New Jersey ranks among the top solar states in the nation. Learn about the SREC program, property tax exemptions, and other incentives available to NJ homeowners.
New Jersey consistently ranks among the top five solar states in the country, and for good reason. The combination of the federal 30% Investment Tax Credit, the SuSI (Successor Solar Incentive) SREC-II program, full property and sales tax exemptions, and one of the strongest net metering policies in the nation makes New Jersey solar economics hard to beat.
New Jersey Solar Incentives at a Glance
| Incentive | Value |
|---|---|
| Federal ITC (30%) | $6,000 to $9,000 on a typical system |
| NJ SREC-II (SuSI) | $810/yr for 15 years (~$12,150 total) |
| NJ Property Tax Exemption | 100% exemption on added home value |
| NJ Sales Tax Exemption | 6.625% NJ sales tax waived on equipment |
| Net Metering | Retail-rate credits for excess generation |
Federal Investment Tax Credit (ITC)
The federal ITC allows you to deduct 30% of your total solar installation cost directly from your federal income taxes. On a $25,000 system, that is a $7,500 credit applied dollar-for-dollar against your tax bill.
NJ SREC-II (SuSI) Program
New Jersey's SuSI program pays homeowners a fixed rate per Solar Renewable Energy Certificate (SREC) for 15 years. Every 1,000 kWh your system produces earns one SREC. At the current residential rate of $90/SREC, a typical 8 kW system earning 9 SRECs per year generates $810/year in guaranteed income for 15 years — approximately $12,150 in total SREC payments.
This fixed-rate structure (unlike the old volatile SREC market) makes it easy to calculate your total return before you sign a contract. Full program details and enrollment information are available at the [NJ Clean Energy Program website](https://www.cleanenergy.nj.gov/).
Property and Sales Tax Exemptions
New Jersey provides a 100% property tax exemption on the added home value from solar panels — typically $15,000 to $25,000 — so you pay no additional property taxes despite the home value increase. Solar equipment is also exempt from New Jersey's 6.625% sales tax, saving approximately $1,325 on a $20,000 system.
How Much Can NJ Homeowners Save?
| Metric | Estimate |
|---|---|
| Average system cost | $22,000 to $28,000 |
| After ITC + 15-yr SREC payments | $2,850 to $8,850 net cost |
| Monthly electricity savings | $120 to $180 |
| Payback period | 5 to 7 years |
| 25-year net savings | $40,000 to $60,000 |
SunLynk connects New Jersey homeowners with pre-vetted local solar installers who are fully versed in the SuSI SREC-II enrollment process. Get your free quotes today.
Frequently Asked Questions About the NJ SREC-II (SuSI) 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 — 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.
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. [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.
Find pre-vetted solar installers in your New Jersey 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)
