New Jersey Solar in 2026: SuSI Income on Top of NEM 1.0

For most New Jersey homeowners, yes — and New Jersey is one of the few states where the case does not depend on the federal credit. An 8 kW rooftop system costs about $28,000 (3.5/W) and pays back in roughly 14.9 years on ~$0.235/kWh residential rates and 4.4 peak sun hours, with the SuSI SREC-II income stream (~$539/yr) layered on top of full-retail net metering. The 30% federal residential credit (Section 25D) ended December 31, 2025, but New Jersey never relied on a state income-tax credit anyway — the SREC income and the tax exemptions carry the case.

A typical 8 kW array in New Jersey runs about $28,000 (3.50/W) before incentives — modestly above the national average, reflecting Northeast labor rates and permitting overhead. The 30% federal residential credit (Section 25D) ended December 31, 2025, so owned systems placed in service in 2026 no longer receive it. Leased/PPA systems may still capture Section 48E for projects that began construction before July 4, 2026. New Jersey offsets the higher base cost with a 6.625% sales tax exemption, a property tax exemption, and the SuSI income stream.

The Successor Solar Incentive (SuSI) program is New Jersey's current SREC-II framework, administered by the Board of Public Utilities. A residential system earns one Solar Renewable Energy Credit (SREC) for every megawatt-hour it produces, and sells those credits through PJM-GATS brokers or aggregators. The administrated residential rate (the Administered Dynamic Incentive, or ADI) currently sits at approximately $77/SREC — set at $77 for registrations on/after 2026-07-27 (down from the prior $85). A typical 8 kW system generates about 7 SRECs per year, so the annual income is roughly $539. Crucially, SRECs accrue on total production, so you earn them whether the power is consumed on-site or exported.

Yes. New Jersey mandates 1:1 full-retail net metering under Board of Public Utilities rules, with an annual true-up, for solar systems. PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric all implement it. Summer surplus is banked at the full retail rate and drawn back through winter — there is no avoided-cost penalty for overproduction. This is the structural pillar that, combined with SuSI income, keeps New Jersey's economics workable without the federal residential credit.

It matters for billing and interconnection specifics, but all four investor-owned utilities operate under the same BPU full-retail NEM framework and the same SuSI eligibility. PSE&G is the largest, serving Newark, Jersey City, Paterson, Elizabeth, and Trenton. JCP&L covers much of the central and shore counties. Atlantic City Electric serves the southeast. Rockland Electric serves the northern Bergen County border. Confirm your utility when sizing — delivery-rate components differ slightly, which shifts the exact offset value.

Unlike California under NEM 3.0, a battery is not central to the New Jersey payback case — full-retail net metering means exported surplus retains full value, so there's no arbitrage penalty to fix. A battery still makes sense for resilience (Northeast winter storms and tropical-system remnants cause real outages) and for households on time-of-use plans who want to shift evening load, but it is optional rather than structural. Storage economics here are driven by backup value, not by an export-rate gap.

New Jersey averages about 4.4 peak sun hours per day — the Mid-Atlantic norm. A south-facing 8 kW array tilted near latitude (~40°) typically produces on the order of 11,100 kWh per year. The southern Pine Barrens and shore counties run marginally above the state average, while the northwestern ridge-and-valley region sits a touch below. Hot, humid summers drive air-conditioning load that aligns well with peak solar output. Because full-retail NEM banks the summer surplus, annual production sizing — not peak-shaving — is the right objective.

New Jersey exempts solar energy equipment and installation from the 6.625% state sales tax, and exempts solar systems from property tax on the added value under N.J.S.A. 54:4-3.113. Together those two exemptions are worth roughly $1,850 on a typical $28,000 system at the point of sale, plus the ongoing property-tax protection. New Jersey offers no state income-tax credit for solar — the SuSI SREC-II income stream and the two tax exemptions are the structural state offsets.

The 2026 expiration of the Section 25D residential credit sharpens the buy-versus-lease math. A cash purchase or low-interest loan keeps the full SuSI income stream, the net-metering offset, and the tax exemptions, but requires upfront capital and no longer receives a federal credit. A lease or PPA eliminates upfront cost and can still capture Section 48E (for projects that began construction before July 4, 2026), but the developer typically claims the SuSI credits and sets your payment. Because SuSI income is a meaningful annual stream, pay close attention to which party receives the SRECs under any lease or PPA — that is where the New Jersey deal terms diverge most from other states.

Look for a New Jersey-licensed electrical contractor (or a solar contractor with a valid NJ electrical license) with 5+ years of in-state experience and demonstrated SuSI/SREC filing competence. Verify NABCEP certification, ask for recent references in your utility territory (PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric each have their own interconnection quirks), and confirm the warranty covers both workmanship and equipment. Walk away from any installer who still quotes a 30% federal credit on a 2026 owned-residential system — Section 25D expired December 31, 2025 — and from anyone who cannot clearly explain who receives the SuSI SREC income under their proposed contract.

New Jersey requires a building/electrical permit from your local jurisdiction and a uniform interconnection application to your utility (PSE&G, JCP&L, Atlantic City Electric, or Rockland Electric) under the BPU's standardized process. After installation and inspection, the utility issues a Permission to Operate (PTO), which is also the date your full-retail net-metering terms and SuSI SREC accrual begin. The process typically takes 4–8 weeks after installation; an installer experienced with your specific utility will navigate it faster. Register your system with PJM-GATS (usually via your SREC aggregator) to begin earning SuSI credits.

New Jersey runs full-retail NEM 1.0 net metering (1:1, annual true-up) across all four investor-owned utilities, plus the SuSI/SREC-II income stream at approximately $77/SREC (~$539/yr on an 8 kW system), a 6.625% sales tax exemption, and a property tax exemption. The federal Section 25D residential credit expired December 31, 2025; leased/PPA systems may still access Section 48E for projects that began construction before July 4, 2026. New Jersey offers no state income-tax credit — the SREC income and the tax exemptions are the structural stack. Track current net-metering and SREC policy with our NEM policy tracker.