Chris Meehan has covered solar and clean energy since 2010 and served as Executive Editor of SolarReviews for seven years, running its daily industry news desk. His work has appeared in Sun & Wind Energy and other trade publications.
New Jersey is one of the few states that still credits exported solar power at the full retail rate, 1-to-1, under N.J.A.C. 14:8-4. Every kilowatt-hour your panels send to the grid cancels a kilowatt-hour you would otherwise buy at 23.23¢, the statewide average. That is the main reason solar still pays here after the 30% federal residential credit dropped to $0 for systems finished in 2026.
Net metering is also the payment New Jersey homeowners most often confuse with the SuSI program. They are two separate streams and you collect both. This page covers how the credit works, what happens at your annual true-up, which utilities offer it, and the one place in the state where it does not apply.
Full Retail 1-to-1 Is What New Jersey Actually Pays
Under the state rule, exported power is credited at the same retail rate you pay for imported power, including the delivery charges most states strip out. A net-billing state such as California credits exports at a wholesale-linked rate worth roughly a third of retail. New Jersey does not do that, and that single difference is worth thousands over a system life.
At 23.23¢/kWh and a production factor of 1,342 kWh per kW installed, a typical 5.92 kW New Jersey system produces roughly 7,900 kWh a year. Whether you consume that power as it is made or bank it as credit, it is worth the same to you. That is what 1-to-1 means in practice.
Credits Roll Monthly, Then Settle Once a Year
Credits do not expire month to month. Excess generation carries forward through a 12-month annualized period, which is what makes solar work through a New Jersey winter: the surplus you build in June and July pays for the shortfall in December and January.
At the end of that annualized period, any net excess left over is paid out in cash at the BGS rate, not at retail. That distinction matters when you size a system. Building deliberately oversized to bank a large year-end payment converts full-retail credit into a wholesale-rate payout, which is a poor trade.
Stage | Rate You Receive | What It Means for Sizing |
|---|---|---|
Month to month | Full retail, 1-to-1 | Every exported kWh offsets one you would have bought, so sizing to your actual annual usage is efficient. |
Rolled forward | Full retail, 1-to-1 | Summer surplus covers winter shortfall, so a New Jersey system is sized to the year rather than to any single month. |
Annual true-up | BGS rate, below retail | Leftover credit is cashed out cheaply. Oversizing to chase that payment earns less than sizing to usage. |
All Four New Jersey Utilities Credit Exports the Same Way
Net metering here is a state rule rather than a utility perk, so it does not depend on who sends your bill. PSE&G, JCP&L, Atlantic City Electric and Rockland Electric all credit exports at full retail. What differs between them is the retail rate itself, which is why payback runs from about 5.5 years in Atlantic City Electric territory to about 7.3 years in JCP&L territory.
If an installer tells you your utility does not offer net metering, or offers a weaker version of it, treat that as a sales tell rather than a fact and ask them to point at the tariff.
Net Metering and SuSI Are Two Different Payments
This is the most common misunderstanding among New Jersey homeowners, and it costs people money when they compare quotes.
Net metering reduces your bill. It is a credit against power you would otherwise buy, and it is worth the retail rate.
SuSI pays you cash. Every 1,000 kWh your roof produces earns one SREC-II certificate worth $76.50, paid quarterly for 15 years, whether you used that power or exported it. A typical system collects about $675 a year from it.
You collect both, on the same kilowatt-hours. A quote that presents them as alternatives, or that counts the same production twice, is wrong. The full stack is covered in our New Jersey solar incentives guide.
Where New Jersey Net Metering Does Not Reach You
State net-metering rules bind the four investor-owned utilities. They do not bind municipal utilities, which run their own programs. Vineland is the case that catches people: the city operates its own electric utility outside the state rule and caps new residential solar at 5 kW-AC, below a typical system size.
If a municipal utility serves you, confirm the interconnection terms in writing before you sign anything rather than assuming the state rule applies.
New Jersey Net Metering FAQs
Does New Jersey still have full retail net metering in 2026?
Yes. New Jersey credits exported solar at the full retail rate, 1-to-1, under N.J.A.C. 14:8-4, and the rule applies across all four investor-owned utilities.
Do New Jersey net metering credits expire?
Not monthly. Credits roll forward through a 12-month annualized period. Whatever remains at the end of that period is paid out in cash at the BGS rate, which sits below retail.
Can I get paid for extra power I send to the grid in New Jersey?
You are credited at full retail against your own usage first. Only the surplus remaining after the annual true-up is paid as cash, and it is paid at the lower BGS rate, so a system sized to your usage earns more than an oversized one.
Is net metering the same as the SuSI program?
No. Net metering credits your bill at retail; SuSI pays cash through SREC-II certificates worth $76.50 per 1,000 kWh for 15 years. You receive both on the same production.
Does net metering change now that the federal tax credit is gone?
No. The 30% federal residential credit reached $0 for systems completed after December 31, 2025, but that was a federal tax provision. New Jersey net metering and the SuSI program are state programs and are unaffected.
References & Research Sources
- New Jersey Administrative Code. N.J. Admin. Code 14:8-4: Net Metering General Provisions, Annualized Period Selection. Net metering regulation for Class I renewable energy systems. Accessed August 30, 2026.
- New Jersey Board of Public Utilities. Successor Solar Incentive (SuSI) Program. SREC-II certificate values and program terms. Accessed August 30, 2026.
- U.S. Energy Information Administration. Electricity Data. New Jersey residential retail rate and utility customer counts. Accessed August 30, 2026.
- Internal Revenue Service. One, Big, Beautiful Bill Provisions. Federal clean energy credit changes covering Section 25D. Accessed August 30, 2026.
