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New Jersey Solar Incentives & Tax Credits
Every solar incentive available to New Jersey homeowners in 2026.
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Federal Tax Credit — Expired for Purchases
The 30% federal Residential Clean Energy Credit (Section 25D) expired on December 31, 2025. Homeowners who buy a system with cash or a loan in 2026 can no longer claim it — a $22,039 system that once carried a $6,612 credit now has none.
- ✅ Solar leases and PPAs can still capture a federal credit through 2027 — the installer claims it and lowers your monthly payment
- ✅ State incentives and net metering below still apply to purchased systems
- ✕ No federal credit for cash or financed purchases placed in service after Dec 31, 2025
$2,000
New Jersey State Incentive
New Jersey offers Transition Renewable Energy Certificates (TRECs).
Net Metering in New Jersey
New Jersey has Full Retail net metering. Your top utility, PSE&G, credits you for excess solar power fed to the grid.
Policy Type
Full Retail
Electricity Rate
$0.165/kWh
Top Utility
PSE&G
Utility Net Metering Policies in New Jersey
| Utility | Rate/kWh | Net Metering | Capacity Limit |
|---|---|---|---|
| PSE&G | $0.165 | Full Retail | No overall limit |
| Jersey Central Power | $0.165 | Full Retail | No overall limit |
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