$77 per megawatt-hour in solar credits

New Jersey Home Solar Incentives in 2026

New Jersey does not hand you a cash rebate for solar panels. It pays you for the power your panels make, lets you run your meter backward, and does not raise your property tax for the added value. The federal credit is gone. This page explains each piece in plain words, with the dates and amounts we read on the state's own pages on October 6, 2026.

What pays solar owners in New Jersey

Each card names the fact we keep on file, with the date we last read the official page.

Open

Successor Solar Incentive credits

$77 per megawatt-hour

A megawatt-hour is 1,000 kilowatt-hours, so $77 is about 7.7 cents for each kilowatt-hour your system makes. The amount was $85 until July 27, 2026. Your contractor registers the project while the 300 megawatt residential block lasts, or until June 1, 2027.

Info

Net metering

Retail-rate credit

You get full retail credit on your bill for each kilowatt-hour you send out over the year. Anything left at the end of the year is paid at the lower wholesale price.

Info

Property tax exemption

Added value not taxed

A certified renewable energy system can be exempt from the extra property tax its value would add. File Form CRES with your tax assessor.

Closed

Federal 25D solar credit

Ended

The 30% credit does not apply to systems paid for after December 31, 2025.

None of these is a check at the door. The credits arrive over time, net metering shows up on your bill, and the tax exemption is something you ask your town for. That changes how you compare quotes.

A simple example of the $77 credit

Suppose a roof system makes 10,000 kilowatt-hours in a year. That is 10 megawatt-hours, and at $77 each the credits add up to $770. The number is an example, not a promise. Your system's output depends on its size, tilt and shade. Ask your contractor for the expected output in writing and divide by 1,000 to get megawatt-hours. We did not find the number of years the credits last on the page we read, so ask the contractor to show it in the contract and confirm it with the state.

Net metering in plain words

Your electric meter spins forward when you pull power from the grid and backward when your panels send power out. Over a 12-month cycle, the state says you get full retail credit for the power you produce. If you switch electric suppliers or change your anniversary date, any extra power at that moment is credited at the lower wholesale price and a new cycle starts. So think before switching suppliers in a year when your panels made more than you used.

Registration and timing

The Administratively Determined Incentive program takes registrations first come, first served. Residential rooftop projects share a block of 300 megawatts for Energy Year 2027, and registrations close when the block is full or on June 1, 2027, whichever comes first. A rule that normally bars starting construction before the state accepts your registration was waived for projects that registered between July 4 and December 31, 2025. That window has passed, so ask your contractor in writing whether work can begin before the state's approval.

No federal credit means the price must stand alone

Many online ads still mention a 30% federal credit. The IRS page says it ended for spending after December 31, 2025. Do not sign a quote that counts on it. A fair quote now states the price, the expected output, the credits you may earn and what happens if the roof needs repairs. Compare at least two quotes using the same assumptions.

Batteries are a separate question

State credits pay for solar, not for storage. If you want backup power, see our New Jersey home battery guide. PSE&G has a battery rebate, but only for PSE&G customers. Your electric company also decides how fast it connects your system, so ask for its interconnection timeline.

How to go solar in New Jersey step by step

  1. Get two or three written quotes with expected yearly output and total price.
  2. Ask who registers the project with the state and when, and get that in the contract.
  3. Apply to your electric company for permission to connect.
  4. After the system is running, ask your contractor how the credits are paid and tracked.
  5. File Form CRES with your town's tax assessor to claim the property tax exemption.

More for New Jersey homes

Common questions

Does New Jersey have a solar rebate?

Not a cash rebate. It pays $77 per megawatt-hour of power made for new residential registrations from July 27, 2026, plus net metering and a property tax exemption.

Is the federal solar tax credit still available?

No. The 25D credit ended for spending after December 31, 2025.

What is net metering?

A system that credits you at the full retail rate for power you send out, over a 12-month cycle.

Do I pay more property tax if I add solar?

A certified renewable energy system can be exempt from the added value. You apply with Form CRES.

What about sales tax on solar?

We did not confirm a sales tax rule from an official page, so ask your contractor to show you the law.

By Sam Menard. Sources, last read October 6, 2026: NJ Clean Energy Program, solar incentive, NJ Clean Energy Program, net metering, NJ Division of Taxation, property tax exemptions, IRS residential clean energy credit.

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