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EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
Wildfires in Russia's Sakha Republic (Yakutia) on July 22, 2021. Russian Aerial Forest Protection / TASS via Getty Images

Smoke from wildfires burning in Siberia's dense boreal forest has reached the North Pole for the first known time in history, NASA satellite images revealed last week.

Read More Show Less
EcoWatch Daily Newsletter
The left image shows the OSIRIS-REx collector head hovering over the Sample Return Capsule (SRC) after the Touch-And-Go Sample Acquisition Mechanism arm moved it into the proper position for capture. The right image shows the collector head secured onto the capture ring in the SRC. NASA / Goddard / University of Arizona / Lockheed Martin

A NASA spacecraft has successfully collected a sample from the Bennu asteroid more than 200 million miles away from Earth. The samples were safely stored and will be preserved for scientists to study after the spacecraft drops them over the Utah desert in 2023, according to the Associated Press (AP).

Read More Show Less
2022 New Jersey Solar Tax Credits, Incentives & Rebates

See what kind of financial incentives are available for Garden State homeowners who go solar.

Reviews
Robert D. Barnes / Getty Images

If you're looking for information about New Jersey solar tax credit and incentive programs, you've come to the right place. According to the latest data from the Energy Information Administration (EIA), electricity prices in New Jersey are about 30% higher than the U.S. average. However, this also means that the kilowatt-hours produced by solar panels will save you about 30% more, and the state offers many financial incentives that improve your return on investment.

The Solar Energy Industries Association (SEIA) reports that by the end of Q2 2021, New Jersey had an installed solar capacity of 3,739 MW, which is enough to meet the electricity needs of over 579,000 homes. The NJ solar industry has already received over $11 billion in total investment, and there are 470 solar companies providing more than 5,300 jobs in the state.

New Jersey gets modest sunshine compared to states like Texas and California, but it has favorable laws and incentives for solar power. This has helped the Garden State become one of the best states for solar in the nation.

In this article, we'll take a look at the full array of New Jersey solar incentives. If you'd like to see right away how much a solar installation would cost for your home, you can use this tool or fill out the form below to get a free, no-obligation quote from a pre-screened New Jersey installer.

New Jersey Solar Tax Credits and Solar Rebates

When you consider New Jersey solar incentives and electricity prices, it's possible to get a solar payback period of less than six years. This is great for an investment that has a service life of 25 years or more and is covered by manufacturer warranties for the majority of that period. The following chart summarizes all the benefits available when going solar in New Jersey:

New Jersey Solar Incentive

Program Overview

New Jersey Net Metering Programs

Net metering is required by law in NJ, which means you get credits for surplus solar energy that gets exported to the grid. These credits can be used to pay power bills.

Transition Renewable Energy Certificates

You earn one TREC for every 1,000 kWh generated by your solar panels, and each TREC sells for $91.20 (as of November 2021).

New Jersey Solar Tax Exemptions

Solar panels are exempt from the 7% sales tax in NJ, and your home value increase after installing solar is exempt from property taxes.

Local Incentives

Additional incentives and low-interest financing programs may be available, depending on where you live in New Jersey.

New Jersey Net Metering Programs

Net metering is a simple concept, and it makes solar power much more valuable for homes. When your solar panels are producing more electricity than what your home is consuming, the difference gets fed back into the grid. Thanks to New Jersey's net metering regulations, electricity providers must give you full retail value credit for surplus solar energy, which gets subtracted from your electric bills.

  • As a quick example, assume your solar panel system produces 1,000 kWh of energy during a month, but you only consume 600 kWh. The other 400 kWh is exported to the grid.
  • Thanks to net metering, you'll receive the full value of that 400 kWh. In states without this benefit, electricity companies decide how to compensate you for surplus solar power, and many of them only give partial credit.

Jersey Central Power & Light (JCP&L) and PSE&G currently have the two largest net metering programs in New Jersey. If there is a month where your solar generation is higher than your electricity consumption, credits are rolled over to the next billing period. Once per year, accumulated credits in your favor are compensated at wholesale price (not retail price) and the balance resets to zero.

Transition Renewable Energy Certificates

In New Jersey, solar panels not only give you power bill savings. You can also accumulate Transition Renewable Energy Certificates based on how much electricity is generated.

  • For every megawatt-hour (1,000 kWh) of solar generation, you get one TREC.
  • Electric utilities and other companies with a legal obligation to support renewable energy will purchase TRECs as part of their compliance efforts.
  • As of November 2021, each TREC sells for $91.20.

