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Rockland Electric (RECO) serves Bergen and Passaic counties with some of the highest electricity rates in New Jersey — making it one of the best utility territories for solar and heat pump ROI. This is the only comprehensive guide to solar, heat pumps, net metering, and incentives specific to RECO customers.
~$0.20+/kWh
RECO Rate
$500K+
Avg Home Value
Full Retail
Net Metering
5-6 Years
Solar Payback
Quick Answer
RECO (Rockland Electric) serves Bergen and Passaic counties in NJ with electricity rates averaging $0.20+/kWh — among the highest in the state. This makes RECO territory ideal for solar and heat pump ROI, with typical solar payback under 6 years. RECO offers heat pump rebates and standard net metering for solar customers.
Rockland Electric Company (RECO) is the smallest of New Jersey's four investor-owned electric utilities, serving approximately 72,000 customers in portions of Bergen County and Passaic County in the northwestern corner of the state. RECO is a subsidiary of Orange & Rockland Utilities (O&R), which is itself a subsidiary of Consolidated Edison, Inc. (Con Edison) — the same parent company that serves New York City.
RECO's service territory covers some of the most affluent communities in New Jersey, including Mahwah, Ramsey, Wyckoff, Franklin Lakes, Oakland, Ringwood, Wanaque, and Pompton Lakes. The median home value in RECO territory exceeds $500,000, and many homes are large single-family properties with significant roof space and high energy consumption.
RECO's small customer base (72,000 vs. PSE&G's 2.3 million) means fixed infrastructure costs are spread across fewer customers, contributing to RECO having among the highest residential electricity rates in NJ at $0.20-$0.22/kWh. While this is frustrating for ratepayers, it creates an exceptional economic case for solar and heat pump installations — every kWh you avoid purchasing from RECO saves more money than it would in PSE&G, JCP&L, or ACE territory.
RECO's territory covers a compact area in northwestern NJ. Key municipalities include:
Bergen County Towns
Mahwah, Ramsey, Wyckoff, Franklin Lakes, Oakland, Allendale, Saddle River, Upper Saddle River, Waldwick, Midland Park, Ho-Ho-Kus, parts of Ridgewood
Passaic County Towns
Ringwood, Wanaque, Pompton Lakes, Bloomingdale, West Milford (portions), Butler, Kinnelon
The terrain in RECO territory is mixed — relatively flat suburban areas in Bergen County and hillier, more wooded terrain in Passaic County (Ramapo Mountains area). Solar suitability varies by specific property, but the area receives adequate solar irradiance for strong solar production (4.2-4.5 peak sun hours per day annually).
| Town | County | Median Home | Typical Electric Bill |
|---|---|---|---|
| Mahwah | Bergen | $580,000 | $180-$250/mo |
| Ramsey | Bergen | $620,000 | $170-$240/mo |
| Wyckoff | Bergen | $690,000 | $190-$270/mo |
| Franklin Lakes | Bergen | $850,000 | $220-$320/mo |
| Ringwood | Passaic | $480,000 | $160-$230/mo |
| Wanaque | Passaic | $420,000 | $150-$210/mo |
| Pompton Lakes | Passaic | $410,000 | $140-$200/mo |
| Oakland | Bergen | $540,000 | $170-$240/mo |
RECO territory consistently ranks as one of the best areas for solar ROI in New Jersey. The combination of high electricity rates, affluent homeowners with large roofs, and strong NJ state incentives creates an exceptionally favorable economic environment for solar investment.
The primary driver of solar ROI is your avoided electricity cost — the rate you would have paid the utility for each kWh your solar system produces instead. At $0.20-$0.22/kWh, RECO customers save 15-30% more per kWh than ACE customers ($0.16-$0.18/kWh). Over 25 years, this rate advantage translates to $5,000-$15,000 in additional savings for RECO solar customers.
Example: A 10 kW solar system in RECO territory producing 12,000 kWh/year at $0.21/kWh saves $2,520/year in electric bills alone — before ADI income. The same system in ACE territory at $0.17/kWh saves $2,040/year. Add NJ ADI income of $720/year and the RECO system returns $3,240/year vs. $2,760/year for ACE. Over 25 years, the RECO advantage compounds to $12,000+ in additional total savings.
