Every incentive a New Jersey homeowner can actually use, what each one is worth, and the ones that no longer exist. Sourced and dated.
New Jersey exempts residential solar from the 7% state sales tax and exempts the added home value from property tax entirely. On a $25,000 system that is roughly $1,750 saved at purchase plus no property tax consequence.
New Jersey closed its legacy SREC market and replaced it with the Successor Solar Incentive (SuSI). Residential systems earn SREC-IIs at a fixed price over a fifteen-year term — less upside than a hot SREC market, far more certainty.
As in every certificate state, SREC-IIs belong to whoever owns the panels. Under a lease or PPA the system owner keeps that income.
Combined with 1:1 net metering and rates around 26¢ at PSE&G, New Jersey has some of the shortest payback periods in the region.
Sources: New Jersey Board of Public Utilities; NJ Clean Energy Program SuSI filings.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy with cash or a loan in 2026, you cannot claim it. Any site still advertising a 30% federal credit for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible.
EnergyPros does not provide tax advice — confirm your situation with a tax professional.
Incentives only matter against the rate you are paying now. New Jersey has full 1:1 retail net metering with no aggregate cap, plus SREC-II certificates at a fixed price for fifteen years under the SuSI program. It also exempts solar from the 7% sales tax and from property tax entirely — neither of which Pennsylvania offers.
See the full breakdown of every New Jersey utility rate on our New Jersey solar page.
See what solar costs against your New Jersey rate
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No, not on a purchase. The Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. Section 48E still applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it. That is what makes $0-down possible.
Yes. Any rebate paid to your installer should appear on your contract as a reduction in price, not as a savings claim. Ask for an itemised quote showing the gross price, each incentive applied, and the net. If an installer will not itemise, that is worth noticing.
It depends on the incentive. Rebates paid to the installer reduce your contract price either way. Tax credits and renewable energy certificates generally follow ownership — under a lease or PPA the system owner claims them, which is part of how the monthly payment is kept low. A few state credits are exceptions.
No. EnergyPros is a marketplace. We match you with vetted, licensed and insured contractors who work in your area, and you deal directly with them on the quote and the installation.
New Jersey solar guides