If a solar energy system in New Jersey produces over 10,000 kWh per year, you get an additional 10 TRECs. With an electricity tariff of 16 cents/kWh, you would save $1,600 per year. However, you also get $912 for the 10 TRECs, and your total economic benefit is $2,512 per year.

New Jersey Solar Tax Exemptions

There are two main tax incentives for New Jersey homeowners going solar: a property tax exemption and state sales tax exemption.

  • Solar panels are exempt from increased property taxes. If a home has an assessed property value of $400,000, and solar panels increase this to $420,000, the owner will still be taxed on $400,000.
  • Solar panels are exempt from New Jersey's 7% sales tax, which immediately makes them more affordable. For example, if the sales price of your home solar system is $15,000, you're saving $1,050 right away.

Solar Rebates and Other Local Incentives

In addition to the incentive programs described above, additional benefits such as solar rebates may be available in some New Jersey municipalities. Before installing solar panels, make sure you're not missing out on any incentives available in your area.

New Jersey has also enacted laws that enable PACE financing in the state. PACE stands for Property Assessed Clean Energy, and these programs give you low-interest loans for solar panels and other clean energy upgrades. As of the end of 2021, there are a few PACE programs under development in New Jersey, but the options are still limited.

Federal Solar Tax Credit

The 26% federal solar tax credit is a nationwide benefit, and you can combine it with New Jersey solar incentives to improve your ROI. The official name of this incentive is the Investment Tax Credit or ITC. The credit is set to reduce to 22% in 2023 and will not be continued thereafter unless Congress approves an extension.

You can read our federal solar tax credit guide for more information on how this credit works.

Any top solar company will be able to help you identify and apply for financial incentives available in your area. To get connected to a certified installer near you, you can use this tool or fill out the form below.

FAQ: New Jersey Solar Incentives

Is solar really free in NJ?

No, New Jersey doesn't have any official programs that offer free solar panels. However, solar panels can achieve a payback period of fewer than six years in the state, while lasting for 25 years or more. In other words, you have free electricity for many years after recovering your initial investment.

With a low-interest loan, you can go solar for $0 upfront, then use electricity savings to pay off the loan. Strictly speaking, this doesn't make solar panels free, but they are essentially paying for themselves.

Is solar good in New Jersey?

Yes, solar is good in New Jersey. New Jersey has above-average electricity prices and many incentive programs for solar power, and this improves your return on investment when going solar. Although there are sunnier places in the U.S., New Jersey gets enough sunshine to make solar panels cost-effective.

Can you sell power back to the grid in NJ?

Yes, you sell power back to the grid in NJ. New Jersey has one of the best net metering programs in the U.S., where you get full credit for solar electricity that gets exported to the grid. Unused credit can be rolled over to the next month, and you get paid for accumulated credit once per year.

All electricity sent to the grid is credited at retail price, except for accumulated annual credits, which are paid at wholesale prices (the price paid by electricity providers when purchasing energy from power generators).

Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, fast food, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
NOAA's HRRR Smoke Model as of July 16, 2021 at 5 p.m. NOAA

There are currently 70 wildfires burning more than one million acres across the U.S., according to the most recent figures from the National Interagency Fire Center.

While the bulk of the fires themselves are burning in the West, the smoke is projected to fill skies across the entire country, reaching as far east as New York.

Read More Show Less
Trending
An illustration highlights the moon's Clavius Crater with an illustration depicting water trapped in the lunar soil there. NASA / Daniel Rutter

A pair of studies released Monday confirmed not only the presence of water and ice on the moon, but that it is more abundant than scientists previously thought. Those twin discoveries boost the prospect of a sustainable lunar base that could harvest the moon's resources to help sustain itself, according to the BBC.

Read More Show Less
A woman carries a bucket of water on an improvised bridge over dry land alongside the Amazon River at Bom Jesus village at the margin of Solimoes river in Amazonas State, Brazil. Jose Caldas / Brazil Photos / LightRocket via Getty Images

By Brett Wilkins

Researchers at the University of Leeds in Britain published new research Tuesday — World Rainforest Day — showing that massive swaths of the eastern Amazon are at risk of severe drying by the end of this century if greenhouse gas emissions are not reduced.

Read More Show Less


The Sun shines through a tree in a valley near the Russian city of Krasnoyarsk in Siberia. A recent study attributed the severity of the heat wave that swept across Siberia in 2020 to human activity. nikita velikanin / Unsplash

By Michael Allen

Last year was hot. NASA declared that it tied 2016 for the hottest year on record, and the Met Office of the United Kingdom said it was the final year in the warmest 10-year period ever recorded. Temperatures were particularly high in Siberia, with some areas experiencing monthly averages more than 10°C above the 1981–2010 average. Overall, Siberia had the warmest January to June since records began; on 20 June, the town of Verkhoyansk, Russia, hit 38°C, the highest temperature ever recorded in the Arctic Circle.

