Estimate your solar savings in New Jersey with our free calculator. Explains the TREC program (SREC successor), NJ's high electricity rates, and 25-year savings breakdown.
New Jersey has some of the highest electricity rates in the nation β the average residential rate in 2026 is $0.198/kWh, surpassed only by Connecticut and Rhode Island. Combine that with New Jersey's Transition Renewable Energy Certificates (TRECs) program (which replaced SRECs in 2021), and you have a solar market that delivers 5-7 year payback periods β among the fastest in the U.S.
NJ homeowners pay an average of $175-$220/month for electricity β nearly 2Γ the national average. This high cost makes solar's "avoided cost" exceptionally valuable. Every kWh your panels produce saves you $0.19-$0.24 at today's rates. With 5.0-5.3 peak sun hours/day in NJ, a 7 kW system produces ~9,500 kWh/year β saving $1,800-$2,300/year at current rates.
Source: NJ Board of Public Utilities β Basic Generation Service
New Jersey's TREC (Transition Renewable Energy Certificate) program replaced the older SREC market in 2021. Under TRECs, solar system owners earn credits for every MWh (1,000 kWh) of solar energy produced. As of 2026, the TREC value is $85-$91 per MWh (depending on system size and application year). For a 7 kW system producing 9,500 kWh/year, that's an additional $807-$864/year on top of electricity savings β making NJ one of the most profitable states for solar.
Source: NJ Clean Energy β TREC Program
Unlike California (NEM 3.0) or Nevada (graduated rates), New Jersey still offers full-retail net metering for systems under 10 kW (and near-retail for larger systems). This means every kWh you export to the grid during the day is credited at your full retail rate (e.g., $0.21/kWh). When you draw power at night, you pay the same rate. This 1:1 netting makes solar exceptionally valuable in NJ β a 7 kW system can eliminate 90-95% of your electric bill.
Source: NJ BPU β Net Metering Policy
All New Jersey homeowners who purchase (not lease) a solar system are eligible for the federal tax credit, which covers 30% of total system cost. For a $21,000 installation, this reduces your federal tax liability by $6,300. The credit remains at 30% through 2032. File IRS Form 5695 with your tax return. Note: if you lease your system, the lessor (not you) claims this credit β one of several reasons to avoid leases.
TRECs are the cornerstone of NJ's solar economics. Here's how the payment works:
β οΈ Important: The TREC program has a fixed budget and may close to new applicants once certain milestones are reached. As of mid-2026, the program is still open, but new applicants receive the "TREC 2.0" rate of $85/MWh (down from $91/MWh for 2021-2023 applicants). Lock in while you still can.
NJ's net metering rules are among the most favorable in the U.S. Key features:
New Jersey law (N.J.S.A. 54:4-3.107) exempts the added home value from a solar installation from property tax assessment. This means your property taxes will not increase because you added solar panels. For a typical NJ home, this saves approximately $350-480/year in property taxes (assuming a 2.49% average effective property tax rate and a $21,000 system adding ~$25,000 to home value based on the LBNL 4.1% premium study). New Jersey has the highest property tax rates in the U.S. β making this exemption especially valuable.
Amanda K. installed solar on her 2,600 sq ft Princeton home in June 2025. Here's her real data, shared with permission.
"New Jersey's high electricity rates make solar a no-brainer β but the TREC program is what makes it exceptional. Our system produces about 10,700 kWh per year, which saves us ~$2,100 in electricity bills plus earns ~$807/year in TREC payments. That's $2,900/year in total solar value on a $15,960 net investment. The system will pay for itself before my daughter starts high school. If you're in NJ and on the fence, the only risk is waiting too long and missing the TREC program."
After the TREC program transition to the Successor Program, New Jersey homeowners still see payback periods of 6β9 years. With high electricity rates (~$0.18/kWh), solar saves $25,000+ over 25 years. Get your free calculation above.
Yes. New Jersey maintains net metering under BPU regulations. Excess generation is credited at the full retail rate. Check our calculator for your specific utility (PSE&G, JCP&L, ACE, RECO).
New Jersey transitioned from SRECs to the TREC Successor Program. New installations receive a fixed incentive payment per MWh generated, currently around $20β$40/MWh depending on system size and configuration. Our calculator includes this incentive.
PSE&G and JCP&L customers typically see the highest savings due to their above-average electricity rates. Atlantic City Electric (ACE) and RECO customers also benefit significantly. Enter your zip code in our calculator for a location-specific estimate.
No legitimate "free solar" programs exist in New Jersey. However, $0-down solar loans and Power Purchase Agreements (PPAs) are available, allowing you to go solar with no upfront cost and start saving immediately. Our calculator shows both purchase and loan options.