Solar Incentives in New Jersey

New Jersey's Successor Solar Incentive (SuSI) programme replaced the closed Solar Renewable Energy Certificate (SREC) market. Residential systems earn TREC-2 certificates valued at a fixed administrative price set by the Board of Public Utilities (BPU). The current cohort price (Year 5 of SuSI) is approximately $85/MWh; earlier cohorts were set at $90/MWh. A 7 kW residential system in New Jersey generates approximately 8.4 MWh/year — earning ~$715/year in TREC revenue, summing to ~$10,725 over the 15-year contract period. The programme is administered by the New Jersey Clean Energy Program (NJCEP); applications are filed through the NJCEP portal post-installation. Storage-paired systems may earn additional incentives through the NJ BPU Storage Incentive Program when launched. The SuSI residential cohort budget refills annually; first-come-first-served once each cohort opens.

Under New Jersey Statute N.J.S.A. 54:4-3.113a, certified renewable energy systems (including solar PV) installed on residential and commercial property are exempt from local property tax assessment. The exemption applies to the assessed value added by the system, not to the underlying property value. Application is filed with the local municipal tax assessor using Form FBA — Solar Energy System Tax Exemption. Approved exemptions remain in effect for the life of the system; transfer to a new owner is automatic upon property sale. The exemption stacks with all other state and federal incentives. Battery storage installed alongside qualifying solar PV is generally eligible under the same exemption.

Under N.J.S.A. 54:32B-8.33, sales of solar energy systems and components — including PV modules, inverters, mounting hardware, racking, balance-of-system components, and battery storage paired with the system — are exempt from New Jersey sales tax (6.625%). The installer applies the exemption at point of sale by completing form ST-4 (Exempt Use Certificate). The homeowner does not need to file separately. The exemption applies whether the equipment is purchased outright, leased, or financed. Standalone equipment purchases without an installation contract may still qualify when the buyer is a registered installer applying the certificate.

New Jersey maintains 1:1 retail-rate net metering for solar PV systems up to 1 MW capacity. Excess generation in any billing period rolls forward as kWh credits on the customer's bill, with no annual reset or cash-out. The customer's net consumption (imports minus exports) is billed at standard retail rates from PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric. New Jersey's high retail electricity rate ($0.18/kWh average, climbing toward $0.22/kWh in JCP&L territory) makes net metering economically powerful — particularly when paired with TREC-2 income, which is calculated separately from net-metering credits. The state's Net Metering rules survived multiple legislative reviews intact through 2025; ongoing utility-led proposals to migrate to net-billing have not advanced as of mid-2026.