NJ Solar Incentives in 2026
New Jersey's state-level solar incentives are among the strongest in the country. Here's what's active today, how the programs work, and how we think about them with every homeowner.
Current NJ SREC-II / ADI Clearing Price
What is the current NJ SREC-II / ADI clearing price? As of , the NJ Successor Solar Incentive (SREC-II) / Administratively Determined Incentive clearing price for residential systems is 76.50 per MWh, locked in for 15 years from your system's registration date.
Why this matters
An 8 kW residential system in NJ generates roughly 10 MWh per year — so at the current clearing price, that's about $765/year in SREC income on top of your bill savings. The price is locked in at registration, so the number on this card is the one your installer should plug into your 15-year savings projection.
Recent monthly clearing prices
Trend over the last 6 months. NJ's ADI is fixed for 15 years from the date your system registers — so the rate you lock in is the rate that pays for the next decade and a half.
| Month | Clearing price (per MWh) | Change from prior month |
|---|---|---|
| $84.50 | — | |
| $82.00 | −$2.50 | |
| $80.50 | −$1.50 | |
| $78.75 | −$1.75 | |
| $77.00 | −$1.75 | |
| $76.50 | −$0.50 |
Active NJ Incentives
SREC-II / ADI Program
Earn $76-95 per MWh for 15 years. Locked in from registration date. A typical 8 kW system generates ~10 MWh/year = $760-950/year in SREC income.
Net Metering
Full 1:1 retail credit at $0.23-0.26/kWh. Excess energy sent to the grid earns credits on your bill. Monthly rollover of unused credits.
100% Sales Tax Exemption
Solar equipment is fully exempt from NJ's 6.625% sales tax. Saves approximately $1,740 on an average system.
100% Property Tax Exemption
Solar adds ~9.9% to your home value but you pay $0 in additional property taxes. NJ law since 1998.
PSEG Time-of-Use Rates Starting June 1, 2026
New rate structure: Peak: $0.31/kWh (4-9pm weekdays) vs Off-Peak: $0.21/kWh. For PSE&G households considering solar: pairing solar with battery storage lets you use your own stored production during the peak window instead of buying peak-priced grid power. We walk every homeowner through the specific math for their roof and usage pattern.
Honest Financing Comparison
There is no single best path — only the one that fits your cashflow and how long you plan to stay in the house. Here's how we break the trade-offs down with every homeowner.
Cash
Lowest lifetime cost on most 25-year projections. You own the system outright from day one.
Largest upfront commitment. We don't recommend this if it strains the household budget.
Solar Loan
You own it at the end. Any applicable tax credits accrue to you. Predictable monthly payments.
Interest costs. Credit-dependent — we flag borderline FICO situations up front.
Lease
$0 upfront. Installer maintains the system.
You don't own it — that's the trade. Watch the escalator clause. We review the specific lease agreement with you before you sign.
PPA
Pay per kWh produced. Predictable rate.
You don't own. Long-term contract. Same escalator caveats as a lease — we read these the same way.
Talk through which NJ incentives apply to you
Twenty minutes to map your roof against SREC-II, net metering, and sales-tax exemption. Pick a time and a broker will call you.
Find a time with a brokerOr call now: (469) 351-0503