Solar Renewable Energy Credits (SRECs) in New Jersey

For every 1,000 kilowatt-hours (kWh) of electricity produced by a solar system, the system owner earns one SREC. These credits can then be sold through the state’s SREC market, providing solar customers with an additional and often significant revenue stream.

• Reliable Income Source:
  Selling SRECs can significantly improve the financial return on a solar investment. Depending on the market, SREC prices can range from tens to hundreds of dollars each, varying based on supply and demand.
   
• Market Flexibility and Transparency:
  New Jersey offers a structured marketplace for SREC trading, supported by the New Jersey Board of Public Utilities (NJBPU). This provides transparency, a fixed trading schedule, and long-term stability.
   
• Ongoing Demand:
  As New Jersey works to expand solar capacity and meet clean energy goals—such as sourcing 50% of electricity from renewable sources by 2030—demand for SRECs is expected to remain strong, ensuring a vibrant market.
   
• Transition Programs:
  The state transitioned from traditional SRECs to the Transition Incentive (TI) program, and now to the Successor Solar Incentive (SuSI) program, with ongoing support for small and large solar systems. These changes ensure ongoing adaptability while protecting solar investors.
   

The Solar 4 All® initiative, operated by PSEG (Public Service Enterprise Group), is a unique program aimed at expanding New Jersey’s solar footprint by installing solar panels in unconventional spaces—especially on utility poles, rooftops of commercial buildings, brownfields, and other underutilized land.

This initiative is particularly beneficial for urban and densely populated areas, where space for traditional ground-mounted solar arrays is limited.

• Innovative Use of Space:
  By mounting solar panels on existing infrastructure such as utility poles, the program avoids the need for large land areas and helps make solar accessible in cities and towns.
   
• Grid Integration:
  Solar 4 All contributes directly to the local power grid, improving grid resilience and decentralizing energy generation.
   
• Environmental Benefits:
  The program helps offset carbon emissions and aligns with broader state goals to reduce dependence on fossil fuels.
   
• Scalability and Visibility:
  These installations increase public awareness of renewable energy and demonstrate how solar can be implemented creatively.
   

• Sales Tax Exemption:
  In New Jersey, solar energy systems are exempt from sales tax, lowering the overall cost of materials and equipment.
   
• Property Tax Exemption:
  The added value of a solar installation is not included in property tax assessments, meaning your taxes won't increase due to going solar.
   
• Rebates and Grants:
  The state has previously offered various rebate programs (such as through NJ Clean Energy) for solar installations, and continues to explore grant-based incentives for low-income and community solar projects.
   

• Solar Investment Tax Credit (ITC):
  One of the most powerful financial incentives for solar, the ITC allows homeowners and businesses to deduct 30% of the total cost of a solar installation from their federal taxes. This includes equipment, installation, and permitting costs.
   
• Bonus Depreciation for Businesses:
  Commercial solar system owners can also benefit from accelerated depreciation through the federal Modified Accelerated Cost Recovery System (MACRS), further improving the ROI of a solar investment.