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PSE&G charges approximately $0.27/kWh all-in as of June 1, 2026 — summer-month bills run closer to $0.29/kWh. NJ's ADI/SREC-II program pays $85.00/MWh for 15 years, making solar viable even without the federal residential ITC. Combined with 1:1 net metering and full sales + property tax exemptions, PSE&G customers see roughly 6.5-7 year payback on solar with ADI income.
Track PSE&G rate changes and see how solar can protect you from rising electricity costs in New Jersey.
Current Rate
26.9¢/kWh
Year-over-Year Change
+3.5%Last verified: 2026-06-10 | Source: PSE&G tariff (nj.pseg.com); historical points EIA Form 861
Annual Solar Savings
$2,586
8kW system at current rates
Solar Payback Period
9.6 years
Utility savings only (excl. ADI)
25-Year Savings
$89,192
With 3% annual rate escalation
PSE&G has seen significant rate increases, particularly the 17% jump in mid-2025 driven by infrastructure investments and rising supply costs.
| Period | Rate ($/kWh) | Change | Source |
|---|---|---|---|
| 2024-01 | $0.2105 | -- | EIA Form 861 |
| 2024-06 | $0.2215 | +5.2% | EIA Form 861 |
| 2025-01 | $0.2225 | +0.5% | PSE&G rate filing |
| 2025-06 | $0.2602 | +16.9% | PSE&G +17% rate increase |
| 2026-01 | $0.2630 | +1.1% | PSE&G BGS PTC + RS delivery, pre-tax (nj.pseg.com), eff Dec 2025-May 2026 |
| 2026-06 | $0.2694 | +2.4% | PSE&G RS all-in annual blend, SUT-incl (summer .2909/winter .2586), BGS eff Jun 1 2026 (nj.pseg.com Tariff No.17) |
Key Trend: Accelerating Increases
PSE&G rates jumped 17% in a single period (Jan-Jun 2025), driven by infrastructure upgrade surcharges and rising wholesale energy costs. Analysts expect continued 3-5% annual increases through 2028 as grid modernization costs are passed to ratepayers.
Even without the federal residential ITC (Section 25D expired Dec 31, 2025), New Jersey offers some of the strongest state-level solar incentives in the nation.
New Jersey's Administratively Determined Incentive (ADI) program pays solar system owners a guaranteed incentive for every megawatt-hour generated. At the current EY2025-26 rate of $85.00/MWh, an average 8kW system generates approximately $768/year in ADI income over a 15-year contract.
15-Year ADI Income: ~$11,526 for an 8kW system | Current ADI rate is $85.00/MWh
NJ law provides full 1:1 retail-rate net metering for systems up to 5 MW. Every kWh your solar system exports to the grid earns a credit worth the full $0.27/kWh retail rate. Credits roll over monthly and are trued up annually. At PSE&G's high rates, net metering alone provides approximately $1,461/year in value (assuming 60% exported).
New Jersey exempts solar installations from the 6.625% sales tax, saving approximately $1,564 on an average system. Plus, solar additions are 100% exempt from property tax reassessment. In NJ, where average property taxes exceed $9,500/year, this prevents hundreds in annual tax increases.
Higher utility rates accelerate solar payback. Here's how different system sizes perform for PSE&G customers.
| System Size | Gross Cost | Annual Savings | ADI Income/yr | Payback |
|---|---|---|---|---|
| 6 kW | $17,700 | $1,940 | $576 | 6.6 yrs |
| 8 kW | $23,600 | $2,586 | $768 | 6.6 yrs |
| 10 kW | $29,500 | $3,233 | $961 | 6.6 yrs |
| 12 kW | $35,400 | $3,879 | $1,153 | 6.6 yrs |
* Payback includes net metering savings + ADI income, minus NJ sales tax exemption. Assumes 2.95/W average cost, 1,130 kWh/kW annual production. No federal ITC (25D expired).
PSE&G has implemented cumulative ~28% rate increases since early 2024. Solar locks in your energy cost at $0/kWh for 25+ years.
NJ's SREC-II program guarantees income for 15 years. An 8kW system earns ~$775/year on top of net metering savings.
No sales tax (saves ~$1,563 upfront) and no property tax increase. NJ has the highest property taxes in the US.
While homeowner ITC is gone, PPA/lease providers claim Section 48 ITC (30%), passing savings through as lower rates.
See how much you could save on your PSE&G bill with solar — including ADI income, net metering credits, and NJ tax exemptions.
Get Your Free Quote →As of June 1, 2026, PSE&G charges approximately $0.27/kWh all-in for residential customers (summer bills run closer to $0.29/kWh, winter closer to $0.26/kWh, sales tax included). This includes supply, delivery, and the monthly customer charge. Rates stepped up sharply with the 17% adjustment in mid-2025 and reset again with the June 1, 2026 BGS supply change.
PSE&G rates have risen from approximately $0.21/kWh in January 2024 to about $0.27/kWh as of June 2026, an increase of roughly 28%. The largest single increase was the 17% jump in mid-2025.
New Jersey's Administratively Determined Incentive (ADI) program, formerly called SREC-II, pays solar system owners $85.00 per MWh for Energy Year 2025-26, with the rate increasing to $85.00/MWh. An average 8kW system generates about 9,040 kWh/year, earning approximately $775 annually in ADI income for 15 years.
At the current PSE&G rate of about $0.27/kWh, an 8kW solar system has a payback period of approximately 6.5-7 years when factoring in net metering credits and ADI income. On utility savings alone (no ADI), payback is closer to 9.5-10 years.
Yes. New Jersey provides 1:1 retail rate net metering for systems up to 5 MW. Excess solar generation earns full retail-rate credits that roll over monthly. PSE&G customers benefit from this especially given the high ~$0.27/kWh rate, as every kilowatt-hour exported is worth the full retail value.
Yes. New Jersey exempts solar equipment from the 6.625% sales tax and provides a 100% property tax exemption for solar installations. In NJ, where average property taxes exceed $9,500/year, the property tax exemption alone can save hundreds annually by preventing your home's assessed value from increasing due to solar.
Get a free solar estimate for your PSE&G account. See your exact savings with ADI income, net metering, and tax exemptions included.