Solar in New Jersey
See how New Jersey credits the power your solar panels send back, what is changing and which utility serves your home, with every rule tied to its source and date.
A comparison website. We do not install solar.
Computed from latitude and Earth’s 23.44° axial tilt. Latitude: U.S. Census Bureau, 2025 Gazetteer Files. Tilt: NASA, Earth Fact Sheet (updated 15 Nov 2024).
Dated changes to New Jersey solar rules, and the next dates ahead, as of 9 Oct 2026
The Board’s amended interconnection rules take effect, with Level 1 limits of 50 kW AC and 25 kW AC export.
58 N.J.R. 72(a)Registration for the Energy Year 2027 blocks ends if a block has not filled sooner.
Program pageThe statewide permitting platform for residential solar is due, says the Department of Community Affairs.
P.L. 2025, c. 174
New Jersey solar rules at a glance
- Credit. Your utility credits your system’s output at the full retail rate, up to your use over 12 months; the remainder is paid at the avoided cost of wholesale power.Board notice, Nov 2024
- Connection. Level 1, the track for small inverter-based systems, covers systems up to 50 kW AC with export up to 25 kW AC, in effect since 5 Jan 2026.N.J.A.C. 14:8-5.2
New Jersey solar terms, defined
- Net metering
- Billing in which your utility or supplier credits each kilowatt-hour your solar system produces at the full retail rate, up to what you use over your annualized period, and pays for any credit left at the end at its avoided cost of wholesale power. The annualized period is 12 monthly billing periods, starting in a month you choose.
- Avoided cost of wholesale power
- The average locational marginal price of energy in your utility’s transmission zone.
- Administratively Determined Incentive (ADI)
- New Jersey’s permanent solar incentive program. It sets the value of the SREC-IIs a registered system earns.
- SREC-II
- A Solar Renewable Energy Credit, created each time a system generates 1,000 kilowatt-hours of electricity. The Board sets its value.
- Energy Year
- The program year for incentive blocks, from 1 June to 31 May.
- Permission to Operate (PTO)
- The utility’s notice that authorizes you to turn a solar system on. Each utility words it in its own way.
Source: Board notice (8 Nov 2024) quoting N.J.A.C. 14:8-1.2; N.J.A.C. 14:8-4.2; ADI Program FAQs 1 and 6 and ADI Program page (both undated); PSE&G and JCP&L pages (undated).
What is changing in New Jersey solar rules
The Board of Public Utilities lowered the home incentive for registrations received on or after 27 Jul 2026 and put new connection rules into effect on 5 Jan 2026. Its 10 Jun 2026 agenda lists a recommendation on a no-cost extension of its net metering consulting contract. Hold every quote up against these dates.
| Date | What happens | Source |
|---|---|---|
| The Board’s amended interconnection rules take effect, with Level 1 limits of 50 kW AC and 25 kW AC export. | 58 N.J.R. 72(a) | |
| The Board’s agenda lists a recommendation on a no-cost extension of its consulting contract for net metering policy development. | Board agenda | |
| Registration for the Energy Year 2027 blocks ends if a block has not filled sooner. | Program page | |
| The statewide permitting platform for residential solar is due, says the Department of Community Affairs. | P.L. 2025, c. 174 |
How does net metering work in New Jersey?
New Jersey net metering credits your system’s output at the full retail rate, up to your home’s use over a year, and pays for what remains at the avoided cost of wholesale power (Board notice). The rules behind that:
- Who must offer it. Every Board-regulated electric utility (PSE&G, JCP&L, Atlantic City Electric, Rockland Electric) and electric supplier must offer it to customers who generate renewable electricity (NJ Clean Energy Program).
- System size. Your system’s capacity cannot exceed the electricity your supplier delivered to your home over a 12-month period you select (N.J.A.C. 14:8-4.3(a)).
- Your year. The annualized period is 12 consecutive monthly billing periods, and you choose its start month once (14:8-4.2 and 4.3).
