New Jersey Solar Incentives 2026: SREC-II, Net Metering & What's Changed

NJ Solar in 2026: State Incentives Pick Up the Slack

With the federal 30% residential ITC expired as of December 31, 2025, New Jersey's state-level incentives are now more important than ever. The good news: NJ's programs are still active, generous, and among the best in the nation.

The SREC-II (ADI) Program — Still Active

New Jersey's Solar Renewable Energy Certificate program — officially the Administratively Determined Incentive (ADI) Program — pays you for every MWh (1,000 kWh) your system produces.

Current rate (Energy Year 2026, through May 31, 2026): $85.00–$85.90 per MWh

The rate is fixed for 15 years once your system is registered — locking in predictable income regardless of market fluctuations.

Important: A 10% rate reduction to ~$76.50/MWh is scheduled for applications submitted on or after March 6, 2026. If you're planning to go solar in NJ, registering before that date locks in the higher rate.

A typical 8 kW NJ system produces about 9,600 kWh/year = ~9.6 SRECs = $816–$825/year in passive income for 15 years.

Net Metering in NJ

New Jersey maintains full retail net metering — you're credited at the full retail rate for every kWh you export to the grid. With NJ electricity averaging $0.18–$0.20/kWh in 2026, this is significantly more valuable than states with wholesale-rate buybacks.

State Sales Tax Exemption

Solar equipment remains 100% exempt from NJ sales tax (6.625%). On a $22,000 system, that's $1,458 in immediate savings.

Property Tax Exemption

The added home value from solar is fully exempt from NJ property taxes for 15 years. Solar typically adds $15,000–$25,000 to home value — that's $3,000–$5,000+ in avoided property taxes over the exemption period.

2026 NJ Incentive Stack (No Federal ITC)

On a $22,000 system with no federal credit, NJ homeowners still have a compelling financial case — payback typically 8–11 years, with 25+ years of savings ahead.