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New Jersey's Community Solar Energy Program (CSEP) lets residents save 10-40% on electricity without rooftop panels. Made permanent in 2023, expanded to 750+ MW capacity. No equipment, no installation — subscribe and save.
750+ MW
Total Capacity
10-40%
Bill Savings
51%
LMI Set-Aside
$0
Upfront Cost
Community solar is a shared solar farm where multiple subscribers receive credits on their electricity bills based on the energy generated by their share of the project. No panels are installed on your roof — you simply subscribe and save.
Can't install panels? Community solar gives you access.
Shared roof ownership? No problem.
Trees, north-facing, old roof — doesn't matter.
No roof modifications needed.
New Jersey's Community Solar Energy Program (CSEP) was made permanent in 2023 after a successful pilot program. It is one of the most robust community solar programs in the country.
Status
Permanent (since 2023)
Extended Through
2028
Total Capacity
750+ MW
May 2025 Expansion
+250 MW
LMI Set-Aside
51%
Billing
Consolidated through utility
From Pilot to Permanent Program
NJ launched CSEP as a pilot program, then made it permanent in 2023 due to strong demand. The May 2025 expansion added 250 MW of new capacity, with 51% set aside for low-to-moderate income households.
Community solar works on a simple subscribe-and-credit model. You do not need to buy equipment, sign a mortgage, or make any modifications to your home.
Choose a community solar project in your utility service territory. No upfront cost.
The solar farm produces energy and creates credits based on your subscription share.
Credits are automatically applied to your utility bill through NJ's consolidated billing system.
Typical savings of 10-40% on the electricity portion of your bill. No maintenance, no worries.
Upfront Cost
$0 — no investment required
Typical Savings
10-40% of electricity portion of bill
Contract Length
Usually 12-24 month terms
Installation Required
None — no equipment at your home
CSEP capacity is allocated across NJ's four electric utilities based on their service territory size. Your subscription must be within the same utility territory as your account.
| Utility | Capacity (MW) |
|---|---|
| PSE&G | 144 MW |
| JCP&L | 72 MW |
| ACE | 30 MW |
| RECO | 4 MW |
| Total | 250 MW |
Note: Table shows the May 2025 expansion allocation (250 MW). Total CSEP program capacity exceeds 750 MW across all previous rounds.
Several New Jersey municipalities have adopted automatic enrollment programs for community solar. If your municipality participates, you may be automatically enrolled and can opt out if you choose.
Tip: Contact your municipal government or visit your town's website to check if your community participates in automatic community solar enrollment.
Community solar is ideal for NJ residents who want to save on electricity but cannot or do not want to install rooftop panels.
Cannot modify a rented property. Community solar requires no installation or landlord permission.
Shared roof or HOA rules prevent panels. Subscribe without HOA approval needed.
Trees or orientation make rooftop solar inefficient. Get solar energy from an optimized location.
Historic preservation restrictions may prohibit roof modifications.
Simply don't want panels on your roof? Community solar is your alternative.
51% LMI set-aside guarantees access. Often receive deeper discounts than standard subscribers.
Both options let you use solar energy, but they have important differences. Here is a side-by-side comparison to help you decide.
| Feature | Community Solar | Rooftop Solar |
|---|---|---|
| Upfront cost | $0 | $22,000-$35,000 |
| Installation required | No | Yes (roof modifications) |
| Roof ownership needed | No | Yes |
| Available to renters | Yes | No |
| Typical bill savings | 10-40% | 50-90% |
| Equipment maintenance | None (provider handles) | Homeowner responsibility |
| Contract length | 12-24 months | 25+ years (ownership) |
| Federal tax credit (25D) | N/A (expired) | N/A (expired Dec 2025) |
| Home value increase | No | Yes (~4% avg) |
| NJ SREC-II income | No (project owner gets SRECs) | Yes ($85.90/MWh) |
| Moving flexibility | Transfer or cancel subscription | Stays with house |
Joining a community solar project in New Jersey is a straightforward process. Here are the complete steps.
