Solar Panel Costs and Savings in New Jersey (2026 Guide)
New Jersey’s solar case in 2026 rests on a combination no other state in our guides offers: full one-to-one net metering plus a guaranteed 15-year production payment for every megawatt-hour you generate.
New Jersey solar at a glance (July 2026)
| Metric | Figure |
|---|---|
| Avg. residential electricity rate | 23.53¢/kWh (EIA, April 2026) |
| Avg. peak sun hours | ~4.2 per day (NREL-based estimate) |
| Typical installed cost | ~$2.40–$3.35 per watt before incentives (2026 national range) |
| Export compensation | Full retail 1:1 net metering |
| Federal tax credit | None for purchases after Dec 31, 2025 (details) |
| Headline incentive | SuSI / SREC-II: $76.50 per MWh, fixed for 15 years (registrations on/after March 6, 2026) |
SuSI: a guaranteed paycheck per megawatt-hour
New Jersey retired its old market-traded SREC program and replaced it with the Successor Solar Incentive (SuSI). The residential track (ADI) pays a fixed, administratively-set price per SREC-II certificate — $76.50/MWh for systems registered on or after March 6, 2026 (down from the original $85) — for 15 years.
The practical math: a typical 8 kW system producing 9–10 MWh per year earns roughly $700–$800 annually, about $11,000 over the 15-year term, on top of bill savings. Unlike Pennsylvania’s or Maryland’s market-priced SRECs, this number doesn’t fluctuate — it’s locked at registration. The step-down from $85 to $76.50 also illustrates the program’s direction: rates ratchet down for later registrants, so earlier registration locks better terms. Confirm the current rate at registration through the NJ Clean Energy Program.
Full retail net metering on 23.5¢ power
New Jersey still credits exports one-to-one at retail rates — and at 23.53¢/kWh, the fourth-highest rate among our guides, that credit is worth a lot. Between net metering and SuSI, every kWh a New Jersey system produces earns roughly 31¢ in combined value (23.5¢ avoided retail + ~7.7¢ SREC-II) — the highest per-kWh solar value in our 15 states. Background in our net metering guide.
Two automatic exemptions
- Sales tax: solar equipment is exempt from the 6.625% state sales tax, applied at purchase with no paperwork.
- Property tax: 100% of the added home value is exempt from property tax — significant in the state with some of the nation’s highest property taxes.
There’s no state income tax credit, but note that SuSI’s cash payments arrive regardless of your tax liability — an advantage over credit-based incentives for retirees and lower-tax-bill households.
A dense, competitive installer market
Decades of incentives have made New Jersey one of the most solar-dense states per capita, which means real installer competition. Use it: get three quotes minimum, compare per-watt pricing, and verify each quote itemizes the SuSI registration — our installer checklist covers the rest. Then run your numbers with the calculator.
Bottom line
New Jersey pairs the highest combined per-kWh solar value in our guides (retail net metering plus a guaranteed SREC-II payment) with automatic tax exemptions and a deep installer market. The SuSI rate steps down over time — $85 has already become $76.50 — so the economics mildly favor registering sooner rather than later.
Sources
Frequently Asked Questions
- How much does New Jersey's SuSI program pay in 2026?
- Under the Successor Solar Incentive (SuSI) program, residential systems earn one SREC-II certificate per megawatt-hour produced, at a fixed administratively-set price for 15 years. Systems registered on or after March 6, 2026 receive $76.50 per certificate (down from the original $85). A typical 8 kW system producing around 9–10 MWh a year earns roughly $700–$800 annually — guaranteed, not market-priced.
- Does New Jersey have full net metering?
- Yes — New Jersey credits exported solar at the full retail rate, one-to-one. Combined with the state's high electricity prices (about 23.5¢/kWh as of April 2026), every kWh your system produces is worth full retail value whether you use it or export it.
- Does New Jersey have a state solar tax credit?
- No tax credit, but two automatic exemptions: solar purchases are exempt from the 6.625% state sales tax, and 100% of the added home value is exempt from property tax. The SuSI production payments function as the state's main incentive — and unlike a tax credit, they don't depend on your tax liability.