What Is an SREC? New Jersey’s Solar Income Program Explained
May 9, 2026Solar Panel Efficiency — How Far We’ve Come
May 9, 2026These are the eight things Jon tells every homeowner before they commit to solar. Get these right and you’re set up for a strong return. Miss any of them and you’re taking unnecessary risks.
1. Check Your Roof First
If your roof is within 10 years of needing replacement, replace it before going solar. Removing and reinstalling panels for a mid-life roof replacement costs $2,000–$5,000 in labor — on top of whatever the new roof costs. Do it in the right order.
A pre-solar roof inspection by a licensed NJ roofer runs $200–$400 and is one of the best investments you can make before a solar conversation. What they’re looking at: shingle age and condition, signs of moisture in the attic, soft spots on the decking, flashing around chimneys and vents. If your roof was last replaced before 2010, get an inspection before any solar quote.
2. Pull 12 Months of Utility Bills
Your solar system should be sized for your actual annual usage, not a rule of thumb. Get 12 months of statements and add up your total kWh before any installer visits. PSE&G, JCP&L, and ACE all let you download 12-month usage history through their online portals. Print it. The difference between 10,000 kWh and 13,500 kWh is 3–4 panels and $3,000–$5,000 in system cost. Know your number before someone else estimates it for you.
3. Know Your Roof Orientation
South-facing roof with good sun exposure is ideal. East/west can work with the right inverter setup. Heavy shading from trees or neighboring structures is a real problem that needs analysis. Pull up Google Maps satellite view and look at your roof — identify which planes face south. Then walk outside at noon on a sunny day and see where the shadow falls. This gives you a quick gut check before your installer’s formal shading analysis.
4. Understand Net Metering in Your Area
In NJ, PSE&G, JCP&L, and Atlantic City Electric all offer full retail net metering. This is what makes the NJ solar economics work as well as they do. Know your utility’s specific terms before accepting any production estimate. Key facts: NJ net metering credits excess solar at full retail rate, credits roll over month to month within your annual cycle, and at your 12-month true-up, surplus credits are paid out at the utility’s avoided-cost rate — which is lower than retail. Size your system close to 100% of your annual usage, not significantly over, to maximize the value of every kWh your system produces.
5. Get Three Quotes — In Writing
Prices vary significantly between installers for the same quality equipment. Don’t sign with the first company that visits. And don’t compare monthly payments — compare total system cost and total 25-year savings. When reviewing quotes side by side, look at: price per watt, panel brand and model number, inverter type, warranty terms for panels, inverters, and workmanship separately, and whether SREC registration is included in the scope of work. A quote that doesn’t specify all of these in writing isn’t a complete quote.
6. Verify Licenses and Insurance
Your installer needs a NJ Home Improvement Contractor license from the Division of Consumer Affairs, an electrical contractor license, and adequate liability and workers compensation insurance. Ask for the license numbers and verify them at njconsumeraffairs.gov and the NJ Division of Labor website. A legitimate installer hands this information over without hesitation. One who hedges or delays when asked is a red flag — walk away.
7. Read the Contract Before Signing
The sections that matter most: escalator clauses if it’s a lease or PPA, cancellation terms and fees, warranty specifics for panels, inverters, and workmanship (these are three separate things from three separate parties), who handles permit applications and utility interconnection, and what happens if the installer company goes out of business. If anything is vague, ask for clarification in writing before you sign. In New Jersey, home improvement contracts signed at your home give you a 3-day right to cancel — but it’s much better to have clean terms from the start.
8. Plan for SRECs
Ask every NJ installer specifically: “Will you register my system in GATS for SREC income, and is that included in our contract?” This should be a standard part of the NJ installation process. GATS registration must happen before your system generates its first 1,000 kWh — because SRECs are only earned by registered systems. At $85/SREC, a 10 kW system’s first year is worth $850–$935. An installer who’s vague about GATS registration is either inexperienced with NJ requirements or not planning to do it as part of the job. Either way, it’s not the installer you want.
One More: Know Your HOA Rights
If you have an HOA or live in a planned community, NJ’s Solar Access Law (SAIL Act) protects your right to install solar. An HOA can regulate aesthetics — panel placement, color, orientation — but cannot prohibit solar outright or impose requirements that effectively prevent installation. If your HOA has been resistant about solar in the past, the law may have changed what they can enforce. A good NJ solar contractor has experience navigating HOA situations and can walk you through the process.
What to Expect on Installation Day
Installation day for a typical NJ residential solar system takes 1–2 days. A crew of 2–4 installs the racking first, then mounts and wires the panels, then runs the conduit inside the home from the attic to your electrical panel, and installs the monitoring system. The work is physical but non-disruptive to your daily routine — you don’t need to leave the home, though being available to answer questions is helpful. At the end of day one, you’ll usually have panels on the roof but the system won’t be energized yet.
The system doesn’t turn on until you receive Permission to Operate from your utility — which comes after the town inspector approves the permit and your utility processes the interconnection application. This typically takes 4–8 weeks after installation. In the meantime, your system sits dormant on the roof. This is normal — don’t let anyone tell you the system can be turned on before utility approval. Operating a solar system without PTO is a violation of your interconnection agreement and can result in your utility disconnecting your service.
First 30 Days After Turn-On
Once you have Permission to Operate and your system is turned on, here’s what to check in the first 30 days. Pull up your monitoring app (Enphase Enlighten or SolarEdge monitoring) on the first sunny day and verify every panel shows production. Any panel that reads zero on a clear afternoon has a problem — report it immediately. Check your utility bill for the first month after going solar to confirm you’re on the net metering tariff. Look for both import and export readings. If your bill still shows only regular usage with no export credit, call your utility — the net metering enrollment may not have processed correctly.
And confirm SREC registration with your installer. You should have a GATS registration confirmation by the time your first SREC is generated (roughly 60–90 days after turn-on for a typical NJ system in spring or summer). The SREC income doesn’t start until the registration date — not the install date, not the PTO date. Get this done.
Understand Your NJ Utility Before You Sign Anything
Your utility — PSE&G, JCP&L, or Atlantic City Electric — is your partner in the solar system for the next 25 years. Understanding their interconnection process, net metering terms, and program requirements before you sign with an installer saves time and prevents surprises. All three NJ utilities publish their interconnection standards and net metering tariffs publicly on their websites. The key things to confirm: the current net metering rate (full retail is current NJ policy, but verify), the interconnection application timeline for your service territory, and whether there are any distribution upgrade requirements for your area. Some NJ utility territories have grid capacity constraints that can affect interconnection timelines — an experienced local installer knows this and can flag it before you’ve committed to a project timeline.
The Bottom Line on Getting This Right
Solar done right in NJ is a genuinely excellent financial decision — one of the best available to a homeowner who wants to reduce a recurring cost, build equity, and take advantage of state incentives while they’re strong. Solar done wrong — rushed into with the first caller, on a leased system, by an installer who doesn’t handle the NJ-specific paperwork correctly — is a frustrating 25-year commitment to someone else’s financial benefit. The eight steps above are what separates the two outcomes. None of them are difficult. They just require taking the time to make a considered decision rather than a convenient one.
Find Out What Solar Saves You in Your Home
Every home is different — roof angle, usage, utility rate, and local incentives all affect your numbers. Enter your monthly electric bill below for a free savings estimate. Jon reviews every submission personally and follows up within 2 hours.
Ready to Start With These Steps for Your NJ Home?
Jon’s process is built around these same principles — site assessment, honest sizing, clean permitting, and proper SREC registration from day one. Book a free call to go through your specific home and get a straight answer on what solar looks like for you.
