🏙️ New Jersey Solar Policy

New Jersey Solar Incentives & SREC-II Guide (2026)

Dr. Aris Thorne
Dr. Aris Thorne
NABCEP Certified Solar Consultant
📅 Updated: 2026-08-20 ⏱️ 6 min read ✓ Fact-Checked
New Jersey suburban home with rooftop solar generating SuSI SREC-II cash incentive credits
💡

Key Takeaways & Executive Summary

  • SuSI / SREC-II Cash Credits: Homeowners earn fixed Solar Renewable Energy Certificates for every Megawatt-Hour (MWh) produced for 15 years.
  • 100% Property Tax Exemption: Value added to your home by solar panels is completely exempt from local New Jersey property taxes.
  • 0% State Sales Tax: Solar equipment and installation labor are 100% exempt from New Jersey's 6.625% sales tax.
  • Fast Payback: High electricity rates (~19¢/kWh) plus SREC cash payouts yield rapid 4 to 6 year payback periods.
SuSI SREC Value $85/MWh 15-Year Fixed Payout
Avg Payback 5.1 Yrs Fastest in Mid-Atlantic
Sales Tax 0% Exempt by State Law
Net Metering 1:1 Retail PSE&G, JCP&L, ACE

New Jersey has long been a national powerhouse in residential solar adoption. In 2026, through the Successor Solar Incentive (SuSI) program and strong tax protections, the Garden State offers one of the most lucrative solar ROIs in the country.

1. The NJ SuSI (SREC-II) Program Explained

Under the SuSI Administratively Determined Incentive (ADI) pathway, residential solar owners receive an administratively fixed credit of approximately $85 per SREC-II (1,000 kWh generated) for 15 full years. An 8 kW system producing ~10,000 kWh per year earns an extra $850 per year in pure cash payouts on top of monthly electricity bill savings.

Frequently Asked Questions

How do SRECs get paid to homeowners in New Jersey?

Your system's generation meter tracks kWh output. SREC brokers or your solar installer automatically aggregate these credits and deposit cash payouts directly into your bank account monthly or quarterly.