PSE&G is the largest utility in New Jersey, serving roughly 2.3 million electric customers across Central and Northern NJ. If you’re a PSE&G customer thinking about solar, you’re in one of the most favorable situations in the state — PSE&G’s retail electricity rates are among the highest in NJ, which means the financial return on solar is correspondingly strong. Here’s exactly what your numbers look like.

I’ve installed solar for PSE&G customers across Marlboro, Hamilton, Edison, Woodbridge, Parsippany, Bridgewater, and dozens of other PSE&G service territory towns. These aren’t projections from a calculator — they’re based on what I see on real bills and real systems.

What PSE&G Customers Are Actually Paying

PSE&G residential customers are paying approximately $0.18–$0.22 per kilowatt-hour for electricity in 2026, depending on their rate class and monthly usage. The exact number varies:

• Standard residential (RS): approximately $0.18–$0.19/kWh including all delivery and supply charges
• Residential low income (RLIS): lower, but typically not solar candidates
• Time-of-use (EV rate): varies by time of day; solar owners on TOU should model carefully

For planning purposes, I use $0.20/kWh as a reasonable blended rate for Central NJ PSE&G customers. Your December or January annual summary bill shows your actual average cost per kWh for the prior 12 months.

How PSE&G Net Metering Works

PSE&G offers full retail rate net metering for residential solar customers. When your panels produce more electricity than your home is using at that moment, the excess flows to the grid and PSE&G credits your account at the same rate you pay to buy electricity.

Monthly rollover: Net metering credits roll forward month to month. You accumulate credits through June–August (peak production) and spend them through November–February (lower production, higher heating-related consumption). You see this as a “net metering credit” line item on your PSE&G bill each month.

Annual true-up: At the end of your 12-month net metering period, PSE&G settles any remaining credit balance. Excess credits are typically paid out at the avoided cost rate (roughly $0.06–$0.09/kWh) rather than the full retail rate. The practical implication: size your system to use most of your production over the year, not to generate a large surplus that gets paid out at a fraction of retail value.

Fixed monthly charges: Net metering reduces your energy charges to near-zero on a well-sized system. But PSE&G, like all NJ utilities, charges fixed monthly fees (customer charge, meter charge) that continue regardless of solar production. These typically run $10–$20/month and represent the minimum bill PSE&G customers with solar pay.

Real Numbers: What the Bill Looks Like

I quoted a PSE&G customer in Marlboro last month. Her bill was averaging $240/month — $2,880/year. She uses about 14,400 kWh annually (above average — she has a pool pump and older appliances). I designed a 10kW system for her using REC Alpha Pro panels and Enphase IQ8 microinverters.

What her PSE&G bill will look like after solar:

• June–August: $10–$20/month (fixed charges only — panels produce more than she uses)
• March–May, September–October: $15–$40/month (near-zero net energy; fixed charges plus small draw on cloudy stretches)
• November–February: $20–$60/month (shorter days, longer nights; drawing credits built up in summer)

Annual total PSE&G bill after solar: approximately $240–$480/year vs. $2,880/year before solar. Annual savings: approximately $2,400–$2,640/year on her utility bill alone.

On top of that: NJ SuSI SREC-II income at $85/SREC-II. A 10kW system in Marlboro (south-facing, slight shading from backyard oaks) will produce approximately 10,500–11,500 kWh per year, earning 10.5–11.5 SRECs worth $892–$977/year. Total year-one benefit: approximately $3,300–$3,600.

How PSE&G Solar Billing Actually Works Month to Month

Your PSE&G bill after solar will look different from what you’re used to. Here’s how to read it:

Generation/supply charges: These reflect net energy — what you used minus what you produced during the billing period. In a good production month, this line may be negative (a credit).

Net metering credit: If your production exceeded your usage for the period, you’ll see a net metering credit applied. This credit carries forward.

Distribution/delivery charges: These are partially fixed (customer charge, meter charge) and partially usage-based (distribution kWh charges). Your solar reduces the usage-based portion but not the fixed charges.

What to check monthly: Confirm your system is producing what it should (your Enphase Enlighten app shows daily production), and that your PSE&G bill reflects net metering credits. If you see large energy charges in summer when production should be high, something is wrong with either the billing or the system.

PSE&G-Specific Programs for Solar Customers

PSE&G Solar Loan Program: PSE&G has historically offered a solar loan program where they advance money against future SREC income — essentially purchasing your SuSI certificates upfront to help finance your installation. If this program is currently available, understand the terms carefully: you’re trading 15 years of SuSI income for upfront capital, which changes your total financial return. Whether it’s worthwhile depends on your cost of capital and whether you qualify.

Community Solar: PSE&G customers who can’t install rooftop solar (apartment dwellers, shaded roofs) can subscribe to a community solar project and receive bill credits for a share of a larger solar farm’s production. This is different from owning your own system — you receive credits, not SuSI SREC-II income.

PSE&G Interconnection Timeline

PSE&G interconnection approval — the utility permission required before your system can legally operate — typically takes 4–8 weeks. This is within the normal NJ utility range. JCP&L interconnection has historically been somewhat faster; ACE sometimes longer. Plan for 8–12 weeks from contract to system on when PSE&G interconnection is required.

Your installer handles the interconnection application and coordinates with PSE&G’s interconnection team. You don’t need to manage this yourself — but ask your installer for the interconnection application number so you can track status if needed.

Is Solar Worth It for PSE&G Customers?

