Why Free Solar Offers Are Flooding New Jersey After the 2025 Rate Spike
The June 2025 rate shock is the first cause. The June 2025 Basic Generation Service auction pushed average residential bills up 17.24% at PSE&G, 20.20% at JCP&L, 17.23% at Atlantic City Electric, and 18.18% at Rockland Electric, all effective June 1, 2025. A statewide average residential rate of 23.23¢/kWh now sits among the highest in the country.
The 2026 auction came in flatter, with new supply rates of 10.938¢/kWh at PSE&G, 11.327¢ at JCP&L, 11.275¢ at Atlantic City Electric, and 12.057¢ at Rockland Electric effective June 1, 2026, per the New Jersey Board of Public Utilities. The all-in rate a homeowner pays stays high once delivery and rider charges are added, and a bill that high makes any pitch promising a lower payment look good at first glance.
The second change is federal. The 30% residential tax credit under Section 25D fell to $0 for host-owned systems placed in service after December 31, 2025, under the One Big Beautiful Bill Act. The only federal money left in residential solar is the Section 48E commercial credit, and a homeowner cannot claim it directly. A leasing company or PPA provider can, as long as construction starts by July 4, 2026.
That is the engine behind the surge. Lease and PPA companies still have the Section 48E commercial credit to work with, so they can front the system cost and advertise $0-down deals. To see what a New Jersey system runs before financing enters the picture, our guide to what a New Jersey solar system costs breaks down the per-watt math.
Find out if you're eligible for $0-down solar in New Jersey!
What “Free Solar” Really Means for a New Jersey Homeowner
“Free” refers only to the upfront cost; the system still has a full price someone repays. A 5.92 kW system, the size that covers an average New Jersey home’s 7,944 kWh of yearly use, runs $17,286 before any financing. That money does not disappear in a $0-down deal; it comes back through your loan payments, your fixed lease fee, or the per-kWh rate you agree to pay under a PPA.
New Jersey adds a second layer that matters even more here. Under full-retail 1:1 net metering, every kilowatt-hour your panels send to the grid offsets one you would have bought at the retail rate. On top of that, the state’s SuSI program pays $85 for each SREC-II your system earns, one per megawatt-hour produced, for 15 years, which comes to $675 a year on a 5.92 kW system. Both benefits go to the system’s owner. That ownership question decides which “free” option is worth taking.
How to Go Solar for $0 Down in New Jersey: Loan, Lease, or PPA
Three structures put solar on your roof with nothing down in New Jersey, and they differ on the one thing that matters here: who owns the system, and so who keeps the income it earns.
The Solar Loan: $0 Down, and You Keep New Jersey’s SuSI Income
A solar loan covers the full system cost with nothing out of pocket, and you own the panels from day one. You collect that SuSI income, keep every net-metering credit, and claim the state sales-tax and property-tax exemptions.
The catch in 2026 is the missing federal credit. Without the 25D credit to knock down your balance in the first year, your monthly payment runs higher than the same loan would have a year ago. A second catch is unique to $0-down financing: lenders can bake a hidden dealer fee into the loan principal. The Consumer Financial Protection Bureau found these fees add 10% to 30% to the financed price over the cash price, and sometimes more than 50%. Ask for the cash price and the financed price in writing, and compare them.
The Solar Lease: A Fixed Bill, but the Company Keeps Your SuSI Credits
With a lease, a solar company owns the system on your roof and you pay a fixed monthly fee. The company handles maintenance and monitoring, and it claims the Section 48E commercial credit and prices the lease to sit below your current bill, but verify that it actually does, because the residual utility charges still apply.
The trade is ownership, and in New Jersey ownership is where the value lives. The company collects your SuSI income, your net-metering credits, and the tax benefits, not you. If you sell the home, the lease has to transfer to the buyer or you buy it out, and either one can complicate the sale.
The Solar PPA: You Pay by the kWh, and the Provider Keeps the Net-Metering Value
A power purchase agreement works like a lease, except you pay for the electricity the panels produce at a set per-kWh rate rather than a flat fee. That rate usually starts below your utility’s price, which creates savings on day one.
A PPA does not replace your utility account. You still keep it and receive two bills: the PPA bill for what the panels produce and a utility bill for whatever you draw from the grid. Because the provider owns the system, the net-metering credits on that exported power accrue to the provider, not to you. So the real test is whether the PPA charges plus your remaining utility charges beat what you pay today on a single bill.
The risk is the escalator clause. Most PPAs raise the rate 0% to 2.9% a year, and over a 20- to 25-year term that increase can push your PPA rate higher than what the utility charges if grid prices rise more slowly than the contract assumes. As with a lease, the provider owns the system and keeps the SREC-II income and net-metering value.
