New Jersey Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 21.3 kW system using the historical observed average cost in New Jersey is $0. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $5,172.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗New Jersey State Program Snapshot
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.
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.