NJ Solar Incentives, Credits & Energy Savings
Last updated: January 2026
New Jersey is one of the best states in the country for going solar. Homeowners can lower their electric bill through utility bill credits, earn additional value from NJ’s production-based solar incentive program (for eligible systems), and benefit from major state tax advantages like sales-tax and property-tax exemptions on qualifying installations. This page breaks down the main NJ incentives in plain English—and what we verify for your home and utility—so you can make a confident decision with current information.
Federal Solar & EV Incentives
Even as some programs evolve, there are still valuable federal incentives that can help lower the cost of going solar or upgrading your energy setup — especially for homeowners adding EV chargers or recently installed solar or battery systems.
EV charger tax credit (30C): If you’re installing an electric vehicle charger at home, you may be eligible for a federal tax credit that covers 30% of your project cost, including hardware and installation. This program is currently available for qualifying installations placed in service through June 30, 2026, and eligibility depends on your location. We’ll help you confirm if your home qualifies so you don’t leave money on the table.
Already installed solar or batteries? If your project was completed recently, you may still be able to claim a federal tax credit on your next return, or carry forward unused credits. We’ll go over your system details during your consultation to make sure you’re getting the savings you’re entitled to.
New Jersey Net Energy Metering
The Net Energy Metering program allows homeowners and businesses with solar panels to earn credits on their electric bill for excess electricity sent back to the grid. In most cases, utilities credit this energy at the retail rate during the billing cycle, helping reduce future usage charges.
Net metering credits roll over month-to-month and are reconciled annually. Any remaining credits at the end of the year are typically converted to a bill credit at a market-based rate. This helps homeowners get more value from their solar energy system and reduce their long-term electricity costs.
New Jersey Successor Solar Incentive Program (SuSI)
The New Jersey government's SuSI initiative replaces the SRECs and TRECs programs as the latest incentive for solar owners.
Residential solar owners who apply for the Administratively Determined Incentive (ADI) program can earn credits worth approximately $85 for every 1,000kWh of electricity their system generates, based on current ADI rates, for up to 15 years, which they can sell to utility providers for cash.
If your solar system generates 8,000 kWh per year, that could add up to $680.
Projected earnings over 15 years would look like this:
We advise applying swiftly following your solar panel setup in order to take full advantage of the available solar panel incentives in New Jersey, as incentive rates and program capacity are subject to state allocation and enrollment rules.
Sales & Property Tax Exemptions
The New Jersey government offers two tax exemptions: the Solar Energy Sales Tax Exemption and the Property Tax Exemption. When purchasing a solar system, residents will not have to pay the 6.625% state sales tax, resulting in significant savings that make installations more affordable.
Furthermore, homeowners will not pay additional property taxes on the value added by solar panels, as the increased assessed value from a qualifying solar system is exempt under New Jersey law. Studies have shown that owned solar systems can increase a home’s resale value, particularly in markets with higher electricity costs, which can contribute to long-term financial benefits for homeowners.
FAQ About NJ Solar Incentives
Can I sell excess energy back to the grid in New Jersey?
You can receive credits on your electric bill to lower your electricity cost with New Jersey's Net Energy Metering. These credits may be used during times when your solar panels aren't producing enough electricity, such as at night, and any remaining credits can be applied to the next month's bill or reconciled annually, often as a bill credit based on market rates.
How long does it take for solar panels to pay for themselves in New Jersey?
The payback period of solar panels in New Jersey ranges from 5 to 8 years, depending on factors such as the size of your installation, electricity rates, and the amount of sunlight your property receives. These numbers reflect electricity bill savings and common state incentive programs in New Jersey. Actual payback depends on your utility rates, production, and which programs apply to your system.
Do solar panels add value to the property?
Yes, installing solar panels can significantly increase the value of a property. Not only do the panels improve energy efficiency, they also reduce electricity bills, which can be a major draw for buyers. Furthermore, in New Jersey, property owners don't have to worry about a tax increase due to the installed solar panels since there is a property tax exemption.
How much does the solar system cost in New Jersey?
In New Jersey, solar system installation can range from approximately $15,000 to $25,000 before solar incentives in NJ are applied. Many homeowners find that long‑term savings from reduced utility bills and state incentive payments can make solar a strong financial investment.
Does the state of New Jersey offer solar panels for free?
No, New Jersey does not provide free solar panels. However, New Jersey offers state programs and utility bill savings that can significantly improve the long‑term value of a solar panel system.
