The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
New Jersey Solar Incentives Overview
New Jersey has among the best solar incentives nationally. The SuSI/ADI program pays $85.90/MWh (EY2025-26) for 15 years, combined with full 6.625% sales tax and 100% property tax exemptions. NJ has the highest property taxes in the US (~$9,500/yr avg), making the property tax exemption especially valuable.
New Jersey average solar cost: $2.81/W • Payback: 7.6 years • 25-year savings: $90,027
Available Incentive Programs in New Jersey
Successor Solar Incentive (SuSI) / ADI
$85.90/MWh (EY2025-26), rising to $95.23/MWh (EY2026-27) for 15 years
Max: $20,000
Eligibility:
Residential net-metered solar systems in New Jersey
How to Claim:
- 1Your installer registers your system with the SuSI/ADI program
- 2System receives ADI payments based on production (kWh generated)
- 3Payments made quarterly for 15 years
- 4Rate locked at registration — current EY2025-26 rate is $85.90/MWh
Note: Program ongoing. Note: 10% automatic rate decrease scheduled March 13, 2026 unless BPU intervenes.
Program websiteSales Tax Exemption
6.625% sales tax exempt
Max: $2,500
Eligibility:
All solar energy systems in New Jersey
How to Claim:
- 1Automatic — installer excludes sales tax from invoice
Note: Permanent exemption
Program websiteProperty Tax Exemption
100% property tax exemption on added solar value
Eligibility:
All residential solar in New Jersey
How to Claim:
- 1Automatic — solar does not increase your property tax
Note: Permanent policy
Program websiteReady to Get a Solar Quote?
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in New Jersey who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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