- During and at year end. Extra credit carries from month to month. At year end your supplier pays for the remainder at its avoided cost of wholesale power, which the rule defines as the average locational marginal price of energy in your utility’s transmission zone (14:8-4.2 and 4.3).
- On your bill. Net metering uses the same rate structure as without solar (14:8-4.3(l)), and you will likely still receive a monthly bill (ADI FAQ 14).
How does each utility word the year-end settlement?
PSE&G and JCP&L pay the remainder at the avoided cost of wholesale power, while Atlantic City Electric and Rockland Electric name a PJM locational marginal price.
| Utility | Tariff and sheet | What the tariff says at the end of your year |
|---|---|---|
| PSE&G | No. 17 Electric, section 15.5, sheet 39 (15 Oct 2024) | Your supplier, or the utility’s default-supply provider, pays remaining credits at its avoided cost of wholesale power. |
| JCP&L | No. 14 Electric, Part II, section 12.07, sheet 40 (1 Jun 2024) | Your supplier or default-supply provider pays at the avoided cost of wholesale power as the Board’s rules define it. |
| Atlantic City Electric | No. 11 Electric, Section IV, Rider NEM, sheet 62 (1 Dec 2023) | If ACE supplies your power, it pays the average Residual Metered Load Aggregate locational marginal price for energy for your year in its PJM zone. |
| Rockland Electric | No. 3 Electricity, Service Classification Rider, leaf 67 (1 Jun 2015) | If RECO supplies your power, it pays the PJM load-weighted Residual Metered Load Aggregate locational marginal price over the 12 months, as a credit voucher. A competitive supplier pays its avoided cost of wholesale power. |
Source: PSE&G, JCP&L, Atlantic City Electric and Rockland Electric tariffs; N.J.A.C. 14:8-4.2 defines avoided cost.
Three details are worth knowing before you sign:
- PSE&G. The Budget Plan (Equal Payment Plan) is not available with net metering, and a time-of-use rate keeps a separate credit bank for each period. Its page says it will move your true-up month once, on request (tariff 15.7 and PSE&G pages).
- JCP&L. After it authorizes your system, JCP&L replaces your meter with a bi-directional one, which can take several weeks, and it says it is not responsible for tracking or crediting your extra power until that meter is in (JCP&L page).
- Switching suppliers. If you switch suppliers or change your year’s start date, leftover credit is paid at the wholesale rate and a new 12-month year begins (NJ Clean Energy Program, 14:8-4.3(j)).
Which utility serves your home?
Your electric bill names your utility. The Board of Public Utilities lists PSE&G, Jersey Central Power & Light (JCP&L), Atlantic City Electric (ACE), Orange & Rockland (Rockland Electric Company, RECO) and Vineland Municipal as electric utilities, and lists the alternative suppliers serving each of the first four (Board contact list). The tables here cover those four; if another company sends your bill, ask it for its net metering terms.
What incentive does New Jersey pay for home solar?
New Jersey’s permanent home solar incentive, the Administratively Determined Incentive (ADI) program, is not a rebate. It creates one credit, an SREC-II, for every 1,000 kilowatt-hours a registered system produces, for 15 years, at a value the Board sets (NJ Clean Energy Program FAQ).
- The block. Energy Year 2027’s block for homes is 300 megawatts (dc), open first come, first served until it fills or 1 Jun 2027, with no waiting list for a full block (program page).
How does registration work?
Registration has four steps, from the program portal to a payment account (NJ Clean Energy Program, SuSI Registration and Payment).
Register in the program portal
The conditional registration notice gives you 12 months to install, receive Permission to Operate and file the final packet (program FAQ, registration process).
File the post-construction packet
You receive an NJ certification number, and some systems get a random inspection (program steps).
Register the system in PJM-EIS GATS
The account is where SREC-IIs are created from what the system produces (program steps).
Open a payment account
You open it with Solar Incentives NJ, the SREC-II administrator, to receive payment for credits you own (program steps).
