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Get a Free QuoteTrack New Jersey's ADI (SREC-II successor) solar incentive rates, program status, and upcoming rate changes. Updated monthly.
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NJ ADI (successor to SREC-II) pays residential solar owners $77.00/MWh. That is the rate for registrations received on or after July 27, 2026, set by the NJ BPU order dated May 21, 2026. The earlier $85.00/MWh tier closed on July 26, 2026 and is no longer available to new systems, though it stays locked for systems registered before the cutoff. Whichever rate is in effect at registration locks for the full 15 years and is paid quarterly. For a typical 13 kW NJ system, ADI now generates about $1,131/year. Combined with 1:1 net metering, ADI keeps NJ solar compelling even after the federal ITC expired.
Active
Accepting new enrollments
$77.00/MWh
New registrations, locked 15 years
$85.00/MWh
Closed Jul 26, 2026 — still locked if registered before
15 Years
Quarterly payments
This step-down has already happened. The NJ BPU cut the residential net-metered ADI from $85.00/MWh to $77.00/MWh for registrations received on or after July 27, 2026 (“Order Regarding the Three-Year Review of the Administratively Determined Incentive Program”, Agenda Item 8C, Docket Nos. QO20020184 and QO26030096, dated May 21, 2026). The order directs Staff “the Board HEREBY DIRECTS Staff to reduce the incentive level for the residential market segment by $8 per MWh, from $85 per MWh to $77 per MWh, for all registrations received on or after July 27, 2026”. A system registered today therefore locks $77.00/MWh for its full 15-year payment term. The $85.00/MWh tier is closed to new registrations but remains locked for systems whose registration was received before the cutoff. The same order left every non-residential segment unchanged.
The NJ Board of Public Utilities sets ADI rates and has stepped them down over time. The current residential rate is $77.00/MWh, which applies to registrations received on or after July 27, 2026 and locks for the full 15-year term (NJ BPU Order, Agenda Item 8C, May 21, 2026). The prior $85.00/MWh tier closed to new registrations on July 26, 2026. Note this was a registration-date cutoff, not an energy-year boundary — $85.00/MWh continued into Energy Year 2027 (which began June 1, 2026) rather than ending May 31.
| Period | Rate (Residential) | Change | Status | Notes |
|---|---|---|---|---|
| EY2023-24 | $100.45/MWh | - | Closed | First ADI year |
| EY2024-25 | $90.91/MWh | -9.5% | Closed | Standard rate decrease |
| Registered through Jul 26, 2026 | $85.00/MWh | -5.5% | Closed | Ran from EY2025-26 through the July 26, 2026 registration cutoff; still locked on systems registered in that window |
| Registered Jul 27, 2026 or later | $77.00/MWh | -$8/MWh | Current | Set by Agenda Item 8C, May 21, 2026 — locked 15 years at registration |
ADI rates differ by system type and size. Commercial rooftop systems receive higher rates than residential net-metered systems. Public entities receive an additional $20/MWh bonus on top of their base rate.
| Category | Current Rate | Duration | Notes |
|---|---|---|---|
| Residential (Net Metered) | $77.00/MWh | 15 years | Stepped down from $85.00/MWh for registrations received on or after July 27, 2026 |
| Non-Residential Rooftop (<1 MW) | $110/MWh | 15 years | Commercial rooftop, carport, canopy & floating — unchanged by the May 2026 order |
| Non-Residential Rooftop (1-5 MW) | $100/MWh | 15 years | Large commercial rooftop, carport, canopy & floating — unchanged |
| Public Entity Bonus | +$20/MWh | 15 years | Municipal, school, government adder on non-residential segments — unchanged |
NJ has cycled through three solar incentive programs: SREC (market-traded), SREC-II (transition), and ADI (current). Understanding the differences helps if you are comparing quotes or have an older system.
