Full bill credits make New Jersey solar pay. The SREC-II decides how fast. When the $77 for each 1,000 kWh your panels make is paid to you, a typical owned system pays for itself in about 7 years in our example. When someone else gets it, the same system takes about 10.
Typical payback, SREC-II paid to youAbout 7 years
With or without the SREC-IIAbout 7 to 10 years
Typical owned 8.97 kW New Jersey system at $26,192 cash (EcoGen Solar Cost Index, September 2026), full retail bill credits at the 23.78¢ EIA average and the $77 SREC-II. Owner costs of $200 a year are our assumption. See the math.
- SREC-II: who is named to receive it, the value used and the date the registration goes in.
- Utility: PSE&G, JCP&L, Atlantic City Electric and Rockland give full credit for exports. A town utility sets its own terms.
- Time in home: about 7 years to pay back with the SREC-II, about 10 without it.
2026 rules: new home systems get no 30% federal homeowner credit (IRS). New SREC-II registrations from July 27, 2026 earn $77, down from $85. Full retail credit for exported power still applies on the four regulated utilities.
How we checked this guide
SREC-II rules come from the NJ Clean Energy Program and the SREC-II Administrator, tax rules from the NJ Division of Taxation, and the electricity price from the U.S. Energy Information Administration. The example is the EcoGen Solar Cost Index typical New Jersey home. Where we assume a number, the page says so.
The writer and checker shown above are EcoGen staff. EcoGen is paid when homeowners request quotes, which is explained beside the quote form. Read our editorial standards.
Two incomes from one New Jersey roof
On the four regulated utilities, each kWh (kilowatt-hour, the unit your bill counts) your panels send to the grid earns the full retail price as a bill credit. A kWh exported at noon is worth as much as one bought back at night. Credits roll forward for 12 months; only the leftover is paid at the lower wholesale value.
The second income is the SREC-II. The Successor Solar Incentive (SuSI) program creates one for every 1,000 kWh your panels make, for 15 years, worth $77 each for a new home registration: about $932 in year one for the typical system. Bill credits come with owning the panels. The SREC-II goes to whoever the contract names. Read each row across.
SREC-II owner
Worth a closer look
The contract names you to receive the SREC-IIs and shows the $77 value as its own line.
Pause and check
The SREC-IIs go to the installer or a leasing company, or the quote still uses $85.
Check next: the name on the registration and who files the meter readings.
Registration timing
Worth a closer look
The installer registers soon after you sign, while the 300 MW block is open.
Pause and check
No registration date, or a project that could slip past June 1, 2027.
Check next: the planned registration date.
Utility
Worth a closer look
PSE&G, JCP&L, Atlantic City Electric or Rockland Electric, with full retail credit for exports.
Pause and check
A town-owned utility. Vineland says it cannot take new systems above 5 kW, if at all, in some areas.
Check next: your utility’s own net metering terms.
Price and financing
Worth a closer look
A cash price near the Index’s $26,192 for 8.97 kW ($2.92 per watt), or a loan with no dealer fee.
Pause and check
A financed total far above the cash price, or a promise of a 30% federal credit.
Check next: the cash and financed totals side by side.
Roof and time in home
Worth a closer look
A sound, unshaded roof and a plan to stay past about 7 years.
Pause and check
A roof due for replacement, heavy shade, or a likely move soon.
Check next: the roof’s age and a shade report.
New Jersey payback, with and without the SREC-II
Simple payback is the years your savings take to cover what you paid: net cost divided by yearly savings. Because the SREC-II is paid on output over 15 years, not up front, we add it to what each kWh earns. Here is the typical New Jersey home system (8.97 kW, about 12,101 kWh a year) with the SREC-II registered in your name.
