New Jersey Commercial Solar Incentives
NEW JERSEY is a solar energy leader in the United States
Incentives can translate into significant savings for commercial solar installations.
New Jersey continues to lead the nation in solar market growth thanks to lower costs, solar grants, tax credits, and state incentives. By 2030, approximately 50% of New Jersey’s electricity is expected to come from clean, renewable energy sources, with solar energy increasing from 7% in 2020 to 34% of New Jersey’s electricity by 2050.1
Renewable Energy Certificates (RECS)
The environmental attributes of solar energy are monetized through marketable units called Renewable Energy Certificates (RECs), with a single REC created for each megawatt-hour (MWh) of electricity generated.
In New Jersey, RECs are currently valued in the Successor Solar Incentive (SuSI) program, with a fixed value that remains in effect for 15 years, depending on the project type and size (see the table below). For example, businesses that install a large net-metered solar system on their rooftop or carport receive $100 per MWh. In contrast, a large net-metered ground-mounted solar system receives only $85 per MWh.
ADI Incentives (SREC-IIs) per Market Segment
Effective March 13, 2023: SREC-II Incentive Level Adjustment:
| Market Segments | System Size MW (dc) | REVISED SREC-II Value | *Public Entities ($20 Adder) |
|---|---|---|---|
| Net-Metered Residential | All Sizes | $85 | N/A |
| Small Net-Metered Non-Residential located on Rooftop, Carport, Canopy and Floating Solar | Projects smaller than 1 MW | $110 | $130 |
| Small Net Metered Non-Residential Ground Mount | Projects smaller than 1 MW | $90 | $110 |
| Large Net Metered Non- Residential located on Rooftop, Carport, Canopy and Floating Solar | Projects 1 MW to 5 MW | $100 | $120 |
| Large Net Metered Non-Residential Ground Mount | Projects 1 MW to 5 MW | $85 | $105 |
| Remote Net Metering | Up to 5MW | $90 | N/A |
| Community Solar | Up to 5MW | $90 | N/A |
The NJ SuSI program funding will continue until the allocated capacity is fully utilized, so businesses should not wait to initiate a solar investment.
*”Public Entity” is defined as a customer that is a State entity, school district, county, county agency, county authority, municipality, municipal agency, municipal authority, New Jersey public college, or New Jersey public university
1 https://www.eia.gov/state/print.php?sid=NJ#103
2 https://njcleanenergy.com/renewable-energy/programs/susi-program/adi-program
Clean Electricity Investment Credit
An incentive program that lowers commercial solar installation costs for New Jersey businesses. Under the Federal program, businesses can receive a 30% tax credit for installing a solar project.
NOTE: The Clean Electricity Investment Credit Program replaces the Federal Investment Tax Credit or ITC.
Net Metering
The utility billing function involves the electricity utility crediting a business with solar energy for the excess solar electricity it generates and returns to the grid — for example, on a sunny summer day when solar generation exceeds the building’s consumption.
Businesses can use these net metering credits towards a future billing period, providing greater flexibility, increased utility bill savings, and a shorter solar payback period or higher ROI.
Community Solar Energy Pilot Program
Residents and businesses virtually connect to a solar installation within their local utility service territory. This program benefits consumers who are usually excluded from the solar market, such as renters, those with shaded properties, and those with limited roof control.
Property owners can sell or lease their property to solar developers who install and maintain the community solar farms anywhere in New Jersey, regardless of the area’s previous function.
New Jersey community solar programs are more likely to approve solar sites that repurpose or improve properties such as landfills, brownfields, condemned coal mines, and degraded lands.
Brownfields Redevelopment Incentive Program
Provides a tax credit of up to 40% or a maximum of $4 million to eligible projects. The program concludes in 2027, with a cap of $50 million that can be awarded annually. Funding through the program will be granted through a competitive application process.
Other New Jersey Incentives
Sales Tax Exemption – 100% sales tax exemption on solar equipment.
Property Tax Exemption – 100% exemption from local property tax (no state property tax).
Assessment of Farmland Hosting Renewable Energy Systems – Evaluates solar energy systems on agricultural land, with no change in tax implications.
Learn more about New Jersey Commercial Solar Incentives
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