Is Solar Worth It in NJ?
The Honest 2026 Financial Answer

Omar Jackson — Founder, Solar by Omar | Former Sunrun Rep | NJ Solar Insider I came from solar sales. I know how the numbers get inflated. This analysis uses real 2026 NJ utility rates, actual SuSI TREC rates, and honest payback math — the same numbers I use when evaluating my own customers’ situations.

If you’re looking at a PSE&G, ACE, or JCP&L bill and wondering whether solar pencils out in 2026, you’re asking the right question at the right time. The incentive landscape changed significantly at the end of 2025. Here’s the complete picture.

1. The NJ Utility Rate Reality in 2026

New Jersey electricity rates are among the highest in the northeastern United States — and they’ve been trending higher for years. Three factors are driving this: PJM capacity market costs following the retirement of aging power plants, grid modernization infrastructure investments being passed through to ratepayers, and rising Basic Generation Service (BGS) costs from competitive auctions.

The result is that NJ homeowners are paying significantly more per kilowatt-hour than the national average of roughly $0.17/kWh. Here’s where the three major NJ utilities sit in early 2026:

These rates are all-in effective rates including delivery, supply, and fixed charges per kWh consumed. The higher your rate, the more valuable every kilowatt-hour your solar panels produce — because your net metering credits are valued at that same rate.

2. The NJ SuSI Program — Your Ongoing Income Stream

Unlike most states where solar incentives are a one-time rebate, New Jersey pays you an ongoing income stream for every megawatt-hour your system produces. This is the Successor Solar Incentive (SuSI) program — and it’s the single most powerful financial lever in the NJ solar equation.

The current Administratively Determined Incentive (ADI) rate for residential systems is $85.90 per MWh, guaranteed for 15 years. It’s paid quarterly directly to your account by your aggregator. It doesn’t depend on what the utility charges, what rates do, or whether the grid is having a good year. It’s a state-backed payment for producing clean energy.

Combined — SuSI income plus net metering value — a properly sized PSE&G territory system generates over $3,500/year in total financial value. At ACE or JCP&L rates the figure is closer to $3,200/year. These aren’t projections — they’re calculations based on current known incentive rates and current utility pricing.

3. The Federal Tax Credit in 2026 — What Actually Changed

This is where a lot of 2026 solar information gets muddled. Here’s the accurate picture:

The residential federal solar tax credit (Section 25D) — the 30% dollar-for-dollar credit that homeowners could claim on their personal tax return — was eliminated effective January 1, 2026 as part of federal budget legislation. If you buy a solar system outright with cash or a loan in 2026, you receive zero federal tax benefit.

However, the commercial Investment Tax Credit (Section 48E) remains fully intact at 30% for third-party owned systems — leases and PPAs. When Solar by Omar installs a system under a lease agreement, the company claims the 30% Section 48E credit on the system value, then passes those savings through to you as a lower locked-in monthly rate.

4. The Complete 2026 NJ Solar Financial Comparison

5. Solar and NJ Home Value in 2026

One of the most consistently misunderstood aspects of the solar ROI equation is property value. NJ homeowners frequently ask: “What happens to my home value when I sell?”

The data is clear: solar panels increase NJ home value — typically by 3–4% of the home’s market value. On a $450,000 Monmouth County colonial, that’s $13,500–$18,000 in added equity. The NJ property tax exemption means that increase in assessed value cannot be used to raise your property taxes — it’s a free equity gain.

For leased systems the situation is more nuanced — the lease transfers to the new buyer, who must qualify to assume it. Most buyers in today’s NJ market view an existing solar lease with locked low rates as an asset, especially given where utility rates are heading. See our complete guide on selling a home with solar in NJ.

6. Complete NJ Solar Incentive Stack in 2026

• NJ SuSI TREC — $85.90/MWh for 15 years. State-backed quarterly income payments. On an 8kW system approximately $876/year — $13,140 over the full term.
• 1:1 Net Metering. Full retail rate credit for every kWh exported. PSE&G at $0.26/kWh, ACE and JCP&L at $0.24/kWh — some of the most valuable net metering rates in the country.
• NJ Property Tax Exemption. Solar adds equity but NJ law prohibits municipalities from raising your assessment because of it.
• 0% NJ Sales Tax. All solar equipment exempt from NJ’s 6.625% tax at purchase — automatic, no application required.
• Section 48E Credit (lease/PPA only). 30% commercial ITC available through third-party ownership, passed through as a lower monthly rate.
• Governor Sherrill EO #1 Bill Credits. One-time residential utility bill credits directed for delivery by July 1, 2026 using RGGI and solar alternative compliance payment funds — separate from solar but stacks with your savings.

Frequently Asked Questions — NJ Solar ROI 2026