New Jersey has one of the stronger incentive structures in the country, and it is also one of the more confusing — partly because the state has changed programs several times and outdated articles about the old SREC market are still ranking.
Here is what actually applies in 2026, and, just as importantly, which incentives you receive depends on whether you own the system or use a $0-down agreement.
The incentives that matter
Four things move the numbers in New Jersey. The rest is noise.
- The Successor Solar Incentive (SuSI). New Jersey’s current program, which replaced the legacy SREC market. Residential systems earn SREC-IIs for the electricity they generate, at a fixed value per megawatt-hour over a defined term.
- Net metering. New Jersey has one of the more favorable net metering frameworks in the country. Excess generation you export is credited, so summer production offsets winter shortfall.
- Sales tax exemption. Solar energy equipment is exempt from New Jersey sales tax, which removes a meaningful percentage from the purchase price outright.
- Property tax exemption. The added home value from a solar installation is exempt from local property tax assessment, so improving your home does not raise your tax bill.
- The federal residential clean energy credit. A percentage of the cost of a purchased system, claimed on your federal return. This one is federal, not state, and it is the largest single line for most buyers.
Who actually receives them
This is the part that surprises people, and it is worth being blunt about.
Incentives flow to whoever owns the system. If you buy or finance, you own it: you claim the federal credit, the SREC-IIs are yours, and the exemptions apply to your purchase and your property.
With a $0-down Power Purchase Agreement, you are not the owner. You pay for the power the system produces, generally at a rate below your utility’s, and the incentives belong to the system owner — which is precisely what allows the upfront cost to be zero. You are trading the incentives for the removal of the cost barrier and the maintenance responsibility.
Neither structure is universally better. If you have the tax appetite to use the federal credit and the capital or credit to buy, ownership generally produces more value over the system’s life. If you do not, or you would rather not own another piece of equipment, the PPA is why solar is accessible at all.
Your utility still shapes the outcome
State programs are uniform. Your bill is not.
PSE&G, JCP&L, Atlantic City Electric and Rockland Electric each have their own rates and interconnection processes. Since the value of solar is largely the difference between what you pay your utility and what solar costs you, the utility you are on materially changes the result.
Two homes with identical roofs, identical usage and identical systems can produce noticeably different savings for this reason alone. Any estimate built on a statewide average rather than your actual bill should be treated as marketing.
What to check before you commit
Confirm the current SuSI incentive value and term for residential systems at the time you sign, since program parameters are set administratively and change. Confirm net metering terms with your specific utility. If you are buying, confirm with a tax professional that you can actually use the federal credit — it offsets tax liability, so it is worth less to a household with little of it.
And check the roof before any of this. If it needs replacing within a decade, the best incentive package in the country does not offset paying to detach and reset an array later.
Frequently asked questions
Does New Jersey still have SRECs?
The legacy SREC market closed to new registrations and was replaced by the Successor Solar Incentive program, under which residential systems earn SREC-IIs at a fixed value. Articles describing the old floating SREC market are out of date.
Do I get the federal tax credit on a $0-down PPA?
No. The credit goes to the system owner, and on a PPA that is not you. That is part of what makes zero upfront cost possible. If claiming the credit yourself matters, ownership is the route.
Will solar raise my property taxes in New Jersey?
No. New Jersey exempts the added value of a solar installation from property tax assessment, so the improvement does not increase your assessed value.
Is solar still worth it in New Jersey without the old SREC prices?
For most homeowners with a bill over roughly $100 a month and a suitable roof, yes. Net metering, the sales and property tax exemptions and the federal credit remain substantial, and utility rates have kept rising.
Related pages
- Solar panels in New Jersey
- What solar costs in NJ in 2026
- Is solar worth it in New Jersey?
- Residential solar with $0 down
- Should you replace your roof first?
- Adding battery storage
See what these incentives are worth on your house
Send us a recent bill and your address. We will run both ownership and the $0-down agreement against your actual usage and utility, and show you the difference rather than steering you toward one.