Dean Solar
New Jersey – Solar Incentives & Resources

New Jersey – Solar Incentives & Resources

Save money by installing solar panels in New Jersey.

Frequently Asked Questions

What incentives are available for residential solar? 

A: Homeowners in New Jersey still have access to: 

  • Full 1:1 net metering
  • 26% Federal Tax Credit
  • Transition REC (“TREC”) Program
  • Exemption from increased property tax due to solar
  • 100% Solar sales tax exemption
Does NJ offer sales tax exemption or property tax exemption for homeowners that go solar? 

A: Yes. NJ offers both a 100% property tax exemption towards the increased property value due to solar and 100% sales tax exemption for all residential solar systems.

Does NJ offer a rebate or state income tax credit? 

A: No. NJ does not offer any state rebate or state-level income tax credit.

Does NJ have an SREC market? 

A: Yes, NJ has an active SREC market.

Which financial products does Palmetto offer? 

A: Palmetto offers loans through (LoanPal, Sunlight), lease/PPAs (Sunnova), and cash payment options in the state of New Jersey. 

What is 1:1 net metering? 

A: 1:1 net metering is when a utility purchases excess electricity generated by a homeowner’s solar system at 100% of the value (full retail price) the utility sells electricity for.

What is the max system size that a homeowner can install? 

A: To qualify for net metering in NJ, systems cannot be designed to exceed 100% offset based on the trailing 12-month average electric usage. If less than 12 months of electric usage data is available, then a load calculator sheet will be required to be filled out in order to determine the max allowable system size.

What happens to excess net metering credits? 

A: First, net metering credits offset applicable charges on the homeowner’s current electric bill. If a homeowner’s electricity charges are reduced to zero, any excess net metering credits will be stored on the customer’s account for future use. These credits roll over each month. Excess net metering credits that remain on the customer’s account during their anniversary month of each year are “trued-up” and paid out to the homeowner at the wholesale rate of power.

Solar Panel Cost in NJ

Average panel cost by system size in New Jersey

Average payback period, savings, and cost of a 5 kW system

The number of years to recover your solar energy investment. (for a 5 kW System)

5.82 Years

20-year savings comparing total cost vs. utility cost for the same amount of electricity, including all costs, incentives, and inflation. (for a 5 kW system)

$43,846

The price of the system on a per-Watt basis. (for a 5 kW system)

$2.81

NJ Solar Incentives & Rebates

  • Full 1:1 net metering
  • 26% Federal Tax Credit
  • Transition REC (“TREC”) Program
  • Exemption from increased property tax due to solar
  • 100% Solar sales tax exemption
solar financing

New Jersey Electric Utilities

Check with your local utility company for:

  • Incentive Programs
  • Net Metering Policy
  • Maximum System Size
  • Maximum Power Offset
  • Other Requirements

Dean Solar - New Jersey

New Jersey Solar
Twin Lighthouse in Atlantic Highlands, New Jersey - USA
Dean Solar
New Jersey - USA

Eligibility & Redemption

Solar incentives apply to eligible residential customers. 

Incentive programs are offered and administered by government agencies. 

Eligibility and availability vary and are outside of Dean Solar’s control. 

Most programs are limited to a total dollar amount that can be dispersed or will expire on a certain date. 

Be sure to visit the program’s website for the most up-to-date information on availability, eligibility, and redemption requirements.

Your eligibility for income tax credits depends on your personal tax situation. 

Dean Solar recommends speaking with a tax professional for guidance.