Several programs can affect a New Jersey solar proposal, but they do not all pay the same person and none should be assumed before eligibility and registration are confirmed. Here is what to check first.
ADI and SREC-IIs
Under SuSI’s Administratively Determined Incentive, an eligible system earns one SREC-II for every megawatt-hour of certified generation. The May 2026 NJBPU order set $77/MWh for residential ADI registrations received on or after July 27, 2026, down from $85/MWh for earlier registrations. Accepted projects have a 15-year incentive term, subject to program rules and the assigned registration. NJBPU 2026 ADI order · Program FAQ
For illustration, a 10 kW array producing 12 MWh/year would generate 12 SREC-IIs; at $77 each, that is $924 in year-one certificate value. Production, shade, degradation, registration and who owns the certificates all affect actual income.
New Jersey state tax exemptions
Qualifying solar-energy devices can be exempt from New Jersey sales and use tax under N.J.S.A. 54:32B-8.33. The seller’s documentation process may involve Form ST-4. A separate property-tax provision may exclude the certified system’s added assessed value, with Form CRES submitted to the local assessor after certification. Sales-tax guidance · Form ST-4 · Property-tax guidance · Form CRES
Federal credit timing and system ownership
The IRS states that Section 25D’s individual Residential Clean Energy Credit is unavailable for installations completed after December 31, 2025. Business owners of qualifying systems may examine Section 48E, but business-credit eligibility and timing are separate and require professional review. A homeowner leasing a system does not automatically receive a tax credit belonging to its owner. IRS 25D FAQ · IRS 48E guidance
How to use incentive numbers responsibly
Ask a provider to identify each incentive, the recipient, required application, assigned registration tier and assumptions used in the quote. Compare the exact sale or lease agreement with official guidance. For the full regulatory and financial context, visit the New Jersey solar guide’s scenario section.
Frequently asked questions
What is an SREC-II?
An SREC-II represents the environmental attributes of one megawatt-hour of qualifying solar production under New Jersey’s successor incentive framework.
Does the old federal 30% homeowner credit still apply?
The IRS says Section 25D is not available for eligible installations completed after December 31, 2025. Ask a tax professional about your circumstances.
Is a leased system eligible for the same homeowner incentives?
The third-party system owner commonly controls owner-based incentives. Read program rules and the lease or PPA agreement.
Eligibility, rates, utility practices and contract terms can change. Review current official material and obtain qualified legal, tax or financial advice where relevant.
