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New Jersey's SuSI ADI program pays solar owners $85/MWh for 15 years. A typical 8 kW system earns ~$816/year in SREC-II payments. Registration is automatic through your installer. This guide covers current rates, how it works, and value calculations.
Current Residential Rate: $85/MWh (EY2025-26)
EY2026-27 Rate: Not yet announced by BPU
Duration: 15 years, fixed rate
Typical System (8 kW): ~$816/year
Registration: Automatic via installer
Rate Type: Fixed at registration for 15 years
Quarterly payments. Rate locked at registration for full 15-year term. Section 25D federal solar tax credit EXPIRED Dec 31, 2025.
Rate set by March 6, 2023 BPU one-year review order
The residential net-metered ADI rate has been $85/MWh since the BPU's March 6, 2023 one-year review order. This rate applies through the current Energy Year 2025-26 (ending May 31, 2026). The EY2026-27 rate has not yet been announced by the BPU.
Current Rate (EY2025-26)
$85/MWh
Locked in for 15 years at registration
EY2026-27 Rate
TBD
Not yet announced by the NJ BPU
Systems registered today lock in $85/MWh for their full 15-year payment term. Your rate is fixed at the time of registration and does not change regardless of future BPU rate adjustments.
$85/MWh locked in for 15 years is a powerful, guaranteed income stream. Only New Jersey offers anything close to this kind of fixed-rate solar production incentive in the Northeast.
15-Year SREC-II Value
$12,240+
8 kW system at $85/MWh
Rate Type
Fixed
Locked for full 15-year term
Plus NJ Benefits
$45K+
Net metering + tax exemptions (25yr)
With NJ's 1:1 net metering, 6.625% sales tax exemption, and 100% property tax exemption still intact, solar remains a strong financial decision in New Jersey. The SREC-II income at $85/MWh adds $12,000+ on top of these other benefits. No other state in the Northeast offers a comparable fixed-rate production incentive.
Understanding the structure helps you know exactly which incentive applies to your solar system.
Successor Solar Incentive
Umbrella program that replaced the legacy SREC market in 2021. Contains both ADI and CSI pathways.
Administratively Determined Incentive
For systems up to 5 MW. Fixed rate for 15 years set by BPU. Covers ALL residential and most commercial installations.
Competitive Solar Incentive
For systems over 5 MW. Competitive bidding process. Primarily for utility-scale and large commercial projects. Does not apply to residential.
For Homeowners: Your system falls under ADI. You do not need to worry about CSI. Your installer handles ADI registration automatically.
Rates set by the NJ BPU. Current residential rate: $85/MWh (EY2025-26). EY2026-27 rates not yet announced.
| Category | EY2025-26 | EY2026-27 | Notes |
|---|---|---|---|
| Residential NEMMOST COMMON | $85 | TBD | Net-metered, most homeowners |
| Non-Res Rooftop/Carport (<1 MW) | $110 | TBD | Rooftop or carport, under 1 MW |
| Non-Res Ground Mount (<1 MW) | $90 | TBD | Ground-mounted, under 1 MW |
| Non-Res Rooftop (1-5 MW) | $100 | TBD | Rooftop, 1 MW to 5 MW |
| Non-Res Ground Mount (1-5 MW) | $85 | TBD | Ground-mounted, 1 MW to 5 MW |
| Community Solar | $60 | TBD | Per March 4, 2026 CSEP EY26 order |
| Public Entity Bonus | +$20 | +$20 | Schools, municipalities, nonprofits |
The $85/MWh residential rate has been in effect since the BPU's March 6, 2023 one-year review order and is maintained through May 31, 2026. The BPU has not yet announced rates for EY2026-27 (June 2026 onward). Systems registered now lock in $85/MWh for the full 15-year term.
Payment Duration
15 Years
Payment Frequency
Quarterly
Rate Type
Fixed at Registration
Lock in the $85/MWh rate for 15 years
An 8 kW system earns $12,240+ in SREC-II payments over 15 years. See how much your system would earn.
After your solar system passes inspection, your installer submits the registration application to the NJ BPU (Board of Public Utilities). You do not need to do anything — registration is handled entirely by your installer.
Processing takes approximately 4-6 weeks. Once approved, your system receives a unique registration number in the NJ SREC Registration Program (SRP). Your ADI rate is locked in at the time of registration.
For every MWh (1,000 kWh) your system generates, one SREC-II certificate is automatically created. This is tracked automatically through your inverter and production meter — no action required on your part.