RECO follows NJ Board of Public Utilities (BPU) net metering regulations, which provide full retail rate crediting for solar exports. When your solar system produces more electricity than your home uses in a given hour, the excess flows to the grid and RECO credits your account at the full retail rate. Credits accumulate month-to-month and are applied against future bills.
At annual true-up (typically in April), any remaining excess credits are compensated at the wholesale avoided-cost rate — significantly lower than retail. This means proper system sizing is important: you want to produce roughly 100% of your annual consumption, not significantly more. An experienced installer will size your system to minimize excess credits at true-up.
RECO's interconnection process follows NJ BPU Interconnection Standards but tends to be slightly slower than PSE&G due to RECO's smaller engineering team. Typical timeline:
Step 1: Application Submission (Day 0)
Installer submits interconnection application with system design, single-line diagram, and equipment specifications through RECO's portal.
Step 2: Engineering Review (Days 10-25)
RECO engineers review system design for compliance with IEEE 1547, NEC, and utility-specific requirements. May request additional information.
Step 3: Meter Installation & PTO (Days 25-40)
RECO installs a bi-directional net meter and issues Permission to Operate (PTO). Your system can begin exporting to the grid.
Total interconnection time: 5-8 weeks from application to PTO. Pro tip: ensure your installer submits a complete application the first time — incomplete applications are the #1 cause of RECO interconnection delays. NuWatt has processed dozens of RECO interconnections and knows exactly what RECO's engineering team requires.
How RECO stacks up against the other three NJ investor-owned utilities for solar and heat pump installations.
| Factor | RECO | PSE&G | JCP&L | ACE |
|---|---|---|---|---|
| Avg Rate | $0.20-$0.22/kWh | $0.17-$0.19/kWh | $0.18-$0.20/kWh | $0.16-$0.18/kWh |
| Customers | ~72,000 | ~2.3 million | ~1.1 million | ~560,000 |
| Net Metering | Full retail, annual true-up | Full retail, annual true-up | Full retail, annual true-up | Full retail, annual true-up |
| Solar Payback | 5-6 years | 5.5-7 years | 5.5-6.5 years | 6-7.5 years |
| Heat Pump Rebates | Whole Home + utility rebates | Whole Home + PSE&G rebates | Whole Home + JCP&L rebates | Whole Home + ACE rebates |
| Interconnection | 20-40 business days | 15-30 business days | 20-35 business days | 20-40 business days |
Bergen and Passaic counties sit in Climate Zone 5A (northern NJ), which means cold winters with design temperatures around 10-14 degrees Fahrenheit. This makes cold-climate heat pump selection critical — standard heat pumps lose significant capacity below 25 degrees, while cold-climate models (Mitsubishi Hyper-Heat, Daikin Fit, Bosch IDS 2.0) maintain rated output down to 5 degrees or lower.
NJ Whole Home Program: Up to $7,500
Cash-back incentive based on projected Total Energy Savings percentage. Must use a Whole Home-certified contractor. Available to all NJ utility customers including RECO.
RECO Utility Rebates: $250-$1,000
RECO offers rebates for ENERGY STAR-certified heat pumps through its energy efficiency programs. Rebate amounts depend on equipment type and efficiency rating.
Federal Section 25C: EXPIRED ($0 in 2026)
The federal energy efficiency tax credit expired December 31, 2025. There is no federal heat pump tax credit available in 2026. Any contractor claiming otherwise is providing incorrect information.
RECO's high electricity rates make heat pump operating costs competitive even against natural gas in Bergen and Passaic counties. At $0.20+/kWh and a heat pump COP of 3.0-3.5 (typical for cold-climate models), effective heating cost is $0.057-$0.067/therm-equivalent — comparable to natural gas at current NJ rates. The heat pump advantage increases as RECO rates rise (3-4% annually) while also providing air conditioning in summer, which furnaces cannot do.
Combining a heat pump with solar panels amplifies the economics further. Solar powers the heat pump at $0/kWh, making electric heating essentially free during sunny winter days. A solar+heat pump system in RECO territory can eliminate 70-90% of combined heating and cooling costs.
