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New Jersey Solar Incentives 2026

Take advantage of federal, state, and local incentives to reduce your solar installation costs

Federal Incentives

Federal Solar Investment Tax Credit (ITC) - EXPIRED

0%

The 30% federal tax credit for customer-owned residential solar systems expired on December 31, 2025. Homeowners who purchased and installed systems by 12/31/2025 may still claim the credit on their 2025 tax return. For systems installed in 2026 and beyond, the residential ITC is no longer available for customer-owned systems.

Eligibility: EXPIRED as of January 1, 2026 for new customer-owned installations. Third-party owned systems (leases/PPAs) may still offer savings through commercial tax credits passed to customers.

Expires: December 31, 2025

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Solar Lease/PPA Savings (via Commercial ITC)

Varies

While the residential solar tax credit expired 12/31/2025, third-party owned solar systems (leases and PPAs) can still benefit from commercial tax credits through 2027. These savings are typically passed to customers through lower lease payments or electricity rates.

Eligibility: Available for solar leases and Power Purchase Agreements (PPAs) where a third-party company owns the system and sells you the electricity.

Expires: December 31, 2027

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New Jersey State Incentives

New Jersey Property Tax Exemption for Solar

100%

Solar energy systems that are certified as renewable energy systems are exempt from property tax assessment on the value they add to your home in New Jersey.

Eligibility: New Jersey property owners with a certified renewable energy system installed on residential, commercial, or industrial property

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New Jersey Sales Tax Exemption for Solar

100%

Solar energy devices and systems are fully exempt from New Jersey sales and use tax, eliminating the 6.625% state sales tax on eligible solar equipment purchases.

Eligibility: All New Jersey purchasers of qualifying solar energy devices or systems designed to provide heating, cooling, or power

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Successor Solar Incentive Program (SuSI)

$0.085

Under the SuSI ADI Program, eligible residential solar installations earn one SREC-II for every megawatt-hour of production, with residential net-metered systems receiving a fixed incentive of $85 per MWh for 15 years.

Eligibility: Net-metered residential and other qualifying solar installations in New Jersey that meet NJBPU SuSI Program requirements

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Utility Company Incentives

PSE&G Solar Programs

PSE&G Territory

PSE&G offers net metering for qualifying customer-sited solar systems, allowing residential customers to receive credits on their bills for excess electricity exported to the grid.

Eligibility: PSE&G electric customers with eligible grid-connected solar installations that meet interconnection and net metering requirements

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JCP&L Solar Programs

JCP&L Territory

JCP&L provides net metering for residential and commercial customers with eligible behind-the-meter solar systems, crediting excess generation against electricity usage and settling remaining credits annually.

Eligibility: JCP&L customers with approved interconnection agreements for qualifying renewable generation sized to meet on-site needs

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Atlantic City Electric Solar Programs

ACE Territory

Atlantic City Electric participates in New Jersey’s net metering program, allowing eligible solar customers to receive bill credits at the retail rate for excess electricity sent to the grid, with annual true-up of remaining credits.

Eligibility: Atlantic City Electric customers in New Jersey with grid-connected solar systems that meet state net metering and interconnection standards

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Rockland Electric Solar Programs

RECO Territory

Rockland Electric Company offers net metering for eligible customer-owned solar generation in its New Jersey service territory, installing a bidirectional meter and crediting excess output under the state’s net metering rules.

Eligibility: Rockland Electric (RECO) customers in New Jersey with qualifying solar systems interconnected under the utility’s net metering requirements

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