New Jersey's Solar Renewable Energy Certificate (SREC-II) program pays homeowners for every megawatt-hour their system produces. Here's exactly how it works, what it pays, and how to enroll in 2025.
New Jersey is one of the best states in the country for residential solar, and the SREC-II program is a big reason why. The SuSI (Successor Solar Incentive) program offers a stable, long-term payment structure that makes it easy to calculate your return on investment before you ever sign a contract.
What Is an SREC?
A Solar Renewable Energy Certificate (SREC) is a tradeable certificate representing one megawatt-hour (MWh) of solar electricity generated by your system. New Jersey utilities are required by law to source a portion of their electricity from solar, and they meet this requirement by purchasing SRECs from homeowners like you.
Every time your system produces 1,000 kWh of electricity, you earn one SREC. A typical 8 kW residential system in New Jersey produces 8-10 MWh per year, meaning you would earn 8-10 SRECs annually.
Homeowners across New Jersey are taking advantage of this program — from [Newark](/solar-company-newark-nj) and [Jersey City](/solar-company-jersey-city-nj) in the north to [Trenton](/solar-company-trenton-nj) and [Cherry Hill](/solar-company-cherry-hill-nj) in the south.
How the NJ SREC-II (SuSI) Program Works
Under the current SuSI program, homeowners receive a fixed incentive payment for each SREC they generate. Unlike the old SREC market where prices fluctuated with supply and demand, the SuSI program pays a set rate for 15 years.
Current SuSI rates (2025):
| System Size | Incentive per SREC |
|---|---|
| 10 kW or less (residential) | $90 per SREC |
| 10 to 25 kW | $80 per SREC |
| 25 to 100 kW | $70 per SREC |
For a typical 8 kW home system producing 9 SRECs per year, that is $810/year in SREC income on top of your electricity bill savings.
Stacking NJ Incentives
| Incentive | Value |
|---|---|
| Federal ITC (30%) | $6,000 to $9,000 on a typical system |
| NJ SREC-II payments | $810/yr for 15 years (~$12,150 total) |
| NJ Property Tax Exemption | 100% exemption on added home value |
| NJ Sales Tax Exemption | 6.625% sales tax waived on equipment |
| Net Metering | Retail-rate credits for excess generation |
Combining the federal ITC with 15 years of SREC payments, a New Jersey homeowner with a $25,000 system could recover $19,650 in incentives alone before counting a single dollar in electricity bill savings.
How to Enroll in the NJ SREC-II Program
Enrollment is handled through the [New Jersey Clean Energy Program (NJCEP)](https://www.cleanenergy.nj.gov/). Your installer will register your system on the NJCEP website and connect it to the PJM-EIS GATS tracking system where your SRECs are issued. Most homeowners then work with an SREC aggregator who handles the selling process in exchange for a small commission. The federal 30% ITC applies on top of SREC income — see the [IRS Residential Clean Energy Credit page](https://www.irs.gov/credits-deductions/residential-clean-energy-credit) for eligibility details.
Is the NJ SREC Program Still Worth It in 2025?
Absolutely. With electricity rates averaging $0.17/kWh and a payback period of just 5-7 years, New Jersey is one of the top 5 states for solar ROI in the country. SunLynk connects New Jersey homeowners with pre-vetted local solar installers who are fully versed in the SREC-II enrollment process. Get your free quotes today.
Frequently Asked Questions About Solar in New Jersey
What solar incentives are available in New Jersey?
New Jersey homeowners can access the federal 30% Investment Tax Credit (ITC), the SuSI (SREC-II) program paying $90/SREC for 15 years, a 100% property tax exemption on solar-added home value, a full sales tax exemption on solar equipment, and net metering at the full retail rate. New Jersey consistently ranks in the top 5 states for solar ROI due to this combination of incentives.
How does net metering work in New Jersey?
New Jersey requires all utilities to offer net metering. When your solar system produces more electricity than you use, the excess is sent to the grid and credited to your account at the full retail rate. Credits roll over monthly and can offset future bills.
Does New Jersey have a solar sales tax exemption?
Yes. New Jersey exempts solar energy equipment from the state's 6.625% sales tax. On a $20,000 system, this saves approximately $1,325 upfront — a meaningful reduction in the initial cost of going solar.
Which New Jersey cities are best for solar?
All of New Jersey's major cities are strong solar markets. [Newark](/solar-company-newark-nj), [Jersey City](/solar-company-jersey-city-nj), [Trenton](/solar-company-trenton-nj), [Cherry Hill](/solar-company-cherry-hill-nj), [Edison](/solar-company-edison-nj), and [Woodbridge](/solar-company-woodbridge-nj) all have active installer markets and full access to the SuSI program and all state incentives.
Frequently Asked Questions About the NJ SREC-II Program
What is the NJ SREC-II (SuSI) program?
The Successor Solar Incentive (SuSI) program — commonly called SREC-II — is New Jersey's primary solar incentive program. It pays homeowners a fixed rate per Solar Renewable Energy Certificate (SREC) for 15 years. Every 1,000 kWh your system produces earns one SREC, currently valued at $90 for residential systems. This replaced the old volatile SREC market with a guaranteed, predictable payment structure.
