What Is New Jersey’s SREC-II Program?
Are you a New Jersey homeowner weighing solar in 2026? The NJ SREC-II program is one of the biggest reasons the numbers still work. It pays you back every year, on top of the savings on your electric bill.
SREC-II stands for Solar Renewable Energy Certificate II. It lives inside the state’s current incentive structure, the Successor Solar Incentive program, often shortened to SuSI. New Jersey created SuSI to replace the older SREC market. The goal is the same: reward homeowners for the clean power their panels produce.
Here is the simple version. For every 1,000 kWh (one megawatt-hour) your system generates, you earn one SREC-II. The state guarantees a fixed payment for each one. That payment then locks in for 15 years from your registration date.
How Much Can You Earn From SREC-IIs?
The amount depends on how much your system produces. That comes down to its size, your roof, and how much sun it sees. A typical New Jersey home system earns around $680 per year in SREC-II income. Because the rate locks for 15 years, you can plan around it.
Two details matter here. First, the state sets your rate on your registration date, and no one can cut it later. That holds true even if rates drop for newer systems. Second, you do not chase these payments yourself. Your installer registers you in the SuSI program, and the certificates track automatically from your metered production.
Over 15 years, that steady income covers a meaningful chunk of the system cost. Better yet, it arrives no matter how you use electricity at home.
How New Jersey Net Metering Works Alongside SREC-IIs
SREC-II income is separate from your utility bill savings, and the two stack. The bill savings come from net metering. It ranks among the strongest solar policies in the country, and New Jersey keeps it fully intact for 2026.
Net metering means your utility credits you at the full retail rate for every kWh you send to the grid. In practice, your meter runs backward on sunny afternoons. New Jersey applies true 1:1 net metering across the major utilities, including PSE&G, JCP&L, Atlantic City Electric, and Rockland Electric.
This is what makes summer so valuable. Your panels produce far more than your home needs in June, July, and August. Those extra credits bank on your account and carry forward. They help cover the shorter, darker days later in the year.
New Jersey’s Solar Tax Exemptions
New Jersey removes two taxes that would otherwise add thousands to your project cost. Both are permanent, not expiring credits.
The sales tax exemption means you pay no sales tax on solar equipment or installation. With New Jersey’s 6.625% sales tax, that alone can save a few thousand dollars. There is no form to file. Your installer applies it at the point of sale.
The property tax exemption protects you on the other side. Solar raises home value, but in New Jersey that added value does not raise your assessment. So you get the higher resale value without a higher tax bill.
Does Solar Still Make Sense in New Jersey in 2026?
This is the question we hear most often, and it deserves an honest answer. The case rests on state and local incentives, and they remain unusually strong.
Stack the pieces together. Fifteen years of SREC-II income, full 1:1 net metering, and two permanent tax exemptions add up fast. New Jersey rewards solar homeowners more generously than most states in the country.
Now add rising utility rates to that picture. Electric prices across New Jersey climbed sharply over the past year. Locking in your own production protects you from the next increase. For many homeowners, that math points to a sound long-term decision.
How to Lock In Your SREC-II Rate
Your SREC-II rate locks on your registration date, so timing carries a real dollar value. Rates have stepped down over time as the program matures. Register sooner and you generally lock a stronger rate than someone who waits.
Plan for the calendar, too. A New Jersey solar project usually takes two to four months from signing to permission to operate. Your township’s permitting pace and your utility’s interconnection queue set that timeline. Start now and your panels can run before next summer’s peak.
Working With a Local New Jersey Installer
The SuSI program rewards production over 15 years, so install quality matters. A poorly built system underproduces, and that costs you twice. You lose on your bill, and you lose on SREC-II income.
Infinity Energy has installed solar across New Jersey since 2009, from our headquarters in Mahwah. We have completed more than 10,000 installations. As an EnergySage Elite Plus installer, we rank in the top few percent nationally. We also hold an A+ rating with the Better Business Bureau. Our team handles the SuSI registration, the permitting, and the interconnection paperwork, so you do not have to.
Beyond solar, we install roofing in-house, set up Tesla Powerwall battery storage, and add EV chargers. With $0 down financing, you can start without a large upfront check.
Want to see what SREC-II income, net metering, and the state tax exemptions look like on your home? Reach out for a free, no-pressure quote. We will walk you through the honest numbers for your roof and your utility.
