Do I need a new roof before solar?

Not always, and it is the first thing we check. A roof with ten or more years of life left generally takes panels without any work. If yours is closer to the end, the sensible order is roof first, then solar — because removing and reinstalling an array later costs more than doing it once.

What happens if I sell the house?

It depends which way you paid. An owned system transfers with the property like any other fixture. A third-party-owned system — a lease or a power purchase agreement — is a contract, and the usual routes are transferring it to the buyer, buying it out, or settling it at closing.

Home › New Jersey Electric Rates › Incentives

New Jersey · Updated August 2026

New Jersey solar incentives in 2026

Every solar incentive a New Jersey homeowner can actually use in 2026, including SREC-II under the SuSI program, the sales and property tax exemptions, and full net metering.

SuSISuccessor Solar Incentive — the SREC replacement

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The numbers

What New Jersey actually offers in 2026

Measure	Current	Detail
SREC-II under SuSI	Per-MWh certificate	Fixed price, 15-year term
State sales tax exemption	Full	7% saved on equipment and installation
Property tax exemption	100%	The added home value is not taxed
Net metering	1:1 retail	Among the stronger policies in the region
Federal residential credit (25D)	Ended	For systems placed in service after Dec 31, 2025

New Jersey exempts solar equipment from its 6.625% sales tax and excludes the added home value from property assessment. Both apply automatically at the point of sale and assessment — there is no application to file. Not every state in the region offers both, so an identical system can cost less to own here than across a state line.

Figures as published August 2026. Utility rates change on published schedules — check your own bill for the rate that applies to your account.

Why the number is what it is

SuSI replaced the old SREC market

New Jersey closed its legacy SREC program to new entrants and replaced it with the Successor Solar Incentive — SuSI. Residential systems earn SREC-IIs at a fixed price over a 15-year term, which removes the price volatility that made the old market hard to plan around.

A fixed certificate price is worth less upside than a hot SREC market but far more certainty, and it makes the 20-year math something you can actually rely on.

The tax exemptions are the quiet advantage

New Jersey exempts residential solar from its 6.625% state sales tax and exempts the added home value from property tax entirely. Neighboring Pennsylvania does neither.

That means no sales tax on the system at purchase and no property tax consequence for the value it adds — a structural difference in the cost of ownership between two neighboring states.

The federal residential credit ended. Here is what that actually means.

The 30% federal Residential Clean Energy Credit under Section 25D ended for property placed in service after December 31, 2025. If you buy a system with cash or a loan in 2026, you cannot claim it. Any site still advertising "30% federal tax 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: the credit stays with whoever owns the equipment, and under a PPA that is not you.

We would rather tell you that plainly than let you find out at tax time.

Two ways to pay for solar, and they are very different

If you buy the system

You own the equipment, you keep any renewable energy credits, and you carry the maintenance responsibility. Installed pricing varies by roof, shading and system size.

If you use a PPA

$0 upfront. We install and own the system; you buy the power it produces at a rate set in your agreement, and you only pay for what it actually generates. The system owner carries maintenance for the life of the agreement.

How $0-down solar works in New Jersey → · What solar costs in New Jersey →

The residential federal tax credit (25D) ended for property placed in service after December 31, 2025.

You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.

Who you would be working with

SolarAmerica

#1Ranked by Solar Power World

20,000+Installations completed

16+States with installations

Inc. 5000Fastest-growing companies

We design your system and manage the project; installation is performed by vetted licensed partners in your area.

New Jersey questions

The things people actually ask

What solar incentives are available in New Jersey in 2026?

The programs available in New Jersey are listed on this page, with what each one pays, who receives it and how it is claimed. Your SolarAmerica proposal shows exactly which ones apply to your home.

Do New Jersey solar incentives apply with $0 down?

Some do, and some go only to the owner of the system. Under a $0-down PPA SolarAmerica owns the system, and your proposal lists which benefits reach you. SolarAmerica does not provide tax advice.

Who handles the solar incentive paperwork?

SolarAmerica handles the applications that run through the installer and the utility, including interconnection. Your proposal lists each incentive separately with who applies for it.

See what your roof and New Jersey actually add up to

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