Your electric distribution company (PSE&G, JCP&L, or ACE) purchases your SREC-II certificates at the fixed ADI rate. There is no market or negotiation — the rate is set by the BPU.
You receive quarterly payments based on actual generation. Payments are typically made via check or direct deposit. Payments continue for 15 years from your registration date at your locked-in rate.
Based on NJ average production of ~1,200 kWh/kW/year. Your actual production depends on roof orientation, shading, and location.
Formula: System size (kW) x 1,200 kWh/kW = annual production. Production / 1,000 = MWh. MWh x ADI rate = annual income.
7,200 kWh/year = 7.2 MWh
Annual Income
$612/yr
15-Year Total
$9,180
9,600 kWh/year = 9.6 MWh
Annual Income
$816/yr
15-Year Total
$12,240
12,000 kWh/year = 12 MWh
Annual Income
$1,020/yr
15-Year Total
$15,300
14,400 kWh/year = 14.4 MWh
Annual Income
$1,224/yr
15-Year Total
$18,360
System size: 8 kW
Annual production: 8 kW x 1,200 kWh/kW = 9,600 kWh
Convert to MWh: 9,600 kWh / 1,000 = 9.6 MWh
Annual income: 9.6 MWh x $85 = $816/yr
15-year total: $816 x 15 = $12,240
Solar savings depend on your roof, utility rate, and state incentives.
Estimate My SavingsLocking in the highest possible rate can mean thousands of dollars more over your 15-year term.
The $85/MWh rate is in effect through May 31, 2026. Future rates have not been announced. Registering now locks in $85/MWh for the full 15-year term.
The BPU takes approximately 4-6 weeks to process ADI registrations. Your rate is locked at the application submission date, not the approval date.
You do not need to submit any paperwork yourself. Your installer handles the registration, documentation, and BPU submission. Make sure your installer is experienced with the SRP registration process.
Once registered, your ADI rate is locked for the full 15-year term. Future rate decreases or changes do NOT affect your payment. This provides predictable, reliable income.
The old SREC market was volatile and unpredictable. The new ADI program provides stability and financial certainty.
| Feature | Legacy SREC (2004-2021) | ADI / SREC-II (2021+) |
|---|---|---|
| Rate Type | Market-traded | Fixed by BPU |
| Price Range | $200-$400/certificate (volatile) | $85/MWh (stable) |
| Duration | 10 years | 15 years |
| Predictability | Low — prices fluctuated | High — rate fixed at registration |
| Homeowner Effort | Needed to actively sell SRECs | Automatic — no action required |
| Best For | Speculators | Financial planning |
Bottom Line: While ADI rates are lower than peak legacy SREC prices, the 15-year fixed rate and automatic payments make ADI a significantly better incentive for homeowners who want predictable income.
Ready to earn fixed SREC-II income for 15 years?
No market trading, no uncertainty. Your installer handles all registration. Get a quote and see your SREC-II return.
The federal residential solar tax credit (Section 25D) expired December 31, 2025. This makes NJ's state programs even more important.
The 30% residential solar tax credit expired Dec 31, 2025 under OBBBA. $0 available for homeowner cash/loan purchases in 2026.
NJ's SuSI/ADI program is independent of the federal ITC. $85/MWh for 15 years continues regardless of tax credit status.
6.625% sales tax exemption + 100% property tax exemption. No expiration date. Extremely valuable in NJ.
PPA/Lease Option: Third-party-owned systems (PPA/lease) can still access the Section 48 commercial ITC through the financing company, not you. If you are considering solar with no upfront payment, PPA/lease remains a viable option in NJ.
Even without the federal ITC, NJ's combination of incentives makes solar still attractive. Here is what a typical 8 kW system earns.
$55,700+ in total value — see your personalized number
SREC-II + net metering + NJ tax exemptions add up fast. Enter your address to see the exact breakdown for your roof.
The ADI rate is the same regardless of your utility. The difference is in who processes your quarterly payments.
North/Central NJ
Cities: Newark, Jersey City, New Brunswick
Central/Western NJ
Cities: Morristown, Princeton, Toms River
South NJ
Cities: Cherry Hill, Atlantic City, Vineland
Community solar also participates in the SuSI/ADI program with separate rates. If you cannot put panels on your roof, community solar with SREC-II is an alternative.
Community solar rates were updated to $60/MWh per the BPU's March 4, 2026 CSEP EY26 order. Community solar subscribers typically save 10-40% on their electricity bills with no rooftop installation.
