Quick answer: For many New Jersey homeowners, yes. The 30% federal tax credit for buying solar ended on December 31, 2025, but New Jersey still pays you for the power your panels produce, credits extra power back on your bill, and skips sales tax and property tax on the system. Whether it works for your home comes down to your roof, your electric usage and the price you are quoted, which is why comparing more than one offer matters more than ever.
If you looked at solar a year or two ago and are looking again now, the numbers probably feel different. The big federal incentive is gone, electric bills in New Jersey have jumped, and every company you talk to seems to tell a different story. This guide lays out what actually changed, what New Jersey still offers, and how to tell if solar makes sense for your home.
What changed for solar in 2026?
The biggest change is federal. The One Big Beautiful Bill Act, signed on July 4, 2025, ended the Residential Clean Energy Credit (often called the 30% solar tax credit) for systems placed in service after December 31, 2025. If you buy a system with cash or a loan and it goes live in 2026, there is no federal credit to claim on your taxes.
There is one exception worth knowing. Companies that own solar systems and lease them to homeowners (leases and power purchase agreements) can still use a separate business credit through the end of 2027 under current rules. That can show up as a lower monthly cost on a lease. We break this down in our guide on whether to lease or buy solar in New Jersey.
What New Jersey still offers homeowners
Here is the good news. New Jersey never relied only on the federal credit. The state has its own set of benefits, and they are still in place.
| Benefit | What it means for you |
|---|---|
| ADI program (SREC-II) | New Jersey pays system owners a fixed amount for every megawatt hour their panels produce, locked in for 15 years. For new residential systems registered on or after July 27, 2026, the rate is $77 per MWh. |
| Net metering | Extra power your panels send to the grid earns credits on your bill at the retail rate, with a yearly settlement for anything left over. |
| Sales tax exemption | Solar equipment and installation are exempt from New Jersey’s 6.625% sales tax. |
| Property tax exemption | Solar adds value to your home, but it does not have to raise your property taxes. You file for the exemption with your local tax assessor. |
| Community solar | If your roof is not a fit, you may be able to subscribe to a community solar project and get bill credits without panels on your house. |
One thing to keep an eye on: in 2026 the New Jersey Board of Public Utilities started a review of how net metering works. Nothing has changed for homeowners yet, but it is a good reason to understand the rules at the time you sign, not just today’s headlines.
Why your electric bill matters more than the tax credit
Solar is really a decision about where your electricity money goes. You are already paying for power every month, and you have no say over what that rate does next.
New Jersey homeowners felt that in June 2025, when the yearly state electricity auction pushed bills up roughly 17% to 20% depending on the utility. Rates held mostly steady after the 2026 auction, but JCP&L has since asked regulators for a rate increase that could raise residential bills by close to 9%. When you produce a large share of your own power, those swings hit you a lot less.
When solar usually makes sense in New Jersey
- Your roof gets good sun for most of the day, with little shade from trees or nearby buildings.
- Your roof is in good shape, or you are planning to replace it anyway.
- Your electric bills are steady or high, especially in summer.
- You plan to stay in your home for several years, or you understand how a system transfers when you sell.
- You can get more than one quote and compare the full picture: price, equipment, warranties and ways to pay.
When solar might not be the right move
- Your roof is heavily shaded or faces the wrong direction.
- Your roof needs replacing soon and you are not ready to do that first.
- Your electric usage is very low, so there is not much bill to offset.
- The only offer you have is from a company pushing you to sign the same day.
From the Horizon Home team: The homeowners who get the worst deals usually are not the ones who picked the wrong panel. They are the ones who only saw one offer. Two quotes for the same house can look completely different once you line up the price per watt, the equipment, the warranty and the true monthly cost. That gap is where most of the savings are.
Frequently asked questions
Can I still get the 30% solar tax credit in 2026?
Not if you buy the system. The homeowner credit ended for systems placed in service after December 31, 2025. Leased systems may still benefit indirectly, because the company that owns the system can claim a business credit through 2027 under current rules.
Do I still get paid for the power my panels make in New Jersey?
Yes. If you own your system, you can register it in the state’s ADI program and earn a fixed payment for the power it produces for 15 years. With a lease, the company that owns the system usually keeps those payments.
Will solar raise my property taxes in New Jersey?
No, as long as you file for the exemption. New Jersey lets you exclude the value of your solar system from your property assessment. Your installer or your local tax assessor can tell you what paperwork is needed.
The bottom line
Solar in New Jersey is not the automatic win some salespeople make it sound like, and it is not dead either. For a lot of homes it still makes strong financial sense. The only way to know for your home is to see real numbers side by side.
That is what we do. Horizon Home compares offers from multiple solar companies so you can see pricing, equipment, warranties and ways to pay in one place, with no pressure to sign anything. Get your free solar comparison.
Sources: IRS Residential Clean Energy Credit, New Jersey Board of Public Utilities, New Jersey Clean Energy Program.