Loan, Lease, and PPA Side by Side: What Each One Keeps and Costs
Solar Loan | Solar Lease | PPA | |
|---|---|---|---|
Upfront Cost | $0 | $0 | $0 |
Who Owns the System | You | Solar company | Solar company |
Federal 48E Credit (2026) | Not available to you | Company claims it | Company claims it |
SuSI Income ($675/yr) | You keep it | Company keeps it | Company keeps it |
Net-Metering Credits | You keep them | Company keeps them | Company keeps them |
Maintenance | Your responsibility | Company handles | Company handles |
Long-Term Savings | Highest after payoff | Moderate | Depends on the escalator |
Only the loan leaves New Jersey’s SuSI income and net-metering credits in your hands.
The New Jersey Solar Incentives That Matter
The federal residential credit is gone, but New Jersey’s own stack is one of the strongest in the country, and most of it still reaches a $0-down deal.
SuSI income. Your system earns one SREC-II per megawatt-hour, and the state pays $85 for each one for 15 years. On a 5.92 kW system that is $675 a year, more than $10,000 over the term, and the owner collects it.
Full-retail net metering. All four investor-owned utilities credit your exported power at the retail rate under N.J.A.C. 14:8-4, with credits trued up over a 12-month period. The owner keeps these credits too.
Sales-tax exemption. Solar equipment is exempt from New Jersey’s 6.625% sales tax, and the exemption applies whether you buy, finance, or lease.
Property-tax exemption. The added home value from your system is exempt from property tax, so the system can raise what your home is worth without raising your tax bill.
Ownership decides who collects: on a loan you keep the SuSI income and net-metering credits; on a lease or PPA the company does. For a full read of every active program, see our guide to New Jersey’s full solar incentive stack.
One caution on reliability. The $85 SuSI rate is fixed by the state today, but the Board of Public Utilities can change it by order, and the 48E credit behind every lease offer depends on construction starting by July 4, 2026. What is available today is not a guarantee for next year.
Who Qualifies for $0-Down Solar in New Jersey?
You own the home. Renters cannot put solar on a roof they do not own. If that is you, renters can still get solar savings through New Jersey’s Community Solar Energy Program.
Your roof can carry it. Installers check age, slope, shading, and condition. If your roof is within five to ten years of replacement, replace it first; taking panels down and remounting them during a later re-roof adds $1,500 to $6,000 or more.
You are on an investor-owned utility. Full-retail net metering and SuSI flow through PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric. If the Vineland municipal utility serves you, net metering is capped at 5 kW-AC, which changes the math.
Your credit clears the lender’s bar. Loan and lease approvals run a credit check, and a lower score means a higher rate or a denial. A weaker rate eats into the savings the deal promises.
One thing New Jersey law settles in your favor: a homeowners association cannot ban roof solar under N.J.S.A. 45:22A-48.2, though historic-district rules can still constrain placement in older towns.
When $0-Down Solar Doesn’t Make Sense in New Jersey
Solar is a long-term commitment, and several situations make $0-down the wrong call.
You may move within three to five years. A lease or PPA can slow a home sale if the buyer has to assume it, and a loan balance may not come back to you in the resale price over that short a window. If a move is likely, leasing or waiting beats buying.
Your usage is very low and your roof is small. When a bill is dominated by fixed monthly charges rather than the kilowatt-hours you use, a small system may not reach payback inside the panel warranty.
The contract does not beat your current bill. If the lease payment plus your remaining utility charges add up to more than you pay today, the offer saves you nothing. The benchmark to beat in New Jersey is concrete: the average home uses about 7,944 kWh a year at 23.23¢/kWh, roughly a $154 monthly bill, and a lease or PPA has to come in under that figure after its own charges. Run the full comparison before signing.
Some New Jersey homes are better served by waiting or by community solar. If you rent, your roof is shaded, or you cannot control the roof, the permanent Community Solar Energy Program is the way in: subscribers take a 15% to 25% bill-credit discount with no install and no equipment to own. To see whether ownership math works for your specific home, our analysis of whether the numbers work for your home walks through the payback in detail.
The Free-Solar Warning Signs in New Jersey
New Jersey’s solar market has a real consumer-protection record, and it is not all good. Vision Solar, a Blackwood company, filed for Chapter 7 bankruptcy in December 2023 and drew a $5 million judgment from Connecticut’s attorney general over high-pressure sales and unpermitted work. Multi-state enforcement against Sunrun and SunStrong continued into 2026. Keep that history in mind with any $0-down pitch, and check three things before you sign.
The PPA Escalator: How a Yearly Bump Can Outrun New Jersey’s Grid Rate
A 2.9% annual increase sounds small, but over 25 years it can push your rate higher than where it started, year after year. Ask the provider what your payment looks like in year 10 and year 25, in writing, and compare it to where New Jersey rates are headed. The escalator is the most overlooked cost in a “free” contract.
Who Keeps the SuSI Income and SREC-IIs
Ask the company to put the 15-year SuSI total in writing and explain how it factors into your rate. On a lease or PPA the company keeps the SuSI payments; if a salesperson cannot or will not quantify it, treat that as a red flag.
