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Quick Answer
PSE&G charges approximately $0.26/kWh as of January 2026, up ~8% year-over-year. NJ's ADI/SREC-II program pays $85.90/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 7-9 year payback on solar.
Track PSE&G rate changes and see how solar can protect you from rising electricity costs in New Jersey.
Current Rate
26.0¢/kWh
Year-over-Year Change
+16.9%Last verified: 2026-03-02 | Source: PSE&G rate filings, EIA Form 861
Annual Solar Savings
$2,496
8kW system at current rates
Solar Payback Period
9.9 years
Utility savings only (excl. ADI)
25-Year Savings
$86,080
With 3% annual rate escalation
PSE&G has seen significant rate increases, particularly the 17% jump in mid-2025 driven by infrastructure investments and rising supply costs.
| Period | Rate ($/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 | $0.2600 | -0.1% | PSE&G current tariff |
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 $85.90/MWh, an average 8kW system generates approximately $777/year in ADI income over a 15-year contract.
15-Year ADI Income: ~$11,648 for an 8kW system | Rate rises to $95.23/MWh in EY2026-27
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 $0.26/kWh retail rate. Credits roll over monthly and are trued up annually. At PSE&G's high rates, net metering alone provides approximately $1,410/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 | $1,872 | $582 | 6.7 yrs |
| 8 kW | $23,600 | $2,496 | $777 | 6.7 yrs |
| 10 kW | $29,500 | $3,120 | $971 | 6.7 yrs |
| 12 kW | $35,400 | $3,744 | $1,165 | 6.7 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 24% rate increases since 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.
As of January 2026, PSE&G charges approximately $0.26/kWh for residential customers. This includes both supply and delivery charges. The rate increased significantly in mid-2025 when PSE&G implemented a 17% rate adjustment.
PSE&G rates have risen from approximately $0.21/kWh in January 2024 to $0.26/kWh in January 2026, an increase of roughly 24% over two years. 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 $85.90 per MWh for Energy Year 2025-26, with the rate increasing to $95.23/MWh for EY2026-27. An average 8kW system generates about 9,040 kWh/year, earning approximately $775 annually in ADI income for 15 years.
At current PSE&G rates of $0.26/kWh, an 8kW solar system has a payback period of approximately 10-11 years when factoring in net metering credits and ADI income. Without any state incentives, payback would be closer to 12.5 years based on utility savings alone.
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 $0.26/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.