
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
Learn more →Solar Lease/PPA Savings (via Commercial ITC)
VariesWhile 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
Learn more →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
Learn more →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
Learn more →Successor Solar Incentive Program (SuSI)
$0.085Under 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
Learn more →Utility Company Incentives
PSE&G Solar Programs
PSE&G TerritoryPSE&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
Learn more →JCP&L Solar Programs
JCP&L TerritoryJCP&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
Learn more →Atlantic City Electric Solar Programs
ACE TerritoryAtlantic 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
Learn more →Rockland Electric Solar Programs
RECO TerritoryRockland 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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