Does New Jersey Have Community Solar Laws?

New Jersey has one of the strongest policy frameworks in the country supporting community solar. The state’s laws aim to expand renewable-energy access to residents who cannot install residential solar systems, such as renters, condo owners, and those with shaded roofs. Through legislative action and regulatory programs, New Jersey has transformed shared solar into a long-term, statewide initiative that combines environmental progress with economic inclusion.

Clean Energy Act of 2018

The Clean Energy Act of 2018 (A3723/S2314) laid the foundation for New Jersey community solar by directing the New Jersey Board of Public Utilities (NJBPU) to create a pilot program that would test and refine a statewide shared-solar model. The Act aimed to promote renewable-energy growth, diversify participation, and ensure equitable access across income levels.

This law required the NJBPU to establish community solar projects that could serve multiple subscribers through virtual net metering, enabling participants to receive bill credits for their share of power generated. The credits offset their utility costs just as rooftop solar would, but without the need for personal installation.

Community Solar Energy Pilot Program (2019–2023)

The Community Solar Energy Pilot Program was launched in 2019 under the NJBPU’s oversight. It represented the first statewide implementation of community solar projects in New Jersey and quickly gained popularity. Over two program years, the NJBPU approved over 150 projects totaling nearly 250 megawatts (MW) of clean-energy capacity across the state.

The pilot’s primary goals were:

• To evaluate the operational and billing framework for community solar
• To ensure broad participation across residential and commercial customers
• To prioritize low- and moderate-income (LMI) communities and environmental-justice areas

Developers participating in the pilot were required to reserve at least 51% of project capacity for LMI subscribers, one of the highest minimum thresholds in the nation.

Transition to the Permanent Community Solar Energy Program (2023)

Following the success of the pilot, the NJBPU approved the Permanent Community Solar Energy Program in 2023. This policy turned the pilot into a long-term initiative that guarantees ongoing support for shared-solar development statewide.

The permanent program streamlines project approvals, ensures predictable compensation structures for developers, and keeps the same focus on LMI inclusion. It also prioritizes projects built on brownfields, landfills, rooftops, or parking lots, preserving greenfield sites while promoting sustainable land use.

Low-Income and Environmental-Justice Participation

New Jersey’s community solar energy framework emphasizes equitable access. The NJ Clean Energy Program, in coordination with the NJBPU, requires each approved developer to dedicate at least 51% of project capacity to LMI subscribers. Many developers partner with non-profits, housing authorities, and municipalities to reach eligible residents.

Subscribers in these categories often receive guaranteed utility-bill savings of 15% to 25% without credit checks, upfront payments, or cancellation penalties. These provisions demonstrate how New Jersey community solar combines renewable-energy expansion with economic justice, ensuring that the state’s clean-energy transition benefits all households.

What Is Community Solar?

Community solar allows multiple customers to share the output of a single solar installation located off-site. Instead of mounting panels on their own property, subscribers join a community solar project, a centralized solar array that feeds renewable electricity into the local utility grid. Each subscriber receives bill credits for their portion of the energy produced.

This model of community solar energy opens renewable participation to anyone within the utility’s service area, regardless of housing type, credit score, or property ownership.

For New Jersey, where a large share of residents live in multi-unit housing or densely populated areas, community solar serves as an essential complement to residential solar programs.

When Community Solar Is a Good Option

Community solar is a smart choice for people who:

• Rent or live in apartments or condominiums
• Have limited roof space or unsuitable roof conditions
• Are deterred by the cost or maintenance of residential solar systems
• Prefer flexible, portable clean-energy subscriptions

Businesses, schools, and municipalities can also join community solar farms to stabilize electricity expenses while meeting sustainability goals.

Advantages Over Residential Solar

Although residential solar ownership has its benefits, community solar projects offer a range of distinct advantages:

• No Installation or Maintenance – Subscribers avoid construction, permitting, and equipment upkeep
• Inclusive Access – Renters, small businesses, and homeowners alike can participate
• Lower Financial Barriers – No credit checks or upfront investment required
• Flexible Participation – Subscriptions can often be transferred or canceled with short notice
• Environmental Impact – Every share in a community solar farm reduces fossil-fuel reliance and supports New Jersey’s clean-energy goals

For many residents, community solar offers the simplest path to participate in the renewable-energy market and access tangible savings.

Why Community Solar?

The New Jersey community solar program is part of the state’s larger effort to achieve 100% clean energy by 2035. With high population density, diverse housing, and rising electricity costs, community solar is a key strategy for expanding renewable access while supporting environmental-justice initiatives.

