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Track New Jersey's ADI (SREC-II successor) solar incentive rates, program status, and upcoming rate changes. Updated monthly.
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NJ ADI (successor to SREC-II) pays solar owners $85.90/MWh for Energy Year 2025-26, rising to $95.23/MWh for EY2026-27. Payments last 15 years and are made quarterly. For a typical 13 kW NJ system, ADI generates approximately $1,262/year. Combined with 1:1 net metering, ADI makes NJ solar financially compelling even after the federal ITC expired. Watch the March 13, 2026 auto-decrease deadline.
Active
Accepting new enrollments
$85.90/MWh
Through June 2026
$95.23/MWh
Pending March 13 ruling
15 Years
Quarterly payments
NJ BPU rules include a 10% automatic rate decrease mechanism that triggers on March 13, 2026. If the BPU does not intervene, the EY2026-27 rate would drop from $95.23/MWh to approximately $85.71/MWh.
The ADI rate is set annually by the NJ Board of Public Utilities for each Energy Year (July through June). Rates have generally declined from the initial SREC-II levels, though EY2026-27 shows a notable increase.
| Energy Year | Rate (Residential) | YoY Change | Status | Notes |
|---|---|---|---|---|
| EY2023-24 | $100.45/MWh | - | Expired | First ADI year |
| EY2024-25 | $90.91/MWh | -9.5% | Expired | Standard rate decrease |
| EY2025-26 | $85.90/MWh | -5.5% | Current | Active through June 2026 |
| EY2026-27 | $95.23/MWh | +10.9% | Upcoming | Starts July 2026 (if no auto-decrease) |
ADI rates differ by system type and size. Commercial rooftop systems receive higher rates than residential net-metered systems. Public entities receive an additional $20/MWh bonus on top of their base rate.
| Category | EY2025-26 Rate | EY2026-27 Rate | Duration | Notes |
|---|---|---|---|---|
| Residential (Net Metered) | $85.00/MWh | TBD | 15 years | Most residential installations |
| Non-Residential Rooftop (<1 MW) | $110/MWh | TBD | 15 years | Commercial rooftop systems |
| Non-Residential Rooftop (1-5 MW) | $100/MWh | TBD | 15 years | Large commercial rooftop |
| Public Entity Bonus | +$20/MWh | +$20/MWh | 15 years | Municipal, school, government adder |
NJ has cycled through three solar incentive programs: SREC (market-traded), SREC-II (transition), and ADI (current). Understanding the differences helps if you are comparing quotes or have an older system.
| Feature | SREC / SREC-II (Legacy) | ADI (Current) |
|---|---|---|
| Program Name | SREC / SREC-II | ADI (Administratively Determined Incentive) |
| Rate Model | Market-traded certificates | Fixed rate set by BPU |
| Rate Stability | Volatile (market-based) | Predictable (set annually) |
| Current Residential Rate | N/A (closed to new) | $85.90/MWh (EY2025-26) |
| Payment Duration | 10 years (SREC) / 15 years (SREC-II) | 15 years |
| Payment Frequency | Quarterly (market-dependent) | Quarterly (guaranteed) |
| Registration | Manual SREC trading | Automatic through installer |
| Available to New Systems | No (closed) | Yes (active) |
Key advantage of ADI: Unlike the old SREC market where certificate prices fluctuated wildly ($100-$600+ depending on market conditions), ADI rates are fixed at enrollment. You know exactly how much you will earn per MWh for the full 15-year term. This predictability makes solar financing calculations far more reliable.
How much ADI income can you expect? These projections use NJ average solar production of 1,130 kWh/kW/year with 0.5% annual panel degradation over the 15-year ADI term.
| System Size | Annual ADI (EY25-26) | Annual ADI (EY26-27) | 15-Year Total | Equivalent $/W |
|---|---|---|---|---|
| 8 kW | $768/yr | $768/yr | $11,131 | $1.39/W |
| 10 kW | $961/yr | $961/yr | $13,914 | $1.39/W |
| 13 kW (avg) | $1,249/yr | $1,249/yr | $18,088 | $1.39/W |
| 15 kW | $1,441/yr | $1,441/yr | $20,871 | $1.39/W |
| 20 kW | $1,921/yr | $1,921/yr | $27,828 | $1.39/W |
ROI impact: ADI payments add approximately $0.25-$0.30/W in equivalent value to your solar investment. For a typical 13 kW system costing ~$2.95/W, ADI effectively reduces your net cost to ~$2.65-$2.70/W before net metering savings. Combined with 1:1 net metering and NJ's property/sales tax exemptions, NJ remains one of the best solar markets in the country.
