NJ Solar Incentives in 2026
The federal tax credit changed. But here are the NJ incentives I still make sure every client takes advantage of — they're among the best in the country.
Important 2026 Update: Federal Tax Credit Repealed
The 30% federal ITC was repealed effective January 1, 2026. But here's what I tell every client who asks me about this: you can still access those benefits through lease/PPA structures via the business-side 48E credit. A lot of homeowners think solar stopped making sense — in NJ, they're wrong, and I can show you the math.
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. Here's the play I walk every client through: solar + battery lets you avoid peak pricing entirely by using your own stored sunshine during the expensive hours.
Honest Financing Comparison
Here's how I break it down for every client. There's no single best path — only the one that fits your cashflow and how long you plan to stay in the house.
Cash
Best ROI, in my opinion. Lowest cost over 25 years. You own the system outright from day one.
Largest upfront commitment. I don't push this if it stretches you.
Solar Loan
You own it at the end. Tax credits accrue to you. Predictable payments — this is the path I recommend most often.
Interest costs. Credit-dependent — I'll tell you up front if your FICO is borderline.
Lease
$0 upfront. Installer maintains the system.
You don't own it — that's the trade. Watch the escalator clause. I review it line by line with every client before they sign.
PPA
Pay per kWh produced. Predictable rate.
You don't own. 25-year contract. Same escalator caveats as lease — I read these the same way.