Read More Show Less
Rep. Louie Gohmert (R-Texas) arrives for the House Judiciary Committee markup of the Elder Abuse Protection Act, the Criminal Judicial Administration Act, and other amendments in Washington, DC on May 18, 2021. Tom Williams / CQ-Roll Call, Inc via Getty Images

Republican Representative Louie Gohmert from Texas made headlines Wednesday after comments he made about climate change and the orbit of the Earth and moon went viral.

Read More Show Less
Trending
Climate activists set off smoke as they protest from the side of the U.S. Chamber of Commerce after scaling the building on October 14, 2021 in Washington, DC. Kevin Dietsch / Getty Images

What is Climate Activism?

Climate activism is what happens when people from all over the world come together to put pressure on national and business leaders to take action to safeguard a liveable future. Solving the climate crisis requires making rapid social and technological change for which "there is no documented historic precedent," as the Intergovernmental Panel on Climate Change (IPCC) put it. As individuals, it's hard to imagine a single action that would shift our energy and transportation systems away from fossil fuels or stop deforestation. But the point of activism is that we don't need to do it alone. Instead, we can come together as collectives and communities to put pressure on policy makers or model alternative ways of doing things.

Read More Show Less
An airplane view shows a lake of meltwater in the Greenland ice sheet on August 04, 2019 near Ilulissat, Greenland. Sean Gallup / Getty Images

A new study of Greenland's glacial rivers has important implications for how scientists might model future ice melt and subsequent sea level rise.

Read More Show Less
Trending
The moon moves in front of the sun in a rare "ring of fire" solar eclipse as seen from Tanjung Piai, Malaysia on Dec. 26, 2019. SADIQ ASYRAF / AFP / Getty Images

Happening just after the "supermoon, red blood moon, lunar eclipse" last month, astronomy lovers can get excited for another celestial event on June 10 — the "ring of fire" solar eclipse.

Those living in northern and eastern sections of North America will be able to witness the eclipse as it overlaps with the sunrise, according to a report made by Space.com. The entirety of the eclipse will last about 100 minutes.

Read More Show Less
The world's largest has calved from the western side of the Ronne Ice Shelf in the Weddell Sea, Antarctica. European Space Agency

A massive chunk of ice broke off of Antarctica this month, and it is now the largest iceberg in the world.

Read More Show Less

Less than three years after California governor Jerry Brown said the state would launch "our own damn satellite" to track pollution in the face of the Trump administration's climate denial, California, NASA, and a constellation of private companies, nonprofits, and foundations are teaming up to do just that.

Read More Show Less
EcoWatch is a community of experts publishing quality, science-based content on environmental issues, causes, and solutions for a healthier planet and life.
Wildfires in Russia's Sakha Republic (Yakutia) on July 22, 2021. Russian Aerial Forest Protection / TASS via Getty Images

Smoke from wildfires burning in Siberia's dense boreal forest has reached the North Pole for the first known time in history, NASA satellite images revealed last week.

Read More Show Less
EcoWatch Daily Newsletter
The left image shows the OSIRIS-REx collector head hovering over the Sample Return Capsule (SRC) after the Touch-And-Go Sample Acquisition Mechanism arm moved it into the proper position for capture. The right image shows the collector head secured onto the capture ring in the SRC. NASA / Goddard / University of Arizona / Lockheed Martin

A NASA spacecraft has successfully collected a sample from the Bennu asteroid more than 200 million miles away from Earth. The samples were safely stored and will be preserved for scientists to study after the spacecraft drops them over the Utah desert in 2023, according to the Associated Press (AP).

Read More Show Less
2022 New Jersey Solar Tax Credits, Incentives & Rebates

See what kind of financial incentives are available for Garden State homeowners who go solar.

Reviews
Robert D. Barnes / Getty Images

If you're looking for information about New Jersey solar tax credit and incentive programs, you've come to the right place. According to the latest data from the Energy Information Administration (EIA), electricity prices in New Jersey are about 30% higher than the U.S. average. However, this also means that the kilowatt-hours produced by solar panels will save you about 30% more, and the state offers many financial incentives that improve your return on investment.

The Solar Energy Industries Association (SEIA) reports that by the end of Q2 2021, New Jersey had an installed solar capacity of 3,739 MW, which is enough to meet the electricity needs of over 579,000 homes. The NJ solar industry has already received over $11 billion in total investment, and there are 470 solar companies providing more than 5,300 jobs in the state.

