New Jersey Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows New Jersey homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $17,100 in New Jersey, that's a direct tax credit of $5,130. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

New Jersey does not currently offer a state-level solar tax credit. However, New Jersey homeowners still benefit from the substantial 30% federal ITC, worth $5,130 on a typical 6kW system. Additionally, ADI successor program replaces legacy SRECs. Even without a state credit, solar is economically attractive in New Jersey with electricity rates averaging 22.63¢/kWh — well above the national average.

New Jersey has an active SREC market through the ADI (Administratively Determined Incentive): $85/MWh fixed for 15 years program. For every megawatt-hour (MWh) of solar electricity your system produces, you earn one SREC that can be sold to utilities for approximately $85/MWh.

A 6kW system in New Jersey produces approximately 7.1 MWh per year, earning you roughly $604/year in SREC revenue. Over 25 years, that's an additional $15,096 in income on top of your electricity bill savings. SREC values fluctuate based on supply and demand, so actual earnings may vary.

Great news for New Jersey homeowners: Solar energy systems are exempt from property tax assessments. 100% property tax exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with New Jersey's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

New Jersey exempts solar energy equipment from state sales tax. On a 6kW system costing $17,100, this saves you approximately $1,112 at the point of purchase. This is an immediate, upfront savings that reduces your out-of-pocket cost before even accounting for tax credits.

Net metering policy: Full Retail Rate. Full retail rate net metering; annual true-up in June The current system size cap is 25 kW residential.

New Jersey's full retail rate net metering is one of the strongest solar policies available. Every excess kWh your system sends to the grid earns you a credit at the full retail rate of 22.63¢/kWh. This means your solar panels generate maximum value — surplus energy produced during sunny hours offsets your evening and nighttime consumption at the same rate you'd pay to buy that electricity.

ADI successor program replaces legacy SRECs

Utility rebates and state programs can change frequently. We recommend checking with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for the most current programs available in your area.

New Jersey has a mandatory Renewable Portfolio Standard (RPS) target of 50% by 2030, 100% clean by 2050. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.