Solar Calculator New Jersey 2026

Why New Jersey Solar Pencils Out in 2026

New Jersey residential rates jumped sharply after the 2025 PJM capacity-auction increases, and households on PSE&G, JCP&L, and Atlantic City Electric now pay roughly 23 to 24 cents per kWh — among the fastest-rising bills in the country. Sunshine is middling at about 4.2 peak sun hours per day, but when power is this expensive, every kWh a rooftop array offsets is worth a lot. Frame your baseline in the USA solar calculator, then layer in the state programs below.

Net Metering Plus a 15-Year SREC-II Paycheck

New Jersey still mandates full retail net metering statewide: exported kWh are credited at the retail rate and netted over an annual cycle, with any year-end surplus paid at avoided cost. On top of bill savings, the Successor Solar Incentive (SuSI) program pays homeowners for every megawatt-hour their system produces. Residential net-metered systems register under the Administratively Determined Incentive (ADI) track and earn one SREC-II per MWh — currently valued at $85 — locked in for 15 years. A 7 kW system at 4.2 sun hours generates about 10.7 MWh per year, which works out to roughly $900 in annual SREC-II income on top of bill savings. Incentive values are set and periodically reviewed by the state Board of Public Utilities, so confirm the current SREC-II price with NJBPU before signing a contract.

New Jersey Tax Treatment

• Solar equipment is fully exempt from the 6.625% state sales tax — over $1,300 off a typical purchase.
• The home value your system adds is 100% exempt from property tax.
• There is no state income-tax credit; SREC-II production income does the heavy lifting instead.

The Federal Picture, Honestly

The 30% federal residential credit (Section 25D) ended for owned systems placed in service after December 31, 2025. Cash and loan buyers in 2026 get no federal credit. Leases and PPAs are a partial workaround: the provider can claim the commercial 48E credit (expected through roughly 2027) and typically prices some of that value into your agreement — though third-party deals also mean the company, not you, usually keeps the SRECs. Compare both paths in the solar savings calculator.

A Worked New Jersey Example

A 7 kW system at $3.00 per watt runs about $21,000, with no sales tax added. It should produce near 10,700 kWh per year; at 23.5 cents that is roughly $2,500 in bill savings, plus about $900 in SREC-II payments — around $3,400 per year all-in, for a payback near 6 to 7 years with no federal credit at all, tightening further as rates climb. If you plan to swap oil or gas heat for heat pumps, size the larger load with the home electrification calculator or the mini-split calculator, and price outage backup in the battery bank calculator — New Jersey pays SREC-II on everything you generate, whether you use it or export it.

Solar calculators for other US states

Localized rates, net-metering and incentive context for more states — or use the national USA solar calculator (all 50 states + DC selectable).

Frequently asked questions

Residential net-metered systems registered through the SuSI program's ADI track currently earn a fixed $85 per SREC-II — one certificate per megawatt-hour generated — guaranteed for 15 years from registration. A typical 7 kW home system producing about 10.7 MWh a year collects roughly $900 annually. The NJ Board of Public Utilities sets and periodically reviews these values, so verify the current figure with NJBPU before signing.

Yes. New Jersey law requires investor-owned utilities like PSE&G, JCP&L, and Atlantic City Electric to credit exported energy at the full retail rate, netted over an annualized billing period, with any year-end surplus compensated at the utility's avoided-cost rate. The policy remains in effect statewide in 2026, but confirm your utility's current tariff and annual true-up month before installation.

Not for purchased systems. The Section 25D residential credit ended for owned systems placed in service after December 31, 2025. Lease and PPA customers can still capture similar value indirectly because the provider claims the commercial 48E credit through about 2027 — but with third-party ownership the company usually keeps the SREC-II payments, so run both scenarios before choosing.

Two exemptions apply: solar equipment purchases are exempt from the 6.625% state sales tax, worth over $1,300 on a typical system, and the resale value the array adds to your home is fully exempt from local property tax. New Jersey has no state income-tax credit for solar — the state's headline incentive is instead the 15-year SREC-II production payment.