Read the full CSEP Community Solar guideResearch
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SuSI (Successor Solar Incentive) is the umbrella program that replaced New Jersey's legacy SREC market in 2021. ADI (Administratively Determined Incentive) is the fixed-rate incentive pathway for solar systems up to 5 MW, which covers virtually all residential installations. Under ADI, solar owners receive a fixed payment per MWh of electricity generated for 15 years. The current residential net-metered rate is $85/MWh for Energy Year 2025-26.
The current ADI rate for residential net-metered systems is $85/MWh for Energy Year 2025-26 (June 2025 through May 2026). The EY2026-27 rate has not yet been announced by the BPU. A typical 8 kW residential system producing 9,600 kWh/year (9.6 MWh) earns approximately $816/year at the current rate.
Registration is handled by your solar installer, not by you directly. Your installer submits the registration application to the NJ Board of Public Utilities (BPU) after your system passes inspection. Processing takes approximately 4-6 weeks. Once registered, your system receives an SREC-II registration number and begins accruing certificates for every MWh generated.
ADI rates are set by the NJ BPU and reviewed periodically. The current residential rate of $85/MWh was set by the March 6, 2023 one-year review order and has been maintained through EY2025-26 (ending May 31, 2026). The EY2026-27 rate has not yet been announced. Your rate is locked at the time of registration for the full 15-year term.
ADI (Administratively Determined Incentive) is for solar systems up to 5 MW and pays a fixed rate set by the NJ BPU. CSI (Competitive Solar Incentive) is for larger systems over 5 MW that must bid in competitive solicitations. All residential and most commercial systems fall under ADI. CSI is primarily for large-scale utility and commercial projects.
SREC-II payments under the ADI program last for 15 years from your system's registration date. The rate is fixed at the time of registration and does not change over the 15-year term. Payments are made quarterly based on actual generation, with one SREC-II certificate created for each MWh your system produces.
Yes, SREC-II income is generally considered taxable income by both the IRS and the State of New Jersey. You should receive a 1099 for SREC-II payments exceeding $600 in a calendar year. Consult a tax professional for your specific situation, as the tax treatment can vary based on whether the system is residential or commercial and how the income is reported.
The legacy SREC market closed to new registrations in 2021 when the SuSI program launched. Legacy SRECs were traded on the open market and fluctuated between $200-$400 per certificate, creating uncertainty. The new ADI program replaced market-traded SRECs with a fixed, predictable rate for 15 years, providing much better financial planning certainty for homeowners.
No. The federal Section 25D residential solar tax credit expired December 31, 2025 under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. There is no federal tax credit for homeowner cash or loan purchases in 2026. However, third-party-owned systems (PPA/lease) may still access the Section 48 commercial ITC through the financing company. NJ's SREC-II, net metering, and tax exemptions still make solar viable without the residential ITC.
New Jersey offers two powerful solar tax exemptions. The sales tax exemption saves 6.625% on your system cost (roughly $1,300-$1,700 on a typical system). The property tax exemption prevents your property taxes from increasing due to the added value of solar. In NJ, where average property taxes are $9,500/year, this exemption is extremely valuable since solar can add $15,000-$25,000 to home value without any tax increase.
There is no maximum system size for residential ADI, but your system should be sized to your electricity consumption for maximum economic benefit. Over-sizing beyond your annual usage means you would export excess power at wholesale (not retail) rates while still earning SREC-II payments. A typical NJ home uses 8,000-10,000 kWh/year, which an 8-10 kW system can offset. Larger systems earn more SREC-II income but the economics depend on your specific usage pattern.
SREC-II payments are made quarterly by your electric distribution company (PSE&G, JCP&L, or ACE depending on your territory). Each MWh your system generates creates one SREC-II certificate, which is automatically tracked by the NJ SREC Registration Program (SRP). The utility purchases these certificates and makes quarterly payments, typically via check or direct deposit.
Yes. The $85/MWh ADI rate locked in for 15 years generates $12,240+ in SREC-II income alone for a typical 8 kW system. Combined with NJ's 1:1 net metering, 6.625% sales tax exemption, and 100% property tax exemption, total solar value over 25 years exceeds $50,000 for a typical 8 kW system.
Everything about solar in NJ in 2026.
$2.75-3.15/W by city.
750+ MW, 10-40% bill savings.
1:1 retail credit explanation.
6.625% sales + property exempt.
25D dead. NJ still viable.
NuWatt Energy helps New Jersey homeowners navigate the SuSI/ADI program, net metering, and tax exemptions to maximize your solar value. A typical 8 kW system earns $12,240+ in SREC-II alone.