New Jersey Solar in 2026: Here’s What Changed — and Why It Still Makes Sense
If you’ve been on the fence about going solar in New Jersey, you’ve probably heard about the expiration of the federal tax credit at the end of 2025. It’s a real change — and we’re not going to sugarcoat it. But here’s what often gets lost in that conversation: New Jersey is still one of the strongest solar markets in the country, thanks to a combination of state incentives, high utility rates, and new homeowner protections that took effect this month.
Here’s an honest breakdown of where things stand for NJ homeowners in 2026.
What Changed: The Federal Tax Credit Is Gone
The 30% federal Investment Tax Credit (Section 25D) expired on December 31, 2025. Homeowners who purchase a solar system with cash or a loan in 2026 will not receive a federal tax credit. That’s a meaningful financial shift, and any installer who tells you otherwise isn’t being straight with you.
At Infinity Energy, we’ve updated all of our proposals to reflect this reality. The honest answer is that the math still works for most NJ homeowners — just through different incentives than it did a year ago.
What’s Still There: New Jersey’s Incentives Are Substantial
New Jersey has built a layered set of solar incentives that operate entirely at the state level. Here’s what’s active in 2026:
SuSI SREC-II Program: This is the big one, administered through the New Jersey Clean Energy Program. For every 1,000 kWh (1 MWh) your solar system produces, you earn one Solar Renewable Energy Certificate (SREC-II) valued at approximately $85. For a typical NJ home system, that adds up to roughly $680–$765 per year — guaranteed for 15 years from your interconnection date. The rate locks in when you register, so early movers benefit from the current rate structure.
1:1 Net Metering: When your solar panels produce more electricity than your home uses, that surplus flows back to the grid and you receive a credit at the full retail rate — currently around $0.24–$0.26 per kWh depending on your utility (JCP&L or PSE&G). That’s not a discounted wholesale credit. That’s the same rate you’d otherwise pay for the electricity you’re selling back.
Sales Tax Exemption: New Jersey exempts solar equipment from the state’s 6.625% sales tax. On an average system, that saves homeowners approximately $2,000–$2,600 at the time of purchase.
Property Tax Exemption: The added home value from a solar installation — which studies have consistently shown is real and meaningful — is fully excluded from your property tax assessment in New Jersey. Your system won’t raise your tax bill.
Why Utility Rates Make the Math Even Clearer Right Now
PSE&G and JCP&L customers saw some of the steepest rate increases in the state’s history in 2025 — 17% and 20%, respectively. Current retail rates are running around $0.26/kWh for PSE&G customers and $0.24/kWh for JCP&L customers.
Every kilowatt-hour your solar panels produce is a kilowatt-hour you’re not buying from the utility. At these rates, the economics of solar ownership have actually improved from a bill-offset standpoint, even with the loss of the federal credit. The payback period for most NJ homeowners has shifted from roughly 6–7 years to 8–10 years — still well within the 25-year life of a quality solar system.
New This Month: Stronger HOA Solar Rights in NJ
If you live in a community governed by a homeowners association, there’s an important update that just went into effect. As of April 1, 2026, all condominium and subdivision associations in New Jersey are required to maintain a written policy on solar installations.
Under New Jersey law, HOAs cannot ban solar panel installations outright. They also cannot impose restrictions that would increase your installation cost by more than 10% or significantly reduce the system’s energy output. If an association fails to have a written policy in place, they lose significant authority to regulate your installation at all.
In practice, this means more NJ homeowners in HOA communities now have a clear, legally protected path to going solar. If you’ve been waiting because of uncertainty around your HOA, it’s worth revisiting the question.
What to Look for in a New Jersey Solar Installer 2026
With the financial landscape shifting, choosing the right installer matters more than ever. A few things worth asking:
Do they handle SREC-II enrollment? Your system needs to be registered with PJM GATS to start generating certificates. This isn’t difficult, but it’s something your installer should walk you through at project completion.
Do they have a roofing division? A solar installation is only as good as the roof underneath it. If your roof needs attention before installation, working with a company that handles both in-house avoids the coordination headaches (and warranty grey areas) that come with using separate contractors.
What warranties do they offer? Look for at minimum a 25-year panel and production warranty, a 10-year inverter warranty, and a workmanship warranty covering the installation itself.
Infinity Energy has been installing solar in New Jersey since 2008, with our headquarters in Mahwah. We’ve completed more than 10,000 installations across the tri-state area and hold Elite+ status on EnergySage — placing us in the top 4% of installers nationwide. We handle roofing, solar, battery storage, and EV charging under one roof, and we’re a certified Tesla Powerwall installer.
We also offer $0 down financing, so the upfront cost doesn’t have to be a barrier to getting started.
Is Solar Still Worth It in New Jersey in 2026?
For most homeowners with a south- or west-facing roof, yes. The federal tax credit was significant, but it was never the only reason solar made sense in New Jersey. Between SREC-II income, 1:1 net metering, tax exemptions, and elevated utility rates, the state-level economics remain strong.
The honest caveat: every home is different. Roof orientation, shading, your current energy usage, and which utility serves your area all affect the numbers. The right answer for your home comes from a real proposal with real numbers — not a general estimate.
If you’re a New Jersey homeowner and you want to know what solar would actually look like for your property, reach out to our team at Infinity Energy. We’ll give you a straight answer.
