NJ incentive guide
New Jersey solar incentives in 2026
Last updated · every NJ program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in New Jersey right now is SuSI / SREC-II payments for 15 years. Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in New Jersey this year, there is no federal credit. That is a roughly $8,280 swing on an $27,600 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What New Jersey offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | No | — |
| Rebate or performance payment | Yes | Roughly $85–90 per MWh generated for 15 years for registered residential systems |
| SREC market | Yes | New Jersey has a solar renewable energy certificate market you can sell into. |
| Sales tax exemption | Yes | Qualifying solar equipment is exempt from state sales tax. |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
New Jersey solar tax credit
There is no New Jersey solar tax credit in 2026, and no federal one either — Section 25D ended for systems installed after December 31, 2025. What New Jersey does offer on the tax side is sales and property tax exemptions, covered below.
New Jersey solar rebates and grants
Roughly $85–90 per MWh generated for 15 years for registered residential systems. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it. New Jersey does have a solar renewable energy certificate (SREC) market, which pays per megawatt-hour your system generates rather than up front.
The SuSI/SREC-II program pays a fixed amount (on the order of $85–90) per MWh generated for 15 years for registered residential systems, plus sales tax exemption. Verify current registration terms.
Net metering and export rates in New Jersey
New Jersey requires full retail net metering with annual true-up at avoided cost — one of the strongest export policies in the country.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a New Jersey home at an assumed $0.19/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in New Jersey costs roughly $21,200–$27,600 installed before incentives, producing about 10,080 kWh a year and saving around $1,578 in year one — a simple payback near 13–17 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are New Jersey solar tax credits worth in 2026?
New Jersey offers no residential solar income tax credit in 2026, and the 30% federal credit ended for systems installed after December 31, 2025. What remains on the tax side is sales and property tax exemptions, which lower cost indirectly rather than paying you back.
Does New Jersey have solar rebates?
Yes. Roughly $85–90 per MWh generated for 15 years for registered residential systems. Rebate programs in NJ are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a New Jersey solar property tax exemption?
Yes. New Jersey excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill. New Jersey also exempts qualifying solar equipment from state sales tax, which comes straight off the installed price.
What solar incentives are available in New Jersey in 2026?
The SuSI/SREC-II program pays a fixed amount (on the order of $85–90) per MWh generated for 15 years for registered residential systems, plus sales tax exemption. Verify current registration terms. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in New Jersey?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does New Jersey have net metering?
New Jersey requires full retail net metering with annual true-up at avoided cost — one of the strongest export policies in the country. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in New Jersey?
Before incentives, a typical 8 kW system in New Jersey runs roughly $21,200–$27,600. Roughly $85–90 per MWh generated for 15 years for registered residential systems — the value depends on current funding. See our full New Jersey cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: