Home solar in New Jersey

Net metering Net metering available

Home solar owners get bill credits at the full retail rate for power they send to the grid; extra credits roll over month to month through a 12-month period. The law lets the BPU stop offering net metering to new customers once net-metered solar reaches 5.8% of state electricity sales. The BPU opened a net metering review (docket QO24090723) in late 2024 and held a technical conference on February 10, 2025; no successor tariff had been adopted as of this check. Source

• 2024-11: BPU starts net metering review (docket QO24090723)
• 2025-02-10: BPU technical conference on net metering; comments were due 2025-03-03

Solar credits (SRECs) Market open

Under the Administratively Determined Incentive (ADI) program, each 1 MWh your system makes earns one SREC-II at a fixed price for 15 years. For home (net-metered residential) systems the price is $85/MWh for registrations before July 27, 2026 and $77/MWh for registrations on or after July 27, 2026 (BPU order, May 21, 2026). The residential block for energy year 2027 is 300 MW. A typical home system makes roughly 1 SREC-II per kW per year (estimate). Source

Taxes

Property tax: exempt - the value solar adds to a home is not added to the property tax assessment (N.J.S.A. 54:4-3.113a); owner files with the local assessor
Sales tax: exempt - solar energy equipment is exempt from NJ sales and use tax (N.J.S.A. 54:32B-8.33); buyer gives the seller Form ST-4 Source

Solar laws

• N.J.S.A. 45:22A-48.2 (P.L.2007, c.153) - HOA solar limits (2007). A homeowners association may not ban solar panels on roofs the owner controls; it may set reasonable rules on placement and look. Enforced by the NJ Department of Community Affairs. Source
• N.J.S.A. 54:32B-8.33 - sales tax exemption for solar (2007). Solar energy devices and systems are exempt from state sales and use tax. Source
• P.L.2021, c.169 (A4554) - Solar Act of 2021 (2021). Set up the successor solar incentive (SuSI) programs, including the ADI fixed SREC-II price for small solar. Source

Community solar

Available: the permanent Community Solar Energy Program got a 3,000 MW expansion on March 4, 2026, with at least 51% of capacity for low- and moderate-income households and a 25% minimum bill discount for them.

Timeline

1. 2007 HOA solar limits law (P.L.2007, c.153) enacted
2. 2021-07-09 Solar Act of 2021 signed, creating the successor incentive (ADI/SuSI)
3. 2022-02-22 ADI program rules take effect
4. 2025-02-10 BPU technical conference on possible net metering changes
5. 2026-01-01 Federal 25D home solar tax credit no longer available for new systems
6. 2026-03-04 BPU approves 3,000 MW community solar expansion
7. 2026-05-21 BPU ADI three-year review order cuts home SREC-II price from $85 to $77/MWh
8. 2026-07-27 $77/MWh SREC-II price applies to new home registrations

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

• NJ BPU order, ADI three-year review and cost cap (May 21, 2026)
• NJ BPU net metering technical conference slides (Feb 10, 2025)
• NJ BPU press release, community solar expansion (Mar 5, 2026)
• N.J.S.A. 54:32B-8.33 (Justia)
• P.L.2007, c.153 (HOA solar)
• EIA Electric Power Monthly Table 5.6.A

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

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