| Feature | SREC / SREC-II (Legacy) | ADI (Current) |
|---|---|---|
| Program Name | SREC / SREC-II | ADI (Administratively Determined Incentive) |
| Rate Model | Market-traded certificates | Fixed rate set by BPU |
| Rate Stability | Volatile (market-based) | Predictable (set annually) |
| Current Residential Rate | N/A (closed to new) | $77.00/MWh for new registrations (the $85.00/MWh tier closed July 26, 2026) |
| Payment Duration | 10 years (SREC) / 15 years (SREC-II) | 15 years |
| Payment Frequency | Quarterly (market-dependent) | Quarterly (guaranteed) |
| Registration | Manual SREC trading | Automatic through installer |
| Available to New Systems | No (closed) | Yes (active) |
Key advantage of ADI: Unlike the old SREC market where certificate prices fluctuated wildly ($100-$600+ depending on market conditions), ADI rates are fixed at enrollment. You know exactly how much you will earn per MWh for the full 15-year term. This predictability makes solar financing calculations far more reliable.
How much ADI income can you expect? These projections use NJ average solar production of 1,130 kWh/kW/year with 0.5% annual panel degradation over the 15-year ADI term. The headline columns use the current $77.00/MWh rate that applies to a registration submitted today. The final column shows what the closed $85.00/MWh tier pays, for owners whose registration was received before the July 27, 2026 cutoff and is locked at that rate for their full term.
| System Size | Annual ADI (current, $77.00/MWh) | 15-Year Total (current) | Equivalent $/W (current) | Annual ADI (closed $85.00/MWh tier) |
|---|---|---|---|---|
| 8 kW | $696/yr | $10,084 | $1.26/W | $768/yr |
| 10 kW | $870/yr | $12,604 | $1.26/W | $961/yr |
| 13 kW (avg) | $1,131/yr | $16,386 | $1.26/W | $1,249/yr |
| 15 kW | $1,305/yr | $18,907 | $1.26/W | $1,441/yr |
| 20 kW | $1,740/yr | $25,209 | $1.26/W | $1,921/yr |
ROI impact: ADI payments add approximately $0.25-$0.30/W in equivalent valueto your solar investment. For a typical 13 kW system costing ~$2.95/W, ADI effectively reduces your net cost to ~$2.65-$2.70/W before net metering savings. Combined with 1:1 net metering and NJ's property/sales tax exemptions, NJ remains one of the best solar markets in the country.
ADI is a production-based incentive. You earn money for every megawatt-hour (MWh) your solar system produces, regardless of whether you use the electricity yourself or export it to the grid.
Your quarterly ADI payment is calculated as:
Quarterly MWh produced x ADI rate = Payment
Example: A 13 kW system produces ~14.69 MWh/year, or ~3.67 MWh/quarter. At the current $77.00/MWh rate, each quarterly payment is approximately $283. A system locked at the closed $85.00/MWh tier receives about $312.
The Section 25D residential solar Investment Tax Credit expired December 31, 2025. Homeowners purchasing solar with cash or a loan receive $0 in federal tax credits. ADI and NJ's state incentives (property tax exemption, sales tax exemption, 1:1 net metering) are now the primary financial drivers for NJ solar.
The NJ BPU reduced the residential net-metered ADI from $85.00/MWh to $77.00/MWh for registrations received on or after July 27, 2026 (Order Regarding the Three-Year Review of the Administratively Determined Incentive Program, Agenda Item 8C, dated May 21, 2026). That date has passed, so $77.00/MWh applies to any system registering now; systems registered through July 26, 2026 stay locked at $85.00/MWh. Confirm current rates at cleanenergy.nj.gov before registering. Whatever rate is in effect when your system is registered locks for the full 15-year term.
New Jersey has surpassed 5 GW of installed solar capacity with over 209,000 installations. The state's strong incentive stack (ADI + net metering + tax exemptions) continues to drive robust adoption even without the federal residential ITC.
