Tesla Powerwall 3 — Mistakes to Avoid Before You Buy
May 20, 2026Why I Don’t Recommend Sunrun or Sunnova for NJ Homeowners
May 20, 2026I want to address something upfront, because I’ve seen too many homeowners get burned by outdated information in 2026: the 30% federal solar tax credit — the ITC — expired December 31, 2025. It is gone for residential homeowners. If a salesperson, a YouTube video, or a website is telling you that you can claim 30% back on your federal taxes for going solar this year, they are either uninformed or being dishonest with you. Do not make a $30,000 decision based on that information.
The good news: New Jersey and Pennsylvania both have state-level incentives that are still fully active in 2026 and make solar a smart investment without the federal credit. For businesses, non-profits, and commercial property owners, the federal 30% ITC (Section 48) is still available through December 31, 2027 — I’ll cover that below. Let me walk through every incentive that applies to residential and commercial solar in both states.
For New Jersey and Pennsylvania homeowners specifically: NJ has some of the strongest state solar incentives in the country. The SuSI program — New Jersey’s current solar income program — generates $935–$1,062 per year for a typical residential NJ solar installation, on top of your electric bill savings. PA homeowners in Bucks County have their own SREC market and property tax protections. Understanding these incentives is the difference between a system that pays back in 8 years and one that takes 13.
New Jersey Incentives — The Full Picture
SuSI: New Jersey’s Current Solar Income Program
SuSI stands for Successor Solar Incentive — New Jersey’s solar income program launched in 2021 to replace the original SREC market (which had volatile, much higher pricing driven by limited supply). SuSI uses an ADI (Administratively Determined Incentive) structure for residential and small commercial systems, with a fixed rate set by the NJ Board of Public Utilities.
For every 1,000 kWh (1 MWh) of electricity your residential solar system produces, you earn one SREC-II certificate. The current ADI rate is $85 per SREC-II for residential net-metered systems. Small commercial rooftop systems earn $110 per SREC-II. You sell those certificates to NJ utilities through a broker, and they pay you quarterly.
Here’s the math for a typical NJ home. A 10 kW solar system in central New Jersey produces roughly 11,000–12,500 kWh per year. That’s 11–12.5 SREC-IIs annually. At $85 each, you’re earning $935–$1,062 in SuSI income per year — every year for 15 years — on top of your electric bill savings.
Over the 15-year program life, that’s $14,025–$15,938 in SuSI income from a 10 kW system. No federal tax credit needed.
A few important points about the SuSI program:
- Your system must be registered in GATS (PJM’s Generation Attribute Tracking System) to earn SREC-IIs. Your installer handles this — make sure they do it promptly after interconnection, not six months later.
- You sell SREC-IIs through a broker (most common), through the NJ market directly, or through a long-term fixed-price contract. Most homeowners use a broker who handles the transactions and sends quarterly payments.
- The $85 rate is the current ADI rate for new residential systems. Once your system is registered and assigned a rate, that rate is locked in for your full 15-year program life.
- SREC-IIs belong to the system owner — not to anyone who leases the system. If you sign a solar lease or PPA, the leasing company keeps all SuSI income.
Commercial and Non-Profit Solar Incentives in NJ — Still Strong Through 2027
If you own commercial property, run a business, or represent a non-profit, house of worship, or tax-exempt organization, the incentive picture is meaningfully better than for residential homeowners right now.
30% Federal ITC (Section 48): The commercial solar investment tax credit is still alive and applies to commercial solar installations placed in service through December 31, 2027. A business that installs a $100,000 solar system gets $30,000 back against its federal tax liability. This is the same credit that expired for residential homeowners — it just applies to a different tax code section for commercial entities.
Non-profit and tax-exempt organizations — direct pay: Under the IRA’s elective payment provision, tax-exempt organizations (501(c)(3) non-profits, churches, temples, mosques, municipal buildings, schools) can receive the 30% credit as a direct cash grant from the IRS — even though they don’t pay income taxes. A house of worship that installs $200,000 in solar before end of 2027 can receive $60,000 in cash from the IRS. This is one of the least-known incentives in the market, and it ends December 31, 2027.
