Complete Guide to Solar Energy in New Jersey

Your complete resource for solar energy in New Jersey. Everything you need to know about SREC-II incentives, net metering, tax exemptions, and solar installation across the Garden State.

Calculate Savings Learn the Basics
$2.84
Cost per Watt (2025)
10 years
Average Payback Period
19.89¢/kWh
Average Electricity Rate
$85/SREC
SREC-II Payment for 15 Years

Why New Jersey is Perfect for Solar Energy

Outstanding SREC-II Program

New Jersey’s SREC-II program pays $85 for every 1,000 kWh your solar system produces for 15 years, providing substantial long-term income on top of electricity savings.

Rising Electricity Costs

With rates averaging 19.89¢/kWh and recent 17-20% increases in 2025, solar provides significant protection against future utility rate hikes.

Full Retail Net Metering

New Jersey’s 1:1 net metering policy credits excess solar generation at full retail rates, maximizing the value of every kilowatt-hour your system produces.

Complete Tax Exemptions

100% sales tax exemption (saving 6.625% upfront) plus property tax exemption on added solar value ensure maximum affordability and no increased tax burden.

Quick Solar Facts

Average System Size: 7-7.2 kW
Annual Generation: 8,400-10,800 kWh
Federal Tax Credit: 30% (until December 31, 2025)
Typical Payback: 10 years
System Lifespan: 25-30 years

Explore Solar Topics

Laws & Regulations

Federal ITC, SREC-II program, sales tax exemption, property tax exemption, net metering policy, and HOA solar rights protections.

Residential Solar

Complete guide for New Jersey homeowners, system requirements, roof considerations, and climate factors for optimal solar performance.

Costs & Savings

2025 pricing at $2.84-$3.15 per watt, SREC-II calculations, tax savings breakdown, and long-term return on investment analysis.

Financing Options

Solar loans, cash purchase benefits, PACE financing availability, home equity options, and third-party ownership arrangements.

Installation Guide

Finding licensed installers, SREC-II registration process, local permitting requirements, and utility interconnection procedures.

Solar 101

Solar technology fundamentals, equipment types, inverter options, battery storage integration, and maintenance requirements.

Community Solar

Shared solar subscriptions, remote net metering opportunities, community solar expansion to 3,000 MW, and options for renters.

Solar Calculator

Estimate your solar savings and system requirements.

Quick Solar Savings Calculator

Important 2026 Updates

Community Solar Expansion (October 2025)

Governor Murphy signed S4530 directing the NJ Board of Public Utilities to open registration for an additional 3,000 MW of community solar development starting October 1, 2025. This massive expansion creates opportunities for renters and homeowners unable to install rooftop systems.
Learn about Community Solar →

Electricity Rate Increases (June 2025)

New Jersey utility bills increased by 17-20% in June 2025 due to higher wholesale prices, with the state now ranking ninth nationally for highest retail electricity prices. This makes solar an increasingly attractive hedge against rising energy costs.
Understand Rate Changes →

New Jersey Solar Laws & Regulations

Understanding the legal framework that supports solar energy in New Jersey

Sales Tax Exemption

100% exemption from New Jersey’s 6.625% sales tax on all solar energy equipment and installation. This automatic benefit provides immediate upfront savings with no paperwork required.
Learn More →

Property Tax Exemption

Solar energy systems are exempt from property tax assessments. The exemption equals the difference between property value before and after solar installation, ensuring no increased tax liability from your investment.
Learn More →

SREC-II Program

The Successor Solar Renewable Energy Certificate program pays $85 per SREC (1,000 kWh generated) for 15 years. Registration is required through the NJ Clean Energy program for all new solar installations.
Learn More →