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New Jersey's ADI/SuSI program delivers $18,000 in production-based incentives for an 11 kW system — giving Garden State homeowners a 3.7-year payback and the fastest solar ROI in the Northeast.
Avg Utility Rate
$0.26/kWh
State Incentives
$18,071
Payback Period
3.7 years
25-Year Savings
$133,000
By NuWatt Energy Team • Updated February 2026 • 8 min read
Yes, solar is worth it in New Jersey in 2026 even without the federal tax credit. With average utility rates of $0.26/kWh and $18,071 in state incentives, a typical 11kW system pays for itself in approximately 3.7 years and delivers $133,000 in total savings over 25 years. Solar locks in your electricity cost at a fraction of what you pay the utility, and the gap widens every year as rates climb 3-5% annually.
A typical residential solar installation in New Jersey uses 25 panels to build a 11kW system. Here is the full cost breakdown before and after state incentives, with no federal tax credit applied (Section 25D expired December 31, 2025).
Cost Per Watt
$2.86/W
Gross System Cost
$31,476
Net Cost After Incentives
$13,405
2025 vs 2026 Cost Comparison
2025 (with 30% ITC): A homeowner in New Jersey would have received a $9,443 federal tax credit, bringing the net cost down to $3,962.
2026 (no ITC): The same system now costs $13,405 after state incentives only — $9,443 more than it would have cost last year.
The payback period tells you how many years of electricity savings it takes to fully offset the cost of your solar installation. In New Jersey, the math works out as follows:
Payback = Net Cost ÷ Annual Savings = $13,405 ÷ $3,647 = 3.7 years
| Year | Annual Savings | Cumulative (Net) | Status |
|---|---|---|---|
| Year 1 | $3,647 | -$9,758 | Recovering |
| Year 5 | $4,266 | +$6,348 | Profit |
| Year 10 | $5,191 | +$30,381 | Profit |
| Year 15 | $6,315 | +$59,621 | Profit |
| Year 25 | $9,348 | +$138,478 | Profit |
Payback comparison: In 2025, this same system would have paid back in 1.1 years. In 2026, it takes 3.7 years — 2.6 years longer. The difference is entirely due to losing the $9,443 federal tax credit.
While New Jersey homeowners can no longer claim the federal residential solar tax credit (Section 25D), the state offers several incentive programs that help offset the cost of going solar.
$0.90/W over 15 years
The Successor Solar Incentive (SuSI) program provides production-based payments totaling approximately $0.90 per watt over a 15-year term, making it the largest per-watt state incentive in the country.
6.625% savings
Solar energy systems are fully exempt from New Jersey sales tax, saving approximately $2,085 on a typical 11 kW system.
Full exemption
The added property value from a solar installation is exempt from local property taxes in New Jersey.
Net metering is the policy that determines how your utility credits you for excess solar electricity you send to the grid. In New Jersey, the specifics vary by utility company. Here is a summary of the top utilities and their current net metering policies.
| Utility | Credit Type | System Size Cap | Excess Policy |
|---|---|---|---|
| PSE&G | 1:1 retail rate credit | No cap | Monthly credits roll over; annual true-up paid at wholesale rate |
| JCP&L | 1:1 retail rate credit | No cap | Monthly credits roll over; annual true-up paid at wholesale rate |
| Atlantic City Electric | 1:1 retail rate credit | No cap | Monthly credits roll over; annual true-up paid at wholesale rate |
Net metering is critical to your solar payback. When your panels produce more than you use during the day, the excess flows to the grid and your meter effectively runs backward. You receive credits that offset your nighttime and cloudy-day electricity usage. The stronger the net metering policy, the more value you extract from every kilowatt-hour your panels produce.
Losing the 30% federal tax credit makes solar more expensive upfront, but it does not erase the long-term financial case. Here is why New Jersey homeowners should still seriously consider going solar in 2026:
ADI/SuSI program provides the largest production-based incentive in the country
No state sales tax on solar equipment (6.625% savings)
Solar qualifies for property tax exemption
NJ has the fastest payback of any NuWatt service state at 3.7 years
Rising utility rates protect your investment. Electricity prices in New Jersey have historically risen 3-5% per year. Your solar panels produce power at a fixed cost, meaning your savings grow every single year as the gap between solar and utility pricing widens.
Solar increases your home value by approximately 4%. National studies consistently find that owned solar systems add roughly 4% to a home's sale price. On a median-priced home in New Jersey, that translates to thousands of dollars in added equity — often recovering a significant portion of your net system cost before you factor in electricity savings.
These are real solar installations completed by NuWatt Energy in New Jersey. Every system was designed, permitted, and installed by our team.
11.3 kW · 27 Q.CELLS panels · Enphase IQ8M
Est. 15,089 kWh/year
Completed December 2025
View Full Project →
9.9 kW · 23 REC panels · Enphase IQ8+
Est. 12,736 kWh/year
Completed December 2024
View Full Project →
12 kW · 28 Silfab panels · Enphase IQ8+
Est. 14,001 kWh/year
Completed November 2024
View Full Project →
The 30% federal Investment Tax Credit (ITC) is gone for homeowner purchases (Section 25D), but it is still available to solar companies through Section 48/48E. When you sign a solar lease or Power Purchase Agreement (PPA), the installer owns the system, claims the 30% credit, and passes some of those savings to you through lower monthly payments.
For a full comparison of owning vs. leasing solar in 2026, including monthly cost examples and long-term savings projections, see our Solar Lease vs. Buy 2026 guide.
The SuSI (Successor Solar Incentive) program provides approximately $18,000 in total value for an 11 kW system through production-based payments over 15 years. This is nearly double the $9,443 federal ITC that expired. Combined with sales tax and property tax exemptions, New Jersey effectively replaces the federal credit with an even larger state incentive package, resulting in a 3.7-year payback.
No. All three major NJ utilities — PSE&G, JCP&L, and Atlantic City Electric — offer 1:1 retail rate net metering with no system size cap for residential installations. This is one of the most generous net metering policies in the nation and means you receive full retail credit for every kWh you export to the grid.
NJ electricity rates ($0.26/kWh) are competitive with New England states, and the SuSI/ADI program provides a massive production-based incentive totaling approximately $18,000 over 15 years for an 11 kW system. This brings the effective net cost down to just $13,405. Combined with strong annual production of 14,025 kWh, the result is a 3.7-year payback — the fastest among NuWatt service states.
Every roof is different. Get a personalized savings estimate based on your actual electricity usage, roof orientation, and local utility rates in New Jersey.
Or call us directly: (877) 772-6357