Solar & Net Metering Policy
Net metering is available in New Jersey, allowing solar owners to send excess electricity back to the grid and receive credits on their utility bill. Mandated for utilities until total state net metered capacity reaches 5.8% of peak demand. New Jersey does not currently offer a state solar tax credit, though the federal 30% ITC still applies to qualifying installations. Additional savings are available through a property tax exemption on the added home value and a sales tax exemption on solar equipment. New Jersey has an active SREC (Solar Renewable Energy Certificate) market, allowing solar owners to earn additional income by selling certificates for the electricity they generate.
Net Metering Notes
Mandated for utilities until total state net metered capacity reaches 5.8% of peak demand.
SREC Market Details
Successor Solar Incentive (SuSI) Program / Administratively Determined Incentive (ADI) pays per MWh generated.
Does New Jersey have net metering?
Yes. New Jersey has net metering, which allows solar panel owners to receive credits for excess electricity sent back to the grid. Mandated for utilities until total state net metered capacity reaches 5.8% of peak demand.
What solar tax credits are available in New Jersey?
New Jersey does not currently offer a state solar tax credit. However, the federal Investment Tax Credit (ITC) provides a 30% tax credit on qualifying solar installations nationwide.
What is the federal solar tax credit and does it apply in New Jersey?
The federal Investment Tax Credit (ITC) provides a 30% tax credit on the total cost of a solar installation. It applies in New Jersey for qualifying residential and commercial installations. The ITC is claimed on your federal tax return in the year the system is installed.
Is solar equipment exempt from property tax in New Jersey?
Yes. New Jersey offers a property tax exemption for solar installations, meaning the added home value from your solar system is not subject to additional property taxes.
Is there a sales tax exemption for solar in New Jersey?
Yes. New Jersey exempts solar energy equipment from state sales tax, which can save several percent on the upfront cost of your system.
Does New Jersey have an SREC market?
Yes. New Jersey has an active Solar Renewable Energy Certificate (SREC) market. Solar owners earn one SREC for every megawatt-hour (MWh) of electricity generated, which can be sold to utilities or brokers. Successor Solar Incentive (SuSI) Program / Administratively Determined Incentive (ADI) pays per MWh generated.
Are there utility rebates for solar in New Jersey?
Statewide utility rebates are not currently available in New Jersey. Some local utilities may offer their own programs — contact your utility directly for any available incentives.
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Official Source
New Jersey Public Utility Commission
Last verified: 2026-03-24 · Always confirm current incentives before installing solar.