How much money can I make from NJ SRECs?
A typical 8 kW residential solar system in New Jersey produces approximately 9,000–10,000 kWh per year, earning 9–10 SRECs annually. At the current residential SuSI rate of $90 per SREC, that generates $810–$900 per year in SREC income, or approximately $12,150–$13,500 over the full 15-year program term. This is in addition to electricity bill savings.
Is the NJ SREC program still open in 2025?
Yes — the SuSI (SREC-II) program is currently open for new residential enrollments. Your solar installer registers your system with the New Jersey Clean Energy Program (NJCEP) after installation. Most homeowners are enrolled within 60–90 days of system activation. Check the [NJ Clean Energy Program website](https://www.cleanenergy.nj.gov/) for current capacity and enrollment status.
Does New Jersey have a property tax exemption for solar?
Yes. New Jersey provides a 100% property tax exemption on the added home value from solar panels. A solar system typically adds $15,000–$25,000 to a home's assessed value, which would normally increase your property tax bill by $300–$600 per year. The exemption eliminates this increase entirely, saving you thousands over the life of the system.
What is the federal solar tax credit and how does it work in New Jersey?
The federal Investment Tax Credit (ITC) allows New Jersey homeowners to deduct 30% of their total solar installation cost from their federal income taxes. On a $25,000 system, that is a $7,500 credit applied dollar-for-dollar against your tax bill. The credit is available through 2032 at 30%. Combined with 15 years of SREC-II payments, NJ homeowners can recover $19,000–$21,000 in incentives alone before counting electricity savings.
How long does it take for solar to pay for itself in New Jersey?
The average payback period for solar in New Jersey is 5–7 years — one of the shortest in the country. This is driven by high electricity rates ($0.17–$0.19/kWh), the federal 30% tax credit, 15 years of SREC-II income, and property/sales tax exemptions. After payback, most systems produce free electricity for another 18–20 years.
Which New Jersey cities are best for solar?
All of New Jersey's major cities have strong solar economics due to the state's high electricity rates and robust incentive programs. [Newark](/solar-company-newark-nj), [Jersey City](/solar-company-jersey-city-nj), [Trenton](/solar-company-trenton-nj), [Cherry Hill](/solar-company-cherry-hill-nj), [Edison](/solar-company-edison-nj), and [Woodbridge](/solar-company-woodbridge-nj) all have active installer markets and are fully eligible for the SuSI program.
How do I get started with solar in New Jersey?
SunLynk connects New Jersey homeowners with pre-vetted local solar installers who are fully versed in the SREC-II enrollment process. Get up to 3 free quotes with no obligation and start your path to energy independence.
Frequently Asked Questions About New Jersey Solar
What solar incentives are available in New Jersey?
New Jersey homeowners can access the federal 30% Investment Tax Credit (ITC), the SuSI (SREC-II) program paying $90/SREC for 15 years, a 100% property tax exemption on solar-added home value, a full sales tax exemption on solar equipment, and net metering at the full retail rate. New Jersey consistently ranks in the top 5 states for solar ROI due to this combination of incentives.
How does net metering work in New Jersey?
New Jersey requires all utilities to offer net metering. When your solar system produces more electricity than you use, the excess is sent to the grid and credited to your account at the full retail rate. Credits roll over monthly and can offset future bills. At the end of the year, any remaining credits are compensated at the avoided cost rate.
Does New Jersey have a solar sales tax exemption?
Yes. New Jersey exempts solar energy equipment from the state's 6.625% sales tax. On a $20,000 system, this saves approximately $1,325 upfront — a meaningful reduction in the initial cost of going solar.
What is the payback period for solar in New Jersey?
The average payback period for solar in New Jersey is 5–7 years, one of the shortest in the country. This is driven by high electricity rates, the federal 30% tax credit, 15 years of SuSI SREC payments, and property/sales tax exemptions. After payback, most systems produce free electricity for another 18–20 years.
Which New Jersey cities are best for solar?
All of New Jersey's major cities are strong solar markets. [Newark](/solar-company-newark-nj), [Jersey City](/solar-company-jersey-city-nj), [Trenton](/solar-company-trenton-nj), [Cherry Hill](/solar-company-cherry-hill-nj), [Edison](/solar-company-edison-nj), and [Woodbridge](/solar-company-woodbridge-nj) all have active installer markets and full access to the SuSI program and all state incentives.
How do I get started with solar in New Jersey?
SunLynk connects New Jersey homeowners with pre-vetted local solar installers. Get up to 3 free quotes with no obligation — our network covers the entire state and is fully versed in the SuSI enrollment process.
Explore solar installer options by city: [Newark, NJ](/solar-company-newark-nj) · [Jersey City, NJ](/solar-company-jersey-city-nj) · [Trenton, NJ](/solar-company-trenton-nj) · [Cherry Hill, NJ](/solar-company-cherry-hill-nj) · [Edison, NJ](/solar-company-edison-nj) · [Woodbridge, NJ](/solar-company-woodbridge-nj)