Your installer typically files the registration, but the program says never to assume it will also manage your SREC-II account, so ask in writing (FAQ 8 and 9). Two rules catch homeowners: all equipment must be new, and a system that receives Permission to Operate before the program issues its acceptance letter must petition the Board to take part (program page).
Does New Jersey tax solar panels?
A 2008 law exempts the added assessed value of a renewable energy system your town certifies from property tax (P.L. 2008, c. 90).
How does the New Jersey property tax exemption work?
Your town’s construction office, which the law calls the local enforcing agency, certifies a renewable energy system on Form CRES. The exemption begins the tax year after certification and equals the difference between your home’s assessed value with and without the system (P.L. 2008, c. 90).
What happened to the federal solar tax credit?
The IRS says the Residential Clean Energy Credit is not available for property placed in service after 31 December 2025 (IRS page, updated 4 Jul 2026). What ended and what is left
How do you connect a solar system to the grid in New Jersey?
You or your installer apply to your utility, the utility examines the design, and you switch the system on only after the utility authorizes it in writing (N.J.A.C. 14:8-5.4).
Level 1, the track for small inverter-based systems, covers systems with smart inverter capability, up to 50 kW AC nameplate rating and 25 kW AC export. Since 5 Jan 2026, the Board’s rule gives the utility these clocks (58 N.J.R. 72):
Completeness check
Within 3 business days, the utility says whether the application is complete. You then have 15 business days to supply anything missing.
Screening
Within 10 business days after calling it complete, the utility says whether the system passes its screens. If it fails one, you can resubmit with a smaller system or export limits, move to Level 2 or 3, or withdraw.
Install and inspect
Within 3 business days of passing you, the utility says whether it will inspect. Once your town’s construction office signs off and you say the system is ready, it offers inspection times within 5 business days.
Switch on
Within 5 business days after a passed inspection, or after your paperwork when it waives inspection, the utility tells you that you are authorized to energize. Running the system earlier means no payment for your excess generation credits.
PSE&G and Rockland Electric print the Board’s Level 1 limits, JCP&L’s page lists a lower one, and Atlantic City Electric’s tariff asks for your application 30 days before you switch on.
| Utility | Applying (Level 1) | Switching on |
|---|---|---|
| PSE&G | 50 kW AC nameplate or less, 25 kW AC export or less; no fee. | Wait for the Permission to Operate notice. |
| JCP&L | 10 kW or less on its page and form (revised 7/2023); no fee. | Wait for an electrical inspection and JCP&L’s authorization to operate. |
| Atlantic City Electric | Rider NEM asks for the application at least 30 days before you activate. | The tariff bars operating without ACE’s final written authorization. |
| Rockland Electric | 50 kW AC nameplate or less, 25 kW AC export or less; no fee; online portal. | Permission to operate follows a complete application and the utility’s clearance. |
Source: PSE&G, JCP&L and Rockland Electric pages (undated); Atlantic City Electric tariff (effective 1 Dec 2023).
JCP&L’s page lists 10 kW, while the Board’s rule sets 50 kW AC with 25 kW AC export. Ask JCP&L in writing which level applies to your design.
Can a utility say no to your location?
A utility can limit new solar on a circuit with little spare capacity, so neighbors with solar do not always mean your circuit has room (FAQ 13). The Board’s rule requires every utility to post circuit-level hosting capacity maps and update them at least quarterly (14:8-5.11).
How do you check a solar installer in New Jersey?
- Ask for the installer’s home improvement contractor registration number. The Contractor’s Registration Act requires contractors to register with the Division of Consumer Affairs and display it (NJ Business Action Center).
- Check the NJ Clean Energy Program’s trade ally list and its list of suspended or debarred contractors, which it encourages customers to read when choosing a contractor (Dispute Resolution Process).
- Treat a match as a registration or a listing, not a recommendation. The program calls its trade ally list informational only and encourages quotes from at least three installers (trade ally list, FAQ 5).
What if your installer closes or stops answering?