Commercial SuSI rate: Small commercial rooftop and carport solar systems in NJ earn $110 per SREC-II (vs. $85 for residential). On a 50 kW commercial system producing 60 MWh/year, that’s $6,600/year in SuSI income.
Net Metering in New Jersey
Net metering is how you get credit for excess solar production that goes back to the grid. In NJ, net metering works at full retail rate — when your panels produce more than you’re using at that moment, the excess goes to the grid and your utility credits your account at the same per-kWh rate you pay for electricity.
This is significantly better than what some other states offer. In California, NEM 3.0 reduced export rates to roughly a third of retail value. In New Jersey, you still get full retail credit — currently $0.18–$0.22 per kWh with PSE&G, JCP&L, and ACE depending on your rate class.
NJ net metering credits roll over month to month. Excess credits from your high-production summer months carry over to offset your winter bills. Annually, any remaining credits are reconciled at the avoided-cost rate — so the goal is to size your system to cover your annual consumption, not to generate large surpluses you’ll lose at reconciliation.
New Jersey Property Tax Exemption
Solar installations in New Jersey are completely exempt from property tax assessment under NJ law (N.J.S.A. 54:4-3.113). Adding a $25,000–$35,000 solar system to your home does not increase your property tax bill by a single dollar. This is written into state statute and applies statewide.
In NJ towns with property tax rates of $18–$25 per $1,000 of assessed value — which describes much of Middlesex, Monmouth, and Burlington counties — the exemption is worth $450–$875 per year in avoided tax on a $35,000 installation. That’s $4,500–$8,750 over a 10-year period. Not a small number.
New Jersey Sales Tax Exemption
Solar panels, inverters, batteries, and installation labor are exempt from New Jersey’s 6.625% sales tax when installed as part of a solar electric system. On a $30,000 system, that’s $1,987 that never shows up on your invoice. Your installer applies it automatically — you shouldn’t see NJ sales tax on a solar contract. If you do, ask about it.
NJ Utility Programs
PSE&G offers a Solar Loan Program for qualifying customers — a financing mechanism where PSE&G purchases some of your SuSI SREC-IIs upfront to fund your installation. If you’re a PSE&G customer considering this program, understand the terms carefully: you’re trading future SuSI income for upfront capital, which changes your long-term economics. It can work well in the right situation; run the numbers before committing.
Pennsylvania Incentives — Bucks County Focus
Pennsylvania SREC Program
Pennsylvania has its own SREC market, though prices are significantly lower than NJ’s. PA SRECs currently trade at $35–$55 per certificate. For a 10 kW system producing 12 MWh annually, that’s $420–$660 per year in SREC income — meaningful, but a fraction of NJ’s SuSI income at the same system size.
To earn PA SRECs, your system must be registered with PJM-GATS. Your installer should handle this registration. Make sure they do — unregistered systems earn nothing from SRECs even if they’re producing power.
PA SREC prices are lower than NJ’s primarily because Pennsylvania’s Alternative Energy Portfolio Standard has less stringent solar carve-out requirements than NJ’s, creating less utility demand. If your property is in Bucks County close to the NJ line, ask your installer whether your system could be eligible for NJ SREC registration — some installations near the border may qualify.
Net Metering in Pennsylvania
Pennsylvania utilities including PECO offer net metering at retail rate for residential solar customers. Excess production credits roll over monthly and are reconciled annually, similar to NJ’s structure. PECO’s current residential electric rate is approximately $0.14–$0.16 per kWh, lower than NJ utilities, which affects the net metering value and overall system economics.
Pennsylvania Property Tax Exemption
Pennsylvania does not have a statewide property tax exemption for solar the way NJ does. However, many PA municipalities and counties exempt solar from local property tax assessment. In Bucks County — where we do most of our PA work — the majority of townships have enacted local solar property tax protections. Check with your specific township before assuming you’re covered or not covered. Doylestown, Newtown, Warminster, and Langhorne have all recognized solar’s value in most cases.
