New Jersey Solar Calculator

Enter your utility and monthly bill — get system size, SREC-II income, net metering savings, property and sales tax exemptions, and 25-year savings.

Your New Jersey solar inputs

Monthly electric bill?

Electric utility?

System size?

Battery backup?

New Jersey solar estimate

20 × 400W panels (8 kW system)

Recommended size for your bill: 10.0 kW

Monthly usage1,000 kWh/mo

Annual production (NJ 4.2 PSH)9,811 kWh/yr

Annual savings (net metering)$1,766/yr

NJ ADI/SREC-II annual income$751/yr

Gross system cost$23,200

Federal ITC (30%)-$6,960

Sales tax exemption (6.625%)-$1,537

Net cost after ITC$16,240

SREC-II total income (15yr)$11,258

Property tax exemption (20yr est.)$10,208

Payback period (incl. SREC)6.5 yrs

25-year savings (incl. SREC)$55,409

NJ ADI/SREC-II pays $76.50/MWh fixed for 15 years on all production. This is separate from net metering — you earn SREC income AND net metering credits simultaneously. Enroll through your solar installer.

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How to Use This Calculator

Enter your bill and select your utility

New Jersey has among the highest solar installation densities in the US, driven by strong incentives and above-average electricity rates ($0.16–$0.18/kWh). Select your utility — PSE&G covers northern and central NJ including Newark and Trenton; JCP&L covers northern and western NJ; Atlantic City Electric covers southern New Jersey. Your utility determines your net metering rate and SREC program eligibility.

Understand the NJ ADI/SREC-II program

New Jersey's Administratively Determined Incentive (ADI), also known as SREC-II, pays solar owners $76.50 per MWh (megawatt-hour) of electricity generated for a fixed 15-year contract. This is separate from your net metering credits — you earn SREC income on top of what you save through net metering. On an 8 kW system producing ~9,700 kWh/year, that's roughly $741/year in SREC income, or over $11,000 over the 15-year term.

New Jersey's full incentive package

NJ offers one of the most complete solar incentive packages in the US: full retail-rate net metering, SREC-II production payments, 100% property tax exemption, full sales tax exemption (6.625%), and the 30% federal ITC. Together these incentives can reduce your effective system cost by 60-70% over the life of the installation.

The Formula

Monthly kWh = Monthly Bill ÷ Electricity Rate Annual Production = System kW × 1000 × 4.2 PSH × 365 × 0.80 efficiency ÷ 1000 Annual Savings = Annual Production × Retail Rate (full net metering) SREC Annual Income = Annual Production (kWh) × $0.0765/kWh ($76.50/MWh) SREC 15yr Total = SREC Annual Income × 15 years Gross Cost = System kW × 1000 × $2.90/W + Battery ($12,000 if added) ITC Credit = Gross Cost × 30% Sales Tax Savings = Gross Cost × 6.625% Property Tax Exemption = Gross Cost × 2.2% × 20 years (est.) Payback = Net Cost After ITC ÷ (Annual Savings + SREC Annual Income)

New Jersey uses 4.2 peak sun hours (PSH) statewide average — southern NJ (Atlantic City area) gets slightly more at 4.5 PSH, northern NJ about 4.0 PSH. The $2.90/W installed cost reflects NJ's competitive solar market. SREC-II rate of $76.50/MWh is fixed by the NJ BPU. Property tax calculated at NJ's statewide average effective rate of ~2.2%.

Example

Michael — North Jersey PSE&G customer with SREC-II

Michael is in northern New Jersey (PSE&G) paying $180/month at $0.18/kWh. He installs an 8 kW system and enrolls in SREC-II.

Monthly bill$180 (PSE&G, $0.18/kWh)

System8 kW, SREC-II enrolled, no battery

LocationNorth Jersey (4.2 PSH)

Result

Annual production~9,676 kWh/yr

Annual savings (net metering)~$1,742/yr

SREC-II annual income~$740/yr

Gross system cost~$23,200

Federal ITC (30%)-$6,960

Sales tax exemption-$1,537

Net cost after ITC~$16,240

SREC-II total (15yr)~$11,100

Payback period~6.6 years

25-year savings~$54,650

Michael earns $2,482/year combined from net metering and SREC-II, achieving payback under 7 years on a $16,240 net investment. The SREC-II program alone covers most of his annual mortgage payment on a solar loan.

FAQ

What is the NJ ADI/SREC-II program? ▼

New Jersey's Administratively Determined Incentive (ADI), commonly called SREC-II, pays solar owners $76.50 per MWh of generation for a fixed 15-year contract. Unlike the old SREC market (where prices fluctuated), SREC-II has a guaranteed fixed price set by the NJ Board of Public Utilities. Your solar installer registers your system with the NJ SREC tracking system. SRECs are automatically generated as your system produces electricity and deposited in your account. You sell them quarterly through the program's administrator. This income is taxable as ordinary income. The program has been oversubscribed at times — check with your installer for current enrollment availability.

How does New Jersey net metering work? ▼

New Jersey has full retail-rate net metering: exported solar earns credits at your full retail electricity rate. Credits roll over monthly and can be used to offset future bills. Annually, any excess net metering credits are paid out at the "avoided cost rate" (lower than retail) — so it's best to size your system to offset roughly 100% of your annual usage. Net metering applies to PSE&G, JCP&L, and Atlantic City Electric customers. New Jersey's net metering law is protected by state statute and has remained stable.

Is solar exempt from New Jersey sales and property taxes? ▼

Yes to both. Sales tax: New Jersey exempts solar panels, inverters, batteries (when paired with solar), and installation from the 6.625% NJ sales tax. This is automatic — no application needed. Property tax: NJ law exempts solar systems from property tax assessment increases for residential properties. With NJ's high property tax rates (among the highest in the US at ~2.2% average effective rate), this exemption is worth $400–800+/year on a typical residential solar system, saving $8,000–16,000 over 20 years.

Is solar worth it in New Jersey? ▼

New Jersey consistently ranks as one of the top 5 states for solar ROI. The combination of above-average electricity rates, full retail net metering, SREC-II fixed payments, sales tax exemption, property tax exemption, and 30% federal ITC creates payback periods of 6–9 years for most homeowners. NJ's small average lot size means rooftop solar is the primary option (vs. ground mount), and the state's high roof density makes it installation-friendly. The main challenge is that NJ has higher solar installation costs than sunbelt states, offset by the superior incentive package.

Can I get a solar loan in New Jersey? ▼

Yes — New Jersey Clean Energy Program (NJCEP) and NJ Infrastructure Bank offer low-interest solar loans. The NJ Clean Energy Home Performance with Energy Star program provides financing for solar plus energy efficiency upgrades. Many NJ utilities also partner with financing programs. When evaluating solar loans, the SREC-II income ($740+/year) effectively offsets your monthly loan payment — many NJ homeowners find solar cash-flow positive from day one when using a solar loan, where monthly savings + SREC income exceeds the loan payment.

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