Solar Incentives in New Jersey (2026)
New Jersey homeowners pay an average of $0.17/kWh for electricity. With the right incentives, solar can offset a significant portion of that cost. Below are the 6 active programs available in New Jerseyas of February 2026.
Federal ITC Update: The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032. State and utility programs listed below remain in effect.
Active Incentive Programs
| Program | Type | Authority | Amount | Description |
|---|---|---|---|---|
| SREC / TREC | New Jersey Board of Public Utilities State | ~$25.25 per TREC (1 TREC = 1 MWh). Market-traded. | Solar systems earn TRECs for each MWh of electricity generated. TRECs are sold on the open market to utilities for RPS compliance. Price fluctuates with supply/demand. Grid-connected solar systems registered with NJ SREC Registration Program. Systems installed after 2020 earn TRECs (older systems earn legacy SRECs). | |
| Rebate | New Jersey Board of Public Utilities State | Fixed $/kWh payment for 15 years. Rate set administratively by BPU based on system size and type. | Successor to the SREC/TREC program for smaller solar systems. Provides fixed, predictable incentive payments over 15 years. Net-metered residential and small commercial systems in New Jersey. | |
| Net Metering | New Jersey Board of Public Utilities State | Full retail rate credit for excess generation. | New Jersey offers full retail rate net metering. Excess credits roll over month to month; annual true-up in April. All NJ electric utility customers. Systems up to 2 MW. | |
| Property Tax Exemption | New Jersey Division of Taxation State | 100% of added value from solar is exempt from property tax | Solar energy systems do not increase property tax assessment in New Jersey. All residential solar installations in New Jersey. | |
| Sales Tax Exemption | New Jersey Division of Taxation State | Exempt from NJ 6.625% sales tax on solar energy equipment | Solar energy equipment is fully exempt from New Jersey sales tax. All solar energy equipment purchases in New Jersey. | |
| Community Solar | New Jersey Board of Public Utilities State | 10-20% bill savings for subscribers. Up to 40% in some programs. | Permanent community solar program. Projects must reserve 51% of capacity for low-to-moderate income subscribers. Over 28,000 subscribers currently enrolled. Renters, homeowners, and businesses who cannot install rooftop solar. LMI subscribers prioritized. |
Data sourced from DSIRE, EnergySage, and state energy offices. Last verified February 2026. Verify all programs directly with the administering authority.
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Programs vary by utility and municipality within New Jersey. Enter your ZIP code to see exactly which incentives apply to your address.
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Open ROI CalculatorFrequently Asked Questions
Does New Jersey have a solar tax credit in 2026?
New Jersey does not currently have a state-level solar income tax credit, but there are other incentives available such as net metering, property tax exemptions, and utility rebates. The federal residential ITC (Section 25D) expired December 31, 2025.
What is the average electricity rate in New Jersey?
The average residential electricity rate in New Jersey is approximately $0.17/kWh as of 2026. Higher utility rates generally improve solar ROI.
Does New Jersey have net metering?
Yes. New Jersey has a net metering or net billing policy that credits solar owners for excess electricity exported to the grid. See the incentives table above for current rates and program details.
Is solar equipment exempt from sales tax in New Jersey?
Yes. New Jersey exempts solar energy equipment from state sales tax, reducing upfront system costs.
Does going solar increase property taxes in New Jersey?
No. New Jersey offers a property tax exemption for solar energy systems, meaning the added home value from solar is not included in your property tax assessment.
Did the federal solar tax credit expire?
Yes. The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032.