Transfer Terms, Equipment, and New Jersey’s Three-Day Right to Cancel
Find out whether the lease or PPA transfers cleanly if you sell, what panels and inverters the system uses, and what the warranties cover. Confirm the company holds a New Jersey electrical contractor license and Home Improvement Contractor registration, and remember the three-day right to cancel a door-to-door contract under the Consumer Fraud Act. For help checking a company’s record, see our guide to how to vet a New Jersey installer.
See Whether $0-Down Solar Actually Pays Off for Your NJ Home
New Jersey’s rate increases and the loss of the federal credit have changed the math for every homeowner. Whether a $0-down loan, lease, or PPA saves you money depends on your utility, your roof, your credit, and the contract terms. Enter your ZIP code below to see what is available in your area and whether your home qualifies.
Find out if you're eligible for $0-down solar in New Jersey!
Frequently Asked Questions
Not in the literal sense. “Free solar” means $0 upfront through a loan, lease, or PPA. The system’s cost comes back through your payments or your per-kWh rate, and the equipment carries a real price.
No. The system owner collects SuSI income, and on a lease or PPA that is the company, not you. On a 5.92 kW system that is more than $10,000 over 15 years that the company keeps.
For most owners who can carry the payment, a $0-down loan returns the most, because you keep the SuSI income, the net-metering credits, and the tax exemptions. A lease trades that income for simplicity and no maintenance.
No. The 30% residential credit under Section 25D ended December 31, 2025. A lease or PPA company can still claim the Section 48E commercial credit, which is how it funds a $0-down offer, but you cannot claim it on a system you buy.
The lease or PPA has to transfer to the buyer, or you buy it out before closing. A buyer who does not qualify or does not want the contract can slow the sale, so read the transfer terms before you sign.
Not all of them, but the state has seen real misconduct, including Vision Solar’s bankruptcy and multi-state enforcement. A legitimate $0-down offer is a lease, loan, or PPA with clear terms; pressure to sign on the spot is a warning sign, and you have three days to cancel a door-to-door contract.
New Jersey’s Community Solar Energy Program lets you subscribe to a shared array and take a 15% to 25% credit on your bill with no install. It is the practical option for renters, shaded roofs, and condos.
References & Research Sources
EcoGen America reviewed New Jersey utility auction results, state net metering regulations, federal tax guidance, federal electricity data, solar production modeling tools, consumer finance research, consumer protection enforcement materials, state solar tax incentive resources, and New Jersey SREC-II incentive pricing materials for this article. Sources were accessed June 23, 2026, unless another publication, release, effective, or update date is listed below.
- New Jersey Board of Public Utilities (NJBPU). New Jersey Board of Public Utilities Certifies 2026 Electricity Auction Results. Basic Generation Service auction results press release. Published February 12, 2026. Accessed June 23, 2026.
- New Jersey Board of Public Utilities (NJBPU). NJBPU Announces Conclusion of New Jersey’s Annual Electricity Supply Auction. Basic Generation Service auction results press release and June 2025 rate increase resource. Published February 12, 2025. Accessed June 23, 2026.
- New Jersey Administrative Code. N.J. Admin. Code § 14:8-4.3: Net Metering General Provisions, Annualized Period Selection. Net metering regulation for Class I renewable energy systems. Accessed June 23, 2026.
- Internal Revenue Service (IRS). One, Big, Beautiful Bill Provisions. Federal tax guidance resource covering clean energy credit changes, including Sections 25D and 48E. Updated June 10, 2026. Accessed June 23, 2026.
- U.S. Energy Information Administration (EIA). Electricity Data. Federal electricity data resource, including residential retail price data. Accessed June 23, 2026.
- National Renewable Energy Laboratory (NREL). PVWatts Calculator. Solar photovoltaic energy production modeling tool. Accessed June 23, 2026.
- Consumer Financial Protection Bureau (CFPB). Solar Financing Market: Issue Spotlight. Consumer finance research report on residential solar financing. Published August 2024. Accessed June 23, 2026.
- Connecticut Office of the Attorney General. Attorney General Tong Announces $5 Million Judgment Against Bankrupt Vision Solar. Consumer protection enforcement announcement. Published October 11, 2024. Accessed June 23, 2026.
- Connecticut Office of the Attorney General. Attorney General Tong Announces New Developments to Hold Solar Industry Accountable. Consumer protection enforcement announcement related to solar industry investigations and settlements. Published March 17, 2026. Accessed June 23, 2026.
- Database of State Incentives for Renewables & Efficiency (DSIRE). New Jersey Solar Sales Tax Exemption. State sales tax exemption resource related to N.J.S.A. 54:32B-8.33. Accessed June 23, 2026.
- Database of State Incentives for Renewables & Efficiency (DSIRE). New Jersey Solar Property Tax Exemption. State property tax exemption resource related to N.J.S.A. 54:4-3.113a. Accessed June 23, 2026.
- InClime, on behalf of New Jersey’s Clean Energy Program. SREC-II Pricing Structure. Residential SREC-II pricing table for the Successor Solar Incentive (SuSI) Administratively Determined Incentive Program. Updated April 28, 2026. Accessed June 23, 2026.
