof. “Free solar” here means a $0-down loan, lease or power purchase agreement (PPA), paid back over time.
  • The one no-cost route never touches your roof: community solar. Projects registered since March 6, 2026 must give subscribers a bill credit discount of at least 20% (25% for lower-income homes).
  • New Jersey Solar for All is paused, as it has been since August 2025. Court rulings in September 2026 have not restarted it.
  • The money is in SREC-IIs. A typical 8.97 kW system earns about $13,480 over 15 years. In a lease or PPA, the company usually collects it.
  • No federal tax credit for a home system you own that is installed after December 31, 2025.
About this review

Each New Jersey figure traces to a state, utility or IRS source listed at the end, checked from September 29 to October 1, 2026. Program statuses were checked again on October 5, 2026. This is not tax, legal or financial advice.

How we choose sources and correct errors: editorial process and content standards.

Nobody in New Jersey will put solar panels on your roof for free, and no state grant or senior program does it either. What the ads call free solar panels in NJ is a $0-down contract. The system still costs what it costs: a typical 8.97 kW system runs about $26,192 before financing. A $0-down offer only settles who pays that back, and who collects what New Jersey pays for solar.

What New Jersey pays is real, and it follows ownership. The state’s Successor Solar Incentive (SuSI) pays for SREC-IIs, solar renewable energy certificates earned for every 1,000 kWh (kilowatt-hours) your panels make. Exported power earns bill credits at the full retail rate. On a lease or PPA, the SREC-II income usually goes to the company. That is the trade the word “free” is hiding.

New Jersey Solar for All: Paused, and What You Can Do Now

New Jersey won a federal Solar for All grant for low-income solar. The EPA ended the program in August 2025, before homeowner rules were final, and the state paused it.

Paused. On October 5, 2026, the New Jersey Clean Energy Program page still read “Paused program” and gave no restart date.

In September 2026, federal courts in Rhode Island (September 18) and Washington, DC ruled that the EPA’s termination of Solar for All was unlawful, and the EPA said it was weighing an appeal. As of October 5, 2026, the Board of Public Utilities had announced no restart. If someone claims to enroll you in Solar for All, check the program page first. What you can do now costs nothing:

New Jersey community solar

You subscribe to a share of a solar farm in your utility’s area. Your bill shows a credit for its power and a smaller subscription charge. Nothing goes on your roof, and renters qualify.

Community Solar for Subscribers: project finder and rulesRun by the New Jersey Board of Public Utilities through New Jersey’s Clean Energy Program. Checked October 5, 2026.

Who can join
Customers of PSE&G, JCP&L, Atlantic City Electric or Rockland Electric, owners and renters
What you save
At least 20% of the credits on projects registered since March 6, 2026, or 25% for households under 80% of area median income. Older projects typically offer 15% to 25%.
A month, by the state’s example
$50 in credits, a $40 charge, $10 saved
Status
Open. On October 5, 2026, the program page said registrations are open, and its project finder lists projects seeking subscribers by ZIP code.

It builds no equity and stops when you cancel. To own panels, read on.

Zero-Down Solar in New Jersey: Who Gets the SREC-IIs and the Bill Credits

Three contracts put panels on a New Jersey roof with nothing down, and the program posts disclosure forms for leases and PPAs. Each SREC-II pays $77 for 15 years on home systems registered from July 27, 2026, or about $932 in a typical first year. The program’s FAQ says the contract decides who receives them.

Zero-down solar in New Jersey: where the SREC-II income and export credits land
RouteOwnershipSREC-II income (about $13,480)Export creditsMain risk
Zero-down solar loanYouYours, paid into your accountOn your billA loan with no federal credit to pay it down
Pros and cons in New Jersey: zero-down loan

Pros

  • You collect the SREC-II payments for 15 years.
  • The equipment is exempt from the 6.625% sales tax, and the value it adds is exempt from property tax once you file Form CRES.

Cons

  • No federal home tax credit for systems installed after December 31, 2025, so the balance stays higher.
  • Installer loans can hide a dealer fee in the price. Ask for the cash price next to the loan.
  • SREC-II payments arrive month by month, not as a lump sum against the loan.

Can fit if: the loan payment minus the SREC-II income is close to what the panels save on your bill.
Solar leaseThe companyUsually the companyOn your bill, which is what the fee buysA fee that may rise each year
Pros and cons in New Jersey: lease

Pros

  • No upfront cost and no loan approval.
  • The company handles SuSI registration, repairs and monitoring.

Cons

  • The company usually keeps the SREC-II income, about $13,480 on a typical system.
  • A buyer of your home must take over the lease, or you buy it out.

Can fit if: the first-year fee, plus any yearly increase, stays well below what the panels save at your utility’s rate.
Power purchase agreement (PPA)The companyUsually the companyOn your bill, paid for through the PPA priceAn escalator that outruns your utility rate
Pros and cons in New Jersey: PPA

Pros

  • You pay only for the kWh the panels make.
  • No upfront cost, and the company carries repairs.

Cons

  • The company usually keeps the SREC-II income, the same as a lease.
  • You get two bills: the PPA bill and your utility bill for what you still draw.
  • An escalator, a set yearly price increase, can push the PPA price above the grid price, year after year.

Can fit if: the PPA price, in every year of the term, stays below the price per kWh on your own bill.

