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New Jersey's three major utilities share the same 1:1 net metering and ADI/SuSI program, but their electric rates determine the actual value of your solar credits. Here is the full comparison for 2026.
2026 Update: The federal 25D residential solar tax credit expired December 31, 2025. Leases/PPAs still access the Section 48 ITC through the third-party system owner. NJ utility rates, net metering, ADI/SuSI program, and tax exemptions remain active.
All three NJ utilities offer identical 1:1 net metering and access the same ADI/SuSI program ($85.90/MWh for 15 years). The key difference is electric rate: PSE&G charges ~$0.26/kWh, JCP&L ~$0.24/kWh, and ACE ~$0.22/kWh. Higher rates mean more valuable net metering credits and faster solar payback.
Side by side: everything that differs and everything that is the same across NJ's three utilities for solar customers.
| Metric | PSE&G | JCP&L | ACE |
|---|---|---|---|
| Electric Rate | $0.26/kWh | $0.24/kWh | $0.22/kWh |
| Net Metering Credit Value (annual) | ~$3,390 | ~$3,130 | ~$2,870 |
| ADI/SuSI Income (annual) | ~$1,120 | ~$1,120 | ~$1,120 |
| Property Tax Exemption | 100% | 100% | 100% |
| Sales Tax Exemption | 6.625% | 6.625% | 6.625% |
| Avg. System Cost (13 kW) | $37,700-$41,000 | $35,750-$40,300 | $33,800-$39,000 |
| Est. Payback (3rd-party ownership) | 7-8 years | 8-9 years | 9-10 years |
| 25-Year Savings (cash purchase) | ~$65,000 | ~$58,000 | ~$52,000 |
| Interconnection Timeline | 15-30 days | 20-40 days | 15-25 days |
| CSEP Community Solar | 144 MW | 72 MW | 30 MW |
Based on a 13 kW system. Rates approximate as of February 2026. 25-year savings assume 2% annual rate escalation and 0.5%/yr panel degradation.
Public Service Electric & Gas — North / Central NJ
Public Service Electric & Gas, a PSEG (NYSE: PEG) subsidiary, serves 2.3M electric customers across North / Central NJ New Jersey. Major cities: Newark, Jersey City, Paterson, Elizabeth, Clifton, Trenton (part).
Electric Rate
~$0.26/kWh
Net Metering
1:1 Retail
ADI/SuSI
$85.90/MWh
15 years
Annual NM Credit (13 kW)
~$3,390
~$283/mo
Interconnection
15-30 business days
Est. Payback
~7-8 years
third-party ownership
Time-of-Use (TOU) Rate
Voluntary TOU rate available (Rate RS-TOU). Higher peak, lower off-peak.
Jersey Central Power & Light — Central / Western NJ
Jersey Central Power & Light, a FirstEnergy (NYSE: FE) subsidiary, serves 1.1M electric customers across Central / Western NJ New Jersey. Major cities: Morristown, Toms River, Long Branch, Freehold, Princeton (part).
Electric Rate
~$0.24/kWh
Net Metering
1:1 Retail
ADI/SuSI
$85.90/MWh
15 years
Annual NM Credit (13 kW)
~$3,130
~$261/mo
Interconnection
20-40 business days
Est. Payback
~8-9 years
third-party ownership
Time-of-Use (TOU) Rate
No residential TOU rate currently available.
Atlantic City Electric — Southern / Shore NJ
Atlantic City Electric, a Exelon (NASDAQ: EXC) subsidiary, serves 565K electric customers across Southern / Shore NJ New Jersey. Major cities: Atlantic City, Cherry Hill, Vineland, Cape May, Wildwood.
Electric Rate
~$0.22/kWh
Net Metering
1:1 Retail
ADI/SuSI
$85.90/MWh
15 years
Annual NM Credit (13 kW)
~$2,870
~$239/mo
Interconnection
15-25 business days
Est. Payback
~9-10 years
third-party ownership
Time-of-Use (TOU) Rate
ACE offers a residential TOU option. Can help solar owners maximize self-consumption value.
