New Jersey has one of the most valuable solar incentive setups in the country in 2026, which is why payback here is among the fastest in the nation. With the 30% federal tax credit now expired, New Jersey’s own layer is the whole story – and it is one of the strongest in the country: a performance-payment program plus tax exemptions. Here is everything you can claim.
New Jersey Solar Incentives in 2026
- No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025. What changed.
- SuSI / SREC-II performance payments — New Jersey pays you for the electricity your system produces, typically for 15 years.
- Sales tax exemption on solar equipment.
- Property tax exemption on the added home value.
- Net metering for excess power sent to the grid.
What Solar Costs in New Jersey
A typical 7 kW system runs about $21,000 before incentives. After New Jersey's performance payments and tax exemptions, your effective cost drops substantially, and the SREC income keeps paying you for years.
Is Solar Worth It in New Jersey?
For most homeowners, clearly yes. High electricity prices and one of the best performance-payment programs in the U.S. still make New Jersey a top-tier solar state, even without a federal credit. Payback is often under 8 years.
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FAQ
What is the SuSI / SREC program?
New Jersey's performance-payment program: you earn certificates for the electricity your system generates and get paid for them, typically over 15 years.
Do I pay sales or property tax on solar in NJ?
No. New Jersey exempts solar equipment from sales tax and the added home value from property tax.
Related
General 2026 guidance, not tax advice. Verify current NJ program rules before purchasing.