- Cash price
- $26,192
- Confirmed incentives
- $0
- Year-one production
- 12,101 kWh
- Used at home / exported
- 60% / 40%
- Each solar kWh earns (price + SREC-II)
- $0.3148/kWh
- Export credit
- $0.3148/kWh
- Owner-cost allowance
- $200/yr
- Used-at-home value
12,101 × 60% × $0.3148$2,286/yr - Export value
12,101 × 40% × $0.3148$1,524/yr - Yearly savings after owner costs
$2,286 + $1,524 − $200$3,609/yr - Simple cash payback
$26,192 ÷ $3,609about 7.3 years
Inputs: the EcoGen Solar Cost Index typical New Jersey system (8.97 kW, $26,192 cash, September 2026; 1,349 kWh per kW a year), the 23.78¢ EIA average price and the $77 SREC-II (7.7¢ per kWh), so each solar kWh earns 31.48¢. The EIA average includes fixed charges, so the rate you avoid is likely a little lower. Our assumptions: 60% of the solar power used at home and 40% sent to the grid (full retail credit makes both worth the same), and $200 a year in owner costs.
Now take the SREC-II away, as when the contract assigns it to someone else or the registration never goes in. Only what each kWh earns changes.
| Scenario | Price per kWh | Savings before costs | Yearly savings | Simple payback |
|---|---|---|---|---|
| SREC-II comes to you | $0.3148 | $3,809 | $3,609 | about 7.3 years |
| No SREC-II for you | $0.2378 | $2,878 | $2,678 | about 9.8 years |
Solar can pay either way here. Over the full term the SREC-II adds about $13,480 for the typical system (about 175 SREC-IIs, allowing for slow panel wear), so check the name on the registration.
Run your own New Jersey numbers
It starts with the SREC-II case. Enter your own quote and press Calculate. Nothing you enter is sent anywhere.
Example result
about 7.3 years
simple cash payback
- Used-at-home value
- $2,286/yr
- Export value
- $1,524/yr
- Owner costs
- −$200/yr
- Yearly savings
- $3,609/yr
- Net cost
- $26,192
The rate boxes hold the average price plus the SREC-II. For the case without it, enter your price per kWh alone in both. Flat first-year values; the SREC-II stops after 15 years.
Why older New Jersey numbers run high
Many guides and quotes still use $85 per SREC-II. A Board of Public Utilities order of May 21, 2026 cut new home registrations to $77 from July 27, 2026; earlier projects keep the old value. A new quote at $85 overstates the income and shortens the payback.
- The block. Home registrations draw on a 300 MW block, first come, first served, until it fills or June 1, 2027.
- The deadline. After acceptance, the installer has 12 months to finish and send the final papers.
- The paperwork. Certificates not processed in time lose their value; those for power made from June 2024 to May 2025 had to be processed by September 1, 2026.
Get the SREC-II line priced on your roof
Ask each New Jersey installer to show bill savings and the SREC-II as two separate numbers, with your name on the registration.
Solar providers that serve your area may contact you, and they pay EcoGen for the introduction. How we make money.
Cash, loan, lease or PPA: where the SREC-II goes
The program says the type of contract you sign decides who receives the SREC-IIs. In a lease or power purchase agreement (PPA), the company owns the system and its contract usually names it.
| Option | Who owns the panels | Upfront | Ongoing | Check before signing |
|---|---|---|---|---|
| Cash | You | Full price | None to a lender. | That the contract names you to receive the SREC-IIs. |
| Loan | You | Often $0 | Loan payment, plus your remaining utility bill. | Cash vs financed price, and that the SREC-IIs are not assigned to the lender. |
| Lease | Solar company | Often $0 | Monthly lease payment, plus your remaining utility bill. | Who receives the SREC-IIs, the yearly escalator and what happens if you sell. |
| PPA | Solar company | Often $0 | A price per kWh for the power the panels make. | Who receives the SREC-IIs, and the PPA rate against the retail credit an owner earns. |
Buyers pay no sales tax on solar equipment (Form ST-4). The value the system adds to your home is left out of your property tax assessment when you file Form CRES. For loan terms, see our solar financing guide.
When another route fits better
Renters and condo owners can join community solar; the state says projects typically offer 15% to 25% off the bill credits. Owners should know the Board of Public Utilities opened a review of net metering in November 2024. No change date has been set, so treat savings far ahead as an estimate.
Six lines to find in a New Jersey solar quote
Get two or three quotes. A single savings total that blends bill credits and SREC-II income cannot be checked.
- SREC-II in writing. The $77 value, who receives it and the planned registration date.
- Two savings lines. Bill savings and SREC-II income shown apart, not as one total.
