New Jersey Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in New Jersey costs $0. After the 30% federal tax credit: $0. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
New Jersey State Incentives
Successor Solar Incentive (SuSI) Program
PerformanceTRECs: ~$90/MWh for first 15 years
New Jersey's SuSI program provides Transition Renewable Energy Certificates (TRECs) for solar production over 15 years.
Net Metering
Net MeteringFull retail rate
Full retail net metering for systems up to 10 MW. Excess credits roll over monthly.
Tax Exemptions
property tax Exemption
100% property tax exemption for solar and wind energy systems.
sales tax Exemption
Solar energy equipment and installation are exempt from New Jersey's 6.625% sales tax.
Utility Programs
PSE&G
- Net metering
- Solar loan program
JCP&L
- Net metering
- Clean energy programs
Atlantic City Electric
- Net metering
- Energy efficiency rebates
Highlights & Drawbacks
Highlights
- ✓TREC income over 15 years significantly boosts ROI
- ✓Full retail net metering
- ✓Property and sales tax exemptions
- ✓Strong long-term solar policy
Drawbacks
- !Above-average installation costs
- !TREC values can fluctuate with market
- !Moderate sun hours
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.