Understand the programs behind your proposal.
Incentive values and eligibility depend on registration, production, ownership, utility rules and tax dates. Check the primary sources before building any benefit into a decision.
Read the Complete NJ GuideSuSI and the residential ADI program
New Jersey's Successor Solar Incentive (SuSI) Program includes the Administratively Determined Incentive (ADI) for eligible residential projects. One SREC-II represents one megawatt-hour of eligible solar generation, with certificates tracked through PJM-EIS GATS. The registered owner or designated party receives the value under the program and contract, so a leased-system customer should check who gets the certificates. SuSI program · ADI FAQs · GATS tracking
NJBPU's May 2026 order changed the residential ADI value from $85 to $77 per MWh for registrations received on or after July 27, 2026. A 10 kW system producing 12,000 kWh in one year would produce 12 SREC-IIs and an illustrative $924 at $77/MWh, if generation qualifies and the homeowner receives the certificates. Actual production, block availability and incentive assignment differ. NJBPU rate order
Net metering and utility approval
Eligible customer-generators can receive retail-rate bill credits for electricity exported and used within the annualized period. Credits can carry forward monthly; excess remaining at annual reconciliation is paid at avoided wholesale cost rather than the retail rate. Design should be based on annual electric use, not just roof capacity. A utility must approve interconnection before operation. NJ solar market FAQs
Under NJBPU's January 2026 adopted interconnection rule, qualifying smart-inverter projects can use Level 1 screening at up to 50 kW AC nameplate and 25 kW export capacity, if other criteria are met. The guide's older 10 kW threshold should not be used as the current rule. Adopted interconnection rule
New Jersey sales and property-tax exemptions
Qualifying solar equipment can be exempt from state sales and use tax under N.J.S.A. 54:32B-8.33; New Jersey guidance calls for a completed Form ST-4 given to the seller. Do not assume every contract line qualifies. Sales-tax guidance · Form ST-4
Under N.J.S.A. 54:4-3.113, a certified renewable-energy system can be exempt from added assessed property value attributable to that system. The Form CRES process involves local certification and the municipal assessor; official instructions say the exemption starts with the tax year after certification. Property-tax guidance · Form CRES
Federal tax treatment is ownership-specific
The IRS says the individual Residential Clean Energy Credit (Section 25D) is not available for qualifying property installed after December 31, 2025. Payment before that date alone does not preserve it if installation finishes later. Do not include a 30% homeowner credit in a new 2026 proposal. IRS credit page · IRS expiration FAQ
A third-party system owner may examine a business-owner credit under Section 48E, but eligibility and termination rules require project-specific tax advice. A homeowner does not receive that business credit merely by leasing panels. IRS business credit · IRS timing notice
Community solar is another way to participate
For renters or homes without suitable roofs, community solar offers off-site project bill credits through a subscription. NJBPU's March 2026 order calls for at least a 20% discount on solar bill-credit value for newly registered projects, and at least 25% for low- and moderate-income subscribers, with at least 51% capacity reserved for that group. Discounts are not necessarily a percentage of the entire electric bill. NJBPU Community Solar order · Subscriber FAQs
Program capacity, utility tariffs, tax rules and eligibility can change. Confirm the project's registration and contract allocation and consult a qualified tax adviser when relevant.
Explore the full New Jersey solar statutory and regulatory guide