- System size and output. kW, year-one kWh and the shading assumed.
- Cash and financed prices. Both totals side by side, with any dealer fee shown.
- Tax forms. Form ST-4 for the sales tax and Form CRES for the property tax, and who prepares each.
- Utility and paperwork. Your utility and who reports meter readings each month.
Compare New Jersey solar quotes
Ask each installer who receives the SREC-II. Enter your ZIP code to request quotes from solar providers that serve your area.
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. This is not an application to the Successor Solar Incentive (SuSI) program.
More New Jersey solar guides
- New Jersey solar incentives: SREC-II, bill credits and tax breaks
- What solar costs in New Jersey
- Free solar panels in New Jersey: what a lease gives up
- Are solar panels worth it? The national guide and payback calculator
All 51 state guides
New Jersey solar questions
Is solar worth it in New Jersey without the federal tax credit?
It can be. The federal homeowner credit does not apply to systems installed after December 31, 2025. Full retail bill credits and the SREC-II carry the case instead. In our example a typical owned system pays back in about 7 years with the SREC-II and about 10 without it.
What is the solar payback period in New Jersey in 2026?
In our example, about 7 years for a typical 8.97 kW system at $26,192 when the SREC-II is paid to you, and about 10 when it is not. Older figures used $85, which no longer applies to new registrations. Shade and dealer fees stretch the payback.
Do I keep the SREC-II payment if I lease solar panels?
Only if the contract says so. The program says the contract type decides who receives the SREC-IIs. With a lease or PPA the company owns the panels and its contract usually names it. If you buy with cash or a loan, check that your name is on the registration.
Will solar panels raise my property tax in New Jersey?
Not if you file Form CRES. The value the system adds is then left out of your assessment. You and the installer sign it, the local construction official approves it, and it goes to the tax assessor. It starts the tax year after the year it is certified.
Is full retail net metering in New Jersey guaranteed to last?
No. New systems on the four regulated utilities still get full credit for each exported kWh. The state opened a review in November 2024, and no new rule or change date has been set. No order promises today’s terms to existing systems, so treat long-range savings as an estimate.
How big a solar system does a typical New Jersey home need?
The EcoGen Solar Cost Index typical New Jersey system is 8.97 kW, making about 12,101 kWh a year. Size yours to your past year of use. Credits roll over for 12 months, and what is left at the end earns only the wholesale value, so extra panels add little.
Are free solar panels in New Jersey really free?
No. “Free solar” usually means a lease or PPA. The company owns the panels and you pay monthly or per kWh, and its contract often keeps the SREC-II. Compare the payments with the bill credits and SREC-II you would earn as an owner.
Sources, method and corrections
Two inputs are our assumptions, not measured values: 60% of the solar power is used at home and 40% sent to the grid (with full retail credit the split does not change the result), and owner costs of $200 a year. The SREC-II is added to what each kWh earns because it is paid on output over 15 years. Simple payback uses flat first-year values. The cost page’s about 9.1 years leaves out owner costs and the SREC-II. The calculator runs in your browser and sends nothing.
Spotted an error? Tell us through our corrections and feedback process.
- NJ Clean Energy Program: ADI Program (SREC-II values and the 300 MW block; checked October 5, 2026)
- NJ Board of Public Utilities: Order of May 21, 2026 (the cut from $85 to $77)
- NJ Clean Energy Program: ADI Program FAQs (15-year term, 12 months to finish, contract decides who receives SREC-IIs)
- Solar Incentives NJ, the SREC-II Administrator: FAQ (payments and meter readings)
- Solar Incentives NJ: Energy Year 2025 certificates expiring
- NJ Clean Energy Program: Net Metering and Interconnection (full retail credit, open review)
- Vineland Municipal Utilities: Net Metering
- NJ Division of Taxation: bulletin S&U-6 (Form ST-4)
- NJ Division of Taxation: Form CRES (property tax exemption)
- NJ Clean Energy Program: Community Solar for Subscribers
- IRS: Residential Clean Energy Credit
- U.S. EIA: average residential electricity price by state (12-month average, August 2025 to July 2026)
- EcoGen Solar Cost Index, September 2026: New Jersey (system size, price and output per kW)
