New Jersey's SuSI program pays you a fixed amount for every megawatt-hour your panels produce, on top of strong net metering. Here are New Jersey's 2026 solar incentives, electricity rates, net metering rules and typical payback — plus tools to run your own numbers.
SCReviewed by Sarah Chen, Energy AnalystSources: DSIRE, EIA, IRS
Solar economics in New Jersey are shaped by an average rate near ~18¢/kWh and good sunshine. Photo: American Public Power Association / Unsplash
Quick answerSolar in New Jersey typically pays back in 6–8 years. With electricity rates around ~18¢/kWh, good sunshine, and the 30% federal tax credit, a 7 kW system costing ~$21,000 drops to about $14,700 net before New Jersey's own incentives. Headline state perk: SuSI SREC-II program pays per MWh generated.
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New Jersey solar at a glance
Avg electricity rate~18¢/kWh
Typical payback6–8 years
SunshineGood
Net meteringNet metering (full retail) + SuSI SREC-II
Federal tax credit30% (2026)
7 kW net cost*~$14,700
*National-average $3.00/W system after the 30% federal credit, before New Jersey state incentives.
Is solar worth it in New Jersey?
New Jersey's SuSI program pays you a fixed amount for every megawatt-hour your panels produce, on top of strong net metering. At an average residential rate of about ~18¢/kWh, every kilowatt-hour your panels produce is a kilowatt-hour you don't buy from the utility — and that avoided cost is what drives your payback. Combined with good sunshine, a standard 7 kW system in New Jersey generally pays for itself in 6–8 years after the 30% federal credit, then delivers a decade or more of nearly free power.
To see your own number rather than this state average, plug your actual electric bill into the Solar Payback Calculator. If you're weighing how to pay, the Financing Calculator compares cash, loan and lease side by side.
New Jersey solar incentives in 2026
Beyond the federal 30% Residential Clean Energy Credit, which applies everywhere, New Jersey offers:
Successor Solar Incentive (SuSI) issues SREC-IIs worth a fixed payment per MWh for 15 years
Full-retail net metering credits your exported power 1:1
100% sales tax exemption and property tax exemption on added home value
State programs change frequently. Always confirm current details and eligibility on the DSIRE database and with a licensed local installer before you sign anything.
Net metering in New Jersey
New Jersey uses Net metering (full retail) + SuSI SREC-II. Net metering is the second-biggest factor in your solar economics after your electricity rate, because it determines how much credit you earn for the excess power your panels send back to the grid. Generous, full-retail net metering shortens payback; reduced export rates lengthen it and increase the value of pairing your system with a home battery.
Run your New Jersey solar numbers
Use your real electric bill for a personalized payback — free, no sign-up.
Yes for most New Jersey homeowners. With average electricity rates around ~18¢/kWh and good sunshine, a typical 7 kW system pays back in about 6–8 years after the 30% federal tax credit. Your exact result depends on your roof and usage — run it in the Payback Calculator.
What solar incentives does New Jersey offer in 2026?
On top of the 30% federal Residential Clean Energy Credit, New Jersey offers: Successor Solar Incentive (SuSI) issues SREC-IIs worth a fixed payment per MWh for 15 years; Full-retail net metering credits your exported power 1:1; 100% sales tax exemption and property tax exemption on added home value. See the full list with current details on DSIRE.
How does net metering work in New Jersey?
New Jersey uses Net metering (full retail) + SuSI SREC-II. Net metering rules are the second-biggest driver of solar value after your electricity rate, because they set how much you earn for the excess power you export to the grid.
How much does solar cost in New Jersey?
A typical 7 kW residential system runs about $21,000 before incentives at the 2026 national average of $3.00/W, or roughly $14,700 after the 30% federal credit — before any New Jersey state incentives. Use the Tax Credit Calculator to confirm your federal credit.
Sarah has spent 12 years modeling US residential solar economics, including 4 years contributing to NREL's Distributed Generation Market Demand model. She holds a BS in Mechanical Engineering from UC Berkeley and reviews every calculator and state guide on GreenCalcs against current IRS, DSIRE and EIA data. Read our methodology →