Benefits of Community Solar for Homeowners, Renters, and Businesses

Community solar offers a wide range of benefits for participants across New Jersey, including the following:

• Guaranteed Bill Savings: Participants typically save 10% to 25% on their annual utility bills, depending on their project and utility provider. These savings are automatic, subscribers continue using their existing electricity service but pay less overall
• Energy Equity and Inclusion: The high LMI participation requirement ensures that community solar energy supports the state’s most vulnerable populations. Partnerships between developers and community organizations help streamline enrollment for income-qualified customers
• Economic Development: Each community solar project contributes to local job creation, property-tax revenue, and land revitalization. Projects built on closed landfills and brownfields transform previously unusable sites into clean-energy assets
• Environmental Leadership: By expanding community solar farms, New Jersey reduces carbon emissions, improves air quality, and strengthens resilience against climate impacts. The state’s community solar program also supports distributed generation, easing strain on transmission infrastructure
• Flexibility and Portability: Subscriptions are easy to join and transfer. Participants can relocate within the same utility area and maintain their community solar benefits without interruption

Collectively, these benefits of community solar make the program a cornerstone of New Jersey’s clean-energy future.

Are There Community Solar Projects in New Jersey?

Yes. The state’s community solar project market is one of the fastest-growing in the region. From Cape May to Bergen County, developers are actively building and expanding community solar farms to meet growing consumer demand.

Market Growth and Scale

As of 2025, New Jersey hosts more than 160 active community solar projects, with an installed capacity exceeding 300 MW. The majority are located in central and northern New Jersey, near urban load centers served by Public Service Electric and Gas (PSE&G), Jersey Central Power & Light (JCP&L), and Atlantic City Electric.

Each year, the NJBPU opens new application rounds for developers, ensuring a steady pipeline of projects that diversify geographic distribution and subscriber access.

Notable Community Solar Projects

Some of the largest and most impactful community solar farms in New Jersey include:

• Harrison Solar Project (Hudson County) – Serves hundreds of households in an environmental-justice area, with 51% of capacity reserved for LMI subscribers
• Camden Renewable Garden (Camden County) – Built on a reclaimed industrial site, combining clean-energy production with land remediation
• Woodbridge Community Solar Array (Middlesex County) – One of the state’s earliest projects, powering residential and municipal facilities
• Parsippany Solar Farm (Morris County) – Offers flexible subscription options for small businesses and non-profits
• Atlantic City Solar Park – A large-scale project supporting both commercial and residential customers, including low-income participants

Together, these community solar projects demonstrate how New Jersey is using policy innovation and private investment to expand renewable access across all income levels.

How Residents Can Join

Joining a New Jersey community solar program is straightforward:

• Check Eligibility – Subscribers must live within the utility service area of the community solar project
• Select a Developer – Choose from utility-partnered or private community solar providers
• Decide on Subscription Size – Based on the customer’s typical electricity usage, a subscription share is allocated
• Sign a Subscription Agreement – Contracts outline cost structure, savings rates, and cancellation terms
• Receive Bill Credits – Monthly credits appear on utility bills, reducing electricity costs automatically

This simplified process allows virtually any resident or business to participate in community solar energy without ownership or installation requirements.

How Does Community Solar Work in New Jersey?

The New Jersey community solar model operates through virtual net metering, which credits subscribers for their share of energy produced by an off-site solar array.

A community solar project is typically installed on underutilized land, commercial rooftops, or capped landfills. The solar panels generate direct-current (DC) electricity, which is converted to alternating current (AC) and fed into the local utility grid. The utility measures total output and distributes credits to each subscriber’s account based on their subscription percentage.

Example: NJBPU-Approved Projects

Under the permanent Community Solar Energy Program, developers receive state approval to build and operate community solar farms. Utilities like PSE&G and JCP&L manage subscriber billing and apply credits directly to customer accounts. Subscribers are billed for their net usage after credits, achieving consistent savings without changing their energy provider.

Example: Low-Income Partnerships

To ensure inclusion, many developers collaborate with organizations such as Solar Landscape, Neighborhood Sun, and BlocPower to enroll LMI participants. These partnerships focus on outreach in affordable-housing communities, simplifying sign-ups, and offering guaranteed discounts on electricity bills.

Incentives and Tax Benefits

Developers of community solar projects can utilize the federal Investment Tax Credit (ITC), worth 30% of project installation costs through 2025, significantly lowering expenses. State incentives, such as property-tax exemptions for renewable systems and revenue from renewable-energy certificates (RECs), further improve project economics.

Subscribers benefit indirectly through reduced community solar costs, as developers pass these savings through lower subscription rates or fixed-discount models. The integration of federal and state incentives ensures that community solar energy remains an affordable and scalable solution for households and businesses alike.

How Much Does Community Solar Cost in New Jersey?

The community solar cost in New Jersey varies based on the subscription model, developer pricing, and local utility service area. Most programs guarantee immediate savings without any upfront investment. Subscribers pay for the electricity generated by their share of a community solar project, and utilities apply matching credits to reduce overall charges.

These prices translate to average annual savings of 10% to 25%, depending on project size and subscriber class.

The cost covers equipment installation, financing, maintenance, and administrative expenses for the community solar farm. Subscribers are not responsible for repairs, upgrades, or insurance. Contracts typically range from 10 to 20 years, with flexible transfer or cancellation terms.

Low-income participants benefit from deeper discounts, often 20% to 30% off utility rates, thanks to the state’s mandated capacity allocations and incentive adders. With the continuation of the federal ITC and strong state support, New Jersey community solar remains one of the most affordable and equitable clean-energy options in the U.S., offering predictable savings without the complexities of residential solar ownership.