New Jersey solar incentives in 2026, in one line: no federal credit for a system you buy, but 15 years of SREC-II payments plus sales and property tax exemptions keep New Jersey among the best-paying solar states. Last updated: 30 October 2026.
New Jersey Solar Incentives 2026 at a Glance
| Incentive | Status in 2026 | What it is worth |
|---|---|---|
| Federal residential credit (Section 25D) | Ended 31 Dec 2025 | $0 on a 2026 cash or loan purchase |
| Federal Section 48E (lease / PPA) | Claimed by the system owner, not you | Indirect – may show up as a lower lease or PPA rate; tightens after 2027 |
| SuSI / ADI SREC-II payments | Active | 1 SREC-II per MWh for 15 years; a fixed BPU-set value for 15 years ($85 for home systems after the 2025 cut; the BPU can lower it for new registrations) – roughly $600-$700 a year for a 7 kW system |
| Sales tax exemption | Active | The 6.625% sales tax is waived on solar equipment |
| Property tax exemption | Active | The value solar adds is not assessed |
| Net metering | Active | Exports credited at the retail rate; annual excess paid at a lower rate |
| State solar income tax credit | None | New Jersey does not offer one |
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.
Want the full price picture? See our breakdown of solar panel cost in New Jersey, with 2026 prices per watt, SREC-II income and real payback numbers.
New Jersey Solar Incentives in 2026
- No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025. See solar tax credit 2026.
- SuSI / SREC-II payments - one certificate per megawatt-hour, paid 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.
Is There a New Jersey Solar Tax Credit in 2026?
No. New Jersey does not offer a state income tax credit for home solar, and the 30% federal credit (Section 25D) ended on 31 December 2025. If a 2026 quote for a system you buy still shows a "solar tax credit" line, ask the installer to remove it. What New Jersey gives you instead is worth more over time:
- SREC-II income for 15 years through the ADI program.
- No sales tax on solar equipment (the 6.625% is waived).
- No property tax on the value solar adds to your home.
- Full retail net metering.
New Jersey Net Metering in 2026: Still Full Retail?
Yes, for now. Home systems in New Jersey are still credited at the full retail rate for the power they send to the grid, so each exported kWh offsets a kWh you buy later. Credits roll forward month to month, and anything left at the end of your annual period is paid out at a lower rate - so size the system to your usage rather than oversizing it. The BPU has been reviewing net metering reforms, so confirm the current rule with your utility (PSE&G, JCP&L, ACE or RECO) before you sign.
New Jersey Solar Property Tax Exemption
New Jersey law exempts the value a qualifying solar system adds to your home from property tax, so your assessment should not rise because you installed panels. Ask your installer for the certification paperwork and check with your municipal tax assessor how to claim it.
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 often lands around 8-10 years.
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New Jersey Solar Incentives FAQ
What solar incentives does New Jersey offer in 2026?
SREC-II payments through the SuSI / ADI program, a sales tax exemption, a property tax exemption and net metering. There is no federal credit for a system you buy and no New Jersey solar tax credit.
Does New Jersey have a solar tax credit in 2026?
No. There is no New Jersey state solar tax credit, and the federal 25D credit ended on 31 December 2025. New Jersey's value comes from SREC-II payments, sales and property tax exemptions and net metering - see NJ solar tax credit above.
How much is a New Jersey SREC-II worth?
Home systems registered in the ADI program earn a fixed value per certificate for 15 years - $85 after the BPU's 2025 cut, and the BPU can step it down again for new registrations, so check the value at the time you register. A 7 kW system makes roughly 8 MWh a year, so expect around $650-$700 a year. Values are set by the BPU and can change for new registrations.
What is the SuSI / SREC program?
New Jersey's performance-payment program: you earn one SREC-II for every 1,000 kWh your system generates and get paid for them for 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.
Does New Jersey still have full retail net metering in 2026?
Yes. Excess power is credited at the retail rate, and any surplus at the end of the annual period is paid out at a lower rate.
Can I combine New Jersey and federal incentives?
There is no federal credit left to stack on a 2026 cash or loan purchase - Section 25D ended 31 December 2025. New Jersey incentives still stack with each other. With a lease or PPA, the system owner may claim Section 48E - see solar tax credit 2026.
Related
- Solar incentives by state
- Solar tax credit 2026: what changed
- Solar panel cost in New Jersey
- New York solar incentives
- Pennsylvania solar incentives
- Net metering explained
- Solar panel cost
- Is solar worth it?
General 2026 guidance, not tax advice. Verify current NJ program rules before purchasing.