The trade ally list has categories for installers who help customers whose installer has closed or stopped responding, and for installers who maintain or repair systems (FAQ 12). Complaints go first to the installer, then to the program’s complaint form, an appeal within 45 days and, if unresolved, a petition to the Board (Dispute Resolution Process, FAQ 16).
Questions homeowners ask
Does New Jersey still have net metering?
Yes. The NJ Clean Energy Program says every Board-regulated utility and electric supplier must offer it (Net Metering and Interconnection). What is changing
Does New Jersey offer a rebate or a program that installs panels at no charge?
The ADI program offers no rebates, and the State and the Board run no program installing panels at no charge for residents, the NJ Clean Energy Program’s FAQ says. It adds that offers described that way are leases or power purchase agreements, which carry a monthly payment (FAQ 2 to 4).
What happens to solar panels when you sell your home?
For a system you own, buyer and seller complete a Schedule A form with PJM-GATS before closing to transfer the system and its credits. A lease or power purchase agreement can be transferred through the solar company or bought out (FAQ 10 and 11).
Should you replace your roof before installing solar?
The NJ Clean Energy Program advises a roof inspection first and suggests matching the roof’s remaining life to the panels’ so both can be replaced together (FAQ 3).
How do you compare solar quotes in New Jersey?
The quote guide shows how to read each line of an installer’s quote. How to compare solar quotes
My Solar Brokers is a comparison website that connects homeowners with installer partners. We do not install solar. What an installer partner means
Sources
Undated pages are marked. How facts are sourced and corrected
- Board of Public Utilities (BPU), Notice, Docket QO24090723 (8 Nov 2024); technical conference notice (updated 5 Feb 2025).
- BPU, Order, Agenda Item 8C, Dockets QO20020184 and QO26030096 (21 May 2026), printed pp. 9, 13, 15 to 16, 30 and 42.
- BPU, Agenda for Board Meeting, 10 Jun 2026, item 8B.
- New Jersey’s Clean Energy Program (NJCEP), Administratively Determined Incentive (ADI) Program (undated).
- NJCEP, ADI Program FAQs (undated).
- NJCEP, SuSI Registration and Payment for SREC-IIs (undated).
- NJCEP, Net Metering and Interconnection (undated).
- N.J.A.C. 14:8-4.1 to 4.3, Cornell Legal Information Institute copies of 4.3 and 4.2.
- New Jersey Register, R.2026 d.010, 58 N.J.R. 72(a), N.J.A.C. 14:8-5 (effective 5 Jan 2026).
- PSE&G, Tariff B.P.U.N.J. No. 17 Electric, section 15, sheets 38 to 40 (effective 15 Oct 2024); Building and Connecting Your Home Solar System and Solar Power and Net Metering (undated).
- JCP&L, Tariff BPU No. 14 Electric, Part II, section 12, sheets 37 to 40 (effective 1 Jun 2024); New Jersey Interconnection (undated) and Level 1 application (rev. 7-2023).
- Atlantic City Electric, Tariff BPU NJ No. 11, Section IV, Rider NEM, sheets 61 and 62 (effective 1 Dec 2023).
- Rockland Electric, Schedule for Electric Service, B.P.U. No. 3, Service Classification Rider, leaf nos. 66 to 68; Applying for Private Generation Interconnection in New Jersey (undated).
- BPU, Utility Contact Info (undated).
- P.L. 2008, c. 90 (enacted 1 Oct 2008); Division of Taxation, Form CRES (9-2018).
- Internal Revenue Service, Residential Clean Energy Credit (updated 4 Jul 2026).
- Division of Consumer Affairs, License Verification System (undated); NJ Business Action Center, Quick Start Guide: Home Improvement Contractor (5/2019).
- NJCEP, Find a Trade Ally or Partner and Dispute Resolution Process (both undated).
- P.L. 2025, c. 174 (enacted 19 Dec 2025); Department of Community Affairs, Request for Information DCA-SPP-1 (posted 27 May 2026).
Start with your ZIP code