What’s Completely Gone in 2026 (for Residential)
The federal Investment Tax Credit (ITC) — 30% of your total system cost as a credit against your federal income tax — expired December 31, 2025 for residential homeowners. There is no grace period. There is no “I signed a contract in 2025 so I get the credit.” The credit applies to systems placed in service by the expiration date.
Any solar company quoting a residential system in 2026 that includes the federal ITC in the financial projections is either running old software or deliberately misleading you. Throw that quote out and get a new one from someone who knows the current rules. The commercial and non-profit credits (Section 48 and direct pay) still apply — but those are business-owned installations, not residential.
The Real Payback Math for NJ and PA in 2026
Two honest examples with current numbers. No federal ITC included for residential.
NJ Example — 10 kW system in Marlboro, NJ, PSE&G customer:
Installed system cost: $28,000–$32,000. Electric bill savings at $0.20/kWh: $2,200/year. SuSI SREC-II income at $85 × 11 SRECs: $935/year. Total annual benefit: $3,135/year. Payback period: approximately 9–10 years. Net benefit over 25 years (accounting for 4% annual utility rate increases and 15 years of SuSI income): $75,000–$90,000.
PA Example — 9 kW system in Newtown, PA, PECO customer:
Installed system cost: $25,000–$29,000. Electric bill savings at $0.15/kWh: $1,650/year. PA SREC income at $45 × 10 SRECs: $450/year. Total annual benefit: $2,100/year. Payback period: approximately 12–14 years. Net benefit over 25 years: $46,000–$58,000.
The PA numbers are less compelling than NJ’s — primarily because PECO’s electricity rates are lower and PA’s SREC prices are a fraction of NJ’s. NJ solar economics are genuinely strong. PA economics work, but they require a longer view.
Frequently Asked Questions
How do I actually receive my NJ SuSI SREC-II payments?
Once your system is registered in GATS, you’ll begin accruing SREC-IIs as your system produces power. You sell them through an SREC broker — companies like SRECTrade, Flett Exchange, or Sol Systems — who take a small commission and handle the transaction with utilities. Payments typically come quarterly. Your installer should set you up with a broker at the time of installation.
Is the NJ SuSI rate guaranteed to stay at $85?
Once your system is registered and assigned an ADI rate, that rate is locked in for your full 15-year program life — regardless of future BPU rate adjustments. New systems may get a different rate in future years if the BPU adjusts it, but existing registered systems keep their assigned rate. The structural drivers of the SuSI program — NJ’s Renewable Portfolio Standard requirements — are intact and extended through 2030 and beyond.
Can non-profits get a 30% solar credit in NJ?
Yes — through a different mechanism than the standard residential credit. Tax-exempt organizations (non-profits, churches, temples, mosques, schools, municipalities) can receive the 30% federal commercial solar credit as a direct cash payment from the IRS via the IRA’s elective payment provision. A non-profit that installs solar before December 31, 2027 can receive 30% of the system cost in cash — no tax liability required. This is a significant incentive and most non-profit boards don’t know about it. Call Jon for details specific to your organization.
Does adding a battery storage system affect my NJ SuSI income?
A battery storage system installed with solar qualifies for the same NJ property tax exemption and sales tax exemption as the solar panels. Batteries charged by solar produce SREC-IIs — the production that charges the battery is still counted by your utility production meter. Adding storage does not reduce your SuSI earnings as long as you’re charging the battery from your solar panels, not from the grid.
How does NJ net metering work if I move?
Your net metering agreement is attached to the property, not to you personally. If you sell your home, the net metering agreement transfers to the new owner along with the solar system. NJ law requires utilities to honor existing net metering agreements for systems installed under the current rules — a significant protection for resale value. NJ solar homes consistently sell faster and at higher prices than comparable non-solar homes.
Want the Real Numbers for Your Specific Home?
If you want an honest financial projection for your specific home — your utility, your usage, your roof — with current NJ or PA incentives and no federal ITC fantasy math — reach out. I’ll walk you through what the system actually costs, what it actually earns, and what the real payback looks like.
