Rebates and incentives, New Jersey

New Jersey solar tax credit and rebate estimator

Full retail net metering, a 15-year SREC-II income stream, and two permanent tax exemptions. See your numbers, including the rate change that hits new registrations after July 26, 2026.

Your New Jersey value

1 Project details Optional
2 SREC-II registration
Whatever rate applies at registration locks in for 15 years. Lease and PPA systems assign SREC-II income to the system owner, not you.
3 Monthly energy numbers

How it works

Three steps to your New Jersey result

Step 1

Time your registration around July 27, 2026

The residential SREC-II rate drops from $85 to $77 per MWh for registrations submitted on or after July 27, 2026, so ask your installer where your project stands in the interconnection and registration queue. Use the SREC value estimator to compare both rates side by side.

Step 2

Confirm ownership before assuming you'll collect SREC-II income

Only the system owner receives SREC-II payments and net metering credits. If you sign a lease or PPA, that income goes to the third-party owner instead of you, even though you host the system. Check your federal ITC status too, since ownership structure affects which federal credit path applies.

Step 3

Don't budget around a residential battery rebate yet

The Garden State Energy Storage Program's residential phase has not published incentive amounts as of mid-2026. If you're adding a battery now, do it for backup power and rate arbitrage, not for a rebate that isn't finalized.

New Jersey's incentive stack remains one of the strongest in the country

SREC-II payments just changed, and the timing of your registration matters

New Jersey's Successor Solar Incentive program pays residential net-metered systems a fixed dollar amount per SREC-II, where one SREC-II equals one megawatt-hour of solar production, for 15 years from registration. Per the NJBPU's own order dated May 21, 2026, the Board directed a reduction in the residential rate from $85 to $77 per MWh, effective for registrations received on or after July 27, 2026. Older guides citing $90 reflect a prior rate block from before March 2023, and at least one source describes a $76.50 rate tied to a March 2026 effective date, neither of which matches the official Board order, so treat the $85-to-$77 transition on July 27, 2026 as the current authoritative figure and confirm your exact registration date and rate with your installer. Run the numbers on both sides of that date with the SREC value estimator before you sign a contract.

Full retail net metering remains intact across all major utilities

New Jersey requires PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric to credit excess solar generation at the full retail rate, not a discounted export rate the way many other states now do. Credits carry over month to month within an annualized billing period, so a system that overproduces in summer can offset a heavier winter bill. This 1:1 crediting is a meaningfully stronger deal than the tiered or partial-retail net metering structures common elsewhere in the Northeast. Compare against the Massachusetts incentive estimator for a neighboring state's different structure.

Both tax exemptions apply automatically, no separate filing needed

Solar equipment and battery storage hardware are fully exempt from New Jersey's 6.625% sales tax, and your installer applies this exemption at the point of sale without any separate paperwork from you. Property tax works similarly: state law excludes the value your solar system adds to your home from your property tax assessment, so installing solar does not raise your tax bill, and most municipalities apply this without requiring a special exemption filing. Together these exemptions typically save $1,300 to $2,000 upfront plus an ongoing annual property tax difference that depends on your local mill rate. The New Jersey Clean Energy Program is the best place to confirm your specific municipality's current process.

A residential battery rebate is coming, but the amount isn't set yet

The NJBPU approved the Garden State Energy Storage Program in June 2025 to fund battery storage statewide, targeting 2,000 megawatts by 2030. Phase 1, covering large transmission-scale storage, awarded capacity in March 2026. Phase 2, the residential and small-business segment, is still in development as of mid-2026, with incentive amounts and an application process not yet published. If you're adding a battery alongside solar now, plan around backup power and time-of-use rate savings rather than a specific rebate figure, and check njcleanenergy.com periodically for the Phase 2 launch. The savings with battery vs without battery comparison can show whether adding storage still makes sense before Phase 2 incentives are finalized.

Questions

Frequently asked

As of an NJBPU order dated May 21, 2026, the residential net-metered rate is $85 per SREC-II (one SREC-II equals one megawatt-hour produced) for any registration submitted before July 27, 2026. Registrations submitted on or after July 27, 2026 receive $77 per SREC-II instead. Whatever rate applies at your registration date locks in for 15 years, so earlier registration under the older, higher rate is worth more over the life of the program. Some older articles cite $90 or other figures from prior review periods, so always check your registration date against the current order.

Yes. New Jersey requires all four major utilities, PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric, to credit excess solar generation at the full retail electricity rate, not a discounted export rate. Credits roll over month to month within an annualized billing period, so summer overproduction can offset winter usage.

Yes, for both. Solar energy systems and battery storage equipment are fully exempt from New Jersey's 6.625% sales tax, and installers apply this at the point of sale with no separate application. Property tax works the same way: the added value your solar system contributes to your home's assessment is excluded from your property tax bill under state law, without requiring a special filing in most municipalities.

Not yet for homeowners as of mid-2026. The Garden State Energy Storage Program was approved by the NJBPU in June 2025 and its Phase 1, for large transmission-scale storage, awarded capacity in March 2026. Phase 2, which will cover residential batteries, has not had its incentive amounts or application process finalized. Don't count on a specific dollar figure until NJBPU publishes the Phase 2 order.

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