The residential net-metered ADI rate is $77.00/MWh. That rate applies to every registration received on or after July 27, 2026, and it locks for the full 15-year payment term. The NJ BPU set it in "Order Regarding the Three-Year Review of the Administratively Determined Incentive Program" (Agenda Item 8C, Docket Nos. QO20020184 and QO26030096, dated May 21, 2026), which cut the residential segment by $8/MWh from the prior $85.00/MWh. That earlier tier is closed to new systems but remains locked for anyone whose registration was received through July 26, 2026.
SREC was NJ's original solar incentive (market-traded certificates, volatile prices). SREC-II replaced it with more stability. ADI (Administratively Determined Incentive) is the current program that succeeded SREC-II. ADI uses fixed rates set by the BPU (not market-traded), pays quarterly for 15 years, and registration is automatic through your installer. Existing SREC/SREC-II enrollees retain their original terms.
ADI pays you a fixed dollar amount per megawatt-hour (MWh) of solar electricity your system produces. Payments are made quarterly and continue for 15 years. For a typical 13 kW NJ system producing about 14,690 kWh/year, the current $77.00/MWh rate generates approximately $1,131/year in ADI income, totaling roughly $16,386 over 15 years. Systems whose registration was received through July 26, 2026 are locked at the closed $85.00/MWh tier — about $1,249/year.
Yes, and the change has already taken effect. The NJ BPU's May 21, 2026 order (Agenda Item 8C) reduced the residential net-metered ADI from $85.00/MWh to $77.00/MWh for registrations received on or after July 27, 2026. That date has passed, so $77.00/MWh is the rate for any system registering now. This was a registration-date cutoff, not an energy-year change — the $85.00/MWh tier continued into Energy Year 2027 (which began June 1, 2026) rather than ending on May 31, and it remains locked for systems registered through July 26, 2026. The same order made no change to any non-residential segment. Confirm current rates at cleanenergy.nj.gov before registering.
ADI and net metering are separate programs that stack together. ADI pays you based on total kWh generated (production-based). Net metering gives you bill credits for excess electricity exported to the grid at 1:1 retail rate. You receive both simultaneously. A 13 kW system registering today earns ~$1,131/year in ADI at the current $77.00/MWh rate, plus ~$1,600-2,100/year in net metering savings.
This tracker is updated monthly. We monitor NJ BPU filings, rate announcements, and program capacity updates. Any BPU action will be reflected within 48 hours. Check the "Last Updated" date at the top of the page for the most recent review.
ADI rates are sourced directly from New Jersey Board of Public Utilities (BPU) filings and the NJ Clean Energy program website (njcleanenergy.com). Rates are published for each Energy Year (July through June).
SREC-II/SREC historical data comes from the NJ SREC Registration Program (SRP) and BPU annual program reports. Market prices for legacy SRECs are referenced from the SRECTrade platform.
Income projections use NJ average solar production of 1,130 kWh/kW/year (based on NREL PVWatts for central New Jersey) with 0.5% annual panel degradation. Actual production varies by roof orientation, shading, and location within New Jersey.
Rate step-down: The NJ BPU's May 21, 2026 order (Agenda Item 8C, Docket Nos. QO20020184 and QO26030096) reduced the residential net-metered ADI to $77.00/MWh for registrations received on or after July 27, 2026, from $85.00/MWh for registrations through July 26, 2026. That cutoff has passed. This was a registration-date cutoff, not an energy-year change, and the order made no change to any non-residential segment. Always confirm the current rate at cleanenergy.nj.gov before registering — the rate that locks for your 15-year term is whatever is in effect at registration.
Update frequency: This tracker is reviewed and updated monthly. The residential ADI rate was last verified on August 5, 2026 by reading the NJ BPU board order itself. BPU filings and rate changes are reflected within 48 hours of official publication.
Current pricing by city and system size
Complete guide to going solar in New Jersey
Detailed ADI enrollment and registration guide
NuWatt handles ADI registration as part of every NJ solar installation. Get a free quote with projected ADI income, net metering savings, and total payback period.