Net Metering Programs & Solar In New Jersey

Overview

• Eligibility: New Jersey's net metering program is available to both residential and commercial solar customers. The program enables solar system owners to receive credits for the excess electricity their solar panels generate and send to the grid.

How it Works

• Excess Generation Credits: During the day, when solar energy production is highest, any excess power produced by solar panels is fed back into the grid. Customers are credited for this excess energy, which can be used to offset future electricity consumption, particularly during the night or on cloudy days when the system’s output is lower.
   
• True-Up Payments: Unlike some other states, New Jersey’s net metering policy allows for true-up payments at the end of the year for any excess energy that has not been consumed or credited. This means that if a customer’s solar system produces more energy than they use over the course of the year, they can receive a payment or credit at the utility's rate for the surplus.
   
• Credit for Future Consumption: The credits for excess energy are applied to future utility bills, helping solar customers offset their electricity costs over time. For businesses or homes with larger solar installations, this is a major cost-saving tool.
   

Annual True-Up Process

• At the end of the annual billing cycle, a true-up process occurs to settle any remaining credits. Customers will either receive a credit or a payment from their utility provider for the energy they contributed back to the grid, ensuring that no energy is lost.