New Jersey gets modest sunshine compared to states like Texas and California, but it has favorable laws and incentives for solar power. This has helped the Garden State become one of the best states for solar in the nation.

In this article, we'll take a look at the full array of New Jersey solar incentives. If you'd like to see right away how much a solar installation would cost for your home, you can use this tool or fill out the form below to get a free, no-obligation quote from a pre-screened New Jersey installer.

New Jersey Solar Tax Credits and Solar Rebates

When you consider New Jersey solar incentives and electricity prices, it's possible to get a solar payback period of less than six years. This is great for an investment that has a service life of 25 years or more and is covered by manufacturer warranties for the majority of that period. The following chart summarizes all the benefits available when going solar in New Jersey:

New Jersey Solar Incentive

Program Overview

New Jersey Net Metering Programs

Net metering is required by law in NJ, which means you get credits for surplus solar energy that gets exported to the grid. These credits can be used to pay power bills.

Transition Renewable Energy Certificates

You earn one TREC for every 1,000 kWh generated by your solar panels, and each TREC sells for $91.20 (as of November 2021).

New Jersey Solar Tax Exemptions

Solar panels are exempt from the 7% sales tax in NJ, and your home value increase after installing solar is exempt from property taxes.

Local Incentives

Additional incentives and low-interest financing programs may be available, depending on where you live in New Jersey.

New Jersey Net Metering Programs

Net metering is a simple concept, and it makes solar power much more valuable for homes. When your solar panels are producing more electricity than what your home is consuming, the difference gets fed back into the grid. Thanks to New Jersey's net metering regulations, electricity providers must give you full retail value credit for surplus solar energy, which gets subtracted from your electric bills.

  • As a quick example, assume your solar panel system produces 1,000 kWh of energy during a month, but you only consume 600 kWh. The other 400 kWh is exported to the grid.
  • Thanks to net metering, you'll receive the full value of that 400 kWh. In states without this benefit, electricity companies decide how to compensate you for surplus solar power, and many of them only give partial credit.

Jersey Central Power & Light (JCP&L) and PSE&G currently have the two largest net metering programs in New Jersey. If there is a month where your solar generation is higher than your electricity consumption, credits are rolled over to the next billing period. Once per year, accumulated credits in your favor are compensated at wholesale price (not retail price) and the balance resets to zero.

Transition Renewable Energy Certificates

In New Jersey, solar panels not only give you power bill savings. You can also accumulate Transition Renewable Energy Certificates based on how much electricity is generated.

  • For every megawatt-hour (1,000 kWh) of solar generation, you get one TREC.
  • Electric utilities and other companies with a legal obligation to support renewable energy will purchase TRECs as part of their compliance efforts.
  • As of November 2021, each TREC sells for $91.20.

If a solar energy system in New Jersey produces over 10,000 kWh per year, you get an additional 10 TRECs. With an electricity tariff of 16 cents/kWh, you would save $1,600 per year. However, you also get $912 for the 10 TRECs, and your total economic benefit is $2,512 per year.

New Jersey Solar Tax Exemptions

There are two main tax incentives for New Jersey homeowners going solar: a property tax exemption and state sales tax exemption.

  • Solar panels are exempt from increased property taxes. If a home has an assessed property value of $400,000, and solar panels increase this to $420,000, the owner will still be taxed on $400,000.
  • Solar panels are exempt from New Jersey's 7% sales tax, which immediately makes them more affordable. For example, if the sales price of your home solar system is $15,000, you're saving $1,050 right away.

Solar Rebates and Other Local Incentives

In addition to the incentive programs described above, additional benefits such as solar rebates may be available in some New Jersey municipalities. Before installing solar panels, make sure you're not missing out on any incentives available in your area.

New Jersey has also enacted laws that enable PACE financing in the state. PACE stands for Property Assessed Clean Energy, and these programs give you low-interest loans for solar panels and other clean energy upgrades. As of the end of 2021, there are a few PACE programs under development in New Jersey, but the options are still limited.

Federal Solar Tax Credit

The 26% federal solar tax credit is a nationwide benefit, and you can combine it with New Jersey solar incentives to improve your ROI. The official name of this incentive is the Investment Tax Credit or ITC. The credit is set to reduce to 22% in 2023 and will not be continued thereafter unless Congress approves an extension.

You can read our federal solar tax credit guide for more information on how this credit works.

Any top solar company will be able to help you identify and apply for financial incentives available in your area. To get connected to a certified installer near you, you can use this tool or fill out the form below.