With PSE&G rates at $0.18–$0.22/kWh and NJ SuSI SREC-II income adding $900–$1,000/year, the answer is clearly yes for most PSE&G residential customers with adequate roof area and reasonable solar exposure. The 7–9 year payback with 16–18 years of near-free electricity following creates a 25-year return of $75,000–$90,000 on a $26,000–$30,000 system for a typical 10kW installation.

PSE&G’s rates are higher than the national average — and that’s exactly why the solar math works so well for their customers. Every 1% increase in PSE&G’s rates makes solar proportionally more valuable. PSE&G rates have increased an average of 4–5% per year over the past decade. Each rate increase makes the solar investment look better in hindsight.

Frequently Asked Questions

How much does the average PSE&G customer save with solar?

A PSE&G residential customer paying $200–$250/month sees their bill drop to $10–$30/month after a properly sized solar installation. Annual savings: $2,000–$2,600 on the utility bill, plus $900–$1,000/year in NJ SuSI SREC-II income. Total annual benefit: $2,900–$3,600, depending on system size and usage.

How does PSE&G net metering credit work?

PSE&G credits your account at the full retail rate for every kWh your panels export to the grid. Credits roll forward month to month. At your annual settlement, any remaining credit is paid out at the avoided cost rate (lower than retail). The practical rule: size your system to cover annual usage, not to generate a large year-end surplus.

Can I sell power back to PSE&G?

Under net metering, you receive bill credits for excess production — not a direct payment (except at annual settlement for any remaining credit). NJ’s full retail rate credit is one of the best net metering structures in the country and functions economically similar to selling power back at retail, but it appears as a bill credit rather than a cash payment until year-end settlement.

Does PSE&G service territory affect my SuSI SREC-II income?

No — NJ SuSI SREC-II income is based on where your solar system is located (any NJ address) and how much it produces, not on which utility serves you. PSE&G, JCP&L, and ACE customers all earn SRECs under the same NJ SuSI ADI structure ($85/SREC-II for residential).

How long does PSE&G interconnection approval take for solar?

Typically 4–8 weeks from application submission to approval. Your installer handles the application. Total time from signed contract to system on typically runs 8–12 weeks, including municipal permitting (2–4 weeks) and PSE&G interconnection (4–8 weeks). The installation itself takes 1–2 days once approvals are in hand.

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How PSE&G Net Metering Actually Works — The Mechanics

PSE&G’s net metering program credits solar customers at the full retail electricity rate for every kWh exported to the grid. Here’s how the billing cycle works in practice.

Your solar system produces power during the day. When production exceeds your home’s real-time consumption, the excess goes to the grid and your meter runs backward — you’re banking credits. When consumption exceeds production (evenings, cloudy days, high-load periods), you draw from the grid and those credits offset what you’d otherwise pay.

PSE&G bills monthly with net metering on a 12-month rolling basis. Credits roll forward month to month within the year. At your annual true-up date — typically your anniversary month with the solar system — any remaining excess credits settle at the avoided cost rate rather than full retail. This is why right-sizing your solar system matters: a system significantly larger than your annual usage generates more annual excess than you can use at full retail value, and the surplus settles at a lower rate.

The practical implication for sizing: design for 95–105% of your annual kWh usage, not 120–130%. A larger system looks better on paper but the economics erode when the excess credit settlement rate kicks in at true-up.

The PSE&G Interconnection Process — Timeline and What to Expect

PSE&G’s interconnection process for residential solar runs through their Green Team. After your installer submits the interconnection application — which happens after permits are approved and the system is installed — PSE&G reviews the application, may require an upgrade to your meter, and schedules a utility inspection before granting Permission to Operate (PTO).

Current PSE&G interconnection timeline in most of central NJ: 6–10 weeks from application submission to PTO under normal queue conditions. This can stretch during periods of high volume or if your distribution area has capacity constraints that require a grid study. Your installer should know the current queue conditions in your PSE&G service territory and give you a realistic expectation, not just the technical minimum.

One PSE&G-specific thing to know: in some service territories, particularly older distribution infrastructure areas, PSE&G may require a transformer upgrade or distribution line work before approving interconnection. This is uncommon for standard residential systems but does happen. A good NJ installer will flag this risk upfront if your address is in an area where it’s been an issue.

PSE&G Solar Loan Program — Still Available

PSE&G operates a solar loan program for residential customers that is worth knowing about. The PSE&G Solar Loan provides low-interest financing for residential solar installations in PSE&G service territory, structured as a tariff on your utility bill rather than a traditional loan. Terms and availability change periodically — check PSE&G’s website for current program status.

The PSE&G loan has historically offered competitive rates and a streamlined application process for customers who prefer to finance through their utility rather than through installer-arranged financing. The tradeoff: the loan is tied to your PSE&G account and the property, which has implications if you sell the home before the loan is paid off. Discuss this with your installer and your real estate attorney if you’re planning to sell in the next 5–7 years.

Running Your Real Numbers as a PSE&G Customer

Here’s the actual math for a PSE&G customer with average NJ usage. Average NJ household electricity consumption is around 8,400 kWh/year. PSE&G’s current residential rate, blended across supply and distribution, is approximately $0.18–$0.22/kWh depending on your rate class and current fuel adjustments. A 9 kW solar system in central NJ generates roughly 10,350 kWh/year, offsetting essentially all of that usage. At $0.20/kWh average, that’s $2,070 in avoided electricity costs per year. Add SREC income of approximately $850/year (10 SRECs × $85) and the combined annual benefit is $2,920 — against a system cost of $23,400–$27,000 for a 9 kW install. That’s an 8–9 year payback before financing costs, which in NJ with today’s incentive structure represents an excellent return on a 25-year asset.

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