You need an active NJ electricity account with PSE&G, JCP&L, ACE, or RECO. Renters, condo owners, and homeowners are all eligible.
Search for available community solar projects in your electric service area. Multiple providers operate in each territory.
Read the contract carefully before signing. Pay attention to the discount rate, contract length, cancellation terms, and any fees.
Complete signup online or by mail. Activation typically takes 1-2 billing cycles.
Once active, credits appear automatically on your monthly electricity bill. No additional action needed on your part.
NJ CSEP's 51% LMI requirement is one of the strongest in the country, ensuring that more than half of all community solar capacity benefits low-to-moderate income households.
Section 25D expired December 31, 2025. Community solar never qualified for the residential tax credit anyway. Your savings come from bill credits, not tax deductions.
Discount rates, contract lengths, and cancellation policies vary between providers. Some contracts have early termination fees.
Your community solar subscription must be within the same utility territory as your account. Check whether you are in PSE&G, JCP&L, ACE, or RECO territory.
Community solar credits depend on how much energy the solar farm produces. Cloudy months may produce smaller credits than sunny months.
Answers to the most common questions about community solar in New Jersey.
Community solar lets NJ residents subscribe to a share of a local solar farm and receive credits on their utility bill. You do not need to install anything on your roof. The NJ Community Solar Energy Program (CSEP), made permanent in 2023, has allocated over 750 MW of capacity across PSE&G, JCP&L, ACE, and RECO territories.
Most NJ community solar subscribers save between 10% and 40% on the electricity portion of their utility bill. Savings depend on your utility, subscription size, and the specific community solar project. There is no upfront cost to subscribe.
No. Community solar is available to renters, condo owners, and homeowners. This is one of the biggest advantages — if you cannot install rooftop panels, community solar gives you access to solar energy savings.
NJ uses consolidated billing through your utility company. Your community solar credits appear directly on your utility bill as a line item, reducing your total amount due. You do not receive a separate bill from the solar project.
If you move within the same utility territory, you can usually transfer your subscription to your new address. If you move to a different utility territory or out of state, you typically cancel the subscription with no early termination fee, depending on your contract terms.
No. With rooftop solar, panels are installed on your home and you own (or lease) the system. With community solar, you subscribe to a share of a larger solar farm located elsewhere. Community solar has zero upfront cost and no installation, but rooftop solar typically provides higher savings (50-90% vs 10-40%) and increases home value.
New Jersey requires that at least 51% of community solar project capacity be allocated to Low-to-Moderate Income (LMI) subscribers. This ensures community solar is accessible to lower-income households, who often receive deeper discount rates on their subscriptions.
The federal residential solar tax credit (Section 25D) expired on December 31, 2025. Even when it was active, it did not apply to community solar subscriptions for residential customers. Community solar savings come from bill credits, not tax credits.
Several NJ municipalities have implemented automatic enrollment programs where residents are enrolled in community solar by default and can opt out if they choose. Check with your local government or utility to see if your town participates in automatic enrollment.
Most NJ community solar subscriptions are 12 to 24 months. Some providers offer month-to-month or shorter terms. There is typically no early termination fee, but check your specific contract. You can cancel and re-subscribe to a different project.
Yes — community solar is available across all four NJ electric utilities: PSE&G (144 MW allocated), JCP&L (72 MW), ACE (30 MW), and RECO (4 MW). Your subscription must be within the same utility territory as your account.
Some community solar projects may have waitlists, especially in high-demand areas like PSE&G territory. The May 2025 expansion added 250 MW of new capacity, opening more spots. If one project is full, you can apply to another within your utility territory.
Post-ITC reality. SREC-II, net metering, tax exemptions.
Read guide25D is dead. PPA/lease still access Section 48. SREC-II makes NJ viable.
Read guideWhich option works best without 25D? Full comparison.
Read guideAll NJ solar, heat pump, and energy guides in one place.
Read guideWhether you rent, own a condo, or simply don't want panels on your roof, community solar lets you save 10-40% on electricity. NuWatt Energy can help you explore all your clean energy options in New Jersey.