Lease or PPA in New Jersey: two ways to pay for the same panels

Both are sold here. The difference is what you are billed for.

New Jersey solar lease compared with a PPA
PointLeasePPA
Billed forUse of the equipment, a set feeEvery kWh the panels make
A cloudy monthSame fee, and a bigger utility billA smaller PPA bill, and a bigger utility bill
Weak panelsYour loss, unless output is guaranteedMostly the company’s loss
The number to beatWhat the panels save you each monthYour rate per kWh, about 23.78 cents per kWh on average
Who collects the SREC-II income on a typical New Jersey system

An 8.97 kW system making about 12,101 kWh a year, about 175 SREC-IIs over 15 years at $77 each. EcoGen calculation from the program’s rate.

SREC-II income on a typical New Jersey system, owned versus leased
Owned: SREC-II income to youabout $13,480
Lease or PPA: SREC-II income, usually to the companyabout $13,480

Includes a small yearly loss of panel output. Registrations received before July 27, 2026 were paid $85.

In all three routes, exports earn full retail credit that rolls over for 12 months. Credit left at year end is paid at the wholesale value of power, so oversizing does not pay. A state review of net metering for new customers opened in November 2024, with no change set yet. For loan terms and APRs, see our solar financing guide.

When $0-Down Solar Does Not Fit a New Jersey Home

  • You rent, or the roof is not yours. Community solar is the way in.
  • You may move within a few years. A buyer must take over a lease or PPA, and a short stay rarely pays back a loan.
  • Your roof needs replacing soon. Re-roof first. Removing and refitting panels later is a cost no offer includes.
  • Vineland’s city utility serves you. It says it cannot support new systems above 5 kW AC, if at all, in busy solar areas, and it sets its own credit rules.
  • The contract does not beat your bill. Payment plus the remaining utility bill must come in under today’s bill.

Six Questions for Any New Jersey Free-Solar Offer

  1. Loan, lease or PPA?

    Get the word in writing. “Free” is always one of the three.

  2. Who receives the SREC-IIs, and for how long?

    Ask for the 15 years total in writing and how it was priced into your payment.

  3. What is the cash price?

    Compare it with what solar costs in New Jersey, about $26,192 for 8.97 kW.

  4. Does the payment rise each year?

    Ask for year 1, year 10 and the last year, side by side.

  5. Does the production estimate match your use?

    Output past your yearly use earns only wholesale value.

  6. What happens when you sell?

    Read the transfer and buyout terms. See solar lease exit options.

Walk away from anyone who says a state program makes your panels free, will not name the SREC-II owner, or wants a signature today.

Learn the solar scam warning signs and check bidders in our New Jersey solar companies guide.

Put New Jersey Offers Side by Side

Ask each installer for the cash price, the zero-down payment and who keeps the SREC-IIs. Side by side, they show what “free” costs.

Your ZIP code starts the comparison

This is a commercial quote request, not a community solar subscription or a Solar for All application. Offers depend on your ZIP code and your home. For community solar, use the state’s project finder.

How EcoGen is paid

EcoGen America does not sell or install solar. When you request quotes, we pass your request to solar providers serving your area, and they pay us for the introduction. Providers can include installers, solar marketplaces and lead exchanges, and more than one may contact you. You never pay us.

Read how we make money and our privacy policy.

More New Jersey Solar Guides

Frequently Asked Questions

Are solar panels free in NJ, or is it just $0 down?

It is $0 down. A loan, lease or PPA starts at nothing, and the system’s cost comes back through your payments or your price per kWh. The only no-cost option is community solar.

Can I get zero-down solar in New Jersey?

Yes. Installers sell zero-down loans, leases and PPAs across the state. With a loan you own the panels and the SREC-II income. With a lease or PPA the company owns them and usually collects that income.

If I sign a lease or PPA, do I keep the SuSI payments?

Usually not. The program says the contract decides who receives the SREC-IIs, and in most leases and PPAs it is the company. On a typical system that is about $13,480 over 15 years.

Is it better to buy or lease solar in New Jersey?

If you can carry the payment and plan to stay, owning returns the most: you keep the SREC-II income and the tax exemptions. If you sell, a buyer must take over a lease or you buy it out.

Can I still claim the federal solar tax credit in New Jersey?

Not on a home system you own that is installed after December 31, 2025. New Jersey has no state income tax credit for solar either. A leasing company may still claim a federal business credit, one reason leases are pushed hard.

Are free solar offers in New Jersey a scam?

Not all. Warning signs are a “free state program” claim, no answer on who keeps the SREC-IIs, and pressure to sign today.

Is New Jersey community solar actually free, and can renters join?

Yes to both. The charge is smaller than the credit, so you save each month. New projects must discount at least 20%, and renters join on equal terms.

Sources and review

New Jersey program, utility and tax figures were checked from September 29 to October 5, 2026, against these sources. Program rules change, and the administrator’s current page always wins.

Read our editorial standards.

Dean Mahmoud Headshot 2025

Written by

Chief Executive Officer

Dean Mahmoud is the CEO of EcoGen America. Since 2021, his work has connected homeowners with residential solar installers and involved direct relationships with installation companies. He writes about solar prices and financing and maintains the EcoGen Verified Installer Methodology.

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