New Jersey solar rebates and incentives: 2026 guide

Solar panels might seem expensive, but if you live in New Jersey, you're in luck. Your state offers some of the most generous solar incentives in the country, helping thousands of homeowners shrink their upfront costs while locking in decades of lower electricity bills. There are multiple ways to bring down the price of going solar—and start saving sooner than you might think.

Even better? The long-term savings from reduced electricity costs typically outweigh your upfront investment. Here's how to take advantage of New Jersey's solar incentives.

Incentives help bring solar's price tag down considerably in New Jersey. Here are the major ones to know about:

Successor Solar Incentive (SuSI) program

The Successor Solar Incentive (SuSI) Program is New Jersey’s solar renewable energy credit (SREC) program. Under the state's renewable portfolio standards (RPS), utilities are required to generate a certain amount of solar energy. As a solar owner, you can earn one SREC for each megawatt-hour (MWh) of clean electricity your panels produce. Then, you can sell the SRECs to utilities to count towards their renewable generation. 

For residential systems, you’ll earn $85 per SREC. Here’s how to start selling SRECs in New Jersey:

1. Register your solar panel system through the SuSI Program portal before you start construction.

2. Once your solar installation is complete, submit a post-construction packet and receive a NJ Certification Number.

3. Use your certification number to open a GATS account to track your generation. 

4. Register an account onInClime (the SREC-II Administrator) to receive payment.

In addition to the great rebates and incentives above, New Jersey also offers tax exemptions for solar panel systems. The solar sales tax exemption ensures that you won't have to pay a sales tax on your system, while the solar property tax exemption means you don't need to pay a higher property tax for adding solar panels to your house.

If you connect your solar panel system to the grid, you can benefit from net metering, one of the best solar panel incentives available in New Jersey. With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels. 

Under New Jersey’s net metering program, you’ll earn credits at the retail rate of electricity for each kWh of electricity your system produces up to 100% of your annual utility electricity demand. If you send more electricity to the grid than you demand over the course of a year, you’ll be credited at the wholesale rate for your excess generation. For example, let’s say you send 100 kWh of solar power to the grid and receive 80 kWh of utility-generated electricity to your home. You’d earn 80 credits at the retail rate of electricity, but the other 20 kWh of excess generation would be credited to you at the wholesale rate, or what the utility pays for energy. 

Learn more about these net metering programs:

New Jersey doesn't currently offer any state-specific battery incentives, but the state’s Board of Public Utilities (NJBPU) released a proposal for two energy storage incentives coming within the next two years. In New Jersey, batteries can boost energy independence and provide backup power during an outage.