ADI is a production-based incentive. You earn money for every megawatt-hour (MWh) your solar system produces, regardless of whether you use the electricity yourself or export it to the grid.
Your quarterly ADI payment is calculated as:
Quarterly MWh produced x ADI rate = Payment
Example: A 13 kW system produces ~14.69 MWh/year, or ~3.67 MWh/quarter. At $85.90/MWh, each quarterly payment is approximately $315.
The Section 25D residential solar Investment Tax Credit expired December 31, 2025. Homeowners purchasing solar with cash or a loan receive $0 in federal tax credits. ADI and NJ's state incentives (property tax exemption, sales tax exemption, 1:1 net metering) are now the primary financial drivers for NJ solar.
The scheduled EY2026-27 ADI rate of $95.23/MWh represents a 10.9% increase over the current rate. Systems enrolled starting July 2026 would lock in this higher rate for 15 years. However, the March 13, 2026 auto-decrease provision could lower this rate. Monitor BPU announcements.
New Jersey has surpassed 5 GW of installed solar capacity with over 209,000 installations. The state's strong incentive stack (ADI + net metering + tax exemptions) continues to drive robust adoption even without the federal residential ITC.
The current ADI rate for residential net-metered solar in NJ is $85.90/MWh for Energy Year 2025-26 (July 2025 through June 2026). This is scheduled to increase to $95.23/MWh for EY2026-27, though a 10% automatic decrease provision could lower rates if BPU does not intervene before March 13, 2026.
SREC was NJ's original solar incentive (market-traded certificates, volatile prices). SREC-II replaced it with more stability. ADI (Administratively Determined Incentive) is the current program that succeeded SREC-II. ADI uses fixed rates set by the BPU (not market-traded), pays quarterly for 15 years, and registration is automatic through your installer. Existing SREC/SREC-II enrollees retain their original terms.
ADI pays you a fixed dollar amount per megawatt-hour (MWh) of solar electricity your system produces. Payments are made quarterly and continue for 15 years. For a typical 13 kW NJ system producing about 14,690 kWh/year, the current $85.90/MWh rate generates approximately $1,262/year in ADI income, totaling roughly $18,190 over 15 years.
NJ BPU rules include an automatic 10% rate decrease mechanism that triggers on March 13, 2026. If BPU does not intervene, the EY2026-27 rate would drop from $95.23/MWh to approximately $85.71/MWh. BPU has the authority to prevent this decrease. Monitor NJ BPU announcements for updates. This tracker will be updated immediately if the rate changes.
ADI and net metering are separate programs that stack together. ADI pays you based on total kWh generated (production-based). Net metering gives you bill credits for excess electricity exported to the grid at 1:1 retail rate. You receive both simultaneously. A 13 kW system can earn ~$1,262/year in ADI plus ~$1,600-2,100/year in net metering savings — a combined value of ~$2,862-3,362/year.
This tracker is updated monthly. We monitor NJ BPU filings, rate announcements, and program capacity updates. The auto-decrease deadline (March 13, 2026) is being watched closely. Any BPU action will be reflected within 48 hours. Check the "Last Updated" date at the top of the page for the most recent review.
ADI rates are sourced directly from New Jersey Board of Public Utilities (BPU) filings and the NJ Clean Energy program website (njcleanenergy.com). Rates are published for each Energy Year (July through June).
SREC-II/SREC historical data comes from the NJ SREC Registration Program (SRP) and BPU annual program reports. Market prices for legacy SRECs are referenced from the SRECTrade platform.
Income projections use NJ average solar production of 1,130 kWh/kW/year (based on NREL PVWatts for central New Jersey) with 0.5% annual panel degradation. Actual production varies by roof orientation, shading, and location within New Jersey.
Auto-decrease mechanism: Information about the March 13, 2026 rate adjustment is based on BPU regulatory filings and the SuSI Program rules. BPU has intervened in past auto-decrease triggers; the outcome of the March 2026 deadline is uncertain.
Update frequency: This tracker is reviewed and updated monthly. The data was last verified on February 15, 2026. BPU filings and rate changes are reflected within 48 hours of official publication.
Current pricing by city and system size
Complete guide to going solar in New Jersey
Detailed ADI enrollment and registration guide
NuWatt handles ADI registration as part of every NJ solar installation. Get a free quote with projected ADI income, net metering savings, and total payback period.