New Jersey Solar Tax Credits & Incentives
2026 Guide
With SREC-II income of $85/MWh guaranteed for 15 years, New Jersey offers some of the best ongoing solar incentives in the nation.
Federal Solar Tax Credit Update — 2026
The 30% federal ITC expired for homeowner-owned systems on December 31, 2025.
If you installed solar by Dec 31, 2025, claim the 30% credit on your 2025 tax return. New Jersey's SREC-II program provides ongoing income that can exceed the value of most tax credits over time.
New Jersey Solar Tax Credits & Incentives
Every credit, exemption, and rebate available in NJ
Federal ITC Carryforward
30% of system cost
Claim the full 30% Residential Clean Energy Credit on your 2025 return for pre-2026 installations.
Eligibility
- Installed solar/battery by December 31, 2025
- File 2025 tax return by April 15, 2026
- Nonrefundable — excess carries forward
SREC-II / SuSI Program
$85/MWh for 15 years
One of the most valuable ongoing solar incentives in the U.S. Earn $85 per SREC-II for every 1 MWh your system produces, guaranteed for 15 years.
Eligibility
- NJ solar installation enrolled in SuSI
- Earn credits for every 1 MWh (1,000 kWh) produced
- Guaranteed 15-year term from enrollment
Sales Tax Exemption
6.625% saved (~$1,656)
Full 6.625% sales tax exemption on solar installations. Saves approximately $1,656 on a $25,000 system.
Eligibility
- Any solar energy system purchase in NJ
- Applies at point of sale
- No application needed
Property Tax Exemption
100% exemption
Full property tax exemption for solar installations. Your property taxes won't increase from the added value of solar.
Eligibility
- Any NJ homeowner with solar
- Residential property
- Automatic
Full Retail Net Metering
Retail rate credits
Full retail rate net metering with annual true-up. Credits carry forward monthly, giving you the maximum value for excess energy.
Eligibility
- NJ utility customer
- Solar installation
- Credits carry forward monthly with annual true-up
Key Deadlines for New Jersey Solar Owners
Don't miss these time-sensitive opportunities
March 2026CRITICAL
NJBPU plans SREC-II pricing review — current $85/MWh rate may change
April 15, 2026CRITICAL
Last day to file 2025 taxes and claim the 30% federal ITC
July 4, 2026
Deadline for third-party providers to begin construction for Section 48E credits
Net Metering in New Jersey
Full retail rate net metering with annual true-up. Credits carry forward monthly. Combined with the SREC-II program, NJ has among the strongest combined solar incentive policies nationally.
Frequently Asked Questions
Common questions about solar tax credits in New Jersey
Is there a New Jersey state solar tax credit in 2026?
New Jersey doesn't offer a traditional state tax credit, but the SREC-II program is even more valuable — you earn $85 per MWh for every unit of solar energy your system produces, guaranteed for 15 years. On a typical 8 kW system, that's $800–$1,000+ per year in additional income.
How much are SREC-II credits worth in New Jersey?
$85 per SREC-II for every 1 MWh (1,000 kWh) your system produces, guaranteed for 15 years. A typical 8 kW residential system in NJ produces about 9.5–10 MWh per year, earning approximately $800–$850 annually. Note: NJBPU plans a pricing review in March 2026 — the rate may change.
Can I still claim the federal solar tax credit in New Jersey in 2026?
Only if you installed before December 31, 2025. Claim the 30% federal ITC on your 2025 tax return (due April 15, 2026). For new 2026 installations, lease/PPA arrangements still offer access to federal credits.
What tax exemptions does New Jersey offer for solar?
NJ offers both a 6.625% sales tax exemption (saving ~$1,656 on a $25,000 system) and a 100% property tax exemption. Combined with SREC-II income and full retail net metering, NJ homeowners can reduce total solar costs by over 50%.
Is New Jersey's SREC-II rate going to change?
NJBPU plans a pricing review in March 2026 — the current $85/MWh rate may change for new enrollments. If you're considering solar in NJ, enrolling before any rate change could lock in the current higher rate for 15 years.
Solar Tax Credits in New Jersey Cities
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