Solar Capacity Growth and Future Outlook in New Jersey

New Jersey has experienced rapid and sustained growth in solar energy adoption, positioning itself as a national leader in the transition to renewable energy. As of early 2024, the state boasts over 4,700 megawatts (MW) of installed solar capacity, which now accounts for more than 7% of its total electricity generation. This achievement reflects New Jersey's long-standing commitment to clean energy and places it among the top states in the U.S. for solar deployment.

The state's solar market is expanding across all sectors—residential, commercial, and industrial—driven by a combination of robust policy support, favorable market conditions, and public demand for cleaner energy solutions. Programs such as the Solar Renewable Energy Certificate (SREC) market, now transitioning to the Successor Solar Incentive (SuSI) Program, continue to provide strong financial incentives, encouraging both new investments and sustained solar growth. Additionally, net metering policies and various state and federal tax incentives make solar projects more financially viable for homeowners and businesses alike.

New Jersey’s solar policies are uniquely inclusive, supporting systems of all sizes. From small rooftop panels on single-family homes to large-scale commercial and industrial installations, the state ensures that all types of solar projects can benefit from incentive structures. This approach has helped democratize solar energy access while also attracting large-scale developers looking to invest in renewable infrastructure.
 

New Jersey’s solar market is unique in its ability to serve both small- and large-scale users:

• Residential:
  Rooftop solar systems for homeowners are incentivized through net metering, state tax credits, and federal investment tax credits (ITC).
   
• Commercial & Industrial:
  Large-scale businesses benefit from solar through significant energy cost savings, SREC revenue, and enhanced sustainability credentials.
   
• Community Solar:
  The state has launched successful community solar pilot programs, allowing renters and residents without suitable rooftops to access solar savings.
   
• Agricultural & Brownfield Solar Projects:
  Special incentives and streamlined permitting encourage solar development on underutilized or contaminated lands.
   

• Transition Renewable Energy Certificate (TREC) Program
  Provided fixed compensation for solar energy, promoting predictable returns for developers.
   
• Successor Solar Incentive (SuSI) Program
  Replaces TREC and offers two incentive pathways:
   
  • Administratively Determined Incentive (ADI) for smaller projects.
     
  • Competitive Solar Incentive (CSI) for large-scale projects.
     
• Net Metering
  Allows solar system owners to receive full retail credit for excess electricity sent to the grid.
   
• Tax Incentives
  Property tax exemptions and federal ITC (currently at 30%) make solar more affordable.
   

New Jersey is planning a major scale-up of its renewable energy portfolio as part of its Energy Master Plan:

• 50% Renewable Energy by 2030
  With a significant portion coming from solar and offshore wind.
   
• 100% Clean Energy by 2050
  A bold goal that positions solar as a critical piece of the state’s long-term energy infrastructure.
   
• Workforce Development & Economic Growth:
  Solar expansion is expected to support thousands of jobs in installation, maintenance, and manufacturing across the state.
   
• Energy Storage Integration:
  The state is also incentivizing battery storage systems to complement solar, ensuring grid reliability and energy resilience.