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Solar incentives in New Jersey
What is actually on offer here in 2026 — the state incentive, the federal position, and the export rule, which is usually worth more than either.
The state incentive
ADI at $77/MWh for 15 years. Administratively Determined Incentive, set by BPU order May 2026. Stacks on 1:1 net metering.
The federal position
§25D, the 30% residential credit, expired for systems placed in service after 31 December 2025 — installed, not merely purchased. §48E did not expire on that schedule, and a company owning panels on your roof under a lease or PPA can still claim it. That asymmetry, not anything specific to New Jersey, is the largest single change in residential solar economics. The detail, with sources.
Rate schedules and export rules
What your surplus earns is set here, and it is where two identical systems a mile apart stop being comparable.
PSE&G — RS Residential
1:1 net metering stacked on top of the ADI incentive — one of the last places both apply. Fixed charge $4.95/month.
Summer Flat $0.20.
Winter Flat $0.19.
Exports: full net metering — every exported kilowatt-hour is credited at the same retail price you pay to import one.
Source: PSE&G residential service rate; NJ BPU SuSI/ADI program
Production in New Jersey
| City | kWh per kW / year | 7 kW system |
|---|---|---|
| Newark, NJ | 1,266 | 8,860 |
Policy changes affecting New Jersey
- The 30% residential solar credit is gone. What replaced it is not a credit.The 4 July begin-construction deadline has passed. What that means for commercial projects.Net billing is the default now, and it changes what a solar panel is for
Work out your own number
Credits are the easy part. What decides payback is how much of your own production you use versus export, hour by hour, against the schedules above.
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