Your utility's electric rate determines how much your net metering credits are worth. Here is how each territory stacks up for a typical 13 kW solar system.
Cash purchase. No 25D (expired). Includes net metering + ADI + tax exemptions.
Cash purchase. No 25D (expired). Includes net metering + ADI + tax exemptions.
Cash purchase. No 25D (expired). Includes net metering + ADI + tax exemptions.
Key Insight
While PSE&G territory has the fastest payback, all three territories deliver strong long-term solar savings. The $13,000 difference in 25-year savings between PSE&G and ACE is meaningful, but even in ACE territory, solar generates over $50,000 in lifetime savings. It is not a bad investment in any territory.
New Jersey net metering is mandated by state law. The rules are identical for PSE&G, JCP&L, and ACE.
Why Act Now
Systems installed under current 1:1 net metering rules are grandfathered. If the BPU modifies rules in the future, your system keeps the original terms. Additionally, the current ADI rate of $85.90/MWh may automatically decrease 10% on March 13, 2026. Locking in both now maximizes your return.
All NJ utilities have seen steady 5-8% annual rate increases. Every increase makes solar more valuable.
| Year | PSE&G | JCP&L | ACE |
|---|---|---|---|
| 2021 | $0.17 | $0.16 | $0.15 |
| 2022 | $0.19 | $0.18 | $0.16 |
| 2023 | $0.22 | $0.20 | $0.18 |
| 2024 | $0.24 | $0.22 | $0.20 |
| 2025 | $0.25 | $0.23 | $0.21 |
| 2026 | $0.26 | $0.24 | $0.22 |
PSE&G 5yr Increase
+53%
$0.17 → $0.26/kWh
JCP&L 5yr Increase
+50%
$0.16 → $0.24/kWh
ACE 5yr Increase
+47%
$0.15 → $0.22/kWh
Solar Implication
If rates continue rising at 5-8% annually, a 13 kW system's net metering credits in PSE&G territory will be worth ~$0.34/kWh by 2031, pushing your annual net metering savings from ~$3,390 today to ~$4,430. This means actual payback periods will be faster than the estimates above.
NJ's most important incentives are statewide programs that apply equally regardless of your utility.
$85.90/MWh
15 years of quarterly payments for every MWh your system produces. Applies to PSE&G, JCP&L, and ACE equally. Rate rising to $95.23/MWh in EY2026-27. Potential 10% decrease on March 13, 2026.
1:1 Retail
Full retail rate credit for every kWh exported. Credits roll over monthly, annual true-up. Systems up to 5 MW. Mandated by NJ state law, not by utilities.
100%
Solar panels add $0 to your assessed home value. With the highest property taxes in the US (~$9,500/yr avg), this saves ~$750/yr. A hugely valuable NJ-specific incentive.
6.625%
All solar equipment and installation is exempt from NJ's 6.625% sales tax. On a $38,000 system, that is ~$2,500 in immediate savings. Applies statewide.
With Section 25D dead, NJ homeowners have two main paths. Your options are the same across all three utility territories.
The Section 48 ITC is claimed by the third-party system owner (the financing company), NOT the homeowner or installer. The benefit is passed through as a lower PPA/lease rate.
NJ Hub
All NJ guides
Complete NJ Solar Guide
Everything solar in NJ 2026
SuSI/ADI Program
$85.90/MWh x 15yr
NJ Net Metering Guide
1:1 retail credit
Solar Panel Cost NJ
$2.75-3.15/W
Utility Finder
Find your utility
Solar Without Tax Credit
Post-25D options
Cash vs Loan vs Lease
Financing comparison
Community Solar CSEP
10-40% bill savings
Rates approximate as of February 2026. Actual rates vary by rate class, usage tier, and supply period. Contact your utility for the most current rate. Federal 25D tax credit expired December 31, 2025.
Whether your utility is PSE&G, JCP&L, or ACE — NuWatt Energy helps you navigate solar incentives, net metering, and financing options. Get your free assessment today.
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