The New Jersey Solar Landscape: The SuSI Program & SREC-II Credits
New Jersey has historically ranked among America's top solar markets thanks to forward-thinking regulatory leadership by the New Jersey Board of Public Utilities (NJ BPU). The state operates the Successor Solar Incentive (SuSI) program, featuring the Administratively Determined Incentive (ADI) which provides 15 years of guaranteed SREC-II cash certificate payouts.
How SREC-II Cash Certificates Work in the Garden State
Every time your residential solar array produces 1 Megawatt-hour (MWh) of electricity (equivalent to 1,000 kilowatt-hours), you are automatically issued one Solar Renewable Energy Certificate-II (SREC-II).
Under the BPU SuSI program, residential net-metered solar systems receive a guaranteed, fixed price of $85.00 per SREC-II for 15 years. This is not a tax deduction or utility bill credit; it is an active revenue stream deposited electronically into your bank account. A standard 10 kW system producing 12 MWh annually generates approximately $1,020 in annual cash payouts, totaling over $15,300 in guaranteed income over the 15-year statutory period.
New Jersey State Tax Exemptions
- 100% Sales Tax Exemption: All solar photovoltaic equipment, inverters, racking, and battery storage hardware are 100% exempt from New Jersey's 6.625% state sales tax under the New Jersey Sales and Use Tax Act.
- 100% Property Tax Exemption: Adding a solar energy system substantially enhances home equity. Under NJ Statute 54:4-3.113, 100% of the assessed home valuation increase resulting from solar equipment is exempt from local municipal property taxes.
Net Metering with PSE&G, JCP&L, and Atlantic City Electric
New Jersey enforces robust 1:1 net metering rules across all three investor-owned utilities: Public Service Electric and Gas (PSE&G), Jersey Central Power & Light (JCP&L), and Atlantic City Electric. Homeowners receive full retail-rate credits for excess power pushed to the grid. Unused credits roll over monthly, with an annual cash true-up at the utility's wholesale avoided-cost rate at the conclusion of your chosen 12-month billing period.
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.