Solar and heat pump installations in RECO territory require permits from both local municipalities (Bergen or Passaic county towns) and the utility (RECO interconnection for solar). Each municipality has its own building department with specific requirements.
NJ law (P.L. 2021, c.354) standardized solar permitting across the state, limiting municipal permit fees and turnaround times. However, individual towns in RECO territory may have additional zoning requirements, particularly for ground-mount systems. Key permitting steps:
Heat pump installations require a mechanical permit from the local building department. Bergen and Passaic county towns follow NJ Uniform Construction Code (UCC) requirements. Outdoor condensing units must comply with local noise ordinances and setback requirements. Many RECO territory towns have stricter noise ordinances than the NJ default, so unit placement is important — particularly for multi-zone systems with multiple outdoor units.
Common questions about solar and heat pumps in RECO territory.
RECO (Rockland Electric Company) is a subsidiary of Orange & Rockland Utilities, which is itself a subsidiary of Consolidated Edison (Con Edison). RECO serves approximately 72,000 customers in portions of Bergen and Passaic counties in northwestern New Jersey. Despite being a small utility, RECO's rates are among the highest in NJ ($0.20+/kWh), making its territory one of the best areas for solar and heat pump ROI.
RECO territory is excellent for solar. Three factors converge: (1) RECO rates are among the highest in NJ at $0.20+/kWh, meaning each kWh of solar production saves more money. (2) Bergen and Passaic county homes are large (median $500K+) with correspondingly high electric bills. (3) RECO provides full retail net metering with annual true-up. The result is solar payback periods of 5-6 years — among the fastest in NJ.
RECO net metering follows NJ BPU rules. Excess solar production is credited to your account at the full retail rate. Credits roll over month-to-month. At annual true-up (typically April), any remaining excess credits are paid out at the wholesale avoided-cost rate. Systems up to 25 kW qualify for standard residential net metering. RECO processes net metering applications as part of the interconnection process.
RECO interconnection typically takes 20-40 business days from complete application submission to Permission to Operate (PTO). This is slightly longer than PSE&G's process due to RECO's smaller engineering staff. Applications are submitted through RECO's interconnection portal. Your installer handles the application, but you should factor 5-8 weeks of interconnection time into your project timeline after installation is complete.
RECO customers qualify for: (1) NJ Clean Energy Whole Home program — up to $7,500 cash-back for qualifying heat pump installations based on Total Energy Savings percentage. (2) RECO-specific utility rebates for ENERGY STAR-certified heat pumps and heat pump water heaters. (3) NJ Comfort Partners program for income-eligible customers. The federal Section 25C heat pump tax credit expired December 31, 2025 — there is no federal credit in 2026.
RECO rates are among the highest in NJ at $0.20-$0.22/kWh, compared to PSE&G ($0.17-$0.19), JCP&L ($0.18-$0.20), and ACE ($0.16-$0.18). RECO's higher rates are partly due to the small customer base (72,000 vs. PSE&G's 2.3 million), which spreads fixed infrastructure costs over fewer customers. For solar and heat pump customers, higher rates mean faster payback and higher lifetime savings.
Bergen and Passaic county homeowners in RECO territory qualify for: (1) NJ ADI/SuSI incentive ($40-80/MWh for 15 years of solar production). (2) NJ property tax exemption for solar equipment (N.J.S.A. 54:4-3.113a). (3) NJ sales tax exemption (saves 6.625% on system cost). (4) Full retail net metering through RECO. (5) NJ Clean Energy programs. There is no active federal residential solar tax credit in 2026 (Section 25D expired Dec 2025).
RECO offers an optional time-of-use rate for residential customers. The TOU plan has lower rates during off-peak hours (nights, weekends) and higher rates during weekday peak hours. For solar+battery customers, TOU rates can increase savings by $200-$600/year through battery arbitrage — charging from solar during the day and discharging during expensive peak hours. Contact RECO to switch to TOU before or after your solar installation.
NuWatt serves all RECO territory communities in Bergen and Passaic counties. We know RECO's interconnection process, local permit requirements, and how to maximize your incentives.
Related: RECO Heat Pump Rebates • NJ Solar Cost • NJ Net Metering