Going solar in New Jersey just got easier: Lawmakers approve faster permitting

New Jersey has taken a decisive step toward making solar more accessible for homeowners, with lawmakers unanimously passing legislation that could transform how the state handles solar permitting—and potentially save families thousands of dollars in the process.

In a rare display of bipartisan unity, both chambers of the New Jersey Legislature passed bills A-5264 and S-4100 with overwhelming support, including a 39-0 vote in the Senate. The legislation, sponsored by Assemblyman Robert Karabinchak (D-18) and Senator John McKeon (D-27), now heads to Governor Phil Murphy's desk for his signature.

The bills would require the New Jersey Department of Community Affairs to create and maintain a State Smart Solar Permitting platform—a 24/7 automated online tool that local municipalities would use to process permits for residential solar and battery systems. For homeowners considering solar, this could mean the difference between waiting weeks or months for approval versus getting permits processed almost instantly.

New Jersey has the fifth-slowest solar permitting timelines of any state in the country, according to the state's legislation. A February report from the Regional Plan Association also ranked the state as the third slowest for residential solar permitting overall.

This sluggish pace has real consequences: About 22% of residential solar projects in the state that begin the permitting process never get completed largely due to permitting delays, according to the New Jersey Business & Industry Association,

The financial impact is equally significant. An analysis conducted by the Greenhouse Institute in January found that permitting roadblocks add between $3,800 and $4,500 to the cost of an average residential solar project. The Solar Energy Industries Association puts total permitting-related costs for residential solar systems in a similar range, between $6,000 and $7,000.

For homeowners already facing high electricity bills and inflation, these added costs could make or break the decision to go solar. The new legislation aims to dramatically reduce these barriers by bringing automation and standardization to the solar permitting process.

Under the proposed legislation, the State Smart Solar Permitting platform would need to meet several key requirements:

• Built-in code checks and automatic approvals: The system would conduct compliance checks against the State Uniform Construction Code and automatically issue permits or revisions for code-compliant residential solar energy systems.

• 24/7 availability: The platform would be available around the clock and designed to process 75% of submitted residential solar permit applications.

• Low-cost implementation: If provided by a third party, the platform must be offered to the Department of Community Affairs at little to no cost, with customer support services included.

• Flexibility for local governments: While the state would provide the platform, local enforcing agencies could choose to use an alternative automated solar permitting system, as long as it meets the same standards.

This approach mirrors successful reforms in other states, with more states moving to cut red tape and minimize installation soft costs to make it easier for homeowners to go solar:

• Florida recently approved a bill allowing local governments to adopt automated permitting software for residential solar projects, along with a slew of other clean energy measures. 

• Texas passed SB1202 in June 2025, allowing licensed third-party professionals to review and inspect residential solar and storage permits. 

• Minnesota signed the Energy Infrastructure Permitting Act (HF4700), allocating $2 million for local SolarAPP+ adoption. 

• Colorado reopened its Automated Permit Processing for Solar (APPS) grant program to offer $1 million in funding for automated solar permitting platforms. 

• California adopted the SolarAPP+ platform statewide in 2023.

The timing couldn't be more critical for New Jersey homeowners considering solar. With President Trump's signing of the "Big Beautiful Bill" on July 4, the federal solar tax credit now expires at the end of 2025. That means homeowners have until December 31, 2025, to install solar panels and lock in the 30% federal tax credit—an average of $9,000 in savings.

The compressed timeline makes New Jersey's permitting reform even more valuable. With faster processing times, homeowners will have a better chance of completing their solar installations before the federal incentive disappears.

Increasing solar installations will save New Jersey ratepayers more than $87 million by 2030 and add more than 560 clean energy jobs, according to a letter signed by 33 organizations in support of the bill.

The impact extends beyond individual savings: Adopting smart permitting statewide could result in an additional 200,000 residential solar installations in New Jersey by 2040, which would produce annual savings of between $422 million and $430 million, according to the Greenhouse Institute.

"Easing the solar permitting process is one of those rare wins for all involved—saving time and money for families, solar installers, and local governments alike," said Assembly State and Local Government Chair Robert Karabinchak.

The legislation represents a significant step forward in making solar accessible to more New Jersey families. Nearly one out of five residential solar projects are canceled before installation starts, with installers citing permitting barriers as the number one reason for cancellations, according to Environment America.

New Jersey's move comes at a crucial time for the state's clean energy transition. This year, New Jersey exceeded 5 gigawatts of installed solar capacity for the first time, enough energy to power 750,000 homes. However, the state still faces challenges in meeting its ambitious clean energy goals.

The permitting reform addresses one of the most persistent obstacles to solar adoption. By reducing bureaucratic delays and cutting costs, the legislation could help more families access the benefits of solar energy—from lower monthly electric bills to increased home values.

For installers and local governments, the automated system promises to reduce administrative burden while maintaining important safety and code compliance standards. The platform's 24/7 availability means applications can be processed faster, keeping projects on schedule and reducing frustration for all parties involved.

While other states' bills to remove solar permitting bottlenecks fell flat this year, New Jersey unanimously passed a permitting bill in "one of those rare wins." Solar permitting bills died in Minnesota, Massachusetts, Hawaii, New York, and Illinois. Florida's bill was withdrawn from consideration.

This makes New Jersey's success particularly notable and positions the state as a leader in clean energy policy reform. The unanimous support suggests broad recognition that streamlining solar permitting benefits everyone—homeowners, installers, and local governments alike.

The legislation now awaits Governor Murphy's signature. Given the governor's strong support for clean energy initiatives and the bill's unanimous passage, approval seems likely. If signed, the Department of Community Affairs would have one year to fully implement the State Smart Solar Permitting platform.

For homeowners considering solar, the potential changes represent a significant improvement to the process. Combined with existing federal tax credits and state incentives, New Jersey could soon offer one of the most streamlined paths to solar adoption in the nation.

With rising electricity costs and growing concerns about grid reliability, the timing couldn't be better for reforms that make clean energy more accessible to Garden State families. The legislation represents exactly the kind of practical, bipartisan solution that can help more homeowners take control of their energy costs while contributing to a cleaner energy future.

As the bill moves to the governor's desk, New Jersey homeowners have a clear opportunity: act now to take advantage of current federal incentives while preparing for a much smoother permitting process ahead.