FAQ: New Jersey Solar Incentives

Is solar really free in NJ?

No, New Jersey doesn't have any official programs that offer free solar panels. However, solar panels can achieve a payback period of fewer than six years in the state, while lasting for 25 years or more. In other words, you have free electricity for many years after recovering your initial investment.

With a low-interest loan, you can go solar for $0 upfront, then use electricity savings to pay off the loan. Strictly speaking, this doesn't make solar panels free, but they are essentially paying for themselves.

Is solar good in New Jersey?

Yes, solar is good in New Jersey. New Jersey has above-average electricity prices and many incentive programs for solar power, and this improves your return on investment when going solar. Although there are sunnier places in the U.S., New Jersey gets enough sunshine to make solar panels cost-effective.

Can you sell power back to the grid in NJ?

Yes, you sell power back to the grid in NJ. New Jersey has one of the best net metering programs in the U.S., where you get full credit for solar electricity that gets exported to the grid. Unused credit can be rolled over to the next month, and you get paid for accumulated credit once per year.

All electricity sent to the grid is credited at retail price, except for accumulated annual credits, which are paid at wholesale prices (the price paid by electricity providers when purchasing energy from power generators).

Leonardo David is an electromechanical engineer, MBA, energy consultant and technical writer. His energy-efficiency and solar consulting experience covers sectors including banking, textile manufacturing, plastics processing, pharmaceutics, education, food processing, fast food, real estate and retail. He has also been writing articles about energy and engineering topics since 2015.
NOAA's HRRR Smoke Model as of July 16, 2021 at 5 p.m. NOAA

There are currently 70 wildfires burning more than one million acres across the U.S., according to the most recent figures from the National Interagency Fire Center.

While the bulk of the fires themselves are burning in the West, the smoke is projected to fill skies across the entire country, reaching as far east as New York.

Read More Show Less
Trending
An illustration highlights the moon's Clavius Crater with an illustration depicting water trapped in the lunar soil there. NASA / Daniel Rutter

A pair of studies released Monday confirmed not only the presence of water and ice on the moon, but that it is more abundant than scientists previously thought. Those twin discoveries boost the prospect of a sustainable lunar base that could harvest the moon's resources to help sustain itself, according to the BBC.

Read More Show Less
A woman carries a bucket of water on an improvised bridge over dry land alongside the Amazon River at Bom Jesus village at the margin of Solimoes river in Amazonas State, Brazil. Jose Caldas / Brazil Photos / LightRocket via Getty Images

By Brett Wilkins

Researchers at the University of Leeds in Britain published new research Tuesday — World Rainforest Day — showing that massive swaths of the eastern Amazon are at risk of severe drying by the end of this century if greenhouse gas emissions are not reduced.

Read More Show Less


The Sun shines through a tree in a valley near the Russian city of Krasnoyarsk in Siberia. A recent study attributed the severity of the heat wave that swept across Siberia in 2020 to human activity. nikita velikanin / Unsplash

By Michael Allen

Last year was hot. NASA declared that it tied 2016 for the hottest year on record, and the Met Office of the United Kingdom said it was the final year in the warmest 10-year period ever recorded. Temperatures were particularly high in Siberia, with some areas experiencing monthly averages more than 10°C above the 1981–2010 average. Overall, Siberia had the warmest January to June since records began; on 20 June, the town of Verkhoyansk, Russia, hit 38°C, the highest temperature ever recorded in the Arctic Circle.

Read More Show Less
Rep. Louie Gohmert (R-Texas) arrives for the House Judiciary Committee markup of the Elder Abuse Protection Act, the Criminal Judicial Administration Act, and other amendments in Washington, DC on May 18, 2021. Tom Williams / CQ-Roll Call, Inc via Getty Images

Republican Representative Louie Gohmert from Texas made headlines Wednesday after comments he made about climate change and the orbit of the Earth and moon went viral.

Read More Show Less
Trending
Climate activists set off smoke as they protest from the side of the U.S. Chamber of Commerce after scaling the building on October 14, 2021 in Washington, DC. Kevin Dietsch / Getty Images

What is Climate Activism?

Climate activism is what happens when people from all over the world come together to put pressure on national and business leaders to take action to safeguard a liveable future. Solving the climate crisis requires making rapid social and technological change for which "there is no documented historic precedent," as the Intergovernmental Panel on Climate Change (IPCC) put it. As individuals, it's hard to imagine a single action that would shift our energy and transportation systems away from fossil fuels or stop deforestation. But the point of activism is that we don't need to do it alone. Instead, we can come together as collectives and communities to put pressure on policy m