New Jersey Solar Incentives (2026): Paid Over Time, to Whoever Owns the System

What does New Jersey pay a solar home, and who collects it?

Six programs matter for a home system. They are sorted by money for a typical household.

The federal tax credit is $0 for systems switched on after December 31, 2025. New Jersey’s income tax return has no line for a solar credit. None of these programs is a rebate for the panels themselves.

How much is the SREC-II payment worth on a New Jersey home?

SREC-II stands for Solar Renewable Energy Certificate. Your system earns one for every 1,000 kWh it makes. It counts all the power your panels make, not only the power you send to the grid. The state program behind it is called the ADI Program. That is short for Administratively Determined Incentive, which means the BPU sets the price.

The price for a home system is $77 per certificate, for 15 years. Example: $385 for 5,000 kWh of solar power.

A typical 5.92 kW system makes about 7,945 kWh a year. That is about $612 in the first year. Panels make a little less each year, so over 15 years it adds up to about 115 SREC-IIs, or about $8,860. For scale, that system costs $17,286 before incentives.

The money does not come as one check. New Jersey's electric utilities buy the certificates through the SREC-II Administrator, the company that handles payments for the BPU. It pays into your bank account 6 to 8 weeks after each monthly billing round. There is no fee to take part.

The price you register at does not change later. The BPU set the current price in its order of May 21, 2026.

Watch out: The current round for homes holds 300 MW of solar. It is first come, first served. When it fills, registration closes until the next round opens, and there is no waiting list. The program page said registrations were open when we checked. Ask your installer to confirm before you sign.

Loan, lease or PPA: who keeps the New Jersey SREC-II?

The type of contract you sign decides who gets the state payment. The state's own program FAQ spells it out.

A lease or PPA can still lower your monthly cost. Read the contract to see how much of the SREC-II value comes back to you as a lower payment.

Watch out: Owning is not enough. To be paid, the system must be registered in two places after it is switched on: PJM-GATS, the regional tracking system that creates the certificates, and the SREC-II Administrator. The state says you should never assume your installer does this. Ask who does it, and get the answer in your contract.

Does New Jersey still give full bill credits for solar power you send out?

Yes, for customers of the four utilities the BPU regulates: PSE&G, JCP&L, Atlantic City Electric and Rockland Electric. Net metering means each kWh you send to the grid cancels one kWh you take from it later. You get the full retail value, which is the price you pay for power.

Example: at the statewide average price of 23.23 cents per kWh, 100 kWh sent to the grid take $23.23 off what you would have paid.

Extra credits roll forward from month to month. Once every 12 months, any credits still left are credited on your bill at the wholesale value of electricity. Wholesale is the price utilities pay for power in bulk, and it is lower than the price on your bill. Your system also may not be sized to make more than your home uses in a year.

• The review: in November 2024 the BPU opened a review of net metering for new customers. It has set no new rule and no change date. In its order of May 21, 2026 it said there were no new developments.
• Existing systems: no order promises that today's terms stay for systems already connected. It is expected, not guaranteed.
• City-owned utilities: they set their own rules. Vineland's utility says it cannot support new systems above 5 kW, if at all, in parts of its grid. It pays nothing for extra power, and unused credits do not carry into the next year.

Watch out: If you switch electric supplier, the company that sells you the power itself, your saved credits are paid out at the wholesale price and a new yearly period starts. Check your credit balance before you switch.

Which taxes does a New Jersey solar system skip?

Two. Both are state law, and neither has an end date. There is no state income tax credit: the New Jersey income tax return has no line for a solar credit.

Do PSE&G and JCP&L pay for a home battery?

Yes, in different ways. There is no statewide battery rebate open now. What you can get depends on which utility sends your electric bill.

JCP&L example: a battery that gives an average of 3 kW during the events earns $300 for the summer. The payment depends on what the battery does in the events, not on its size on paper.

Watch out: PSE&G says its program has a limited number of places and can change or end without notice. Confirm that a place is open before you order a battery. The repayment plan is a loan with no interest, not a grant. If you leave the program, the rest is due within 30 days, and you may have to pay back part of the rebate.

Community solar and other options when your roof is not yours

When the New Jersey money does not reach you

• You lease or sign a PPA. The company owns the system and, in most contracts, the SREC-IIs. Your benefit is only what the contract gives back.
• Your quote still uses $85. Registrations received on or after July 27, 2026 get $77. Ask for a quote with the current price.
• Your system is switched on before the state accepts the registration. The registration must be accepted first. If it is not, you have to ask the Board to let the system in.
• Nobody reports your meter readings. Certificates are only created when readings are entered in PJM-GATS. Old power loses its SREC-II value: for power made from June 2024 to May 2025, the deadline was September 1, 2026.
• A city-owned utility sends your bill. State net metering rules do not apply there. Vineland may not accept a new system above 5 kW at all.
• Your quote still counts the federal tax credit. It is $0 for systems switched on after December 31, 2025.

New Jersey solar paperwork, from registration to first payment

1. Before you sign: check the contract type and the SREC-II line. The state has separate disclosure forms for a purchase, a lease and a PPA. Make sure yours says who owns the SREC-IIs.You, with your installer.
2. Before the install: register in the ADI Program. The registration goes into the state's online portal. The date it is received sets your price. After acceptance there are 12 months to finish the work.Usually your installer.
3. Apply to your utility to connect. This is the interconnection application, the utility's approval to connect your system to the grid. After the install, the utility gives permission to switch on and sets up net metering.Your installer files it. Your utility approves it.
4. At purchase: hand over Form ST-4. This is what removes the sales tax on the equipment.You sign it. The seller keeps it.
5. After switch-on: get your New Jersey certification number. Your installer sends the final documents to the state. The state then emails you the number.Your installer, then the state.
6. Register with PJM-GATS and the SREC-II Administrator. Open both accounts with your certification number and your bank details. Then enter a meter reading each month. Payment follows 6 to 8 weeks after each monthly billing round.You, unless your contract says your installer or a certificate manager does it.
7. File Form CRES for the property tax exemption. You and your installer sign it. The construction official approves it. The tax assessor receives it.You.

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