New Jersey has long been a national leader in residential solar adoption. For years, the state operated under the original Solar Renewable Energy Certificate (SREC-1) market, where certificate values fluctuated on public trading exchanges. In 2021, the New Jersey Board of Public Utilities (NJ BPU) replaced that volatile market with the Successor Solar Incentive (SuSI) Program, creating a predictable, fixed-value cash flow for homeowners that remains the cornerstone of Garden State clean energy in 2026.
1. What Is the SuSI Program and the ADI Sub-Program?
The SuSI program contains two distinct tracks: the Administratively Determined Incentive (ADI) for residential, small commercial, and community solar projects; and the Competitive Solar Incentive (CSI) for large utility-scale installations.
For homeowners, the ADI program provides a fixed payment for every megawatt-hour (MWh) of solar electricity generated by your rooftop panels over a guaranteed 15-year term. These certificates are known as SREC-IIs.
The SuSI Advantage vs. Legacy SRECs:
- No Market Crash Risk: The incentive value is fixed by administrative rule—it does not drop when regional solar supply increases.
- Long-Term Horizon: 15 full years of guaranteed certificate eligibility from your interconnection date.
- Added on Top of Electric Bill Savings: SREC-II payments are earned in addition to your monthly utility net metering savings.
2. Two Distinct Financial Streams for NJ Homeowners
When you install a solar energy system in New Jersey under PSE&G, JCP&L (Jersey Central Power & Light), or Atlantic City Electric, your financial benefit splits into two distinct channels:
Surplus solar energy feeds into the utility grid during sunny hours, generating direct kWh credits that roll forward month-to-month to offset evening and winter electricity delivery charges.
For every 1,000 kWh your array generates, your production meter registers an SREC-II credit via PJM-EIS GATS, which is paid to you as a direct cash return.
3. New Jersey State Tax Exemptions
New Jersey statute provides two additional statutory tax protections that enhance clean energy value:
- 100% Sales Tax Exemption: All solar energy equipment and installation services are completely exempt from the 6.625% New Jersey State Sales Tax under N.J.S.A. 54:32B-8.33.
- Property Tax Exemption: Installing clean energy panels increases your home’s resale market value, but under N.J.S.A. 54:4-3.113, the added value of the solar equipment is 100% exempt from local municipal real property assessments.
Verified NJ Homeowner Solar Pathways
- Zero installation payment required on approved NJ residential programs
- No personal loan obligations; tier-1 equipment provided through program partnerships
- Savings begin upon system activation under your applicable program agreement